Wednesday, November 29, 2023

EU to consider direct budgetary support to Malawi

Chakwera with EU Commissioner

Following massive corruption, the cash gate of 2013 being the tip of the iceberg and the lack of good governance, most development partners suspended direct budgetary support to the government. However, President Chakwera is on a diplomatic charm offensive in Doha where the Least Developed Countries (LCD) are meeting under the auspices of the United Nations to discuss ways how they can move out of poverty.

The Malawi leader on Tuesday met Commissioner Jutta Urpilainen of the European Union (EU) on the sidelines of the 5th LDC summit.  To move to middle-income country status, Chakwera said during this meeting that LDCs need a proper domestication of the Doha Plan of Action from which the LDCs will grow through the Sustainable Development Goals.

The Doha Programme of Action has six focus areas, viz.  focusing on investing in people in the least developed countries: eradicating poverty and building capacity to leave no one behind; Leveraging the power of science, technology, and innovation to fight against multidimensional vulnerabilities and to achieve the SDGs, Supporting structural transformation as a driver of prosperity; Enhancing international trade of least developed countries and regional integration; Addressing climate change, environmental degradation, recovering from COVID-19 pandemic and building resilience against future shocks for risk-informed sustainable development and mobilizing international solidarity, reinvigorated global partnerships and innovative tools and instruments: a march towards sustainable graduation.

On his part, Chakwera said the growing public debts among LDC member countries are slowing down efforts of graduating to middle-income status. The Malawi leader singled out this problem as chief among many that in turn has been perpetuating poverty in the LDCs.

President Chakwera further said that global shocks such as the Covid pandemic and wars have negatively affected Malawi’s economic growth in recent years.

On this president Chakwera while expressing gratitude for the EUs support to the country’s development endeavors, appealed to the EU to consider resuming budgetary support to the country arguing the support will invigorate the forex inflow on the market. Responding, the EU promised that they will consider the request and they indicated that they may resume financing some targeted areas such as education.

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