IMF’s recent engagements on infrastructure governance

 Public Investment Management Assessment (PIMA)   April 2018
 Gap analysis on IT system to support the investment project database   July 2019

 


 

Summary of PIMA report

(Published in August 2018)

The government has highlighted infrastructure development as a key element of the Malawi Growth and Development Strategy (the MGDS), and has acknowledged the associated fiscal risks. Increasing public investment has also been highlighted in the government’s new Extended Credit Facility (ECF) program with the IMF. In the period 1990–2015 public investment averaged about 5.5 percent of GDP. In recent years more than 85 percent of this investment has been externally financed. Spending by local authorities represents only between 1.0 and 1.5 percent of the domestically-financed component of public investment. The emphasis on increased public investment needs to be balanced against potential fiscal risks related to future public-private partnerships, several of which are in the pipeline, and other contracts, including with the bilateral donors and private sector partners, on which little information has been made publicly available. Such risks may negatively impact on the government’s debt management strategy and its fiscal stabilization policy.

 

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