Malawi
US$ 23 million emergency credit for Malawi

afrol News, 4 September - Given the severe food crisis and the cut in international aid, Malawi yesterday received an emergency credit of about US$ 23 million from the International Monetary Fund (IMF). The credit was to support imports of food to prevent large shortages expected later this year.

Malawi experienced a severe food crisis in early 2002, causing immense human suffering. The food shortages resulted in widespread malnutrition and starvation, particularly for those infected with HIV/AIDS. According to an IMF statement, "many households still have not recovered, and, with another bad harvest this year, decisive action is required."

- Malawi is facing a serious food shortage, said IMF Managing Director Horst Köhler, who, with World Bank President James Wolfensohn, has called on donor countries to step forward to support Malawi and other nations in southern Africa currently facing severe famine. "Our emergency assistance is a step toward helping the nation deal with its current food needs."

International donors are however avoiding Malawi due to human rights violations, poor governance and corruption. Several cooperation agencies are in the process of completely withdrawing from Malawi. Emergency aid is however still given.

The IMF says that Malawi's food shortage is expected to be addressed through a combination of humanitarian aid of about 210,000 metric tons of grain, which was to be distributed to about 30 percent of Malawi's population, or about 3.2 million people, and maize imports by the government of up to 350,000 metric tons.

The IMF provides emergency assistance to member countries hit by natural disasters so that they can meet immediate balance of payments financing needs, and maintain or restore macroeconomic stability. The emergency loan, which currently carries a charge of 2.96 percent, will be repaid in eight equal instalments over 3¼ and 5 years. 

Sources: Based on IMF and afrol archives

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