Germany commits K35.7 billion towards economic recovery

DONE DEAL—Mlusu (right) and Borsch sharing documents

The German government has committed over €41million (about K35.7 billion) to help the local economy recover from the effects of the Covid-19 pandemic and enhance the fight against the same.

This follows the signing of an agreement between Malawi and Germany recently at Capital hill where the latter committed €28.1million (about K24.5 billion) under the financial cooperation arrangement targeting the reform agenda of the new Malawian government.

Germany provided additional €13.25 million (about K11.6 billion) solely for the fight against Covid-19.


Germany Ambassador to Malawi, Jürgen Borsch, said the commitments were made during bilateral negotiations on development cooperation between the Governments of Malawi and Germany in Lilongwe on October 29 2019.

“Reaffirming our financial commitments, Germany underpins its determination to support the new Malawian Government in implementing its envisaged reform agenda,” Borsch said.

Minister of Finance, Felix Mlusu, thanked the German government for the support.


“It is pleasing to note that the Federal Republic of Germany continues to provide both financial and technical support to Malawi. The Federal Republic of Germany has supported Malawi since 1964. The support is timely coming in at the time the new Government has just been ushered in and within the framework of its development agenda,” Mlusu said.

The €13.25 million is dedicated to health, social protection, economic recovery, wildlife protection,private sector development and nutrition security.

The €28.1 million comes on top of German funding of €186 million which is currently being implemented in on-going programmes in these sectors.

A statement released after the signing of the agreement indicates that a new commitment of up to €3.1 million was agreed to support improvements in health service delivery in Malawi within the framework of the Health Sector Strategic Plan through the Health Services Joint Fund (HSJF).

Another commitment of up €13 million was agreed to support improvements in access to high quality sexual and reproductive health and rights information, products and services with particular focus on youth and rural populations.

€8 million was agreed to support improvements in living conditions of households which have been identified as ultra-poor and labour-constrained in project districts through receipt of cash transfers under the Social Cash Transfer Programme.

And lastly €4 million was committed to expand the support that UNDP implemented Malawi Innovation Challenge Fund and Growth Accelerator render to innovative Private Sector entrepreneurs to stimulate investment in sustainable economic development in Malawi.

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