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June 25, 2008

World Bank lends Malawi $40 million for sustainable agriculture

The World Bank has approved 37.8 million U.S. dollars for Malawi, to support government investments aimed at improving food security and the growth of sustainable agriculture.

The approved amount consists of a 32-million-dollar International Development Association (IDA) credit, and a 5.8-million-dollar Global Environment Facility (GEF) grant provided by the regional GEF investment program for sustainable land management linked to Africa.

The government of Norway will contribute an additional 10 million dollars, while the Malawi government will put in the equivalent of 2.3 million dollars in kind. The total value of the ADP-SP will be 53.3 million dollars over a five-year period (2008-2013).

The objective of the ADP is to improve food security and generate agricultural growth through increased production of food and cash crops, while ensuring sustainable use of natural resources.

"We believe that through this project both agricultural productivity and food security will be improved, and that Malawi will be cushioned from the adverse impacts of the rising prices of agricultural commodities," said Timothy Gilbo, the World Bank country manager for Malawi.


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