World Bank, AfDB provide disaster recovery finance
The World Bank and the African Development Bank (AfDB) have provided post disaster recovery grants for emergency reconstruction and resilience to disasters.
In a statement, the Bretton Woods institution said its board of executive directors approved a $70 million (about K51.6 billion) operation to help Malawi recover from Cyclone Idai that hit Malawi in early March.
The Disaster Risk Management Development Policy Financing (DRM DPF) authorises two grants to tackle the economic and humanitarian costs associated with the cyclone.
The first grant is the upfront financing of $40 million (about K29.5 billion) from the International Development Association, which is part of a multi-pronged response to help government secure prompt financial support.
The second grant is a deferred drawdown option of $30 million (about K22.1 billion), which will be available in the event of future crises within three years of signing the grant, but renewable for a further three years.
World Bank country director for Malawi Bella Bird said: “Our aim is to help strengthen Malawi’s resilience to climatic hazards so that economic gains made are not easily reversed by such shocks.”
In a separate statement, the AfBD announced the $22.87 million (about K16.8 billion) grant for the implementation of a four-year Cyclone Idai and Kenneth emergency reconstruction and resiliency programme.
The support is worth $92.41 million (about K69 billion) shared by Mozambique and Zimbabwe for the same purpose.
Ministry of Finance, Economic Planning and Development spokesperson Davies Sado commended the the support.
He said the disaster choked the national budget, adding that government had to respond immediately by looking at immediate needs.
