MW-PRSC-1

closed

The Grant is the first PRSC to assist the reform program of the Government of Malawi (GoM) as it implements the Malawi Growth and Development Strategy (MGDS). The Country Assistance Strategy (CAS) (Report No. 38326-MW) envisages that over a period of three years, there could be a series o f three proposed annual Development Policy Credits. This Grant's reform program supports efforts by the Government in the following areas: (i) functioning of agricultural markets with a focus on the establishment of additional auction floors for agricultural products, and having in place a better targeted and more private sector inclusive system of providing fertilizers and seeds to farmers; (ii) improving the business environment through the establishment of a commercial court; (iii) economic governance with a focus on reforms that improve payroll management and external financial accountability of the GoM. The operation draws on a new framework for budget support that has been developed under the leadership of the Government of Malawi (GoM) with six participating donors, including IDA. It comprises of a new multi-year Performance Assessment Framework (PAF) and a review process aimed at reducing transaction costs for all parties involved. A revised joint memorandum of understanding is expected to be entered into shortly.