Strict aid conditions for Malawi

Donors want better management of emergency food reserves

Four key western donors have agreed to resume aid payments to Malawi, subject to strict terms.

Britain, the European Union (EU), Norway and Sweden said they would suspend funding if Malawi - one of the world's poorest countries - failed to adhere to terms agreed recently with the International Monetary Fund (IMF)

The terms of the $52m (45m euros) aid package include tighter limits on public spending, the repayment of debt, and reform of government departments and the civil service.

"Meeting these commitments will require a strong and sustained political commitment to fiscal discipline and poverty reduction," said a statement released by the four donors.

Aid was halted in November 2001 over concerns about corruption, political repression and alleged interference in the judiciary.

Economic performance

In September the IMF said that it planned to lift its freeze on aid after reviewing Malawi's recent economic performance.

The EU, Norway and Sweden said that their decision to resume funding to the southern African country was influenced by the IMF review.

The EU on Wednesday also announced the donation of 100,000 metric tons of cornmeal to Malawi's strategic grain reserves.

Malawi has just emerged from a food crisis occasioned by bad weather, government mismanagement, poorly timed agricultural reforms and the sale of the country's emergency grain reserve.

The government blamed advice from the IMF for the sale of 60,000 tonnes of maize to Kenya.

In February, the World Food Programme distributed food to 3.6m Malawians.