The World Bank has approved $137m (R2.54bn) of budget support for Malawi, with an immediate disbursement of $80m (R1.48bn), the bank said in a statement.
The funding will help the southern African country enhance fiscal sustainability, stimulate private sector-led growth, and increase resilience to shocks, the World Bank said.
After the initial $80m, the remaining $57m (R1.06bn) can be triggered in the event of a crisis, it added.
The support comes as Malawi battles chronic foreign-currency shortages that have led to a lack of fuel, medicines and fertilisers.
Malawi devalued its kwacha currency by 30% against the dollar last month.
"The Bank is now able to respond with a substantial budget support operation that supports an ongoing program of reforms," said Nathan Belete, World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania.
The International Monetary Fund, which approved a loan of about $178m (R3.30bn) to Malawi in November, has said the country needs almost $1bn (R18.56bn) in debt relief by 2027.
World Bank approves R2.5bn budget support for Malawi
Image: REUTERS/Dado Ruvic
The World Bank has approved $137m (R2.54bn) of budget support for Malawi, with an immediate disbursement of $80m (R1.48bn), the bank said in a statement.
The funding will help the southern African country enhance fiscal sustainability, stimulate private sector-led growth, and increase resilience to shocks, the World Bank said.
After the initial $80m, the remaining $57m (R1.06bn) can be triggered in the event of a crisis, it added.
The support comes as Malawi battles chronic foreign-currency shortages that have led to a lack of fuel, medicines and fertilisers.
Malawi devalued its kwacha currency by 30% against the dollar last month.
"The Bank is now able to respond with a substantial budget support operation that supports an ongoing program of reforms," said Nathan Belete, World Bank country director for Malawi, Zambia, Zimbabwe and Tanzania.
The International Monetary Fund, which approved a loan of about $178m (R3.30bn) to Malawi in November, has said the country needs almost $1bn (R18.56bn) in debt relief by 2027.
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