Malawi - Structural Adjustment Loan (SAL)

The proposed ADF loan is intended to assist the Government of Malawi in implementing its programme of policy and structural reforms outlined in the 7th Policy Framework Paper (1996/97-1998/99) and the Letter of Development Policy. The loan will specifically be used to consolidate reform measures that have been implemented in the areas of fiscal reform; public enterprise reform; civil service reform; financial reform; sectoral reforms; domestic deregulation and support the implementation of measures that remain outstanding. The Programme involves measures aims at: (a) achieving fiscal sustainability and increased & Iiciency in the mobilisation, allocation and use of fiscal resources; (b) promoting efficient mobilisation and intermediation of financial resources; (c) prioritising social services and improving the system of social service delivery; (d) accelerating parastatal divestiture and private sector development; (e) relasing infrastructure constraints to development; and (f) promoting diversification in agric.ultural export production.