By Wezzie Gausi:
Minister of Finance Simplex Chithyola Banda has called on development partners to provide more resources to World Bank’s International Development Association (IDA) member states including Malawi.
The call comes as the IDA’s 21st replenishment is taking place amid crises that have stalled development progress in poor countries.
Speaking after attending the meeting in Kenya, Chithyola Banda said increased resources will help IDA to reach out to many countries.
“For us, we are calling upon all potential donors to put more resources in IDA 21 as that is the platform that helps to reach out to many countries in times of need.
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“Ida has helped Malawi in many areas including the energy sector. Ida has helped us to rehabilitate the energy sector so as to be able to produce enough electricity. Even in times when we were hit by cyclones, IDA was there to help our economy,” Chithyola Banda said.
Scotland-based Malawian economist Velli Nyirongo said IDA can serve as a valuable instrument for fostering Malawi’s development.
He said it is imperative to adopt a strategic approach to borrowing, proficiently manage debt and ensure judicious utilization of funds.
“Given the susceptibility of the economy to external shocks and climatic variations, IDA can provide crucial funding during crises. This is particularly pertinent for a nation like Malawi, which faces vulnerability to natural calamities and economic fluctuations.
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“Moreover, it can facilitate targeted investments in key sectors such as agriculture, healthcare and infrastructure, pivotal for Malawi’s development and economic advancement. Such investments have the potential to enhance the nation’s resilience and generate future revenue streams to service debt,” Nyirongo said.
Meanwhile, Nyirongo has said Malawi’s emphasis should be placed on projects exhibiting a high potential return on investment, ensuring the generation of income to facilitate debt repayment and strategic borrowing and focus on reducing the debt-to-GDP ratio.
