MW-PRSC-2

closed

The Second Poverty Reduction Support Grant Program for Malawi will be the second in a series of three annual programmatic development policy lending (DPL) operations that are aimed at supporting the government's reform program in the implementation of the Malawi Growth and Development Strategy (MGDS). As was the case with Poverty Reduction Support Credit (PRSC)-1, the PRSC-2 is being designed and implemented within a harmonized framework for the provision of budget support in Malawi. Such a framework exists under the leadership of the Government of Malawi (GoM) with five participating donors, including International Development Association (IDA).' It comprises of a joint framework, or memorandum of understanding, a multi-year Performance Assessment Framework (PAF), and a review process aimed at reducing transaction costs for all parties involved. The program document is divided into six sections, including this introduction. Section two discusses the country context which gives an overview of Malawi, recent economic developments including the impact of recent exogenous shocks, macroeconomic outlook, and debt sustainability. Section three presents the Government's program MGDS, section four discusses how the Bank is supporting the government program, while section five describes the second PRSC. Section six describes implementation issues, with a focus on risks and mitigating measures.