1 week Ago
Development partners are coming to Malawi's aid as it runs out of fuel. Sweden and the Netherlands gave big sums, with many other countries contributing. High black-market prices for fuel have some fearing worsening hunger in the country.
International partners are coming to Malawi's rescue as President Lazarus Chakwera tries to find a way out of a fuel shortage that has triggered riots. Last week, Chakwera met with United Arab Emirates President Mohamed bin Zayed Al Nahyan to map out a "government-to-government" fuel arrangement – but he did not say how Malawi, starved of hard currency, would pay. Now he has listed donations from the World Bank, the African Development Bank (AFDB), and the International Monetary Fund.
In a state of the nation address, Chakwera said Sweden had given the equivalent of some R200 million, the Netherlands around R125 million, and the USA just under R70 million. The UK, France, Japan, and South Korea all gave between R20 million and R35 million, the AFDB raised a bit under R20 million, and slightly below single-digit US dollar millions came from Norway, Iceland, Denmark, Ireland, and Switzerland. Last month, police used teargas to disperse rioters who were calling for the resignation of Energy and Mining Minister Ibrahim Matola and chief executive of Malawi Energy Regulatory Authority Henry Kachaje.
READ | Namibian elections run smoothly as candidates praise peaceful atmosphere The official price for petrol in Malawi is R25.74 per litre while paraffin costs R19.48.
But that is only when it is available via official channels; Malawi has introduced fuel rationing and, on the thriving black market, prices are twice the official rate. Farming is among the sectors hit hard, and there are fears that an already hungry country will become hungrier as the cost of everything from fertiliser to running tractors shoots up during the planting season. According to Chakwera, 5.
7 million Malawians are facing starvation due to last year's poor harvest caused by the El Niño. Chakwera thanked international partners for coming through during Malawi's time of need. He said: The Reserve Bank of Malawi has resorted to restricting foreign currency withdrawals by foreign diplomatic missions.
Embassies are only allowed to withdraw the equivalent of some R265 000 per month if they can justify it. Individual diplomats have been capped at a bit above R50 000 per month. The News24 Africa Desk is supported by the Hanns Seidel Foundation.
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