Malawi-IMF-Food

Malawi receives $88m ‘food shock’ loan from IMF

APA-Lilongwe (Malawi)

The International Monetary Fund has approved an US$88.3 million loan to Malawi under a new facility intended to help low-income countries cope with global food price shocks.

IMF deputy managing director Bo Li said on Monday that the “food shock” emergency loan would assist the southern African country to address urgent balance of payments needs related to soaring food costs. 

“Malawi is facing a challenging economic and humanitarian situation, with foreign exchange shortages and an exchange rate misalignment leading to a sharp decline in imports including fuel, fertilizer, medicine and food,” Li said in a statement.

Malawi is one of 48 countries identified by the IMF as worst affected by the food crisis triggered by the Russia-Ukraine crisis and the accompanying global financial crisis. 

It is estimated that about 20 percent of the country’s population is facing severe hunger in the lean season between October 2022 and March 2023. 

JN/APA

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