TOWARDS A NATIONAL
CONSENSUS ON DEVELOPMENT
STATE OF THE NATION ADDRESS
delivered by
HIS EXCELLENCY
DR. BINGU WA MUTHARIKA, PRESIDENT
OF THE REPUBLIC OF MALAWI
at
THE OPENING OF THE 2007/2008 BUDGET
MEETING OF THE NATIONAL ASSEMBLY,
LILONGWE
21st May, 2007

Mr. Speaker, Sir,
I am delighted to be here this morning to open the 2007/2008 Budget
Meeting of Parliament and to deliver my statement on the State of the
Nation.
I have chosen the topic for this address as: BUILDING A NATIONAL
CONSENSUS ON DEVELOPMENT. This topic is germane because I
believe that the time has come for the people of Malawi, through this
august House, to learn to work together and build a national consensus
based on the full knowledge of our potentials and human capacity.
Mr. Speaker, Sir, before I elaborate on the state of this nation during the
past year, I need to clarify an important matter. This is to say that the
purpose of the Budget Meeting is for this august House to adopt a
national budget that is necessary for nation building, and for us to attain
a sustained growth rate of the economy, as a way to effectively combat
poverty in this country.
My understanding of the budgetary process, Mr. Speaker, Sir, is that
the national budget is not the concern of the State President alone, nor
the Cabinet alone, nor the National Assembly alone. It is the concern of
the whole Malawi nation.
We can either decide to move forward together or pull one another
down or even pull down the entire government machinery. But that
can hardly be regarded as democracy or progress.
Mr. Speaker, Sir, there is a general concern that during the past
three years, certain decisions affecting our nation, were based on
hatred and envy. Sometimes such decisions have negatively impacted
on foreign direct investment and hence, the development prospects
in our country. We must be bold enough to change our mindset and
move from the self-destruct course that some people are taking.
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I have, therefore, come here this morning to seek a national consensus on
development and to ask this august House to adopt the National Budget
so as to enable this nation to continue on the long journey from poverty
to prosperity.
KNOWING OUR PRIORITIES
Mr. Speaker, Sir, last year when I addressed this august Assembly, I
informed the Malawi nation that this administration was implementing
six top priorities within priorities with the aim of enhancing the rate of
growth of our economy as the way to combat extreme poverty in our
country. These are agriculture and food security; irrigation and water
development; transport and communication infrastructure; energy;
integrated rural development; and management and prevention of HIV
and AIDS.
I had then appealed to this august House to support these priorities
so that together as a nation, we could move towards prosperity. I
now reiterate the appeal that we continue implementing these
priorities because we have now established a record of tangible
development results.
ECONOMIC MANAGEMENT
Mr. Speaker, Sir, I am pleased to report to this august House that based
on these top priorities, we have had extraordinary performance of our
economy. We have achieved rapid economic transformation of our
country within a short period of time.
Right from the beginning, my vision was to bring about high
macroeconomic growth within a stable political and economic
environment. A stable political environment involved adherence to
human rights and the rule of law. The stable economic environment
involves low interest rates, low inflation and a stable exchange rate.
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We are also steadily moving towards transforming Malawi from a
predominantly importing to a predominantly exporting country.
Mr. Speaker, Sir, I had also said that I would transform Malawi into a
"hunger-free" nation. Today, I can say with pride that there are very few
people, if any, in Malawi that go to bed on an empty stomach. That, too,
is a major achievement.
Macroeconomic Performance 2006/2007
Mr. Speaker, Sir, the attainment of high macroeconomic growth and
economic prosperity is no longer just a vision, but a reality. This august
House is aware of the impressive growth rate of 8.5 percent that our
economy attained in 2006.
The 2007 growth rate is conservatively estimated at 6.0 percent. But we
know that we will attain a higher rate of growth. This growth rate is
within the target that we set in the Malawi Growth and Development
Strategy and can engender sustainable poverty reduction.
Similarly, the annual inflation rate has been decelerating rapidly from
16.6 percent in February 2006 to about 8.2 percent in end-March 2007.
This is an irrefutably good performance.
The major factor influencing the drop in inflation is the increased
availability of food at affordable prices following the positive shift in the
mindset of the people, and the successful fertilizer subsidy programme.
Mr. Speaker, Sir, interest rates have also dropped from 30 percent in
2005 to 22 percent now. We plan that these should continue to come
down in line with my vision to assist the private sector, especially
indigenous entrepreneurs and households, to access credit facilities for
investment at reasonable costs. Financial statistics show that as of
March 2007, the seasonally adjusted annual growth in credit to the
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private sector had increased from MK22 billion in the third quarter of
2005 to MK36 billion in the third quarter of 2006, representing a growth
of 63 percent.
Equally important, Mr. Speaker, Sir, is the fact that we have maintained
stability of our currency against the currencies of major trading
partners like US dollar, South African Rand, and the Euro. This is a prerequisite
for stimulating exports.
Mr. Speaker, Sir, in terms of fiscal performance, Government has
successfully implemented the budget during the 2006/07 financial year.
For instance, both external and internal revenue collections performed
exceedingly well because of external debt cancellation under the
enhanced Highly Indebted Poor Countries (HIPC) Initiative and the
Multilateral Debt Relief Initiative (MDRI). Our external debt that was
about $3 billion before the debt relief has now been reduced to less than
$480 million.
Mr. Speaker, Sir, the good economic management of this Government
has not come about accidentally. This is the direct result of the sterling
leadership that I have provided to this nation. I have given the Malawi
nation a very clear sense of direction. In other words, we know as a
nation where we came from, where we are now, and where we are going.
Mr. Speaker Sir, this august House may be pleased to know that in
recognition of our Government's track record in managing the economy,
the International Monetary Fund (IMF) Board has assessed that the
Poverty Reduction and Growth Facility programme is still on track and
that Malawi will continue to benefit from more IMF resources.
This august House might wish to know that this is the first time in the
entire history of our country that the IMF has sustained a programme
through four consecutive reviews without interruption. Previous
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operations with the IMF were suspended because Malawi could never
meet the agreed conditionalities.
Mr. Speaker, Sir, in a related area, the august House may also wish to
know that Malawi's creditworthiness on the international market was
upgraded by the Fitch Ratings of London on 6th March 2007 from
‘CCC' to ‘B-'. The (B-) rating indicates that Government is currently
meeting most of the financial commitments and that its credit risk has
gone down. This means that the private sector can easily borrow from
the international market without a lot of problems. It is my hope that
Malawi can be upgraded to "AAA" rating in the near future.
As a result, Mr. Speaker, Sir, this Administration has won back all the
donors and I am glad to report that the amount of aid that we are
receiving from our cooperating partners has since increased from MK28
billion in 2003/2004 to MK63.7 billion in 2006 and current projections
for 2006/2007 are at about MK70 billion. This is indeed a remarkable
achievement.
Mr. Speaker, Sir, as Head of State of our country, I pledge to continue
with prudent economic, fiscal and financial management of our economy
and to consolidate our past sound public finance management. In that
regard, we will endeavour not to accumulate new arrears in the system.
This Government will continue to repay the huge domestic debt that we
inherited from the previous government.
I would also like to assure this august House that my "zero-tolerance"
stand against corruption is now stronger than ever before. We now
know that the corrupt officials operate under a mafia-style network. If
you tackle one, he informs the network and they hide or destroy the
evidence. We also know that they have a mafia-like "godfather" who
finances their legal fees and has been able to corrupt some members of
the judiciary. But Government has better information and we will soon
bring their leader and the rest of them to book.
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AGRICULTURAL DEVELOPMENT AND FOOD SECURITY
Mr. Speaker, Sir, I now turn to agriculture and food security. Our
Government successfully implemented a Farm Inputs Subsidy
Programme in the 2006/2007 growing season. Since "the taste of the
pudding is in the eating", this Government is saying that the subsidy
programme has been a great success. The Programme has resulted in
significant increase in maize production from 2.6 million metric tons of
maize in the 2005/2006 season to an estimated 3.2 million metric tons in
the 2006/2007 growing season; an increase of 23 percent.
Our estimated annual grain consumption is 2.1 million metric tons, and
this leaves us with a surplus of 1.1 million metric tons. This is the largest
surplus ever realised in this country. We have also surpassed many
SADC countries in creating a huge surplus.
Mr. Speaker, Sir, I would like to thank all Malawians for heeding my
advice to work hard in their gardens and farms and to follow modern
agricultural practices that have evidently resulted in this unprecedented
bumper harvest.
As a nation, let us above all be thankful to God the Almighty for
providing us with adequate rains. Government is now very certain that
there is enough maize around to guarantee food security for the whole
nation. This is why we have now allowed some maize to be exported for
licensed traders.
I hope that the private sector will seize this opportunity to export some
maize in order to improve the prices in the open market.
Mr. Speaker, Sir, it is noteworthy that there are also increases in the
production of other essential food crops in 2006/2007 such as rice, beans,
groundnuts, pulses, sweet and Irish potatoes and cassava. These are
essential for dietary diversification and good nutrition for our people.
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I believe that the attaining of food security is an issue in which there is a
national consensus. We must have the capacity to store food efficiently in
order to avert hunger in future. This is why our Government is
constructing a new modern silo complex in Mangochi with a storage
capacity of 20,000 metric tons of grain. This will be operational by the
end of June 2007. In 2007/2008, Government will construct two silos,
at Luchenza and Mzuzu.
With these silos in place, Malawi will be able to buy and store food to last
us two years even if there was prolonged drought. We will also be able
to assist other SADC countries in need.
Can anyone say that ensuring food security for our nation is bad? I hope
not. Therefore, I am asking for national consensus. Let us leave politics
aside and unite to feed ourselves.
I wish to inform this august House that with the support of the Food and
Agriculture Organisation (FAO), Government is also planning to
construct small village-based metallic silos of up to two metric tons. This
is to ensure reduction of post harvest grain losses, now standing at 40
percent, and hence achieve food security at the village level.
Mr. Speaker, Sir, with regard to livestock development, our Government
imported some 250 heads of dairy animals which have since been
distributed to potential farmers who have demonstrated capacity to
manage them. This programme will eventually reduce the importation
of meat and dairy products while at the same time increasing the
incomes of the farmers.
Mr. Speaker, Sir, before I leave the agricultural sector, I wish to remind
this august House of the danger and risk of the Bird Flu that attacks
poultry and also poses a health risk to human beings. I am pleased to
report that with the support of the United States Agency for
International Development and the FAO, Malawi has set up three rapid
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response teams in all regions to immediately handle any suspected cases
of the Bird Flu. I also wish to report that so far there have not been any
reports of suspected cases of the disease in our country.
IRRIGATION AND WATER DEVELOPMENT
Mr. Speaker, Sir, I now turn to irrigation and water development and
to underscore that water is life. Let us also build a national consensus
around Irrigation and Water Development as a key priority in
Malawi's economy. With respect to irrigation, in 2006/2007, our
Government distributed 27,892 treadle pumps that irrigated 20,750
hectares; 773 motorized pumps that irrigated 6,165 hectares; and 73,083
watering cans.
Government also established 1,509 sites of gravity-fed irrigation that
covered 6,892 hectares In all, there were 202,693 beneficiaries from the
irrigation and water development initiative. Land under irrigation has
increased from 11,187 hectares in 2004 to 33,807 hectares to date of
which 14,789 hectares were developed in the 2006/2007 financial year.
Rehabilitation works have been completed for the following irrigation
schemes: Bua, Rufira, Wovwe, Chonanga, Hara, Domasi and Zumulu.
Mr. Speaker, Sir, during the forthcoming 2007/2008 financial year,
Government will continue its efforts towards the rehabilitation and
construction of irrigation schemes and earth dams for irrigation
development. More specifically, Government will develop 8,000 hectares
of irrigation schemes using both simple and complex technologies and
these will include gravity fed schemes, treadle and motorized pumps and
dam rehabilitation. The Government will also rehabilitate the old
schemes like Mkhate, Muona, Likangala, and Limphasa covering 1,747
hectares. Financial resources for the rehabilitation of these schemes are
already available through funding from the World Bank.
Mr. Speaker, Sir, in relation to water supply, our Government undertook
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the following activities during the past one year__

rehabilitated a Water Supply Scheme at Kasinje in Ntcheu,

constructed a 22km pipeline from Dwambazi in Nkhota-kota to
Nkhata-Bay side.

constructed Ngodzi Rural Water Supply Scheme in Salima.

drilled 89 boreholes in Ntchisi

constructed earth dams at Chaliwa in Dowa and at Kamanda in
Mzimba.

rehabilitated Kabango dam in Ntcheu.
In addition to this, Government has embarked on the construction of
large scale multi-purpose dams. Resources have already been identified
through the National Water Development Programme to undertake
detailed engineering studies to confirm the development of dams on
Mulanje mountain, Lilongwe and Mzimba Rivers. The multipurpose
approach would make water relatively more available and less costly to
users like Water Boards and ESCOM.
Mr. Speaker, Sir, I would like to report that considerable progress has
been made in the drilling of boreholes in the last financial year. The
Government both from its own resources and with the support of
development partners has constructed 1,130 new boreholes and repaired
1,800 boreholes that had broken down. The Government has also
rehabilitated and extended 15 rural piped schemes, providing an
additional 2,000 communal water points.
This august House might also be pleased to know that Government has
successfully negotiated with the World Bank (IDA) to implement the
National Water Development Project Phase II which will be
implemented countrywide under the National Water Development
Programme. The project will, inter alia, focus on Urban Water Supply
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and Sanitation especially in Lilongwe and Blantyre and preparation of
an enabling legislation for the implementation of the National Water
Policy. Government also plans to construct a water dam in each district
in the next few years.
INDUSTRY, TRADE AND PRIVATE SECTOR DEVELOPMENT
Mr. Speaker, Sir, turning to industry and trade, our Government places
high priority on the development of the private sector with greater
emphasis on more participation of indigenous entrepreneurs in
agricultural production, industrial manufacturing, mining, tourism and
trade. I believe this is an area where we can also have a national
consensus on the way forward.
Accordingly, this administration is implementing a Private Sector
Development Strategy and Reform Programme aimed at improving the
legal and regulatory environment for private sector investment. Within
this programme, Government is introducing Business Licensing reforms
to create favourable business licence regimes. Additionally, support will
be provided to firms that employ Malawi nationals to help them raise
their annual turnover.
The Government has also launched the African Trade Insurance which
is a facility to support Malawian businesses hedge against the risks in
export trade.
Mr. Speaker, Sir, in trade negotiations, the Government signed a revised
bilateral trade agreement with Zimbabwe in July 2006 aimed at
rebalancing the trading relationship between the two countries. We have
also signed a trade and bilateral agreement with the Republic of South
Africa.
In another field, we have also agreed to extend the lifetime of the
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Malawi-Mozambique-Tanzania-Zambia-Southern Africa Custom Union
arrangement, and the third country fabric provision of the US African
Growth and Opportunity Act (AGOA).
Mr. Speaker, Sir, in order to promote the growth of industries in Malawi,
Government has spearheaded the following__

construction of a fertilizer plant in Lilongwe which is near
completion to reduce fertilizer imports;

the re-opening of a fruit processing factory in Mulanje;

the resumption of the Liwonde Tannery to add value to hides and
skins within the country; and

establishment of the Premium Tobacco Limited, a tobacco
processing company that has local shareholders.
Government has also identified the following investment prospects__

a Bio-diesel production plant which is a large investment portfolio
of US$40 million to be undertaken by Malawi Investment
Corporation.

bus manufacturing which is another major investment portfolio of
US$100 million to be undertaken by AVM buses of Zimbabwe.
These initiatives will help save foreign exchange as well as increase
employment and income for our people.
TRANSPORT INFRASTRUCTURE AND PUBLIC WORKS
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Mr. Speaker, Sir, the development of transport infrastructure is one of
the top priorities. Government believes that improved transportation
network would greatly contribute to rapid macro-economic growth. In
this regard, Government is implementing the following projects:
The Shire-Zambezi Waterway Project
The Shire-Zambezi Waterway multi-modal project Mr. Speaker, Sir, is
intended to provide our country with cheaper access to the sea. The
Nsanje port will be turned into a MALAWI WORLD INLAND PORT
and will make Malawi more competitive in international trade. The
Government of Malawi has signed a Memorandum of Understanding
(MOU) on the Shire-Zambezi Waterway Project with Governments of
the Republic of Mozambique and the Republic of Zambia on 25th April,
2007. Together the three countries have agreed to jointly mobilize
financial resources to facilitate implementation of various activities
envisaged under the Project.
I am pleased to report that the Government has received a number of
pledges from several cooperating partners and the private sector for the
Project. These include the Common Market for Eastern and Southern
Africa, the European Union, the World Bank, the Government of Japan
and other International and bilateral financial institutions. It is
Government's intention that shipping vessels should start sailing on the
Waterway by the end of 2008.
Mr. Speaker, Sir, the Shire-Zambezi Waterway Project will largely be
financed through public-private sector participation. Under this Project,
the Government will make land available to investors to build a fuel
depot, warehouses, hotels, shopping centres, restaurants, duty free shop,
tourist attractions, factories, luxury holiday villas, and an international
airport. When completed, Nsanje will turn into a modern City, creating
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a large number of jobs and business opportunities for the whole of
Malawi.
Roads Construction and Rehabilitation
Mr. Speaker, Sir, since 2004, our Government has been building new
roads and bridges, and rehabilitating and upgrading rural roads into all
weather roads.
During the past year, our Government completed a number of road
projects which include the following__

The rehabilitation and construction of a number of roads in the
cities of Blantyre and Lilongwe.

Construction of Bridges at Kalwe on the M5 Road in Nkhata Bay,
Lisasadzi on the M1 Road in Kasungu, Kasangadzi and Liwadzi
on the M5 Road in Nkhotakota, with funding from the European
Union;

Construction of the Likuni Bridge and Lali-Lubani Road in
Lilongwe, with funding from the World Bank;

Construction of the Kamphata-Nkhoma Road with funding from
the Malawi Government; and

Construction of Nankhokwe, Luwadzi and Angoni Bridges on the
Salima-Balaka M5 Road with funding from the Japanese
Government.
The construction of the following roads is underway__

The Zomba-Jali-Phalombe-Chitakale Road with funding from
the Kuwait Fund, the Arab Bank for Economic Development
in Africa, the OPEC International Fund and the Malawi
Government;

The Karonga-Chitipa Road, with funding from the Republic of
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China and the Malawi Government; and

The Mponela-Ntchisi Road with funding from the Malawi
Government.
Government also started to upgrade and gravel the following roads
under the Infrastructure Services Project with funding from the World
Bank__

Rumphi-Nyika-Chitipa;

Ntcheu-Tsangano-Neno-Mwanza;

Bangula-Tengani-Makoko; and

Monkey Bay-Cape Maclear.
Mr. Speaker, Sir, in the coming 2007/2008 financial year, Government
will implement new projects in this sector that include the following__

The Malawi Backlog Maintenance Programme for resealing
works for the following selected roads: Chikwawa-Nchalo;
Chikwawa-Chapananga-Mwanza; Salima-Balaka; Lilongwe-
Nsipe; Mzuzu-Bwengu and Mzuzu Urban roads. This will be
funded by the European Union;

The rehabilitation of the Mangochi-Monkey Bay Road; Nchalo-
Bangula Road; Karonga-Songwe Road; Chiweta-Bwengu Road
and South Rukuru Bridge, with funding from the European
Union;

The rehabilitation of the Liwonde-Naminga Road, with funding
from the OPEC International Fund and the Malawi Government;

The construction and upgrading of the Golomoti-Monkey Bay
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Road under the European Union funding;

The upgrading and construction of the Thyolo-Makwasa-
Thekerani-Muona Road, with funding from the Kuwait Fund, the
Arab Bank for Economic Development in Africa, the OPEC
International Fund and the Malawi Government;

Construction of the Chiromo Bridge with funding from Japan;

The upgrading of the Lumbadzi-Dowa-Ntchisi Road including the
Dowa-Salima Turn Off Spur, with funding from the Malawi
Government; and

The feasibility study and design for the Chiradzulu-Kamwendo-
Chiringa Road, with funding from the Malawi Government.
Mr. Speaker, Sir, Government has a number of other road projects in the
pipeline which include the following__

Jenda-Edingeni-Euthini-Chikwawa Road;

Bangula-Nsanje-Marka Road;

Mzimba-Kafukule-Ekwendeni Road; and

Old Lilongwe Airport-Kasiya-Santhe Road.
Other Public Works
Mr. Speaker, Sir, our Government is determined to complete on schedule
the construction of the following projects that are currently being
implemented__

The Memorial Tower at Capital Hill in Lilongwe, together with the
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erection of statues of prominent Malawians and others starting
with that of the late Dr. Hastings Kamuzu Banda;

The New Parliament Building Complex in Lilongwe;

The Grain Silos in Mangochi, Luchenza and Mzuzu; and

The New Nkhotakota District Hospital.
Railway Transport
Mr. Speaker, Sir, during the period under review, our Government
received a donation of 4 locomotives from Taiwan for freight and
passenger service. In addition, Government also undertook major
rehabilitation works on the Nacala Port.
In 2007/2008, Government will develop and rehabilitate the railway
system in the country. Plans are underway to rehabilitate the Beira-
Sena Railway line, the railway line from Nsanje to Blantyre, Balaka,
Salima and Lilongwe.
LAND AND HOUSING
Mr. Speaker, Sir, I would now like to turn to issues concerning land and
housing.
Land Tenure and Management
During the past year the Government continued to provide land and
housing management services to the public so as to promote economic
growth and reduce poverty. So far, a total of 126 groups comprising
3,000 farm families have acquired more than 6,000 hectares of land.
As part of the effort to promote sustainable land use, Government will
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continue to implement the Community Based Rural Land Development
Project funded by the World Bank. The project will assist the poor and
land-less households to acquire land for agricultural production.
Joint Projects with Neighbouring Countries
Mr. Speaker, Sir, our Government is working with the Government of
the Republic of Tanzania to implement the Songwe River Basin
Development Programme. The goal is to improve the livelihoods of the
inhabitants of the basin on both sides of the River, through a number of
sub-projects. More importantly, we are planning to jointly stabilize the
course of the Songwe River and therefore permanently fix the boundary
of the two countries.
Our Government is also working with the Government of the Republic
of Zambia on a joint project to physically demarcate the watershed
which is the boundary of the two countries. About 200 km have so far
been covered and 604 km is remaining.
Housing Projects
Mr. Speaker, Sir, in terms of housing, the Government plans to construct
more houses and offices for the Police and Defence Force as well as for
traditional chiefs to provide suitable accommodation and facilities.
Our Government also plans to build another office block at Capital Hill
in order to move out of rented premises and save resources on rent. It is
anticipated that work on the new office block will commence this year.
Government also plans to construct an ultra modern Judiciary complex
in Lilongwe to house the Supreme Court, the High Court and the
Commercial Court. When completed, this will ensure that all the three
branches of government, namely, the Executive, the Legislature and the
Judicature, are properly housed in the capital city.
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LOCAL GOVERNMENT AND RURAL DEVELOPMENT
Mr. Speaker, Sir, I now turn to Integrated Rural Development, which is
another top priority of the nation. The rationale behind this is to
empower the rural communities by taking development to them.
Presently, Government is implementing three Rural Growth Centres at
Nthalire in Chitipa, Dowa and Neno Boma in Neno with the construction
of modern schools, markets and dwelling houses.
This is made possible with funding from the Clinton-Hunter Foundation.
In the Neno district, Government is constructing a modern hospital,
access roads, an office complex for the District staff. Furthermore plans
are underway to establish three Village Polytechnics at the three Growth
Centres.
Mr. Speaker, Sir, I am pleased to announce that Government has now
completed the Dedza Secondary Centres Development Programme
which was opened on 19th May, 2007. This has provided ultra modern
infrastructure comprising a produce market, a bus station, civic offices,
a sporting complex, a community centre ground and a truck park.
I must point out, Mr. Speaker, Sir, that Dedza is the home of the
Honourable Leader of the Opposition. Similarly, the projects in Neno
and Dowa are located in opposition MPs' constituencies.
In other areas, Government has also continued to implement the Rural
Livelihoods Programme, the Income Generating Public Works
Programme and the Poverty Reduction Project in 27 District
Assemblies.
Mr. Speaker, Sir, it is also my wish to improve the general outlook of our
cities by putting up modern infrastructure, especially roads. I would
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like, therefore, to mention that in the 2007/2008 budget, resources have
been set aside to construct infrastructure that will transform the
appearance of the cities of Blantyre, Lilongwe, Mzuzu and the
Municipality of Zomba.
In another area, the construction work of flea markets has commenced
in the cities of Blantyre and Mzuzu. This will provide adequate and
environmentally friendly trading areas for vendors.
Regarding the One Village One Product Programme, Mr. Speaker,
Sir, 38 small industries have been established across the country. The
products from these small-scale industries are currently being sold in a
number of super markets and some are exported to other countries.
Mr. Speaker, Sir, Government greatly appreciates the role of
traditional chiefs in our development process. Accordingly, during the
year under review, our Government promoted 2 Senior Chiefs to
Paramount Chiefs, 3 Traditional Authorities to Senior Chiefs and one
Group Village Headman to a Traditional Authority.
Government is designing a Local Development Fund (LDF) as a
comprehensive financing mechanism to succeed the District
Development Fund. The LDF will be a tool through which all funding to
rural and urban development will be channelled.
ENERGY, MINES, FORESTRY AND NATURAL RESOURCES
Mr. Speaker, Sir, with regard to the energy, mining and natural
resources sector, our Government commenced the rehabilitation of
machines at Nkula B. Further, rehabilitation works at Tedzani 1 and II
Power Stations also commenced with a view to restore and contribute 40
megawatts of power to the national grid. The Blantyre-Salima-Lilongwe
high voltage power line has been modernized through the installation of
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the fiber optic cable.
Government also plans to implement Phase V of the Malawi Rural
Electrification Programme that will electrify one Trading Centre in each
district.
Mr. Speaker, Sir, in order to strengthen fuel supply into the nation,
Government has commissioned a feasibility study for the construction of
an Oil Pipeline from the port of Beira in Mozambique to the Malawi
World Inland port of Nsanje within the framework of the Shire/Zambezi
Waterway Project. A firm of financiers with vast experience and
resources, has indicated a keen interest in this project.
Mr. Speaker, Sir, the august House may be aware that Government has
issued a mining licence to Paladin Africa Limited to start mining
uranium at Kayelekera with an investment of US$180 million. The mine
is expected to contribute at least 50 percent of Malawi's total export
earnings and 20 percent of the GDP. It will employ over 800 people in
the initial phase of construction and 280 people in the operational phase.
The small-scale lime-making project at Uliwa will supply lime to the
Kayelekera Uranium Mine.
Mr. Speaker, Sir, in the area of environmental protection, Government is
determined to address the problem of deforestation and resulting land
degradation. Since 2005, I have personally led the nation in tree planting
exercises through the initiative of the National Forestry Season. Today,
96 million trees have been planted. Furthermore, Government is
implementing the Tree Planting and Management for Carbon
Sequestration and Other Ecosystem Services to encourage extensive tree
growing.
In the fisheries sector, the Lake Malawi Artisanal Fisheries
Development Project is being implemented in Mangochi, Salima,
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Nkhotakota, Nkhata Bay and Likoma. The project is assisting
small-scale fishermen with support in form of loans, motorized fishing
boats and nets to venture into deep waters of Lake Malawi where fish
stocks abound.
I am pleased to report that the Presidential Initiative on Aquaculture
that I launched in 2006 has helped the private sector companies and
individuals to join hands with our Government in a fish farming
enterprise and Malawi plans to increase fish production to 5000 tonnes
per year by 2011 from the current 500 tonnes.
We are pleased that MALDECO is implementing an Aquaculture
Development Limited Cage Culture Initiative that now produces 10
tonnes of Chambo weekly.
Mr. Speaker, Sir, in the field of management of toxic wastes and
hazardous materials, Malawi is determined to face the challenge to a
developing nation free from such hazards. We are meeting this challenge
through Strategic Plans for the phasing out of hazardous wastes and
chemical substances, including Persistent Organic Pollutants and Ozone
Layer depleting substances.
In this regard, I also wish to inform this august House that Malawi has
phased out leaded fuel, which was a health hazard. Plans are also
underway to reduce the content of Sulphur in diesel to the level that is
not harzadous to human health.
PUBLIC ENTERPRISES
Mr. Speaker, Sir, let me now turn to the role of public enterprises in our
economy. The performance of the majority of the parastatal
organizations continues to show signs of recovery. There are, however,
weaknesses in the performance of others. While a good number of
parastatals have recorded some profitability, there is still a large number
22
that has been unable to make adequate profits, pay dividends to
government or to meet their obligations such as payment of utility bills,
salaries and other arrears.
Examples of statutory corporations that have recorded reasonable
profitability levels include the Malawi Communications Regulatory
Authority (MACRA), the Malawi Housing Corporation, the Electricity
Supply Corporation of Malawi (ESCOM) and the Malawi Posts
Corporation, among others. I would like to encourage them to continue
and improve on their performance.
The performance of some statutory corporations, in particular the five
Water Boards, has remained poor. Government, is therefore, taking
special interest in the performance of the Water Boards. More
specifically, the Lilongwe and Blantyre Water Boards will continue to
undergo restructuring with financial assistance from the World Bank,
European Union, the European Investment Bank and other cooperating
partners. These boards must become financially viable within a short
period of time.
Mr. Speaker, Sir, Government will continue to implement a number of
rationalization policy reforms in the parastatal sector. In order to
achieve this, Government will in the coming financial year dissolve a
large number of subvented parastatals. I have directed that some of the
loss-making parastatals should be wound up, restructured or merged in
order to gain efficiency. This will result in some savings on the
government budget because most of these institutions will never survive
without government funding.
CIVIL SERVICE REFORMS
23
Mr. Speaker, Sir, the Public Service, and in particular the Civil Service,
continues to undergo reforms focusing on benchmarking, improved
conditions of service, human resource training and capacity building
and enhancement of integrity, patriotism and high performance.
As part of this reform, in the 2006/07 financial year, Government
continued with the implementation of the Medium Term Pay Policy that
aimed at ensuring that compensation packages in the Public Service are
uniform, comparable and competitive. We hope to attract and retain
highly qualified professional, technical and managerial personnel who
are critical to improving the quality of service delivery.
Government has set up the Public Service Remuneration Board, as an
independent body, to review all issues related to the pay structure in the
public sector. Government also developed and implemented a
computerized Human Resource Management Information System for
the Civil Service. This aims at controlling the establishment and
management of the payroll, eliminating ghost workers and improving
Human Resource Management procedures.
We are convinced of the need to promote a results-oriented culture in the
Public Service. Government has therefore introduced performance
monitoring of the implementation of development activities that involve
production of quarterly progress reports by all ministries. Government
will develop a performance management system covering all Civil
Servants by December 2009.
In order to give direction, purpose and improve performance of
Ministries and Departments, strategic plans have been developed for 14
ministries. This will be extended to the remaining ministries in the
2007/2008 fiscal year.
EMPOWERMENT OF WOMEN
24
Mr. Speaker, Sir, our Government is committed to empower women in
the political, economic and social areas. For instance, in the past three
years, there are more women in Ministerial and other management
positions than ever before. Additionally, we will continue to promote the
welfare of women so that they become self-reliant and active participants
in the process of national development.
The situation of women is characterized by high adult illiteracy levels of
48% as compared to 24% for men, high girl dropout rates from formal
schooling system, high vulnerability to HIV/AIDS infection (out of the
930,000 infected adults, 58% are women).
To address this situation, Mr. Speaker, Sir, our Government has in the
last year provided adult education to 80,880 adults, out of whom about
54,000 are women and continued to train women groups in credit and
business management.
Mr. Speaker, Sir, Government will continue to train women in business
and credit management, agro-processing, manufacturing and mobilize
groups to form associations and cooperatives so that they can easily be
linked to lending institutions.
This Government Mr. Speaker, Sir, has appointed more women to
ministerial and other positions than the two previous governments. We
are proud of this achievement. Government will continue promoting
more women to decision-making positions and Malawi will attain the
SADC requirement of 50 percent in the not too distant future.
CHILD DEVELOPMENT
Mr. Speaker, Sir, I now turn to child development. One of the main
challenges that our Government has been facing is the increase in the
number of orphans and street children due to HIV and AIDS pandemic.
Currently, it is estimated that there are over one million orphans in
25
Malawi that need care and support.
I am sure this august House will agree that the future of this country
depends on preparing the children through their education, protection,
care and support regardless of their vulnerability status. The
Government is therefore implementing a number of programmes aimed
at supporting children.
In 2006/2007, Government, among other activities, paid school fees for
3,833 orphans and other vulnerable children; it supported 4,410 children
under social cash transfer programmes, and established 6,277 Early
Childhood Development Centres that are serving 619,478 children and
established Social Rehabilitation Centres for street children.
Mr. Speaker, Sir, Government will continue to support orphans and
other vulnerable children within our communities. Government will
also roll out programmes in Early Childhood Development, Child
Protection, Social Cash Transfer and build additional Social
Rehabilitation Centres so that more street children can be rehabilitated
and given the chance to grow into useful citizens of our country.
PUBLIC HEALTH
Mr. Speaker, Sir, turning to public health, I will start by stating that this
sector is a critical component of the development paradigm. A healthy
nation is a nation that has a future. Therefore, public health is an area
where our country has achieved remarkable progress.
This has largely been through Government's adoption of the ‘Essential
Health Package' as the main strategy for the delivery of a cost effective
package of health services through a Sector-Wide Approach (SWAp).
Government has undertaken to increase access to the Essential Health
Package especially for rural communities and the most vulnerable
26
groups including mothers and under-five children. We are happy with
the SWAP arrangement.
During the past two years, Mr. Speaker, Sir, health indicators reveal that
the health of Malawians has generally improved. For example, the
infant mortality rate dropped from 76 deaths per 1,000 live births in
2005 to 69 per 1,000 live births in 2006 whereas the mortality rate for
under-five children dropped from 133 deaths per 1,000 live births in
2005 to 118 per 1,000 live births in 2006. This is a remarkable
performance, but we must do more.
We are concerned that health indicators reveal that the quality of life of
certain groups of Malawians remains poor. For example, the TB
prevalence rates are still very high. Government has, therefore, declared
TB an emergency and also launched a five-year plan for addressing the
problem.
Mr. Speaker, Sir, this august House will agree that the maternal
mortality rate of 984 maternal deaths per 100,000 live births is
unacceptably high. In this respect, Government launched ‘The
Roadmap for Accelerating the Reduction of Maternal and Neonatal
Mortality and Morbidity in Malawi'. Through this initiative, Government
hopes to further reduce the maternal mortality rate.
The Government also strengthened its collaboration with the Christian
Health Association of Malawi (CHAM) who are now providing free
maternal and neonatal health services to the population. So far a total of
54 Service Level Agreements have been signed. It is the wish of the
Government to expand the range of services and geographical coverage
of these agreements with CHAM as a means of improving access to
essential public health services.
Mr. Speaker, Sir, through the accelerated training programme the health
sector is now producing 846 health workers annually in various cadres.
27
This output is expected to increase over time as the infrastructure
development programme in the training institutions progresses. Efforts
are continuing to address the human resource problems currently
adversely affecting the health sector due to brain drain of medical
personnel.
Government is also implementing a Health Infrastructure Improvement
Programme, through which Government will improve access to quality
essential health services. This envisages the rehabilitation and
upgrading of primary and secondary level health facilities construction
of new health centres.
The new Nkhotakota District Hospital that is under construction is
expected to be operational by December 2007. Government is also
rehabilitating infrastructure at the Zomba Mental Hospital.
Mr. Speaker, Sir, in 2007/2008, our Government will commence
construction work of new district hospitals at Phalombe, Dowa and
Nkhata Bay and the rehabilitation of Balaka District Hospital. In
addition, a total of sixteen rural health facilities in Rumphi, Mzimba,
Kasungu and Lilongwe Districts will be upgraded through the Rural
Health Infrastructure Project.
Mr. Speaker, Sir, I wish to underscore that Government has increased
budgetary allocations to drugs and medical supplies. This is to mitigate
the frequent shortages of essential drugs and medical supplies at the
service delivery level. Government is currently implementing strategies
aimed at reforming the Central Medical Stores so as to improve
management of drugs and medical supplies in the health system and to
stamp out corruption.
NUTRITION, HIV AND AIDS
28
Mr. Speaker, Sir, as part of improving the health status in our country,
Government recognizes that adequate nutrition is a prerequisite for
human capital development and a healthy nation. Nutrition deficiencies
reduce child survival, growth and development, resulting into physical
and mental retardation, low IQ and decreased productivity among
adults. We are determined to address this problem.
In order to prevent, control and manage the nutrition disorders,
Mr. Speaker, Sir, our Government has developed a National Nutrition
Programme that outlines a number of interventions to address the
nutrition problems in a coordinated and comprehensive manner.
Mr. Speaker, Sir, with regard to responses to the HIV and AIDS
pandemic, Government has increased antiretroviral therapy (ART) sites
from 109 in 2006 to 140 in 2007. Over 500,000 clients have been tested
while 55,000 more clients have been put on free ARVs. Furthermore,
our programmes have now reached a total of 6 million individuals to
whom we are providing different HIV and AIDS services.
The 2007/2008 programmes will include training of nutrition,
HIV and AIDS workers, development of a research agenda to ensure
evidence-based interventions, intensification of nutrition therapy,
service delivery at all levels, and increase in universal access to
prevention and care for HIV and AIDS.
Government will also launch the National Nutrition Policy and will table
the Nutrition Bill that will provide legal framework for nutrition services
in this country. In addition, a Bill on HIV and AIDS Prevention and
Management will be submitted to Parliament at its next meeting.
INFORMATION AND TOURISM
29
Mr. Speaker, Sir, in the area of information and tourism, Government
has continued to place high priority on ways of attracting more visitors
to the "Warm Heart of Africa".
Starting with information and communications technology, Government
has maintained an environment conducive to the establishment of print
and electronic media. Government has also opened dialogue with the
media to ensure that there is mutual trust and understanding between
the media and Government. The Presidential Chat with the media is one
of such initiatives.
Government has acquired all equipment for satellite broadcasting.
Actual satellite studio broadcasting is expected to begin in May 2008.
Meanwhile, live broadcasting from the field has started.
Mr. Speaker, Sir, our Government signed a NEPAD Protocol to facilitate
Malawi's access to a broadband fibre optic cable with other SADC
Countries and the East African Submarine Cable that will bring down
the cost of digital communication. In addition, Government has trained
a total of over 600 senior officers in various computer skills with
financial support from the Republic of China (Taiwan).
In the area of tourism, Mr. Speaker, Sir, we have witnessed a significant
rise in investment in the hospitality industry. More than 50 new
accommodation and catering facilities have been opened in cities and in
lakeshore resort areas during the period under review. As a result, more
than 1,000 new jobs have been created. Quality of service in the
hospitality industry has improved in the past year, largely due to the
extensive inspections and licensing campaign.
A total of 450 accommodation units were inspected in 2006 and 363 of
them were licensed but 87 were shut down because they failed to meet
required standards.
Mr. Speaker, Sir, Government will continue with the classification of
tourism units and grading of hotel accommodation according to
30
international specifications. As the 2010 World Cup to be hosted by
South Africa approaches, the tourism sector will undertake a more
aggressive marketing campaign to attract tourists and football teams to
Malawi.
Government has constructed 40 km of electric fences around Kasungu
and Lengwe National Parks in order to reduce human/wildlife conflict.
Measures were also put in place to reduce poaching of animals in the
Nyika, Liwonde and Lengwe National Parks.
In the 2007/2008 fiscal year Government plans to__

Intensify measures to create new "Mountain Tourist Attractions"
in Mulanje, Thyolo, Zomba, Dedza and Nyika mountains. We shall
search for caves and other exciting areas to attract visitors.

increase visitations and visitor accommodation at protected areas
including Majete, Vwaza, Kasungu, Nkhotakota and Nyika Game
Reserves by constructing additional rooms for accommodation,
upgrading facilities and rehabilitating roads, bridges, gates and
signage,

intensify law enforcement to curb poaching in protected areas,

restock protected areas that have been poached out,

extend boundary electric fences to reduce human/wildlife conflict,

create wildlife-based enterprises through game farming/ranching
and establishing community ecology-tourism lodges, and

develop the new Memorial Park and Tower as a tourist attraction
in the city of Lilongwe.
LABOUR AND SOCIAL DEVELOPMENT
31
Mr. Speaker, Sir, I now turn to Labour and Social Development.
Government has over the past one year helped to maintain harmonious
labour relations in the workplace.
I am unhappy with reports that some estates are still paying employees
below the minimum wage stipulated by Government. This minimum
wage will be enforced seriously. On the other hand, some tea and coffee
estates have adjusted the minimum wages upwards. I commend their
action.
Mr. Speaker, Sir, during the year, Government enforced safety standards
in almost all workplaces throughout the country. This has resulted in a
substantial decrease in the number of accidents in these workplaces. It is
saddening that there are some employers who lock up their employees in
their factories that do not have fire escapes.
This inhumane practice cannot be condoned and must stop forthwith. I
want people in our country to be treated with dignity and to work in safe
environment. Government will in future revoke the licences and
employment permits of those establishments that continue to ill-treat
Malawians and some of them will be deported.
Mr. Speaker, Sir, this august House will be pleased to know that
Government will introduce Social Security Insurance that will be a
periodic payment of compensations unlike the present system of
lump-sum payment, which benefits only a few recipients.
Mr. Speaker, Sir, Government has intensified the fight against child
labour. A number of children were rescued from some of the estates
throughout the country and have since returned to school. Government
will ensure that child labour is eliminated in both the formal and
informal sectors.
EDUCATION AND VOCATIONAL TRAINING
32
Mr. Speaker, Sir, Government continues to place high priority on the
development of education and is determined to improve the learning
environment in our schools as well as the quality and relevance of
education in Malawi.
To address the challenge of inadequate teaching and learning materials,
Government procured assorted teaching and learning materials.
Furthermore, Government delivered more than 12 million textbooks to
primary schools in order to facilitate the roll out of the new primary
school curriculum that was launched in January 2007.
Mr. Speaker, Sir, Government continues to train primary school
teachers under the regular and special programmes so that all our
schools are adequately staffed. At the moment, 2,600 teachers are in the
field for practical training while another cohort of 2,600 will begin their
training in October this year. Curriculum reforms are being
implemented in all levels of education to ensure relevance of education
to the development of our country.
Government launched a National Strategy for Community Participation
in the Management of Primary Schools. This strategy will ensure that
communities, teachers and pupils manage their own schools, are
accountable for the quality of education and that schools are adequately
resourced.
Mr. Speaker, Sir, I am happy to inform this august House that our
Government has increased funding to the Universities of Malawi and
Mzuzu. For instance, in 2003/2004, the University of Malawi received an
annual sum of MK960 million. This has been raised by my Government
to MK4.9 billion in 2007/2008. This is a phenomenal increase indicating
how seriously education is being viewed by this administration.
Mr. Speaker, Sir, let me also mention that Government is undertaking a
Credentials and Evaluation exercise of newly established Universities
33
and training institutions in Malawi to recognize qualifications awarded
by these institutions. As of now, Corporate Governance College and
Share World Open University are among institutions that have been
recognized by Government. Furthermore, Government is in the process
of establishing the Malawi National Qualifications Authority to ensure
standardisation and accreditation of qualifications offered by local
training institutions.
I am pleased to report Mr. Speaker, Sir, that during the year under
review, Government constructed 100 teachers' houses and 45 primary
schools with a total of 350 classrooms, with support from the
Department for International Development of the British Government.
Government is upgrading Community Day Secondary Schools by
rehabilitating infrastructure and providing library and laboratory
facilities.
The education of the girl child has been given high priority. In that
regard, Government has increased the number of girls selected to
secondary schools. It has also intensified equipping resource centres for
students with special needs in primary and secondary schools. During
the past year, construction of girls boarding facilities in 10 secondary
schools has started and an additional 10 are earmarked for construction
in the 2007/2008 financial year.
Mr. Speaker, Sir, through the School Feeding Programme, up to 500,000
primary school pupils have been provided with food in 15 districts of the
country. The programme will be extended to the remaining districts in
the next financial year. Government also launched a School Health and
Nutrition Programme which provides school children with
micronutrients and drugs for basic illnesses to ensure that minor illness
and other nutritional deficiencies do not unnecessarily prevent children
from attending school.
INTERNATIONAL RELATIONS
34
Mr. Speaker Sir, turning to international relations, I am pleased to
report to this august House that during the past three years, Malawi's
relations with the international community have significantly improved.
Specifically, I can say that people of Malawi generally have a better
perception and appreciation of the role of our cooperating partners.
In return, I believe the cooperating partners have a better
understanding and more trust in the integrity and commitment of our
Government to implement our reform programmes.
Government continued to advance Malawi's interests and image abroad
with traditional and non-traditional partners. At the bilateral level, the
Government:

is opening an Embassy in New Delhi, India that will serve as our
gateway to other countries in South East Asia;

established a Joint Economic Commission with Turkey;

signed an economic and technical cooperation agreement with
Ethiopia;

initiated consultations for cooperation agreements with the
Republic of Venezuela and the United Arab Emirates.

improved our bilateral relations with the kingdom of Morocco;
and

established new partnership with the Flemish Government.
It is my expectation, Mr. Speaker, Sir, that these initiatives will translate,
in the near future, into increased bilateral funding for our economic and
social development programmes.
I must specifically mention that through the Malawi/Flanders
Cooperation Agreement, the Flemish Government has pledged €2.5
35
million for food security and €1.5 million for combating HIV and AIDS
pandemic. Similarly, under the Malawi/Scotland Joint Commission of
Cooperation, Government is implementing programmes in health,
education, and governance, among others.
Other notable bilateral and multilateral events include Malawi's
qualification for threshold allocation in the USA Millennium Challenge
Account; increased allocation of funding from the British DFID, Japan,
the European Union, the World Bank and the continuation of the PRGF
of the IMF. These interventions are greatly appreciated.
Mr. Speaker, Sir, during the year, Government strengthened our
relations with other countries in the SADC/COMESA region as well as
the African Union through effective participation of Malawi in these
bodies.
Mr. Speaker, Sir, the Government will ensure that all Missions abroad
have qualified personnel with requisite professional experience.
NATIONAL SECURITY
Mr. Speaker, Sir, turning to the national security, I am happy to state
that the Malawi Police Service has continued to perform very well
despite limited resources. The service is being reformed, with a special
emphasis on transforming the policing style, standards, culture and
systems. The strategic focus of Community Based Policing is on crime
prevention, preservation of human rights especially of women and
children; victim support and gender empowerment; and civic education
on Police-Public relations. During the past year, the Victim Support and
Child Protection Unit handled an increasing number of cases concerning
domestic violence, sexual offences and assault cases.
Mr. Speaker, Sir, Government also directed most of its attention to crime
management. Some 11,438 criminal cases were reported and 5,487 cases
36
were dealt with. The 997 Rapid Response System has since its inception,
contributed towards the recovery of property worth more than K50
million.
Government will continue to improve the 997 Rapid Response System
and has strengthened the fleet of vehicles for the 997 System of Lilongwe
and Blantyre and plans to do the same for Zomba and Mzuzu.
This administration is also committed to improve the safety of all road
users. In this regard, Government acquired speed cameras,
breathalysers as well as highway patrol vehicles which have helped to
reduce road accidents.
Mr. Speaker, Sir, with regard to Prison Services, Government is
continuing to construct new prisons to ease congestion. The Mzimba
Prison, which is now operational, has helped to ease the problem by
accommodating 600 prisoners. Government is currently in the process of
acquiring more land for constructing prisons in districts where the
services are lacking.
In order to promote food security in the prisons, Government has
established two new prison farms at Mkhate in Chikwawa and Makande
in Thyolo. Farming activities in these prisons has been successful and
this year alone an estimated 724 metric tons of maize have been
harvested.
Mr. Speaker, Sir, with regard to immigration, the Government continued
to intensify its efforts to curb illegal immigration and to prevent Malawi
from being used as a conduit for illegal trafficking to other countries.
During the year under review 859 illegal immigrants were deported and
49 were prosecuted.
NATIONAL DEFENCE
37
Mr. Speaker, Sir, in the area of National Defence, Government has
provided adequate protection to our nation. Our Government is fully
committed to ensuring that the Malawi Defence Force is up to date and
alert at all times to defend and uphold the sovereignty and territorial
integrity of our country and guard against any threats to the safety of the
citizens.
Government will continue to modernize our Defence Force with new
equipment and train more personnel at the Malawi Armed Forces
College and other military related institutions abroad. We will also
continue to hold joint exercises and training on defence mechanisms
with other Defence Forces including the British Defence Force and those
of the SADC countries.
Mr. Speaker, Sir, our Country recently signed a Memorandum of
Understanding with the United Kingdom's Government that would
facilitate collaboration between the Malawi Defence Force and the
British Defence Force. At present, arrangements are underway to sign
similar Memoranda with other countries.
In the area of peace keeping, Government continued to play a useful
role in the promotion of regional and international peace by
participating in the United Nations and African Union Peacekeeping
Missions. Over the past year, a total of 330 officers and men were
deployed to the Democratic Republic of Congo (DRC), Darfur in the
Sudan, Burundi, Liberia and Kosovo as military peacekeepers and
observers.
I am proud to say that these officers have been consistently commended
for their excellent performance. This has provided the opportunity for
our officers to acquire special skills and international experience critical
to capacity building of our National Defence.
In fact, the Malawi Armed Forces College (MAFCO) in Salima has been
identified as the main training centre in peacekeeping within the SADC
38
Region. Three international training courses in peacekeeping have so
far been held at the College. It is expected that the college will become
a centre of excellence in peacekeeping training in the Region.
Mr. Speaker, Sir, in order to facilitate the activities of our armed forces,
the Government continued to develop the requisite infrastructure in the
barracks including maintenance and upgrading of roads and
rehabilitation of water and sewer works. To check the housing shortages,
Government plans to construct 80 new houses annually for the next five
years and to concurrently carry out maintenance works for existing
houses.
With regard to promotion of civil-military relations, the Malawi Defence
Force embarked on the construction of bridges to deal with emergency
situations caused by heavy rains and floods. It was also involved in
protecting forest reserves and checking against deforestation.
On food security, the Malawi Defence Force Agricultural Production
Unit has on average produced 100 tons of maize which has assisted in
providing supplement rations to the Malawi Defence Force Troops.
THE RULE OF LAW AND ACCESS TO JUSTICE
Mr. Speaker, Sir, I now turn to issues of Rule of Law and access to
justice. This Government recognizes the promotion of the Rule of Law
and justice as a prerequisite for economic growth and sustainable
development. With regard to access to justice, Government reduced the
backlog of civil cases from 5,000 to 3,500 cases. More effort will continue
to be directed towards civil litigation to avoid default judgments against
the government.
I am also happy to report that Government has now opened offices in
Mzuzu for the Departments of Legal Aid, Administrator General and the
39
Directorate of Public Prosecutions. This development will help people in
the Northern Region have easy access to legal services.
Mr. Speaker, Sir, in order to enhance effective legislative framework,
Government tabled 30 Bills before Parliament. However, this august
House is aware that only 13 of these bills were passed while the rest are
still awaiting Parliamentary consideration and approval.
The Government is also implementing a programme aimed at the
promotion of the Rule of Law and civic education in Malawi with
funding from the European Union. This is benefiting the Ministry of
Justice, the Judiciary, the Anti-Corruption Bureau, the Law
Commission, the Malawi Electoral Commission, the National Archives,
the Malawi Prison Services and the Law Faculty at Chancellor College.
Mr. Speaker, Sir, the Government is committed to fair and efficient
enforcement of commercial and intellectual property rights. We believe
this will create and maintain a well regulated and viable competitive
environment for Commerce, Industry, Investment, and Science and
Technology. Government has finalized the establishment of a
commercial court which will fast track the trial of business related
disputes.
I am pleased to report that during the past 12 months, Government
collected a total of K144,608,725 in revenue from registrations related to
births, deaths, marriages, and companies, among others.
The Government is also continuing with its efforts to reduce the problem
of shortage of staff. For the first time in history, Government recruited
31 lawyers this year alone and it is our plan to recruit more lawyers to
efficiently and effectively deliver services in legislative drafting, civil
litigation, legal aid services, administration of deceased estates,
registration of companies, patents and intellectual property rights,
prosecution of criminal cases and legal advice.
SOCIAL PROTECTION AND DISASTER RISK MANAGEMENT
40
Mr. Speaker, Sir, in disaster risk management, floods, droughts and
bush fires are our greatest challenges. But we know that these occur in
the same areas and generally affect the same people every year. This
provides a good framework for Government to find a lasting solution to
these problems.
For the first time in many years, Government has been able to reach out
to households experiencing food shortages on our own without recourse
to humanitarian assistance from the donor community. In other words,
Malawi is able to feed its people in disaster-affected areas.
Mr. Speaker, Sir, in order to mitigate the impact of disasters in our
country, Government policy will now focus on disaster risk reduction.
This entails addressing risks and vulnerabilities that expose certain
communities to disasters. To achieve this, Government intends to
integrate disaster risk reduction into development programmes and
plans in all departments of our government. We shall expect all
Government Ministries, Non Governmental Organisations,
Development Partners, Local Communities to play a part to reduce the
impact of disasters in our country.
In another area, in order to improve the life of the most vulnerable,
Government has decided to change the approach from Safety Nets,
which are short-term, to Social Protection, which is broad and
long-term. The Government is therefore formulating a National Social
Protection Policy that will guide the implementation of Social Protection
programmes as well as provide a framework for coordination of the
programmes.
PERSONS WITH DISABILITIES AND THE ELDERLY
41
Mr. Speaker, Sir, this administration places very high priority on
development policies and legal framework to create an enabling
environment to address challenges faced by persons with disabilities and
the elderly. Government will mainstream all these issues in all sectors of
our economy.
In that regard, Government continues to improve access to education
and training for persons with disabilities and special needs as key to
enhancing their income generating capacity. In this regard, Government
is developing Braille Literacy Programmes for the Blind and Visually
Impaired Persons.
Government is also stepping up efforts to link persons with disabilities
with institutions that provide soft loans for small-scale enterprises
such as Malawi Rural Development Fund (MARDEF). Similarly,
Government has been sensitizing employers in both the public and
private sectors to recruit skilled persons with disabilities.
In addition, Government has embarked on a programme of providing
resettlement packages to graduating and former trainees of Vocational
and Rehabilitation Training Centres to enable them practice their trades
and earn a living.
With regard to the elderly, Government's policy will be to recognize the
role played by the elderly in our society. Civic education will
be intensified to prevent discrimination and cruelty against the elderly.
One of the interventions will be to create a new national policy
framework that will empower and encourage the elderly to become
self-reliant.
As a short-term intervention, Government, in collaboration with NGOs,
will continue to support the elderly with their immediate needs such as
food and non-food items such as blankets and clothes for their upkeep,
and also to improve their access to agriculture inputs such as subsidized
42
fertilizers.
YOUTH, SPORTS AND CULTURE
Mr. Speaker, Sir, with regard to youth empowerment, our Government
has started implementing the National Youth Development Service that
I mentioned in my inaugural speech in May 2004. Under the
programme, out-of-school youth are being trained in various livelihood
skills of their choice by using local artisans as trainers in various
communities.
As part of this programme, Government is converting former Malawi
Young Pioneers Training Bases at Ntonda in Ntcheu, Ngapani in
Mangochi, Kamwanjiwa in Mzimba and at Neno to turn them into
multi-skills training centres for the youth.
Mr. Speaker, Sir, Government implemented the following in the past
year__

Trained 2,000 youth club members in sexual reproductive health,
HIV and AIDS and life skills in Karonga, Nkhata Bay, Salima,
Dedza, Mangochi and Chikwawa.

Prepared a National Plan of Action for HIV Prevention among the
youth.

Opened a National Youth and Guidance Centre in Lilongwe.
Mr. Speaker Sir, with regard to sports, Government made the following
remarkable achievements in the 2006/2007 fiscal year__

Launched the first ever Sports Policy to provide guidance to the
development of sports in the country.
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Procured the BAT Football Ground at a cost of K35 million, to be
used exclusively by the youth.

Commenced the rehabilitation works at the Kamuzu Stadium and
BAT Ground to rectify the current structural and security
concerns to meet internationally acceptable standards.
Mr. Speaker, Sir, in the area of culture, Government will continue to
implement a number of activities including the introduction of a
National Cultural Policy; the rehabilitation of National Monuments
found in all districts of our country; the construction of the New
Memorial Park in Lilongwe as a new National Monument; and
promotion of cultural exhibitions, including Music Crossroads and Art
Galleries.
SCIENCE AND TECHNOLOGY
Mr. Speaker, Sir, I wish to report that the work on the establishment
of the University of Science and Technology in Lilongwe is progressing
well. In November, 2006, Government appointed an Executive Director
to head the Secretariat for the establishment of the University. During
the 2007/2008 financial year, efforts will be devoted to setting up the
physical infrastructure of the University and finalizing the curriculum.
The Government has, during the year under review, undertaken the
following initiatives in Science and Technology__

Encouraged some farmers in some parts of the country to adopt
better technology such as windmills for pumping water for
irrigation. This technology is more user friendly than other pumps
used for irrigation;

Undertook research on the Ethanol Propelled Motor Vehicle. The
use of ethanol is not only cost effective but also environmentally
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friendly because, unlike fossil fuels, ethanol does not release green
house gases when burning. More research will be undertaken in
2007/2008 in this field.

facilitated the formation of Women in Science and Technology
Network (WISNET). The objective of this Network is to promote
Science and Technology among women and girls and to build
capacity for research.

developed a Biotechnology Policy aimed at providing direction on
how best Malawi can deal with genetically engineered products,
including crops and animals.
CONCLUSION
Mr. Speaker, Sir, it is with a sense of pride that I conclude my statement
to this august House and to say that I am happy that by any African or
international standards, Malawi, as a nation, has performed
exceptionally well in enhancing social and economic development of our
country. These are not empty platitudes. No. The record speaks for
itself.
In fact, Malawi will go down in economic history as one of the few
countries in Africa that achieved such impressive economic performance
within such a short period of time.
I wish to say that we have laid down solid foundations upon which our
economy will grow. This administration has demonstrated to the rest of
the world, and indeed to ourselves, that we are a nation that can be
trusted, a nation on the move, and a nation of achievers.
I wish to repeat what I said elsewhere that: Let the work of my hands
speak for me.
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I am delighted to see the extraordinary achievements that we have
attained within a relatively short period of time. It is my hope that all
Malawians and our development partners, will join hands to continue to
build a national consensus for a prosperous Malawi.
Mr. Speaker, Sir, I now wish to pay special gratitude to our development
partners for the considerable and generous financial and technical
support that they have provided to this Government. This achievement
would not have been possible without the understanding and direct
support of our development partners.
I would like to appeal to them to continue to support Malawi to become
a development model for Africa.
I take this opportunity to assure all our development partners that the
resources they give us will continue to be used through a strict system of
reporting, transparency and accountability. This is the hallmark of this
administration.
Mr. Speaker, Sir, I would like to conclude my address this morning by
reiterating my earlier appeal to this august House to adopt this National
Budget. Do not reject this budget.
In this regard, I would like to remind the opposition members of this
august House of the following pertinent facts__

One, without the National Budget, our programme to alleviate
poverty in rural and urban areas, through the construction of
hospitals, school clinics, and roads will not be implemented.

Two, without the National Budget, the programmes to rehabilitate
schools and to build girls' hostels throughout the country will be
derailed.

Three, without the National Budget, the school feeding
programmes that have so far benefited so many children will be
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jeopardized. Our children will go to school on empty stomachs.

Four, without the National Budget, the scholarship programmes at
the secondary schools and the universities will have to come to a
standstill and the students' book allowances, loans and other
financial support will not be paid.

Five, without the National Budget, the good programmes for the
construction of roads and bridges that are necessary for economic
growth and for opening up the rural areas will not be
implemented.

Six, without the National Budget, the water and irrigation schemes
that we are now rehabilitating or constructing in order to give the
people of Malawi good potable water will be halted.

Seven, without the National Budget, the fertilizer subsidy
programme that has been so successful in feeding the people of
Malawi will not be implemented. Our country will slide back into
the hunger and malnutrition that we have experienced for a long
time.

Eight, without the National Budget, the housing programmes for
the Malawi Defence Force, the Malawi Police Service and the
Traditional Chiefs will have to be put on hold.

Nine, without the National Budget, the private sector who have
delivered goods and services to Government or who have been
constructing public works will not be paid.

Ten, without the National Budget, all civil servants, the police, the
army, the nurses, the teachers, will not be paid their salaries.

Eleven, without the National Budget, the public works programme
that has helped people in rural areas to earn K200 per day will be
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stopped and so many people will suffer.

Twelve, without the National Budget, Government will not be able
to erect a statue of the late Dr. Hastings Kamuzu Banda at the
Memorial Park in Lilongwe.

Thirteen, without the National Budget, Government will not be
able to construct the Mausoleum for the late Dr. Tom Chakufwa
Chihana that we planned to start this year.

Fourteen, more poignantly, without the National Budget, even the
salaries, allowances and loans of the Members of Parliament
cannot be paid.
Mr. Speaker, Sir, this is the reality surrounding the National Budget.
I have outlined these issues in order to underscore that there is a fallacy
among the opposition leaders that they can punish me as State President
by rejecting the National Budget. In reality, I am not the one to be hurt.
In fact, the economic growth and development that has taken place
during the past three years will grind to a halt. Therefore, it is the poor
people of Malawi who will suffer.
Is this what the opposition in this august House really wants to happen?
Is it morally correct that the fourteen million Malawians be punished for
a political agenda they do not understand?
I therefore appeal to all Members of Parliament, regardless of your
political affiliation, to reflect deeply on these issues. I want you to
seriously search your hearts and take a responsible and rational
decision.
I am convinced that none among you, Honourable Members, really want
Malawi to slide back and remain in the "poverty trap". Therefore, the
48
future of Malawi is in your hands.
I now declare the 2007/2008 Budget Meeting of the National Assembly
officially open.
GOD SAVE MALAWI.
Thank you, Mr. Speaker, Sir.