It gives me great pleasure to have signed today, on behalf of the Government and the people of Malawi, two Financing Agreements for two very important projects, namely: (a) Multinational-Nacala Road Corridor Development Project Phase V and (b) Sustainable Fisheries, Aquaculture Development and Watershed Management Project.
These Financing Agreements are concessional loans amounting to UA 26.6 million (approximately, MK 27 billion) and UA 6.51 million (approximately, MK 6.6 billion), respectively.
Ladies and gentlemen
You may wish to know that the Multinational-Nacala Road Corridor Development Project Phase V is being co–financed by the African Development Fund (ADF), European Union (EU), and Malawi Government. The total financing for Phase V of the Project is UA 45.289 million (approximately, MK46 billion). The African Development Fund, European Union, and Malawi Government will contribute UA 26.6 million (approximately, MK 27 billion), UA 15.121 million
(approximately, MK 15.3 billion), and UA 3.568 million (approximately, MK 3.6 billion), respectively. The Project will run for five years from 2019 to 2024.
The development objective of the Multinational-Nacala Road Corridor Development Project Phase V is to contribute to regional integration and trade facilitation for Malawi, northern Mozambique and Zambia.
The Nacala Transport Corridor is the shortest route to the seaport for Malawi, northern Mozambique and Zambia. The target population are the people in the three countries that use the Nacala Road Corridor of which the estimated population is over two million people. Other beneficiaries include, import and export firms in Malawi, Zambia, northern Mozambique as well as tourists who use the Nacala Road Corridor to reach desired sites in the three countries. The Nacala Corridor will also serve as an alternative route to the Beira corridor for
Malawi and Zambia which has been particularly devastated by
Tropical Cyclone Idai. Thus, it will bring a huge positive impact on the people and lives of those living along the Nacala Corridor and the entire nation at large.
The Project’s major activities will involve (i) rehabilitation of a 55 km road between Nsipe and Liwonde; and (ii) Construction of a OneStop-Border-Post between Malawi and Mozambique at Chiponde.
Ladies and Gentlemen
Today, we have also witnessed the signing of the Financing
Agreement for the Sustainable Fisheries, Aquaculture Development and Watershed Management Project. This Project is being co–financed by the African Development Fund (ADF) and Malawi Government. The total financing for the Project is UA 10.56 million (approximately, MK 10.7 billion). The African Development Fund and Malawi Government will contribute UA 9.56 million (approximately, MK 9.7 billion) and UA 1.0 million (approximately, MK 1 billion), respectively. The Bank’s contribution comprises a UA 6.51 million (approximately, MK 6.6 billion) loan and a UA 3.05 million
(approximately, MK 3.1 billion) grant. The Government of Malawi’s contribution shall be in kind. The Project will run for five years from 2020 to 2025.
Ladies and Gentlemen
As we are all aware, Fisheries is an important economic sector that plays a key role in nutrition and livelihoods in Malawi. The sector provides income and direct employment to approximately 60,000 people and indirectly engages over 500,000 people in fish processing, trading, distribution and other associated trades. Despite this important contribution, the sector is faced with major challenges to fish stocks and fishery biodiversity that arise from over-fishing, decreasing catch rates, climate variability, and poor fisheries
management exacerbated by substantial institutional capacity
limitations. This Project is, thus, aiming at addressing these challenges.
The Project’s objective is to contribute to Government’s poverty reduction efforts by improving management and utilization of fisheries resources along Lake Malawi, Lake Chilwa and Shire River System.
Specifically, the Project will contribute to the improved resilience of the fishing and fish farming communities in the wake of climate change. It will strengthen the fisheries and aquaculture sector value chains through climate-resilient lake ecosystem management. It will also augment investments which include infrastructure for increased fisheries productivity. Further, it will strengthen nutritional security and
provide economic opportunities while ensuring environmental
sustainability.
On behalf of the Government and people of Malawi, I wish to express our gratitude to the African Development Bank for this support. Let me assure you, Acting Director General that the Government will endeavour to implement these Projects in accordance with the provisions of the Financing Agreements as well as Malawi’s own Public Finance Management rules. Specifically, we will ensure proper financial management and effective project implementation to achieve the intended objective. The Malawi Government believes in transparency and accountability, as such we will facilitate and coordinate the participation of all relevant stakeholders in the implementation of the Projects.
At this juncture, allow me to also express the Malawi Government’s profound gratitude to the Bank for the continued support to various sectors of our economy. The Bank has, this year alone, also approved the following financing: –
- Sustainable Rural Water and Sanitation Infrastructure for
Improved Health and Livelihood Project – UA 1,880,000
(approximately, MK 1.9 billion); - Cyclone IDAI Emergency Humanitarian Relief Assistance Project -USD 250,000.00 (approximately, MK 184 million);
- Cyclone IDAI and Kenneth Emergency Recovery and Resilience Programme – UA16.34 million (approximately, MK 16.6 billion); and
- Strengthening Trans-boundary Cooperation and Integrated
Natural Resource Management in the Songwe River Basin – USD6,392,694 (approximately, MK 4.7 billion).
The total financing that has been approved this year, including the two Financing Agreements signed today, amounts to approximately USD 82, 476,274 (approximately, MK 60.6 billion). This clearly shows that the Bank is truly a friend indeed and is keen to support Malawi’s development efforts. We do not take this for granted. I wish, therefore, to highly commend the excellent cooperation that exists between the
Bank and the Government of Malawi and pray that it grows from strength to strength.
I thank you all for your attention
