The European Union (EU) and Malawi have signed an agreement for additional aid totaling €112 million to directly support the country’s development agenda
The grant is a resumption of the suspended funds under the Tenth European Development Fund (EDF) and represents the current cooperation framework within which the EU contributes to Malawi’s socio-economic development over a five-year period (2008-2013).
The EU was among Malawi’s biggest donors who withheld aid due to governance and economic mismanagement concerns by President Bingu wa Mutharika who died last April.
EU Head of Delegation Ambassador Alexander Baum said during the signing ceremony that the additional funding is targeted at eradicating extreme poverty and hunger, improving maternal health and increasing access to improved water supply and sanitation.
“it comes at a very opportune time, since the country’s economy is undergoing difficult times putting in jeopardy the achievement of the MDGs. We are now working with the government of Malawi to define how best to deliver our assistance and in doing so we apply a great sense of urgency,” he said.
For example , he said, I am very pleased to announce that a significant part of the additional funding will be allocated to the government’s Social Cash Transfer programme, which directly targets households who are ultra poor and at the same time labor constrained, typically headed by the elderly caring for orphans.
Minister of Finance Dr. Ken Lipenga said the additional funding means the donors have confidence in Malawi but also the country is doing well.