Malawi - Poverty Reduction Support Loan

The Poverty Reduction Support Loan (PRSL) is designed as a one-tranche operation to support government’s poverty reduction programme through the implementation of the Malawi Growth and Development Strategy (MGDS). The PRSL aims to provide financial resources through the national budget, for the implementation of the MGDS, within the Common Approach to Budget Support (CABS) framework. Malawi’s development partners and other stakeholders have endorsed the MGDS as a credible and government-led economic growth and poverty reduction initiative that could form a basis for partnership, policy dialogue, and technical and financial assistance. The support provided by this project also contributes to the Government's efforts to reduce the digital poverty index from 52.4 per cent in 2006 to 44.4 per cent in 2011, thereby helping Malawi to achieve the MDGs. The three components of the program are: (1) macroeconomic stability and public expenditure reform; (2) institutional capacity building and human resources; and (3) improving the institutional framework and governance policy.