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African Development Bank ready to inject $45 million into Malawi
Malawi’s economic difficulties have worsened since last year after donors, that had traditionally bankrolled about 40 percent of the budget, suspended aid over human rights concerns about the former president, Bingu wa Mutharika, a former World Bank economist.
The collapse of donor funding put pressure on the currency, the kwacha, forcing a 10 percent devaluation last year.
Banda, a former vice president of Malawi and long-time women’s rights activist, was sworn in as president on April 7 after Mutharika’s unexpected death from a heart attack.
One of her first moves as president was to fire Malawi’s police chief for the killing of 20 people in anti-government protests in July 2011, which drew international condemnation and led to aid cuts.
Kaberuka said he was confident that Malawi would be able to repair its relationship with its donors.
The IMF said last week it was in discussions with Malawi on a new economic program that would be supported by an IMF loan.
The Fund suspended its US$79 million programme with Malawi last year over Mutharika’s handling of the economy. The aid freeze compounded an acute dollar shortage caused by a sharp decline in tobacco sales, Malawi’s main source of foreign revenue.
