Malawi - The Governance and Poverty Reduction Support Grant II (GPRSG II)

Project Summary

Approval Date 07 Apr 2010
Signature Date 07 May 2010
Planned Completion Date 30 Jun 2011
Last Disbursement Planned Date 30 Jun 2011
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 11330
Environmental Category 3
Commitment U.A 11,546,000
Status Completion

Project General Description

The present intervention is relative to the Governance and Poverty Reduction Support Grant II (GPRSG II). It has been designed because Malawi's PFM process is weak and needs to be refocused, while the country's economy is taking a big step towards sustaining macroeconomic momentum. By improving financial governance through greater efficiency, transparency, and accountability in the use of public resources, the GPRSG II seeks to make the budgeting process more efficient and enable both more and better provision of social services, especially to the poor. The GPRSG II support achievement of more effective and accountable government which are established priorities of the Malawi Growth and Development Strategy (MGDS) and Public Financial and Economic Management Priority Action Plan (PFEM PAP). The principal specific expected results are: (i) more effective implementation of PFEM reform (as measured by attaining the activities scheduled in the PAP) by the PFEM Secretariat, leading to improved budget allocation, implementation and monitoring to prevent unbudgeted expenditures; (ii) improvement in the independence of the National Audit Office (NAO) and a reduction in the delay with which annual audit reports are tabled in Parliament, improving the checks and balances of the branches of government; and (iii) strengthening internal audit and public procurement procedures, notably as regards increases in staffing and internal oversight, allowing a more efficient use of resources and reducing opportunities for corruption.

Project Objectives

The broad goal of the GPRSG II is to reduce poverty as laid out in Malawi’s MGDS. More specifically, the program’s objective is to enhance the efficiency, transparency and accountability in the use of public resources (improve financial governance) while helping increase public service delivery.


The GPRSG II should directly benefit the Ministry of Finance and other key public sector institutions (such as the PFEM Secretariat and NAO) in the short term by allowing them to speed up reform processes that promote transparency and accountability in the management of public resources. Since the GPRSG II grant provides foreign currency, it should contribute to macroeconomic stability, benefitting the population at large in the medium and long term. At a secondary level, the program should benefit the people of Malawi in the long term through the improved resource availability and efficiency for service delivery. The support to the enabling environment for private sector-led economic growth should benefit the whole population.

Participating Organization

African Development Fund
Ministry of Finance


IATI identifier 46002-P-MW-KZ0-005
Last Update 15 Apr 2021


Contact Details

Name KAMANGA Fenwick Dingiswayo

Geographic Location

Country Malawi