Parliament Passes Two Bills as Mwanamvekha Hails World Bank’s $130 Million Grant Support
Parliament on Wednesday passed two important financing bills aimed at strengthening local governance and boosting Malawi’s export sector, with Minister of Finance, Economic Planning and Development Joseph Mathyola Mwanamvekha describing the approval as a major step towards addressing the country’s economic challenges.
The House approved Bill No. 7 of 2026, the International Development Association (IDA) High Potential Resilient Value Chain Project, and Bill No. 8 of 2026, the Governance for Enabling Service Delivery (GESD II) Project.
Speaking after the bills were passed, Mwanamvekha commended the World Bank and other development partners for providing $130 million (about K228 billion) in grant financing, saying the support would help drive economic growth and improve service delivery across the country.
He explained that the High Potential Resilient Value Chain Project, financed with $50 million, is designed to support Small and Medium Enterprises (SMEs) and exporters by improving the quality and competitiveness of Malawian products for international markets. The initiative is expected to increase exports and generate much-needed foreign exchange.
Mwanamvekha said the GESD II Project, valued at $80 million, will strengthen the implementation of the reformed Constituency Development Fund (CDF), enhance the capacity of local councils, and empower communities to identify, prioritise and monitor development projects.
He stressed that the combined $130 million package consists entirely of grants, describing it as a significant boost to both the country’s foreign exchange reserves and development agenda.
«”This support will help us provide foreign exchange to the Reserve Bank. One of our biggest challenges today is the shortage of foreign exchange, and that is the elephant in the room,” said Mwanamvekha.»
The Finance Minister said he was encouraged by the continued confidence shown by development partners and hinted that government would soon announce additional donor support.
However, he cautioned local councils to ensure transparency and accountability in the use of the funds, noting that disbursements under the GESD II Project will be performance-based.
“Funding will depend on measurable results. Communities should be able to see the projects being implemented through a transparent monitoring system,” he said.
Contributing to the debate, Lilongwe Phirilanjuzi legislator Peter Dimba welcomed the approval of the two projects, saying the $50 million value chain financing would help address Malawi’s persistent foreign exchange shortages by promoting exports.
Dimba said the project goes beyond providing performance-based grants to businesses, as it will also offer technical assistance to the Ministry of Industry, Trade and Tourism in implementing the Goods Act.
He added that qualifying businesses will be able to access financing in both local currency and foreign exchange, a move expected to enhance productivity and strengthen Malawi’s export capacity.
