The World Bank said on Friday that it was providing $57.6 million in “quick release” grant financing to Malawi to help the country respond to a food crisis.
“This support comes in the context of the severe food crisis the country is suffering due to El Niño conditions in the wider southern Africa region,” the World Bank said in a statement.
“A series of intense disaster events over the last few years has left almost no time for the country to recover and has resulted in a severe erosion of food security at the national level.”
This critical funding comes after President Lazarus Chakwera declared a State of Disaster on March 23, 2024, in response to the escalating food insecurity.
Malawi is facing one of its worst food crises in recent years, with over 3.8 million people (about 20% of the population) requiring urgent food assistance.
The situation is exacerbated by the El Nino conditions, which have resulted in crop failures and livestock deaths, leaving many families without access to basic necessities like food and water.
The World Bank’s support, channeled through the Catastrophe Deferred Drawdown Option (CAT-DDO), provides immediate liquidity to the government to respond to the crisis.
This innovative financing instrument enables countries to access funds swiftly in the event of natural disasters, ensuring a proactive approach to mitigating the impact on vulnerable populations.
Hugh Riddell, World Bank Country Director for Malawi, commended the government for its foresight in securing the CAT-DDO instrument in late 2023.
“This innovative financing solution will help the Government of Malawi mitigate the impact of the food crisis on the most vulnerable,” he said.
Minister of Finance and Economic Affairs, Simplex Chithyola-Banda, expressed gratitude to the World Bank for the additional budget support, which will enable the government to respond effectively to the food crisis.
