LILONGWE—The German government has dismissed media claims that it will not release budget support to Malawi until 2015 describing the news as “absolutely wrong” adding that the European country is pumping more money into the southern African country now than ever before, Malawi News Agency reported Friday.

Malawi's Information Minister Moses Kunkuyu said government had not received any communication on the development partners’ suspension of aid to Malawi as reported in the media.

But Germany ambassador to Malawi Dr. Peter Woeste state-run Malawi Broadcasting Corporation (MBC) that the future of aid to Malawi from the donor community appeared bleak in March 2012 and that the donors were not certain on how the country could regain its economic footing.

He, however, said the Joyce Banda administration had proven to be taking the country towards the right direction prompting the Germany government to increase its aid to the southern African country.

“We see President Joyce Banda is very much interested in the issues of governance …basically we are on the same page there; both of us are interested in governance, both of us are interested in transparence and I think there are a lot of positive and good signs and this is my daily reporting back home that Malawi is going back on the right track,” Woeste said.

“But the economy was in such a disastrous shape back in March such that a turn round in the next few weeks was impossible and this was based on experts.”

Woseste said his government had decided to disburse more money to Malawi to support various programs for the next 3 years.

“It is absolutely wrong to say the Germany Government will not be supporting Malawi Government with regards to budget assistance in the next two years. This is still under consideration and I think this is well known and you can see and prove it in the papers,” said Woeste, adding “I’m really, really, disappointed that people want to misunderstand this.”

At a press briefing held in Lilongwe, Information Minister Kunkuyu expressed surprise over the media reports which said there’d be no budgetary support to Malawi from the UK, Germany and other development partners.

“We have not had any communication on the matter but what we know is that way back in March during the old government there were such fears from donors but now the same donors are impressed with how this government is performing,” he said.

Kunkuyu said the re-opening of British-Malawi bilateral relations, among others, was a sign that donors had confidence in Malawi.

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