Disaster Risk Financing Strategy and Implementation Plan (2019-2024).

This Malawi Strategy highlights financial options that will be followed in next five years to reduce fiscal vulnerability arising from disasters by amongst others ensuring that both ex-ante and ex-post instruments are being implemented and embracing the principal of timeliness of funds, layering of disaster instruments, effective disbursement and using of accurate data. The visions of this text is “Towards innovative and comprehensive disaster risk financing proactively manage economic and fiscal risks as well as protect public finances against disasters thereby reducing human, social, economic, and fiscal impacts." Core values are here listed: transparency and accountability; inclusiveness; innovativeness; integrity, honesty and shared responsibility; professionalism; comprehensivenes. This Strategy compliments the mitigation and preparedness measures that are already being implemented by other strategic documents as mentioned in the text. Among the use of this Strategy, when catastrophes occur financial resources will be made readily available thereby ensuring timeliness of transfers, reduce the opportunity cost of transfers, increase discipline, improve information on risks and expected transfers. The implementation of this Strategy will enhance Malawi’s financial resilience to disasters through sound risk assessments; a portfolio of adequate disaster risk finance instruments; mechanisms and clear rules which ensure that resources are channeled efficiently to intended beneficiaries; and continued disaster risk reduction efforts.
Six main strategic priorities aimed to strengthen the management of fiscal risks associated with disasters for the period from 2019 to 2024 identified in this text are as follows: identify and quantify disaster related economic and fiscal risks; establish a portfolio of sovereign disaster risk financing instruments; develop options for private risk transfer to complement sovereign risk financing instruments; incorporate disaster risk analysis in the planning of public investments; and strengthen coordination and institutional capacity for disaster risk financing and management. Based on the identified strategic priorities, four strategic outcomes to be achieved in the next five years have been identified. Strategic outcome one: Enhanced understanding of economic and fiscal risks of disasters. Strategic outcome two: Timely and effective Government response to disasters. Strategic outcome three: Diversified disaster risk financing instruments. Strategic outcome four: Strengthened coordination and institutional capacity for disaster risk financing.