UK aid and Malawi under-lake oil

21 November 2016

The Scotland Malawi Partnership has been in communication with both DFID and the FCO today regarding suggestions in the media that UK aid money had been spent advancing British commercial interests vis-a-vis the extraction of oil from under Lake Malawi.

The Scotland Malawi Partnership has been in communication with both DFID and the FCO regarding suggestions in the media that UK aid money had been spent advancing British commercial interests vis-à-vis the extraction of oil from under Lake Malawi.

All credit to the UK Government that both the British High Commissioner to Malawi and the Head of DFID Malawi have been extremely quick in responding to these concerns this morning and have given strong reassurances to the SMP.

The UK Government work cited is a feasibility study around the prospects for exploration which will look to highlight the potential environmental impact of any such exploration, alongside the various economic, legislative, social and political factors. This will be presented to the Government of Malawi on completion but will not look to promote any UK company or interest.

Any decision on the potential future exploitation of oil/gas reserves will be for the Government of Malawi to decide. All parties, including DFID and the FCO, are keen that any such exploration is done in a sustainable and environmentally friendly way.

A UK Government spokesperson said: "The UK government’s aid funding for Malawi was not linked to UK business interests, and the UK has a clear commitment to keep aid untied … By fostering sustainable economic growth in Malawi, including exploring opportunities in oil and gas, we will help eradicate poverty, create jobs, increase revenue and reduce dependency on aid. This is firmly in the interests of Malawi and the UK.”

DFID Malawi has further emphasised to the SMP that: "The UK has a clear manifesto commitment to keep aid untied and we will honour it. All our ODA spending is in line with OECD guidelines and UK legal requirements.”

We are grateful to the FCO and DFID for being alert and quick to respond to these concerns, and for offering strong reassurance to members that ODA will remain untied. This is a commitment we strongly support.

DHJ Photo IMG 8712