Malawi’s Economic Recovery Plan in the red with a shortfall of US$3.5 bn

It’s been revealed that Malawi’s well-publicized Economic Recovery Plan (ERP) has a shortfall of US$3.5 billion for its successful implementation.

But when the ERP was rolled out, Pres. Joyce Banda told the country that US$1 billion was needed to stabilize the economy.

ZBS radio reports that  government has only managed to secure US$1 billion – from donors and government – from the estimated total cost to fix the country’s battered economy the Banda administration inherited from the Democratic Progressive Party-led government of Bingu wa Mutharika who died in April last year.

Malawi’s Economic Planning and Development Minister Ralph Jooma told business Journalists in Blantyre Monday that there are indications that the country’s economy was recovering.

“Foreign exchange, fuel is now readily available, and most businesses are now operating on 60 percent capacity from 30 percent over a year ago, he explained adding that “prospects for growth for 2013 is estimated at 4.9 percent from 1.8 percent,” Jooma said.

The southern African country’s economy that’s driven by agriculture started to suffer after donors who used to provide up to 40 percent of the Malawi’s development budget suspended their financial support over governance concerns.