The International Monetary Fund (IMF) has announced that it will resume a $150 million bailout (or “extended facility programme”) that was suspended last year following the revelation of an embezzlement scandal. The news was announced by Malawi’s Finance Minister on Thursday.
Malawi’s farm input subsidy benefits the poor and can be part of a viable national development strategy. Agriculture is Malawi’s main economic sector. It generates one-third of GDP, half of total export earnings and two-thirds of employment.
Malawi is one of the poorest and least-developed countries in the world, where over 40 percent of its population lives on less than a dollar a day. Even though primary education is compulsory and has been free for almost two decades, poor infrastructure and a chronic lack of resources means that not every child gets a shot at education.
Throughout the world, Malawi has been one of the least developed and most densely populated countries. Approximately 85% of the people live in rural areas and depend primarily on agricultural, agrarian, fisheries, and farming sectors for work. Malawi also has a good export trade with 50% being comprised of tobacco although this particular crop only encourages short-term growth. While this is good, Malawi still depends on inflows of economic aid from the International Monetary Fund, or IMF, as well as the World Bank along with several private donors.
