The Millennium Challenge Corp.’s board of directors has decided to resume its $350 million compact with Malawi, almost a month after reopening its office there.
The decision follows a series of reforms the country has taken under President Joyce Banda. The government has made efforts to improve the country’s human rights and has demonstrated commitment to “strong democratic and economic governance,” MCC CEO Daniel Yohannes said in a press release.
It also follows the “letter of comfort” the International Monetary Fund issued to donors June 19. The letter underlined Malawi’s developments, according to The Daily Times, and could be an indication the IMF’s $157 million support package to the country, to be decided in July, is set for approval.
The restored compact, officially suspended in March, is meant to improve the county’s energy sector. It is expected to help reduce energy costs and increase productivity in the sectors of agriculture, manufacturing and service.
MCC is not the only donor to restore aid to Malawi. In May, the United Kingdom announced resumption of budget support to the country.
The board of directors voted to lift the suspension June 21, when it also discussed measures to safeguard investments in Mali, whose compact was terminated May 4 and is set to end no later than Aug. 31.
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About the author
Jenny Lei Ravelo@JennyLeiRavelo
Jenny Lei Ravelo is a Devex Senior Reporter based in Manila. She covers global health, with a particular focus on the World Health Organization, and other development and humanitarian aid trends in Asia Pacific. Prior to Devex, she wrote for ABS-CBN, one of the largest broadcasting networks in the Philippines, and was a copy editor for various international scientific journals. She received her journalism degree from the University of Santo Tomas.
