|Approval Date||22 Jul 2020|
|Signature Date||06 Aug 2020|
|Planned Completion Date||30 Jun 2021|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed intervention focuses on the Malawi component of the Multi-country COVID19 Response Support Program (MCRSP) in Madagascar, Malawi, Mozambique, and Sao Tome and Principe (MMMS countries). This is an African Development Fund (ADF) and Transition Support Facility grants and a loan totaling UA 100.4 million for all four (4) countries. The MMMS countries have been combined into one group to ensure efficiency in the processing of the CRBS support under the Southern Africa Regional Development and Business Delivery Office (RDGS), in order to fast track the Bank’s assistance to RMCs. They have similar characteristics and needs in dealing with the pandemic, adopting a common approach and response across the four countries. Except for STP (that falls within RDGS), their plans align with the SADC strategic priorities for the health sector. In Malawi, the President took proactive steps to establish a Crisis Cabinet Committee for COVID-19 on 7 March 2020 and declared a State of Disaster on 20 March 2020, prior to the confirmation of the first cases. The first three cases of coronavirus were reported on 2 April 2020, leading to the declaration of a 21-day lockdown from 18 April to 9 May 2020. This led to civil unrest and demonstrations by sections of traders and civil society, who feared an adverse impact from the shutdown. The matter was taken to the High Court, which issued an order indefinitely barring the Government from imposing a lockdown. On 29 April, the President restructured the Cabinet Committee for COVID-19 into a Presidential Task Force and more stakeholders were brought on board. including the Leader of the opposition and representatives from Civil Society Organisations. As at 6 July 2020, total confirmed cases were 1,742 spread in 14 out of 28 districts, with 19 fatalities and 317 recoveries. The proposed operation is designed as Crisis Response Budget Support (CRBS) and will be implemented over one year from July 2020. The three mutually reinforcing policy objectives are presented as follows: (i) Protecting labour force productivity by strengthening diagnosis capacity and public health response to COVID-19; (ii) Safeguarding incomes and livelihoods through enhanced social protection systems; (iii) Strengthening economic resilience and protecting jobs against COVID-19 shocks.
The purpose of the Program is to support Malawi’s efforts to mitigate the health, social and economic impact of the COVID-19 pandemic.
Program Beneficiaries are the people of Malawi, and the direct beneficiaries are those most vulnerable to job losses, the informal sector, and the owners and workers of MSMEs. The resources provided by the Bank will contribute to easing the fiscal burden, while supporting Government efforts stop the spread of the pandemic, protect pro-poor spending and safeguard production in preparation for recovery.
African Development Fund
MINISTRY OF FINANCE
|Last Update||29 Sep 2020|
|Name||CHANGE Evelynne Obonyo|