The Board of Executive Directors of the International Development Association (IDA), a subsidiary of the World Bank, has approved on an absence-of objection basis a grant in the amount of US$80 million to the Republic of Malawi for the Fiscal Governance Program for Results.

In his letter to the Minister of Finance and Economic Affairs, Simplex Chithyola Banda, which has been copied to the Secretary to the Treasury, Dr. Betchani Tchereni, the IDA Executive Director Floribert Ngaruko, said the grant will be on standard IDA grant terms.

Ngaruko stated that the objective of the operation is to improve the effectiveness of resource mobilization, budget execution, and transparency of public finances in Malawi.

He said the operation will, among others, focus on improving public resource mobilization through increased value-added tax revenue collection and voluntary tax compliance; strengthening budget prioritization and execution by improving Public Investment Management (with a climate-sensitive focus), enhancing procurement efficiency, and operationalizing IFMIS.

The grant will further help in enhancing resource transparency and accountability across the Government of Malawi with a focus on State Owned Enterprises, beneficial ownership transparency, and increased responsiveness to the audit process, according to the communication.

"I wish you, Honorable Governor and the Government of the Republic of Malawi, success in the implementation of this project. Please accept, Honorable Governor, the assurances of my highest consideration," thus concludes Ngaruko's letter.