Germany has given the Malawi Government 28.1 million euro (about K24 billion) to support the reform agenda and fight against the Covid-19 pandemic.
A statement released by the Germany Embassy in Lilongwe said the financial cooperation agreement was signed on Friday between the Malawi Government represented by Minister of Finance Felix Mlusu and Germany Ambassador Jürgen Borsch.
The agreement affirms a 28.1 million euro commitment made during bilateral negotiations on development cooperation between the two governments 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 is quoted as having said in the statement.
On his part, Mlusu thanked Germany for the money which he said, will be used in the health service delivery through Health Services Joint Fund, Social Cash Transfer Programme and expansion of the United Nations Development Programme support to innovative private sector entrepreneurs through the Malawi Innovation Challenge Fund and Growth Accelerator.
“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,” he said.
The statement said this additional money will be provided for health, social protection and private sector development and as part of the 186 million euro (about K159 billion) which is currently being implemented in ongoing programmes.
It further said in the 28.1 million euros, a new commitment of up to 3.1 million (about K2.6 billion) was agreed to support improvements in health service delivery within the framework of the Health Sector Strategic Plan through the Health Services Joint Fund.
The statement also said a new commitment of up 13 million euros (about K11.1 billion) 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.
Another chunk of up to 8 million (about K6.8 billion) 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.