Full transcript: May 2015 State of The Nation address by President Peter Mutharika

 

Public Finance Reform Programme

Mr. Speaker, Sir, the Public Finance Reform Programme which I alluded to in my introduction seeks to, among other things, restore the integrity of the public service in the management of public resources.

This will be achieved through:

• strict enforcement of laws, rules and regulations that govern the management of financial resources in Government;
• training of civil servants in public finance management;
• strengthening and customizing the Integrated Financial Management Information System to suit the local conditions of Malawi;
• the rehabilitation of the public finance system to ensure proper accountability, transparency and control of the financial flows; and
• strengthening the Central Internal Auditing Service by putting in place proper internal auditing systems.

 

Mr. Speaker, Sir, I strongly believe that these efforts will, in due course, bear fruits in re-establishing fiscal discipline in the public sector.

 

SUSTAINABLE ECONOMIC GROWTH

Agriculture

Mr. Speaker, Sir, agriculture remains a key driving sector of our economy. Government will, therefore, continue to prioritise the sector to meet both national and household food requirements as well as support agro industries for export.

Mr. Speaker, Sir, the 2014/2015 growing season experienced extreme weather conditions that included heavy floods and prolonged dry spells at the critical stage of crop development.

This has resulted in a significant drop in agricultural production. According to the 2014/2015 crop estimates, maize production has decreased from 3,978,123 metric tonnes in the 2013/2014 agricultural season to 2,898,123 metric tonnes in the current agricultural season, representing a 27.7 percent decline. The results also show a slight decrease in other major food crops such as rice, millet, cassava and sorghum. However, except for cotton and groundnuts, other cash crops such as pulses have registered a slight increase.

Mr. Speaker, Sir, to mitigate the looming food shortage and to ensure availability of food at household and national levels, Government has allocated MK8.0 billion in the 2015/2016 budget for restocking the Strategic Grain Reserves.

Government is also discussing with development partners to provide more resources for the same purpose.

Meanwhile, Government, with support from development partners has provided early maturing maize seed, fertilizer, sweet potato vines and cassava cuttings to support affected smallholder farmers to revive their farming enterprises to take advantage of residual moisture and irrigation.

Farm Input Subsidy Programme (FISP)

Mr. Speaker, Sir, in view of the significant contribution of the Farm Input Subsidy Programme to agricultural growth and national food self sufficiency, Government continued to implement the Programme during the 2014/2015 fiscal year.

Through the programme, a total of 1.5 million deserving farm families benefitted from 150,000 metric tonnes of fertilisers, 7,500 metric tonnes of maize and 3,000 metric tonnes of legume seed.

Mr. Speaker, Sir, to address the challenges that have dogged the programme over the years, Government implemented efficiency measures that included:

• delegating procurement of fertilisers to Smallholder Farmers Fertilizer Revolving Fund of Malawi (SFFRM);
• provision of police escort during fertiliser distribution;
• vetting of transporters to avoid fertiliser thefts;
• conducting fertiliser quality checks to avoid mixture of fertilisers with sand; and
• piloting the use of electronic vouchers to facilitate easy and transparent access to subsidised inputs by eligible farmers.

Mr. Speaker, Sir, Government will, in the next fiscal year, intensify implementation of the efficiency measures in order to maximise the programme’s contribution to national food security.

Cotton Up-scaling Programme

Mr. Speaker, Sir, Government continued with the Cotton UpScaling Programme in the 2014/2015 growing season. The programme supported over 389,000 cotton growers with extension services, farm inputs and pesticides.

Mr. Speaker, Sir, there is a projected drop of 31.4 percent in cotton production in the 2014/2015 growing season compared to the 2013/2014 season. The drop in cotton production is mainly attributed to poor weather conditions and reduced area put to the crop due to poor prices.

Mr. Speaker, Sir, Government will continue to work with the cotton industry and farmers to improve cotton yields and production. Government will endeavour to develop backward and forward linkages in the cotton industry value chains with tremendous potential to create employment and increase foreign exchange earnings.

Tobacco Production and Marketing

Mr. Speaker, Sir, tobacco is a very important strategic crop and a major contributor to our foreign exchange earnings.

According to the 2014/2015 estimates, production is projected at 181.9 million kilograms and is expected to generate about US$300 million of income for our farmers. This year’s projected production is slightly lower than last year’s production of about 192 million kilograms.

Mr. Speaker, Sir, Government is, however, aware of the risks posed by the Framework Convention on Tobacco Control and the anti-smoking lobby. In this regard, Government will continue to carry out necessary reforms in the tobacco sector whilst intensifying diversification of agricultural commodity production. The reforms will include continued review of the Integrated Production System (IPS) and placing emphasis on value addition of our tobacco.

Fisheries and Aquaculture Development

Mr. Speaker, Sir, the fisheries sub-sector contributes significantly to food and nutritional security; sustainable livelihoods of the rural population; and socio-economic growth of the country. During the 2014/2015 financial year, fish production was estimated at 116,127.78 tonnes with a total beach value of K74.33 billion accrued by fishers. This is an increase from 112,248.27 tonnes that had a beach landing value of K53.55 billion during the 2013/2014 fiscal year.

Mr. Speaker, Sir, fish is highly perishable and loses value through poor post-harvest handling practices. In order to address this problem, Government completed and commissioned three ice plants and cold rooms in Nkhotakota, Mangochi and Zomba. Plans are underway to extend these facilities to Nkhata Bay, Salima and Blantyre districts.

Mr. Speaker, Sir, in an effort to promote aquaculture fish production, Government, in collaboration with the private sector produced and distributed over 3.5 million tilapia and catfish fingerlings for stocking in various aquaculture farms throughout the country. As a result, aquaculture fish production is estimated to increase to 4,000 tonnes in the 2014/2015 financial year from 3,500 tonnes in the previous year.

Mr. Speaker, Sir, Government will continue to promote aquaculture development for increased contribution towards food and nutritional security, diversified source of cash incomes for farmers and creation of employment opportunities.

Water Development and Irrigation

Water Development

Mr. Speaker, Sir, Government recognizes the importance of providing safe water for our human capital development. In order to meet the needs of our growing population, Government continued to invest in short and long-term strategies in the water sector guided by the Water and Sanitation Sector Wide Approach.

During the 2014/2015 financial year, Government completed rehabilitation of Mudi Pumping Station and Walkers Ferry Treatment Plant as well as the construction of three reservoirs, each with a capacity of 5,000 cubic metres together with their booster stations, pumping and supply pipelines in Blantyre.

These works will go a long way in alleviating acute water shortages in the city of Blantyre.

Mr. Speaker, Sir, Government further:-? commenced upgrading works on Kamuzu Barrage in Liwonde in order to address the structural stability concerns of the barrage and to improve its water regulatory capacity;

• finalised construction of Songwe Water Supply System; and
• undertook integration and expansion of Salima Lakeshore and Kasungu Water Supply Schemes.

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will rehabilitate and expand twelve gravity fed schemes that will entail construction of 600 cubic metres localized storage reservoirs and break pressure tanks and 2,925 Communal Water Points. In addition, we will commence construction of 450 new boreholes and 166 sanitation facilities at public institutions such as schools, health and market centres.

Irrigation and Greenbelt Initiative

Mr. Speaker, Sir, Government remains committed to promote irrigation through among others, the Greenbelt Initiative.

During the 2014/2015 financial year, Government continued to develop Chikwawa Irrigation Scheme in Salima. As a complementary project, a sugar factory is being constructed at the Scheme which will be operated through a joint venture.

Construction of the factory is expected to be completed in the 2015/2016 financial year.

Mr. Speaker, Sir, Government also developed about 2,000 hectares of land for smallholder irrigation bringing the total land under smallholder irrigation to around 52,000 hectares benefiting almost 400,000 smallholder farmers. In addition, the private sector is currently irrigating another 52,000 hectares of land bringing the total area developed for irrigation to 104,000 hectares.

Mr. Speaker, Sir, Government further rehabilitated about 1,800 hectares of smallholder irrigation schemes at Nkhate in Chikwawa, Muona in Nsanje, Limphasa in Nkhatabay and Likangala in Zomba.

In the forthcoming financial year, Government will commence development of 42,500 hectares of land for irrigation in Chikwawa and Nsanje Districts through the Shire Valley Irrigation Project.

Mining Development

Mr. Speaker, Sir, Government recognizes that the mining sector has huge potential in contributing to the country’s economic growth and development. For this reason, Government will continue to prioritise the sector with a view to increase its contribution to the country’s GDP from the current 6 percent to about 20 percent by 2020.

Mr. Speaker, Sir, Government will reach this target by, among others, reviewing the legal and policy instruments, including the Mines and Minerals Act in a manner that safeguards the interests of the country. Government will also use the recently completed country-wide Airborne Geophysical Survey to attract prospective investors in the sector.

Mr. Speaker, Sir, let me also report that in view of the commitment by Government to enhance transparency in the mining sector, Government will join the Extractive Industries Transparency Initiative (EITI) to promote revenue transparency. In this regard, Government will formally be applying for candidature under the EITI once all preparatory processes are concluded.

Tourism, Wildlife and Culture

Mr. Speaker, Sir, Government realises that a vibrant tourism sector is a significant economic driver that influences all areas of business including the Micro, Small and Medium Enterprises (MSMEs). Government will, therefore, continue to address the structural challenges faced by the tourism, wildlife and culture sector through the implementation of various policy reforms and strategies.

In the 2014/2015 financial year, some of the achievements made in the sector were:

•  approval of the first ever National Culture Policy which effectively promotes the country’s cultural heritage;
•  construction of a 21 Km fence in Liwonde National Park; and
•  up-scaling of anti-poaching efforts within and around protected areas in a bid to safeguard wildlife particularly elephants following a surge in illegal trade in elephant products.

Mr. Speaker, Sir, in the 2015/2016 fiscal year, Government intends to enhance the sector’s regulatory and policy environment by reviewing the Tourism Policy, the Wildlife Policy and the Tourism Act as well as developing specific legislation to protect wildlife. Government will also establish the National Arts and Heritage Council of Malawi and a Cultural Trust Fund to promote cultural heritage preservation and fund cultural activities, respectively.

Industry, Trade and Private Sector Development

Mr. Speaker, Sir, Government is aware that the promotion of industrialization and development of the private sector are vital to the attainment of desired levels of economic growth and industrial output.

Mr. Speaker, Sir, in order to improve the competitiveness of our economy, Government introduced initiatives targeted at building Malawi’s productive capacity. Some of the initiatives that were implemented during the 2014/2015 financial year include:

•  development of the National Industry Policy;
•  review of incentive packages for manufacturing and exporting companies to encourage value addition and utilization of indigenous raw materials;
•  development and revision of a number of economic laws including the Insolvency Bill, the Warehouse Receipt System Bill and the Credit Reference Bureau Bill;
•  development of regulations for Personal Property Security Act and the Business Licensing Act; and
•  introduction of innovative lending instruments for MSMEs under the Matching Grants Scheme.

Mr. Speaker, Sir, as a demonstration of Government commitment, I set up a Ministerial Committee on Doing Business in 2014 specifically to oversee the reduction of unnecessary administrative, legal and regulatory burdens and advance the pro-business agenda. The Committee comprises Cabinet Ministers, private sector representatives and senior public officials.

Mr. Speaker, Sir, in the coming few months, Government will:

•  start construction of the Standards, Quality and Accreditation Infrastructure at the Malawi Bureau of Standards in Blantyre;
• draft the Commodity Exchange Bill;
•  establish Special Economic Zones as a tool to spur economic growth in the country through increased Foreign Direct Investment (FDI);
•  review the Investment and Export Promotion Act; and
•  facilitate legal and regulatory reforms in agribusiness -related areas through the drafting of agricultural commodity laws.

Mr. Speaker, Sir, allow me to inform this august House that the Compendium of bankable investment projects that I launched in December, 2014 has started to bear fruits. To-date, certificates for investments worth US$211 million have been granted. Government will complement this initiative with continued participation in investment missions in a bid to attract more investments.

Natural Resources and Environmental Management

Mr. Speaker, Sir, effective and efficient management of natural resources and the environment is key to the country’s socioeconomic development. I am, therefore, concerned with the colossal damage to the environment whose economic costs have certainly been massive.

In the year just ending, Government implemented various measures to safeguard the country’s natural resource base focusing on, among others, environmental impact and pollution control; biodiversity conservation and protection; climate change management; and radiation control and protection. Some of the key achievements include:

•  development of an integrated pollution control and waste management strategy that will address the pollution and waste management challenges in the country;
•  development of a National Biodiversity Strategy and Action Plan (2015 – 2025) and the Global Biodiversity Strategic Plan;
•  ratification of the Nagoya Protocol under the Convention on Biological Diversity and the commencement of a legislative framework to regulate Access and Benefit Sharing of biological and genetic materials in the country; and
•  development of the National Climate Change Policy and the National Climate Change Investment Plan.

In 2015/2016 financial year, Government will continue to implement programmes that would promote efficient and effective management of natural resources and environment.

Labour and Employment

Mr. Speaker, Sir, Government realises that a skilled labour force is an important prerequisite to a country’s socioeconomic development. The Labour Employment Survey of 2013 revealed glaring gaps in the country’s skills development and vocational training. It is for this reason that Government has prioritized Labour and Manpwer Development to address these gaps.

To accelerate skills development, Government is in the process of establishing community colleges across the country. A total of 28 community colleges will be established, at least one in each district

Let me report, Mr. Speaker, Sir, that so far, 11 community colleges are already operational. Government will develop the remaining 17 colleges, which are expected to be opened by 2016. Government will further expand and modernize the existing seven national technical colleges in order to provide technical skills required in the labour market.

Mr. Speaker, Sir, Government is developing the Employment and Labour Policy which seeks to place employment at the centre of national development by vigorously pursuing employment creation in all sectors of the economy.

Mr. Speaker, Sir, to ensure that every worker receives a wage that is above the poverty line, Government revised the minimum wage from K317 per day to K551 per day. To further improve the welfare of the workers in this country, Government is moving towards fixing the minimum wage by sector so that the remuneration of employees is commensurate with the performance of their respective sectors.

Mr. Speaker, Sir, Government is aware that child labour has been a problem in Malawi for a long time. Child labour exposes children to hazardous work and hinders them from many opportunities such as education. In this regard, Government continues to put in place stringent measures to stop child labour. Government is currently in the process of finalizing a child labour policy.

Integrated Rural Development

Mr. Speaker, Sir, as you are aware, rural development is a catalyst for sustainable socio-economic development. As such, Government is committed to improve the livelihoods of rural communities in the country through the implementation of the Integrated Rural Development Strategy.

Mr. Speaker, Sir, during the 2014/2015 fiscal year, Government:

•  completed construction of the basic social infrastructure at Nthalire Rural Growth Centre in Chitipa district;
•  embarked on construction works of the second phase of Rural Growth Centres at Chitekesa in Phalombe, Chapananga in Chikwawa and Mkanda in Mchinji districts; and
•  completed the construction of a modern market at Enukwenu in Mzimba district.

Mr. Speaker, Sir, Government is expected to complete the second phase of the construction of Rural Growth Centres during the 2015/2016 fiscal year.

 

SOCIAL DEVELOPMENT

Education, Science and Technology

Mr. Speaker, Sir, Government recognises the important role that education plays in the socio-economic development of any country. To this end, Government is committed to provide quality and relevant education to all Malawians to enable them acquire relevant knowledge, skills, expertise and competencies to perform effectively as citizens.

Mr. Speaker, Sir, during the 2014/2015 financial year, Government made positive strides in the sector. To expand equitable access to education, Government:-? established 10 resource centres for primary school learners with special needs and 4 for secondary school students;

•  established 540 Complementary Basic Education Centres;
•  provided school meals to 1.54 million primary school learners;
•  provided bursaries to 7,492 boys and 5,019 girls and cash transfers to 2,353 boys and 1,693 girls for needy and gifted students to access secondary education;
•  turned 23 Community Day Secondary Schools (CDSS) into double shift schools to increase access;
•  completed construction of 7 girls’ hostels through the Local Development Fund; and
•  supported the Lilongwe University of Agriculture and Natural Resources and Mzuzu University in the establishment of Open and Distance Learning Centres to increase access under Skills Development Project.

Mr. Speaker, Sir, to improve quality and relevance of education, reduce dropout and repetition and promote effective learning, Government:

• completed construction of Phalombe Teacher Training School (TTC);
•  trained 50 TTC lecturers to Master’s Degree level;
•  commenced development of a sign language dictionary;
•  provided special needs education training to 130 teachers at Diploma, Bachelors and Masters levels; and
•  increased intake at Malawi University of Science and Technology from 152 to 300 students.

 

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will continue implementing the following projects:

? construction of 1,022 classrooms, 238 teacher’s houses and 18 administration blocks across the country;

• rehabilitation and upgrading of 11 Community Day Secondary Schools;
•  construction of Machinga Secondary School;
•  construction of teaching and administration complex at Lilongwe University of Agriculture and Natural Resources;
•  construction of classrooms, workshops, lecture theatres, libraries and laboratories at Mzuzu University, Polytechnic, Chancellor College; and Salima, Lilongwe, Soche and Nasawa Technical Colleges;
•  construction of Chiradzulu TTC; and
•  construction of a secondary school TTC at Nalikule in Lilongwe.

 

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will:

• open Phalombe TTC;
•  increase special needs education grants in all districts by at least 30 percent;
•  operationalize the Higher Education Students Loan and Grant Board; and
•  Commence construction of Thumbwe Secondary School, 12 girls’ hostels and Chikwawa, Mchinji and Rumphi TTCs.

Public Health

Mr. Speaker, Sir, Government prioritizes public health as it has a direct bearing on socio-economic development. In this regard, Government continues to implement initiatives aimed at enhancing public health across the country.

Mr. Speaker, Sir, as you are aware, the health sector has, in recent years, faced numerous challenges including inadequate essential medicines and supplies and shortage of staff. I am, however, pleased to report that compared with the past two fiscal years, medicines and medical supplies situation has substantially improved. A recent assessment revealed that the highest stock-out of essential tracer drugs was as low as 7 percent.

Mr. Speaker, Sir, during the year under review, Government continued with the construction of health workers’ houses and flats for doctors in all central hospitals, rehabilitation of central and district hospitals, construction of 15 health centres (five in the north, four in the centre and six in the south); and upgrading Domasi Health Centre into a community hospital.

Mr. Speaker, Sir, in the forthcoming financial year, Government will:

• Complete the construction of the new Nkhata-Bay District Hospital; and
•  Commence construction of Phalombe District Hospital, Mponela and Edingeni Community Hospitals as well as the National Cancer Center.

 

Mr. Speaker, Sir, to further address prevailing challenges in the health sector, Government will undertake various reforms, including establishing a health fund to generate additional revenue for the health sector; revitalizing health insurance schemes to reduce pressure on public health financing; and improving efficiency in the management of health services in both central hospitals and district health systems.

Nutrition, Malaria and HIV and AIDS Management

Mr. Speaker, Sir, with regard to nutrition, Government continued to implement several initiatives aimed at reducing disease burden and deaths from malnutrition and other nutrition related health problems among the various categories of the population. During the period under review, Government:

• provided vitamin A supplementation and deworming tablets to over 1 million under-five children;
•  intensified nutrition screening in camps which hosted people affected by the flood disaster for early detection and treatment of malnutrition; and
•  scaled up support to people living with HIV and AIDS, those on TB treatment as well as those with other chronic illnesses such as cancers under the Nutrition Care, Treatment and Support program.

 

In the forthcoming financial year, Government will:

• roll out the Community Management of Acute Malnutrition Program to cover 100 percent of health facilities in the country from the current coverage of 90 percent;
•  scale up the nutrition program for people living with HIV and AIDS, those on TB treatment and other chronic diseases to 50 percent of the sites that provide ART Services; and
•  continue with behaviour change communication for improved infant and young child feeding practices and prevention of anaemia in children and adults, among others.

 

Mr. Speaker, Sir, under the Global Fund Health Sector Support, I wish to report that the Global Fund allocated a total of US$574.3 million for the period 2014/2017 of which US$278.2 million is part of the ongoing commitments and is already in the country through existing grants which are ending in December, 2015. Government, therefore, submitted to the Fund two new funding proposals for Malaria programme and a Joint HIV and AIDS and TB programme amounting to US$296.1 million for the next two fiscal years. I am optimistic that the Fund will approve the proposals having met all the requirements

Mr. Speaker, Sir, the resources from the Global Fund will support Government’s efforts to reduce further cases of malaria in the country as well as sustain and increase the number of people receiving free Anti-Retroviral Therapies (ART’s) beyond the current 524,000 which represents almost 50 percent of those infected with the HIV virus to almost 90 percent by 2020.

Mr. Speaker, Sir, the remaining funding will be disbursed under a new funding model in which the Ministry of Health is now the New Principal Recipient (PR) on the public side whilst World Vision and Action Aid are principal recipients for the non-bimedical components for Malaria and TB/HIV grant, respectively. A team from the Global Fund is in the country to, among other things, support the Principal Recipients in preparing for their new roles. Government is fully committed to this program and will do everything possible to ensure that the program is successful.

Youth Development and Empowerment

Mr. Speaker, Sir, Government is fully aware that the youth play a crucial role in the development of this nation. Government will, therefore, ensure that our youth have the prerequisite knowledge and skills to enable them play a meaningful role in the different sectors of the economy.

In this financial year, Government continued to implement various training programmes targeting the youth. In this regard, I am pleased to report that over 13,400 young people were trained in technical, vocational, enterprise development and leadership skills across the country.

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will complete the construction of Bingu Stadium in Lilongwe and youth centres in Mzuzu and Thyolo. Government will also rehabilitate Kamuzu Institute for Youth in Lilongwe and Kamuzu Stadium in Blantyre. Government will further recapitalize the Youth Enterprise Development Fund and continue to train youth in vocational business development, entrepreneurship and life skills.

Gender, Women and Development

Mr. Speaker, Sir, Government remains committed to the promotion of gender equality and the empowerment of women.

To demonstrate this commitment, I recently launched the HeForShe Campaign as a Champion of gender equalisation. In addition, I was the first head of state in the SADC Region to sign the End Child Marriage Campaign on 25th July 2014.

Mr. Speaker, Sir, in the year under review, Government:

• reviewed the National Gender Policy;
• passed the Marriage, Divorce and Family Relations Bill and the Trafficking in Persons Bill; and
• through Gender Equality and Women Empowerment Programme (GEWE), disseminated information on gender based violence to over 1.3 million individuals, addressed over 10,000 gender based violence cases and trained 50 women groups in business management.

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will implement the National Gender Policy and enforce laws which promote gender equality and the empowerment of women.

 

Child Development

Mr. Speaker, Sir, children are the future of our nation. In this regard, Government will continue to implement programmes aimed at making our children responsible citizens.

In the 2014/2015 financial year, Government, with support from development partners, constructed and rehabilitated 1,200 Early Childhood Development (ECD) centres, bringing the total number of ECD centres to 11, 105 in the country benefitting 1.4 million children.

Mr. Speaker, Sir, in a bid to increase the number of children accessing ECD Centres, Government will, in the 2015/2016 financial year, construct and rehabilitate 1,000 ECD Centres across the country. We will also work with traditional leaders to develop by-laws with a view to increasing enrolment and retention in the ECD centres.

 

 

 

 

INFRASTRUCTURE DEVELOPMENT

National Construction Industry

Mr. Speaker, Sir, Government believes that a vibrant and efficient construction industry is a catalyst to the development of any country. However, the construction industry in the country has been facing a number of challenges over the years.

Some of the key challenges include low capacity of local contractors and consultants; lack of supportive mechanisms in terms of financial credit facilities for local firms; and weak policy and regulatory framework. In view of this, Government developed a National Construction Industry Policy which seeks to promote the development of a vibrant and efficient local construction industry that is internationally competitive.

Energy Development

Mr. Speaker, Sir, the search for alternative sustainable energy sources continues to be a priority in Government’s development agenda. In this regard, Government remains committed to develop energy projects that are efficient, cost effective and environmentally friendly. I wish to report to this august House that Government is currently concentrating on renewable energy sources.

Mr. Speaker, Sir, Government will continue implementing the Malawi Rural Electrification Programme (MAREP) after the successful completion of MAREP 7 under which 157 trading centres were connected surpassing the target of 81 trading centres.

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will:

•  continue engaging the private sector in the energy sector through Public Private Partnerships (PPPs) arrangement;
•  implement the Malawi Rural Electrification Programme (MAREP) phase 8 under which eighty one (81) trading centres will be electrified; and
• encourage electricity generation, transmission and distribution companies to invest in Malawi in addition to the Electricity Supply Corporation of Malawi (ESCOM) to promote competition and efficiency in the sector.

Transport Infrastructure

Mr. Speaker, Sir, the transport sector is a linchpin to economic growth and provision of social services such as health and education. It is also a critical factor in revenue generating sub sectors like agriculture, mining, tourism and manufacturing.

Mr. Speaker, Sir, it is against this backdrop that Government has placed high priority on transport infrastructure development to facilitate local and regional trade and provide access to markets and other social amenities.

Mr. Speaker, Sir, I am pleased to inform this august House that, during 2014/2015 financial year, Government reviewed the National Transport Policy in order to incorporate emerging issues in the transport sector such as private sector participation and inter and intra-modal competition.

Mr. Speaker, Sir, poor quality of workmanship by some contractors as well as delayed completion of some projects remains a challenge in infrastructure development. In order to address this, Government will:

•  assess some contracts with a view to either re-package or terminate them;
•  through the National Construction Industry Council, intensify training of contractors to enhance their performance;
•  provide adequate funding in order to accelerate completion of selected projects, particularly those that have stalled; and
•  enhance regulation of the transport sector.

 

Road Transport

Mr. Speaker, Sir, Government is implementing a Road Sector Programme which provides a short to long-term investment framework for the classified road network, unpaved and unclassified roads across the country.

Mr. Speaker, Sir, some of the major projects that have been completed recently include:

•  the rehabilitation of the Zomba – Blantyre Road; and
•  the construction of the Lilongwe West bypass road from Bunda turn-off to Kaunda Road on Mchinji Road.

Mr. Speaker, Sir, Government is currently carrying out a number of projects to further improve our road transport system and these include:

•  Zomba – Jali – Kamwendo – Phalombe – Chitakale Road;
•  Thyolo – Thekerani – Muona – Bangula Road;
•  Liwonde – Naminga Road;
•  Jenda-Edingeni Road;
•  Chiringa – Miseu Folo – Chiradzulu  Road; and
•  Lumbadzi – Dowa – Chezi Road.

 

Mr. Speaker, Sir, projects which are scheduled for commencement in the 2015/2016 fiscal year, include the following:

• Lilongwe Old Airport – Kasiya – Santhe Road Construction Project;
•  Njakwa – Livingstonia – Chitimba Road Design and Construction Project;
•  Illovo roundabout – Midima Road expansion and dualisation;
•  Karonga – Songwe Road Rehabilitation Project;
•  Mzuzu – Nkhata Bay Road rehabilitation Project;
•  Liwonde – Mangochi Road rehabilitation Project;
•  Expansion and dualisation of the road from Area 18 Roundabout – New Parliament Building – Kamuzu Central Hospital Round-about to Paul Kagame on Amina Roundabout; and
•  Lirangwe – Chingale – Machinga Road construction.

 

Mr. Speaker, Sir, furthermore, Government will reseal and upgrade a number of roads in the main cities of Blantyre, Lilongwe, Zomba and Mzuzu.

Water Transport

Mr. Speaker, Sir, as you are aware, phase one of the Shire Zambezi Waterway Project was completed and officially launched in 2010. The Governments of Malawi, Mozambique and Zambia, through the Southern African Development Community, engaged a consultant to carry out a feasibility study of the project. The results of the study, which will be released within this month, will guide future activities of the project.

Rail Transport

Mr. Speaker, Sir, as you are aware, Government signed a concession agreement with Vale Logistics Limited for the construction of a 138 km line from Kachaso in Chikwawa passing through Mwanza and Neno Districts to join the existing railway network at Nkaya junction in Balaka District. Vale Logistics Limited has since completed the construction of the new rail line and is currently conducting trial runs. This project will provide a cheaper transport alternative to the people living along the track and provide them with an opportunity to engage in social and economic activities. In addition, Vale Logistics Limited also rehabilitated and upgraded the 100 km section between Nkaya and Nayuchi.

Air Transport

Mr. Speaker, Sir, during the 2014/2015 fiscal year, Government made some positive strides in air transportation, including:

•  installation of up-to-date communication and air traffic control equipment at Chileka International Airport in order to enhance efficiency and safety in operations; and
•  rehabilitation of terminal buildings at Chileka International Airport.

 

Mr. Speaker, Sir, in the 2015/2016 fiscal year, Government will undertake several reforms in the air transport sub sector including the establishment of an autonomous Civil Aviation Authority (CAA) which will facilitate Public Private Participation (PPP) for the management, operations, rehabilitation and construction of airports in the country.

Government will also complete the rehabilitation of terminal buildings at Chileka International Airport and embark on a project to replace some of the equipment at both Kamuzu and Chileka International Airports.

Information and Communication Technology

Mr. Speaker, Sir, Government has earmarked Information and Communication as one of the sectors to champion the Public Service Reform Programme. In this respect, Government has been implementing a number of programmes in the sector.

During the year under review, Government:

•  successfully installed and commissioned the Digital Terrestrial Television network in Lilongwe, Blantyre and Mzuzu;
•  launched the Digital Migration Awareness campaign in April, 2015 aimed at raising public awareness on digital television broadcasting;
•  approved the Electronic Transactions Bill; and
•  commenced a review of the Communications Act, 1998.

 

Mr. Speaker, Sir, in the forthcoming financial year, Government will:

•  enhance Government Wide Area Network uptime to 98 percent through the Financial Reporting and Oversight Improvement Project and the Regional Communications Infrastructure Project;
•  intensify training of public servants on the use of ICTs to speed up service delivery;
•  conduct ICT mass literacy campaigns to sensitize the general public on the use of various e-government solutions; and
•  finalize the review of the Communications Act, 1998.

Lands, Housing and Urban Development

Lands

Mr. Speaker, Sir, access to land is crucial for the realization of socio- economic development. In this respect, Government is committed to ensure equitable access to land for various uses by all Malawians.

Mr Speaker, Sir, some of the achievements attained in the sector during the 2014/2015 financial year were as follows:

•  piloting of a project to assess land utilization in estates in Kasungu and availability of idle agricultural estates, out of which 4,000 agricultural leases were reviewed;
•  facilitating the acquisition of land for investment initiatives such as the Green Belt Initiative and for construction of public infrastructure;
•  reviewing eleven land related legislations to ensure an upto-date and responsive legal framework on land matters;
•  preparation of land use plan for the proposed Mombera University in Mzimba District;
•  identification and assessment of possible resettlement areas for flood victims in all the 15 affected districts; and
•  continuation in the re-affirmation and demarcation of Malawi’s international boundaries with Mozambique and Zambia.

Mr. Speaker, Sir, in the 2015/2016 financial year, Government will continue to implement programmes aimed at improving access to land for socio-economic development.

Housing

Mr. Speaker, Sir, the provision of affordable, safe and secure housing for people in both rural and urban areas is at the heart of Government’s development agenda.

Mr. Speaker, Sir, during the 2014/2015 financial year, I launched the Decent and Affordable Housing Programme popularly known as the Cement and Malata Subsidy Programmein December, 2014. I wish to report that we had a successful pilot of the programme in Msampha 1 Village under T/A Chadza and Chitekwere Village under T/A Chimutu in Lilongwe.

During the year under review, Government also:

•  continued to provide mortgage loans to junior and senior public officers through the Public Servants Home Ownership Scheme; and
•  continued with construction of a Government office building and a clinic at Capital Hill. The two projects are expected to be completed later in the year.

In the forthcoming financial year, Government will, under the Cement and Malata Subsidy Programme, construct 15,440 houses across the country translating into 80 houses per constituency.

 

SOCIAL SUPPORT AND DISASTER RISK MANAGEMENT

Public Works Programme and Social Cash Transfers

Mr. Speaker, Sir, Government continued to implement the Public Works Programme which has two categories namely; Community Driven Public Works Programme and Social Cash Transfer Programme. The purpose of the Programme is to provide cash transfers to poor households to, among other reasons, enable them purchase subsidized farm inputs and food during the lean season.

Mr. Speaker, Sir, I am pleased to report that Government increased the daily wage for the Community Driven Public Works Programme from K350 to K485. Through this Programme, Government reached 136,121 households against a target of 570,370 households. The gap of 456,000 households may be reached if the Malawi Social Action Fund (MASAF) IV Project Designated account ceiling is adjusted from US$5million to US$12 million to allow for implementation of a full Public Works Programme cycle.

With regard to Social Cash Transfer Programme currently targeting Dedza, Ntcheu and Nkhatabay, a total of 21,000 households have been reached.