EU Gives Malawi K17bn For Chuma cha Dziko Programme

By Daniel Namwini

Mwanamvekha and Paesen display signed documents of the 22M Euro grant to Malawi.(C) Govati Nyirenda

Ministry of Finance, Economic Planning and Development and the European Union (EU) have signed a financing agreement for Public Finance Management (PFM) Reforms dubbed ‘Chuma cha Dziko’ Programme.

During the signing ceremony on Monday in Lilongwe, the Finance Minister, Joseph Mwanamvekha said the five-year programme will cost EURO 22.0 million (more than K17.7 billion) out of which EURO 8.7 million (K7.08 billion)is for technical assistance.

“The programme will achieve efficient and effective use of public resources to contribute to the growth of Malawi’s economy and development.

“It is set to improve tax administration through interventions in revenue policy and tax administration to increase fiscal space for financing inclusive growth and development,” Mwanamvekha said.

He added that the programme will support the implementation of Malawi’s PFM rolling plan with focus on mitigating expenditure risks in public procurement, payroll, pension management and contingent liabilities in parastatals, among others.

“The goal is to have a more transparent and less wasteful, effective and efficient public financial management system,” he added.

EU Ambassador and Head of delegation to Malawi, Sandra Paesen said the programme will focus on public procurement and contract management, payroll and pension management, commitment control and debt management, parastatal financial management and oversight.

“Government institutions will be involved in its implementation, including the Treasury, the Accountant General’s Department, Public Procurement and Asset Disposal Authority, Office of the President and Cabinet and Department of Human Resources Management and Development,” she said.

She pointed out that under technical assistance, government will engage experts in the implementation of the Programme over the next five years.

“The programme will address key constraints to growth, namely corruption and under collection of tax revenues which will ensure accountability and transparency in the use of public resources,” she added.

The EU Ambassador further said the programme will create space for participation of the public, including Civil Society Organisations and media. This is also in line with the Malawi Growth and Development Strategy III (MGDS III) direction, particularly on good governance.


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