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Tuesday, May 19, 2009

Malawi using Aid Management Systems to Optimize Development during Financial Crisis

Naomi Ngwira, Director, Department of Debt and Aid, Ministry of Finance in Malawi discussed the use of the Aid Management Platform (AMP) from the Development Gateway Foundation. Aid finances half of the government budget and 80% of development expenditures. She pointed out that the software does not contain debt management functionality. The Government of Malawi intends to integrate AMP with the Integrated Financial Management Information System (IFMIS).
She described the Government of Malawi experience in financial management systems. Ms. Ngwira pointed out that the complexity of handling large volumes of information on aid requires a solution like AMP. The system facilitates entering in objectives and targets. She complemented the support from the Development Gateway, a non profit organization specializing in informatics solutions for emerging countries. Reporting has improved and is used by donors and the government.

Ms. Ngwira indicated that not all development partners provide timely and accurate data. The government discovered that only four donors disbursed within +/- 10% of submitted projections. This has not improved.

AMP has assisted the Government of Malawi to ensure that pledged money is fully disbursed. Reports can create peer pressure among donors. AMP can improve allocateive efficiency and enable managing for results.

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