ADB to double funds for Malawi
Dr. Kaberuka, who also opened an ADB Malawi country office in Lilongwe yesterday, said the bank has been compelled to take this step due to Malawi's good economic performance.
“We would scale up our resources to about US$200m in the next three years from US$80m on the back of increased donor support to the country,” he said.
He said the other reason this has been possible is due the bank's "new soft window lending cycle 2008-2010."
Since the bank's first intervention in 1969, it has committed about US$1bn in development assistance to Malawi.
While lauding the bank's gesture, Goodall Gondwe, who is also ADB group governor, requested the bank to rid itself of rigidity within the system, which he warned could eventually impede its operations.
“It is large things to have a large amount pledged to the country and another to put it to effective use. There are problems which we can't deny in areas of technical and administrative capacity but we are doing something about it,” said Gondwe who could not elaborate further.
Finance Ministry's public relations consultant, Ephraim Munthali said while in Malawi Dr. Kaberuka who will be winding up his visit on 31 July will hold discussions with Finance Minister Goodall Gondwe and Economic Planning and Development Minister Ken Lipenga.
Dr. Kaberuka will also pay a courtesy call on the State President, Dr. Bingu wa Mutharika.
“The main objective of the visit is to conduct dialogue with the Government of Malawi on Malawi's development programmes and the role that the bank can play to support the efforts of the government,” the bank said in a statement released before his arrival.
The bank further explained that, in collaborations with other donor partners, it intends to achieve this in helping Malawi address development challenges as articulated in Malawi's poverty reduction strategy called "the Malawi Growth Development Strategy."
So far there are nine on-going operations amounting to US$170m in the sectors of water, agriculture and rural infrastructure in Malawi, financed by ADB.
This month the bank approved a US$47m loan to the country's National Water Development Programme.
