Britain will give Malawi £20 million ($32 million, 25 million euro) in “emergency budget support” to boost social schemes in the southern African nation, Malawi authorities said Friday.
The aid was “in recognition of the efforts the government has taken to fix the economy,” the State House press office quoted Britain’s Secretary of State for International Development, Justine Greening, as saying in a statement.
Malawi President Joyce Banda devalued the national currency the kwacha and implemented sweeping reforms since she took power in April.
Her actions have restored relations with international donors, notably former colonial power Britain, which broke down under her late predecessor Bingu wa Mutharika.
Mutharika’s unexpected death in April brought to power Africa’s second woman president.
Banda’s new government “has taken some tough but necessary decisions to stabilise the economy and create conditions where growth can flourish,” said Greening.
Britain already gave Malawi $84 million in aid since Banda took over.
Malawi government spokesman Steve Nhlane said the extra money would fund “the fertiliser input subsidy programme, support the procurement of essential drugs and support other social programmes.”
Fuel and foreign exchange shortages have plagued the nation’s agriculture-based economy.
Donors provide roughly 40 percent of the state budget.
