Original Malawi road sign

© Isla Castañeda/UMN/afrol News

afrol News, 28 January - The European Union (EU) today approved a euro 70 million grant to maintain and improve Malawi's transport sector. As a sign of trust, the large grant was given as a loosely defined budget support.

Today, a new programme supporting Malawi's transport sector was signed in Lilongwe over a total amount of grant funding of euro 70 million by the Minister of Finance, Ken Kandodo, and the EU Ambassador to Malawi, Alexander Baum.

"The funding will notably help to reduce Malawi's transport costs and thereby contribute to economic growth and poverty reduction," according to a statement forwarded to afrol News by the EU delegation in Lilongwe.

The EU grant would "contribute to the improvement of Malawi's transport sector by supporting the maintenance of the existing road network and by providing adequate capacity building. The EU will also help the Malawi government to develop a multi-modal transport framework with a view to attracting funding from other development partners and the private sector," according to Ambassador Baum.

As a novelty in Malawi, the EU for the first time is granting a sector budget support to the Southern African country. This means that the EU as a donor will have less control over how the funds are spent, leaving it up to Malawian decision-makers to define concrete projects within the programme.

A budget support grant from the EU signals that this main donor has gained new trust in Malawi authorities, along with several bilateral European donors and the US. Only some years ago, corruption scandals involving development aid funds caused several donors to downscale their programmes in Malawi.

However, the EU statement makes it clear that the donor will maintain some control over how the grant will be used. Funds are to be spent after "policy dialogue between the Malawi government, development partners involved in the transport sector, civil society, and the private sector."

Also, the full grant will not be disbursed at once, but over four years, with the EU being able to assess the programme implementation from year to year. New funds would only "be released after a positive review of the transport sector by the Malawi government together with development partners, civil society, and the private sector."

Not only does the new transport sector grant represent greater donor trust in Malawi authorities, it also indicates that development aid volumes for Malawi are rising. 2010 was already a record year for EU development aid to Malawi, according to its Lilongwe mission, and grants in 2011 could become even greater.

Also other donors place their trust in Malawi's current government and its development plans. Earlier this year, the US development agency MCC promised a record grant amounting to US$ 350.7 million to develop Malawi's outdated power supply.

By staff writer

© afrol News

Tweet

Printable version

On the Afrol News front page now

UN will not monitor human rights in Western Sahara afrol News - The US has backed down on its demand that UN peacekeepers in Moroccan-occupied Western Sahara also shall monitor the human rights situation after Moroccan sources threatened to scale down relations with Washington. Read more

Central African Republic

Central African Republic falling apart afrol News - One month after the rebel movement Séléka took over power in the Central African Republic, unrest is spreading in the country. The new leader lacks control of his forces, which continue looting and abusing civilians. Read more

Kenya

Kenyatta secures tight victory in Kenya afrol News - The official election results in Kenya have finally been announced, and Uhuru Kenyatta managed to win the first poll round outright with a narrow 50.7 percent. But the main opponent, PM Raila Odinga, is filing a vote rigging complaint to the courts. Read more

Cape Verde Cape Verde to produce dragon fruit afrol News - Cape Verde authorities have invested large sums to diversify the arid country's agricultural sector. Now, the dragon fruit, originating in tropical America, is being introduced for the first commercial production in Africa. Read more

Egypt Even governors in Pharaonic Egypt died in their 20s afrol News - Researchers have analysed more than 200 mummies from ancient Egypt, finding that even high dignitaries were poorly nourished and had infectious diseases. The typical governor in Pharaonic Egypt died before he was 30 years old. Read more