You are here:CategoriesPoliticsParliament authorizes government K16b loan for trade & transport programme

Parliament authorizes government K16b loan for trade & transport programme

Written by  Gladys Nthenda

Parliament has authorized government to borrow k16 billion from the International Development Association for phase 2 of the Southern Africa Trade and Transport Facilitation Programme from the World Bank.

Minister of Finance presenting the bill Minister of Finance presenting the bill
20
November

Presenting the Bill before the House on Tuesday, Finance Minister Goodall Gondwe explained that money from the Bill will facilitate free movement of goods and services which will in turn improve trade and transportation within Malawi.

 

The Bill also seeks to reduce bureaucratic procedures in cross-border trade and transit and help the Malawi Bureau of Standards (MBS) to incorporate international and regional best practices.

 

Gondwe noted that the loan will assist in road safety issues through the purchase of breathalyzers, establishment of trauma centres and in conducting a baseline survey on the socio economic costs of road accidents.

 

With a repayment period of 40 years, the Finance Minister pointed out that the Bill will also provide a single window for MBS to access development options.

While the Bill will facilitate transportation of goods, Malawi Congress Party Spokesperson on Finance Kusamba Dzonzi cautioned government to be strategic on how it uses the loan and to also focus on water and rail modes of transport as they have proven to be cheaper than road transport.

People’s Party Spokesperson on Finance Ralph Juma stressed on the need to put in place physical structures such as fences at the country’s border posts to help the Malawi Revenue Authority (MRA) fully collect revenue.

 

In his contribution Karonga Central Legislator Frank Mwenifumbo spoke in support of the Bill which has also incorporated environmental and social aspects like HIV and AIDS and that besides making goods affordable, it will also improve the country’s economy.

 

After contributions from different members, the House then passed the International Development Association (Southern Africa Trade and Transport Facilitation Programme Bill authorizing government to borrow 16 Billion Kwacha from the IDA of the World Bank.

 

Members also passed the Credit Reference Bureau Bill which seeks to protect financial institutions that are providing information on their customers to the Bureau and metting out administrative penalties to financial institutions and commercial banks that are not providing credit information of their customers to the bureau.

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