World Bank Infusion of Funds

Malawi will receive a quick boost of US 30 million to help battle the famine. The World Bank has praised the Malawi government as "forward thinking" in view of their efforts to combat hunger. Thankfully, this complement is being backed with cash.

The Bank is mobilizing $53 million in new IDA resources and reallocating existing operations to address both the immediate food shortage and to help restore production levels for next year.

This includes a $30 million quick disbursing operation, prepared in record time, to help the government cover foreign exchange needs, so that the cost of maize and fertilizer imports does not harm growth prospects over the next year.

A reallocation of $7 million under the ongoing Malawi Social Action Fund also plays a part in the social safety net to protect the most vulnerable households during the food crisis by helping them to purchase inputs for the coming crop season and feed their families during the current cycle. The Bank is also adding $15 million to the planned Rural Livelihoods and Irrigation Project to sustain the safety net measures over the medium term.