The World Bank has announced that they will delay $40 million budget support to Malawi because the country has not yet completed a review of it's programmes with the IMF. This comes at a particularly bad time for the country after Britain and Germany withdrew aid. People in Malawi have been warned to expect announcements of heavy taxes in the near future, as the country scrambles to fulfil the president's promise of a zero-deficit budget. Half of Malawi's 13 million people live on less than a dollar a day.
The pressure is also being felt in other areas. Germany recently denied Malawian journalists access to courses at the International Institute of Journalism in Germany, saying that Malawi is not a partner of Germany. Rumour has it that Germany will shortly close its embassy in Malawi.