Friday, July 12, 2024
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More donor confidence for Chakwera administration as World Bank and Malawi Ink Social Protection Pact

Chithyola-Banda

Minister of Finance and Economic Affairs Simplex Chithyola-Banda highlighted yesterday at the Bingu International Convention Centre in Lilongwe that the increased involvement of additional donor partners in the Social Protection Multi-Donor Trust Fund (MDTF) signifies the international community’s trust and confidence in the Chakwera led administration. Chithyola said this when he signed with the World Bank, himself on behalf of Malawi, a financing agreement totaling approximately US$500 million to support the implementation of social protection programs in Malawi.

Chithyola-Banda specified that out of this sum, around US$439.5 million originates from the World Bank IDA contribution, while US$73.8 million comes from MDTF Donors such as USAID, the Government of Iceland, European Union Delegation, Norway, UK-FCDO, and Ireland.

“The ceremony is a testimony that the MDTF is indeed a right vehicle for delivering social safety nets in a coordinated manner and the pooling of resources supports government’s efforts of reducing aid fragmentation and transaction costs through streamlining delivery and reporting systems.

The MDTF funds are administered under a single governance structure, disbursed through a single window towards Malawi’s integrated and shock-responsive social protection system thereby helping strengthen government ownership and leadership in line with aid and development effectiveness principles enshrined in Paris Declaration on Aid Effectiveness of 2005 and recently, the 2022 Global Partnership for Effective Development Cooperation,” he said.

In his remarks, the European Union Ambassador Rune Skinnebach said the Malawi Social Protection MDTF under the Social Support for Resilient Livelihoods Project (SSRLP) will also cushion those vulnerable to climatic shocks, necessitating a rapid response to a more resilient and satisfying future.

He called upon government to uphold the highest standards in ensuring that the funds benefit the poorest and most marginalised people.

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