Norway gives Malawi K13.5bn

Norway has given Malawi K13.5 billion (about 250 million Norwegian kroner) as its contribution towards the National Budget.

The funds will be disbursed in tranches.

Norwegian Ambassador AsbjornEidhammer and Minister of Finance Ken Lipenga signed the agreement at the Ministry of Finance headquarters in Lilongwe on Tuesday.

“We will transfer the money over a period of three years from 2013 to 2016,” said Eidhammer, indicating that Norway targets two areas of supporting sustainable macro-economic stability and reducing poverty.

Norway becomes the first donor to support the current budget. Traditionally, donors give the money after assessments by a grouping of donors called the Common Approach to Budgetary Support (Cabs).

Upon signing the agreement, Norway will immediately disburse a first tranche of K2.16 billion; a second tranche of K2.7 billion will be disbursed in the second quarter. A further K2.16 billion will be paid in the second half of the financial year bringing the total to K7.02 billion.

Eidhammer warned government against misuse of funds, particularly through corruption.

He cited increased corruption in the last decade as worrying though Malawi ranks 88 out of about 170 countries when measured on corruption scale as provided by Transparency International.

While expressing government’s appreciation, Lipenga said: “The remaining funds of up to K6.45 billion will be disbursed in tranches over the next two years.”

As part of strengthening accountability, Norway supports institutions such as office of Auditor General.