The Republic of Malawi has received US$6 million (close to K900 million) grant from the government of Japan, it has been announced.
According to the Japanese Ambassador to Malawi Motoyoshi Noro, the grant is aimed at boosting the impoverished south-east African state’s economic development through human development and financial support.
Noro, who was speaking in Lilongwe on Monday this week when he alongside Malawi’s Finance Minister Goodall Gondwe signed the grant agreement, further disclosed that the grant is not tied to any project.
“This is a non-project grant, which is a direct budgetary support. It is aimed at facilitating flexibility and maneuverability in the choice of imported commodities under the initiative of the government of Malawi,” said Noro.
The donation is expected to benefit the country’s private sector as it will be available as soft loans by the Malawi government in collaboration with the Reserve Bank of Malawi (RBM).
“Loan repayments from the fund are deposited into a Counter Value Fund at the Reserve bank of Malawi from where government can draw funds for development projects of its choice,” pointed out the Japanese envoy.
In his remarks, Gondwe said the grant was a step in the right direction and would help in the fight against poverty in the country.
“This grant would ensure the creation of more jobs and increased production,” the Finance Minister said.
Japan started giving Malawi such grants in 1988 and to date, K6.7 billion has been disbursed to the country, benefiting private sectors in agriculture, manufacturing, fisheries and fish processing, construction and mining, among others.
