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World Bank Injects US$50 Million into the Malawi Social Action Fund to Improve Livelihoods of the Poor

Press Release No:2009/007/AFR

Contacts

In Washington: Eric Chinje +1 202 458 8418

echinje@worldbank.org 

In Lilongwe: Zeria Banda (+265-1) 770611

zbanda@worldbank.org

 

LILONGWE, July 3, 2008 – The World Bank will continue to support the Malawi Social Action Fund (MASAF) with an injection of US$50 million approved by the Bank’s Board of Directors at the end of June.

           

The new funds are a credit from the International Development Association (IDA) to support the second phase of Malawi Third Social Action Fund (MASAF 3 APL II), which is expected to run from end 2008 to 2013. Using experiences from the first phase of MASAF 3 which ended on June 30, 2008, the second phase will aim to reach the poor with public works earnings, infrastructure improvements, savings mobilization, public and social accountability tools, in the context of increased local governance and public sector management.

 

MASAF 3 APL II will differ from previous MASAF programs in that it emphasizes livelihoods support and improving the delivery structure for local assemblies. Previous MASAF programs mainly focused on infrastructure provision. MASAF 1 and MASAF 2 were implemented between 1995 and 2002 when the World Bank made available over US$120 million to support the construction of schools, water points, bridges, clinics, and other small investments implemented by communities; and public works projects implemented by Local Governments.

 

MASAF 3 APL II will also differ in its implementation management arrangements. Whereas the previous programs were implemented partly by Local Assemblies and partly by the MASAF Secretariat, projects in MASAF 3 APL II will be implemented by the local assemblies. What used to be the MASAF Secretariat will now be a technical support unit in the Ministry of Finance responsible for definition of rules and procedures, monitoring compliance and national reporting.

 

“The value of this new implementation arrangement is that it will help strengthen the capacity of local assemblies to take charge of their development programs, in line with the process of decentralization,” says Timothy Gilbo, Country Manager for Malawi.

 

“Since the projects under this new-look MASAF are multi-dimensional and multi-sectoral, the new implementation arrangements will help ensure better co-ordination at both policy and program levels,” adds Gilbo.

 

To fulfill its objective of improving the livelihoods of poor households within the framework of improved local governance at community, local authority, and national levels, MASAF 3 APL II will have three components. The first is the Community Livelihoods Support Fund which will finance public works sub-projects, and investments for improving functionality of existing facilities and creation of opportunities for community savers and entrepreneurs to increase their participation in Local Economic Development under the Community Fund.

The second component is the Local Authority Capacity Enhancement Fund. This component will support the development of a comprehensive framework for addressing capacity needs for Local Authorities in the effective management of grants they are already receiving, performing the functions allocated to them under this project, and preparing them to perform anticipated responsibilities as devolution proceeds and more resources are available under any longer-term Malawi Government grant arrangement.

  

The last component is the National Institutional Strengthening Fund to finance national-level cross-cutting issues aimed at improving accountability and transparency in the use of project resources. 

 

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For more information on the World Bank’s work in Africa visit:

http://www.worldbank.org/afr/

 

For more information about the World Bank in Malawi please visit:

www.worldbank.org/malawi

 

For more information about this project visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=355870&menuPK=355904&Projectid=P110446


For more information, please visit the Projects website.



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