The Bank, a major backer of the southeast African country's tough economic reforms, had in the past said support would only come if Malawi implemented financial management systems that would stop fraud and massive theft of state funds. The "cashgate" affair erupted with revelations about funds going missing involving dozens of officials, businessmen and politicians. Four people were jailed.
The scandal led to the withdrawal of aid by numerous countries. It also contributed to the defeat of president Joyce Banda in elections in 2014, won by her rival Peter Mutharika who took office vowing to fight corruption. Laura Kullenberg, the Bank's country manager, said Malawi had "taken some very important reform steps and it is critical to maintain momentum and deepen reforms going forward to move Malawi out of the circle of vulnerability and onto a development path".
Kullenberg says the $80 million "aims to improve incentives for private sector participation in agriculture markets and to strengthen fiscal management through more effective expenditure controls and greater transparency," according to a statement obtained by AFP. Agriculture powers the country's economy and contributes over 40 percent to Malawi's GNP. Malawi President Mutharika was quoted on state television as saying the resumed World Bank support was a "vote of confidence in us and how we are managing our economy."
Copyright Agence France-Presse, 2017