The Ministry of Finance, Economic Planning and Decentralisation has announced that the World Bank has approved a new $80 million grant, equivalent to approximately K140.1 billion, under the Governance to Enable Service Delivery (GESD) 2.0 programme.
The new financing marks a transition from the current GESD 1.0 project, which is expected to officially close on June 30 this year, to a more expanded and strengthened second phase aimed at improving service delivery and governance systems across Malawi’s local councils.
According to information published by the World Bank under Project P508024, GESD 2.0 will focus on strengthening resource management, accountability, and multi-level governance to improve public service delivery at local authority level. The project is expected to benefit all 28 district councils and four municipal councils across the country. (worldbank.org)
The World Bank said the programme will continue using the Performance-Based Grant (PBG) system introduced under GESD 1.0, where councils that meet governance and financial management standards receive funding for development projects. These projects include construction of classrooms, health facilities, water points, roads, and other critical community infrastructure. (worldbank.org)
In addition, GESD 2.0 is expected to strengthen financial accountability systems, improve citizen engagement, and create employment opportunities through local infrastructure investments and professional capacity building within councils and government institutions. (worldbank.org)
The World Bank further indicated that the new programme builds on the achievements registered under GESD 1.0, which was launched in 2020 with a $100 million grant to strengthen local authorities’ institutional performance and responsiveness to citizens. (worldbank.org)
Implementation of the new programme will be coordinated by the National Local Government Finance Committee (NLGFC) in collaboration with the Ministry of Local Government and Rural Development, as well as the Ministry of Finance, Economic Planning and Decentralisation. (worldbank.org)
The approval of the new grant also dismisses claims from some opposition figures who alleged that the World Bank would discontinue funding to councils under the GESD framework. Instead, the latest development demonstrates continued confidence by the international lender in Malawi’s decentralisation and local governance agenda.
Government officials say the transition to GESD 2.0 will ensure continuity in service delivery projects while further improving transparency, accountability, and development impact at council level across the country.
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