Government Hailed For EU Budget Support Resumption
Governance and Human Rights advocate Undule Mwakasungula has commended government for the sound fiscal monetary policies that have resulted into enticing the European Union (EU) to resume the budgetary support to Malawi after a decade-long pause.
The EU has allocated €55 million, with €50 million directed towards budgetary support over 30 months, a significant move signaling the EU’s trust in Malawi’s governance reforms, financial accountability, and sectoral improvement under President Lazarus Chakwera’s leadership [document).
In an interview Mwakasungula hinted that the EU’s support is a strong endorsement of Malawi’s efforts to enhance transparency, accountability, and efficient resource use through its Public Financial Management framework highlighting the importance of maintaining a positive diplomatic relationship with the international community, especially during global financial constraints.
“Government should be commended, maintaining donor confidence requires continued diligence from the government. Any missteps could jeopardize future support, and the international community have been closely watching,” said Mwakasungula.
As Governance and Human Rights Advocate Mwakasungula notes, this moment is not just about funds but about rebuilding Malawi’s reputation as a nation committed to transparency, good governance, and development-oriented leadership.
On Wednesday (16 October 2024), the European Union (EU) has signed a 55 million EUR financing agreement with the Government of Malawi representing a significant milestone in the partnership between Malawi and the EU, marking the resumption of its budget support at a critical time for Malawi.
With a total value of EUR 55 million, of which EUR 50 million is allocated as direct budget support over a 30-month period, the programme aims to enhance efficiency, effectiveness, and quality in the delivery of secondary education services by combining support for sector-specific processes with the strengthening of the overarching Public Financial Management framework. A first disbursement of EUR 20 million is envisaged before the end of the year.
Speaking at the ceremony, which took place in Lilongwe, EU Ambassador Rune Skinnebach said “Today’s agreement is a powerful symbol of renewed collaboration and commitment to our shared goals of stability, progress, and inclusive development in Malawi, delivering on EU’s Global Gateway initiative”.
Minister of Finance, Simplex Chithyola Banda hailed the EU for the resumption of the budget support after a 10 year break saying it aligns with the priorities under Malawi 2063, as well as the European Union’s Global Gateway investment strategy, which aims to support a strong, inclusive, green, and digital transformation in the country, while enhancing living standards and promoting long-term, inclusive growth
