Tag Archives: Malawi Minister of Finance Economic Planning and Development Goodall Gondwe

Malawi, Regional, Top News

MCC’s board nods second development compact to Malawi, Indonesia and Kosovo

Lloyd M’bwana

Workers-at-Nkhoma-substation-in-Malawi 

WASHINGTON, D.C.-(MaraviPost)-At its quarterly meeting, the U.S. Government’s Millennium Challenge Corporation (MCC) Board of Directors met to select countries eligible for MCC assistance, which is designed to spur economic growth and reduce poverty.

In a press statement released on December 12 and available to the Maravi Post, MCC’s board has  selected Indonesia, Malawi and Kosovo for bilateral compacts – MCC’s five-year grant program.

The Board also selected Ethiopia and Solomon Islands for MCC threshold programs – the agency’s smaller grant program focused on policy and institutional reform.

This year, for the first time, MCC’s Board directed the agency to exercise its new authority under the AGOA and MCA Modernization Act by selecting countries as eligible to develop concurrent compacts for regional investments.

“I am pleased to announce new MCC compact partnerships with Indonesia, Malawi, and Kosovo, and new threshold partnerships with Ethiopia and Solomon Islands,” MCC Chief Operating Officer and Head of Agency Jonathan Nash said. “The Board also directed MCC to explore regional investment opportunities in five of its current compact partners in West Africa.”

MCC was created in 2004 as a new and different model of development assistance – one focused on reducing poverty through economic growth. Built on the lessons of decades of development experience, MCC provides time-limited grants to developing countries that meet rigorous standards for good governance, from fighting corruption to respecting democratic rights, as evaluated on MCC’s scorecard. MCC takes a business-like approach, with bedrock commitments to data, accountability, and evidence-based decisions. MCC’s investments are improving the lives of millions of people around the world.

Indonesia

MCC’s Board selected Indonesia to develop a new compact in recognition of the progress Indonesia has made in the fight against corruption, strengthening democratic institutions, maintaining sound economic policies, and investing in its people. Development assistance for Indonesia supports the Trump Administration’s Indo-Pacific economic strategy and promotes peace, stability, and prosperity as well as U.S. business engagement.

Malawi

MCC’s Board also selected Malawi to develop a new compact. Despite being the third poorest country in the world, Malawi is one of the strongest performers on MCC’s scorecard in the candidate pool.

Kosovo

MCC’s Board selected Kosovo to develop a new compact. Kosovo’s current MCC threshold program will provide a solid foundation for a compact.

Ethiopia

MCC’s Board selected Ethiopia to develop a threshold program. The decision to develop a threshold program underscores the Board’s recognition of the recent reforms made by the Government of Ethiopia this year.

Solomon Islands

MCC’s Board selected Solomon Islands to develop a threshold program, which also supports the Trump Administration’s Indo-Pacific economic strategy.

Concurrent Compacts for Regional Investments

The AGOA and MCA Modernization Act, signed by President Trump in April 2018, authorizes MCC to enter into concurrent compacts to promote cross-border economic integration, trade, and collaboration. The Board directed MCC to explore regional investment opportunities in five of its current compact partners in West Africa. The five countries selected as eligible are Benin, Burkina Faso, Côte d’Ivoire, Ghana, and Niger.

The Board decision allows MCC to work with each of the countries to determine if there are projects that meet MCC’s strict investment criteria as well as evaluate the countries’ ability to work with MCC and a partner country on a regional investment. There is no guarantee a country selected as eligible will be granted a concurrent compact.

MCC’s Board of Directors reselected Burkina Faso, Lesotho, Timor-Leste, and Tunisia for continued compact development and The Gambia for continued threshold program development. The Board reviewed policy performance for all country partners in compact and threshold development.

Malawi has qualified for a second Millennium Challenge Corporation (MCC) development compact following successful implementation of the first compact.

Malawi implemented energy projects under the US$350 million MCC compact which closed in September this year.

Meanwhile, Malawi Minister of Finance, Economic Planning and Development Goodall Gondwe has welcomed the approval of the second compact obeserving that it has come because of good performance in the first compact.
Gondwe said government was yet to decide on which projects will be implemented in the second compact.

“On the power generation, we seem to be okay now. Maybe we could go to another aspect of infrastructure. Maybe transportation, but we will see, we’ll see,” he said.

Through the five year MCC energy compact, Malawi erected a 132 kilovolts (kV) overhead transmission line from Nkhoma to Bunda Turn-off and constructed two 400/132 kV power transmission lines.

Malawi’s main power production station Nkula A was also rehabilitated, adding 12 Megawatts (MW) to the national grid.

Malawi, Politics

Malawi Govt snubs MPs’ 70% salary hike; Treasury doesn’t have money–Gondwe

Patience Mandowa
Goodall Gondwe
Treasury doesn’t have money
proposal for hike rejected

LILONGWE-(MaraviPost)- Malawi’s Finance, Economic Planning and Development Minister Goodall Gondwe, strongly snubbed the Members of Parliament (MPs) request for a 70 percent pay hike.

Gondwe argued that the Treasury was too broke to meet the lawmakers’ demands, considering the economic turmoil the nation is facing.
The Finance Minister therefore disclosed that legislators will get a 10 % pay hike like any other civil servants.
The MP demands comes barely a two weeks after the National Assembly passed the 2017/2018 fiscal plan whose wage bill is higher than was anticipated.
“Government doesn’t have money to meet such demands. The country is currently going through economic challenges. MPs will get 10% pay rise like any other civil servant,” said Gondwe.
Social-economic commentators have questioned the timing of the MPs demands, particularly in view of the abject poverty prevalent in Malawi.
The pay hike demands are being made despite the lawmakers taking home over MK1 million, 500 litres of fuel, and MK50,000 sitting allowance per day when the National Assembly is in session or Parliamentary committees. Meetings.
The Ministry of Local Government has, meanwhile approved a 25 percent salary increment demand by the Lilongwe City Council employees. The the pay will be released next week.
Malawi

Malawi’s national budget 2017/2018 pegged at MK1.3 trillion: tax-free PAYE for those receiving MK30,000 or less and 2004 pensioners to get 200% increase

Henry Chizimba
Goodall gondwe: presents a MK1,297.2 billion (MK1.3 trillion) Malawi national budget for 2017/18 financial year

LILONGWE-(MaraviPost)- Malawi Minister of Finance, Economic Planning, and Development Goodall Gondwe, on Friday presented the 2017/2018 national budget, which is pegged at MK1,297.2 billion (MK1.3 trillion).

The national budget has been increased by 26.1 percent from the 2016/2017 revised budget which, was at MK977.8 billion. It registers a 13.5 percent increase at current prices, but declined somewhat in real terms.

Finance Minister Gondwe said in current prices, the total revenues and grants are projected to increase by 13.3 percent, and to be slightly reduced, particularly as regards grants, which he said are projected to decline by 8.4 percent. Gondwe said domestic revenue is budgeted to increase by 17.0 percent, and remains at the same level in real terms.

The Minister observes that the true of recurrent expenditure, will decline in real terms from 20.5 percent to 19.1 percent of GDP, whereas development expenditure will increase by 32.6 percent in current prices, and register a slight decline in real terms by 0.6 percent of GDP.

Gondwe disclosed that the wages bill will increase by a total of 10.0 percent, but with wage creep of 3 percent, the total wage increment will be approximately 13 percent.

The major key highlight benefits for low income Malawians in the budget, includes the raising of tax-free PAYE from MK20,000 to MK30,000; and the minimum wage has been increased from MK19,000 to MK25,000 per month. This means that all the people who earn a minimum wage, will be below the threshold of tax-free PAYE.

In the fiscal plan, there is a proposed 200 percent increase of pensions of civil servants who retired prior to 2004; the budget in this category has increased from MK50 billion to MK70 billion.

The majority of the budget is shared by the ministries, with including Education getting MK235 billion, Agriculture, MK192 billion, and health will get MK129 billion; this marks these departments walking away with 18, 15.5, and 9.5 percent, respectively.

On tax measure, Gondwe said Government is introducing an additional bracket of 35 percent on those earning a salaried income above MK3,000,000.00 per month, which will not affect individuals whose earn income is from their businesses.

The minister said Govetnment also introduced a 10 percent excise tax on fee-based TV services, and duty and excise-free provisions for buses and minibuses; these must be less than five (5) years old.

The buses and minibuses that are older than 5 years, the excise taxes 23 percent, will apply on a graduation or progressive basis, whereas the Customs duties, will be 15 percent and VAT will be 16.5 percent.

Sadly, Value Added Tax (VAT) remains on basic needs including water, bread, electricity, soap among others, which will continue hurt more Malawians who earn below one dollar a day.