PRESS RELEASE

Germany Changes CABS Membership to Observer Status

Germany has decided to change its membership within the "Common Approach to Budget SupportGroup" (CABS) to an observer status. This decision has been taken on the basis of an in-depth analysis of the general budget support as an effective instrument of Germany's bilateral development cooperation with Malawi. "The volume of aid provided by Germany to Malawi is independent of our membership status", stressed the German Ambassador, Dr. Peter Woeste. "Germany is committed to continue supporting the people of Malawi on their path to sustainable development, it is just that we are exploring alternative ways how best to achieve this goal," said Woeste. He underlined that it is important to the people of Germany that every cent of their hard earned tax payers money reaches those who are really in need and brings relevant improvements to their livelihoods. CABS is a mechanism developed by a group of donors to provide general budgetary support to Malawi. The current group members are the African Development Bank, DFID, the European Union, Germany, Norway, and the World Bank; with the IMF, UNDP and Ireland having the status of observers. Germany had frozen its general budget support in 2011, but supported the Government of Malawi twice by the disbursement of emergency budget support even during this period. "We need to be fair and frank to our partners. Our status in the CABS-Group should reflect our position towards the usefulness of general budget support as a development instrument in the Malawi circumstances", the German Ambassador said. Germany continues to believe that a forum as the CABS-Group is important to ensure a high-level political dialogue between the Government of Malawi and its development partners. Germany will continue to contribute to that dialogue. The relationship between Malawi and Germany looks back on a long tradition: Malawi is a partner for German Development Cooperation already since independence in 1964. Germany supports the Malawian people in the three sectors of Malawi-German Development Cooperation: Health, education and democratic decentralisation. In addition, the German Government assists Malawi through regional and multilateral development cooperation, as well as in cooperation with non-governmental organisations and churches.

Contact : German Embassy Lilongwe, Convention Drive, P.O. Box 30046 Lilongwe 3. Tel.: +265-1-772555 Fax: +265-1-770250, E-mail: info@lilongwe.diplo.de