This is the Final Project of the "Financing for Development" course

1. Malawi
A picture of lake Malawi
A picture of a Malawi road

3. The meaning of the Malawi flag
Black represents the people of the Continent of Africa
The Rising Sun represents the dawn of hope and freedom for the whole
Continent of Africa
Red represents the blood of the martyrs of African freedom
Green represents the ever green nature of Malawi.

4. A snapshot of the country…
• Malawi is a landlocked country in southeast Africa
• It is bordered by Zambia to the northwest, Tanzania to the northeast,
and Mozambique on the east, south and west.
• The lake Malawi separates the country from Tanzania and
Mozambique
• Its capital is Lilongwe, which is also Malawi's largest city, followed by
Blantyre and Mzuzu.
One of the Lilongwe roads

5. A snapshot of the country…
• Amongst the smallest country in Africa with a surface of 118,404 km2
• The official language is English even though most of the people speak
a national language called Chichewa
• It is a Presidential Republic with Peter Mutharika as the President
• The currency is Kwacha and $1 is equal to approximately 600 Kwacha
• It is largely an agricultural country
• The majors plague are HIV and Malaria.
An aid worker in Malawi

6. Economic data
• In 2014 the World Bank recorded a GDP of $4.258 billion and a
population of 16,695,253 people
• The GDP per capita (PPP1) is just $821.6
• The GDP (PPP) in 2014 of Bangladesh (another deprived country) was
$3,124.4, almost four times.
1Purchasing Power Poverty
One of the
poorest
village in
Malawi

7. The last 5 years’ international help
• The graph represents the ODA2 received
by the country from 2010 to 2014
• There is the evidence of a drop of the
ODA in 2014
• Had the donors thought about the
consequences on the country of such an
inconstant help?
2Oda stands for Official development assistance and the figures
here are from the OECD website
Figures in million of $
0
200
400
600
800
1,000
1,200
2010 2011 2012 2013 2014

8. The last 5 years’ international help
Although the health sector has a
big slice of the pie, the in 2012
UNICEF recorded that:
• 10.8% of adults were affected
by HIV
• 28% of adults were affected by
malaria.
Health and
population
29%
Economic
infrastructure
15%
Program
assistance
11%
Production
sector
13%
Other social
sector
17%
Humanitarian
aid
3%
Education
6% Others
6%
ODA BREAKDOWN FOR THE 2010-
2014 AVERAGE

9. What to do? Investing in education
According to the UNICEF the adult literacy rate recorded in 2012 was
just 61.3%
The pie showed that only 6% of the ODA goes to the education sector
In 2014 the country has received $3.17 million on education, not
enough to make an impact on this sector
I believe that the implementation of appropriate educational policies
will raise the literacy level so that people will understand the
importance of the health messages they receive
To achieve this Malawi need $70 million every year until 2025.

10. What to do? Malawi creditworthiness
The country was hit by the Capital Hill Cashgate Scandal in 2013.
It was a financial scandal involving looting, theft and corruption that
happened at the seat of Government of Malawi
Up to $250m have been lost through allegedly fraudulent payments to
businessmen for services that were not rendered
The government has already implemented the ETF, or Electronic Fund
Transfer, in order to pay salaries of all civil servants….

11. What to do? Malawi creditworthiness
…but this is not enough.
We need to improve the DRM3 and PFL4 to ensure the sustainability of
development gains, as highlighted in the second week’s lecture:
“Domestic Resource Mobilization”
The El Salvador’s case shows how $5 million invested to reform the tax
system have paid off many times over. From the increased revenue it
was possible to double the expenditure on health and education and
reduce extreme poverty by 25%.
3Domestic Resource Mobilization is the process in which countries transparently raise and spend their
own funds to provide for their people – is the long-term path to sustainable development finance.
4Public Financial Management

12. Improving the Public Financial Management
Apart from the Electronic Fund Transfer, to improve the PFM it would
be useful to:
1. Employ ad hoc internal and external auditor to supervise the tax
income and public expenditure
2. Increasing civil society’s knowledge about public finance issues
3. Introduce the IAS/IFRS so that international company can better
understand the financial statements of the country.
The public sector play a key role to encourage the investments of the
private sector.

13. The future
As the 1998 Nobel Prize in Economic Science Amarya Sen explained in
his book “Development as Freedom” growth and sustainable
development come together with freedom.
Only through the implementation of the Education sector and its
creditworthiness Malawi can start climbing the ledger of sustained
development and really live the colours of his flag and its motto “Unity
and Freedom”

14. Sources
• http://www.africaw.com
• http://www.who.int
• http://data.un.org
• http://www.worldflags101.com
• http://www.unicef.org.