REPUBLIC OF #MALAWI
STATE OF THE
NATION ADDRESSBY ARTHUR PETER
MUTHARIKA, PRESIDENT OF THE REPUBLIC OF MALAWI
On the occasion of theSTATE OPENING OF THE 2016/2017 BUDGET MEETING OF PARLIAMENTLILONGWEFriday, 20th May, 2016
INTRODUCTION
Mr. Speaker, Sir, I am pleased to deliver this morning the
State of the Nation Address to this august House, and to officially open the
2016/2017 Budget Meeting.
Before I proceed, allow me, Mr.
Speaker, Sir, to convey my deepest condolences to the entire Honourable House
and the bereaved family on the sudden death of Honourable Billy Kanjira Banda
who, until his death, was a Member of Parliament for Mchinji West Constituency.
May his soul rest in eternal peace.
Mr. Speaker, Sir, let me proceed by
outlining the gains we have made so far as a nation and then outline some of
the plans for the 2016/2017 financial year.
Mr. Speaker, Sir, the title of my
Address today is: Towards Recovery and Sustainable Socio-economic
Development.
This country knows well that we have
faced challenges for the past two years. But we cannot keep bemoaning our
challenges. The question is: how are we redefining ourselves as a nation and
emerging out of the challenges.
I am pleased to report that the
economy is slowly stabilizing. We took tough measures to contain our situation,
and it was not easy. The resumption of the Extended Credit Facility with
International Monetary Fund (IMF) is testimony that our austerity measures and
fiscal discipline are bearing fruits.
More than ever, we are optimistic
that Malawi can do better. We now believe we can gradually wean ourselves from
donor dependency. We have illustrated that with our own resources well managed,
we can make Malawi a country where our potentials and dreams are realized.
MACRO-ECONOMIC ENVIRONMENT AND
REFORMS
Mr. Speaker, Sir, let me speak on
macro-economic environment and reforms. Our 2015/2016 performance has been
influenced by shocks caused by pressures from the rising food prices,
exacerbated by low production of maize in the 2015 growing season due to floods,
dry spells and early cessation of rain in most parts of the country.
I want us to note that the economy
grew by only 3.1 percent in 2015 despite an earlier projection of 5.4 percent
growth rate. The rate of inflation remained high at 21.8 percent in 2015 as
compared to the projected rate of 16.4 percent. Domestic debt stock increased
to K526.4 billion in 2015 as compared to K487.0 billion at the end of 2014.
However, domestic debt as a ratio of GDP dropped from 15.6 percent in 2014 to
8.9 percent in 2015.
Mr. Speaker, Sir, while recognizing that the macroeconomic
developments in the 2015/2016 financial year were mainly due to the effects of
climate change, Government fought hard to achieve macroeconomic stability by implementing
tight fiscal and monetary policies. Government has now regained firm fiscal
management by exercising strict control on spending and enhancing domestic
resource mobilization.
On expenditure control measures,
Government has made it mandatory for all Ministries, Departments and Agencies
to submit financial transaction reports, which include revenue, expenditure,
commitment and payroll returns and bank reconciliation reports as a condition
for accessing subsequent funding. Now Treasury can analyse expenditure lines
with closer scrutiny. We can compare expenditures in the Integrated Financial
Management Information System (IFMIS) with those reflected at the Reserve Bank
of Malawi. We can now detect any irregularities quickly.
Mr. Speaker, Sir, while Government is
committed to reduce donor dependency, domestic resource mobilization
performance was below the set targets. From an approved Mk 666.6billion in June
2015, this was revised to MK 654 billion during the midterm budget review. Mr.
Speaker Sir, in order to enhance domestic resource mobilization, Government is
committed to implementing a broad based tax reform starting from the 2016/2017
fiscal year with a view to aligning our tax system with the nation’s
development goals, thus making it more efficient, effective, simple, transparent
and predictable.
Further, I would like to report that
Government remains committed to implementing the Zero Net Domestic Borrowing
policy in the medium term. The annual target of domestic debt repayment will
remain at 1.5 percent of GDP.
On how we manage external debt,
Government will ensure that foreign loans are obtained primarily to finance
development projects that are thoroughly appraised and are of strategic
importance to the country. In fact, the projects must be justified to be of
high rate of return.
Mr. Speaker, Sir, we will continue
with public debt management reforms to improve and align our public debt laws,
procedures and processes to international best practice. We need to make our
legal framework on public debt management more comprehensive and robust. This
entails reviewing relevant provisions in the Public Finance Management Act
(2003).
Mr. Speaker, Sir, this year, we expect to improve the
macroeconomic indicators for our economy as a result of these measures.
Let me also report that the economy
is expected to register a real GDP growth rate of 5.1 percent in 2016, and 7.0
percent in 2017. The annual average rate of inflation is expected to fall from
21 percent in 2015 to 19.8 percent in 2016, with further improvements in 2017
and beyond.
PROGRAMME BASED BUDGETING REFORMS
Mr. Speaker, Sir, in the 2016/2017
financial year, Government will roll out Program Based Budgeting (PBB) reforms.
These have already been piloted in selected Ministries. All Ministries, Departments and Agencies will
now prepare their budgets in line with the PBB framework.
Mr. Speaker, Sir, the PBB approach will complement
Government’s initiative on institutional performance assessment. Let us note
that PBB framework provides an effective linkage between resources utilized and
results achieved.
FINANCIAL SECTOR REFORMS
Mr. Speaker, Sir, in order to improve
the stability of the financial sector, Government implemented a number of
initiatives in the 2015/2016 financial year. We focused on strengthening the
regulatory environment and improving the financial infrastructure for the
sector. I am pleased to report that the following Bills have been developed for
tabling in this house in order to strengthen the regulatory environment:
▪
The Credit Reference Bureau (Amendment) Bill, 2015;
▪
The Payment Systems Bill, 2016;
▪
The Financial Services Amendment Bill, 2016l;
▪
The Banking Amendment Bill, 2016;
▪
The Malawi Deposit Insurance Corporation Bill; and
▪
The Anti-Money Laundering Bill, 2016.
Our aim is to make the regulatory framework
tough and conducive.
Mr. Speaker, Sir, I have some good
news on infrastructure for the financial sector. The National Switch was
implemented in the 2015/2016 financial year. Government also commenced work on
installation of Micro Finance Institution Transaction Processing Hub. Once
installed, the hub will serve as a common Management Information System for
Micro Finance Institutions.
MEDIUM AND LONG TERM DEVELOPMENT
PLANNING
Mr. Speaker, Sir, we all recall that
MGDS II ends June this year. As a result, Government has conducted a
comprehensive review of the implementation of the MGDS II. We now have drawn
lessons to inform the formulation of its successor.
Mr. Speaker, Sir, we also recall that
we promised to establish the National Planning Commission. We have made
progress and we are now at the stage of developing a proper legal framework for
the establishment of the Commission. This will ensure continuity of development
programmes.
SUSTAINABLE ECONOMIC GROWTH
Agriculture
Mr. Speaker, Sir, agriculture remains
one of the key priorities for Government because of its significance to our
economy. Government will, therefore, continue to place highest priority on the
sector to ensure both national and household food security as well as support
agro industries.
Overview of the 2015/16 Season
Mr. Speaker, Sir, the 2015/16 growing
season has been badly affected by adverse weather conditions caused by the El
Nino phenomenon. This has negatively affected crop production including maize
the staple food. Maize production has declined by 12.4% in the 2015/16 growing
season. Thus, maize production declined from about 2.8 million metric tons in
2014/15 growing season to about 2.4 million metric tons in 2015/16. The country
will, therefore, experience a deficit over another deficit registered in the
previous season. Over three million
Malawians are expected to be food insecure.
Mr. Speaker, Sir, this august house
must note we have already declared Malawi a State of Disaster and appealed for
humanitarian relief assistance.
Mr. Speaker, Sir, let me put it on
record that Government distributed in the past year relief maize to about 2.8
million food insecure people in 25 districts. This maize was drawn from the
Strategic Grain Reserve. We used Government resources and funds from the World
Bank through the Malawi Floods Emergency Recovery Project. Through ADMARC, a total of 110,000 metric
tons of maize was procured from Zambia and locally and sold to the general
public at a subsidized price. And as the Government pronounced, no single
person died from hunger.
Mr. Speaker, Sir, in addition, a
consortium of International Non-Governmental Organizations also contributed
towards the relief program in form of cash transfers that benefited about
430,000 Malawians. Vulnerable
households in all the 28 districts were also provided with sweet potato vines
and cassava cuttings to mitigate food shortage.
Mr. Speaker, Sir, besides mitigating the food
shortages;
•
We implemented the Farm Input Subsidy Programme benefiting
1.5 million resource poor farmers. This year farmers’ contribution was
increased from MK1, 500 to MK9, 000.
•
We implemented the Legume Production and Marketing
Programme. We are diversifying to more crops like soya beans, pigeon peas and
groundnuts seed. This is one area where the future of our forex lies.
•
We inaugurated a third Cotton Ginnery for ADMARC in
Balaka;
•
We supported cotton growers with about 670 metric tons of
certified cotton seed on cash as well as a loan basis;
•
We launched the US$2.4 billion Irrigation Master Plan and
Investment Framework to guide the expansion of the irrigation sub-sector by
116,000 hectares. Some of the major
projects under this framework include Shire Valley Irrigation, Bwanje Scheme
expansion, Songwe River and Greenbelt Initiative Schemes;
•
We completed construction of seven solar pump irrigation
schemes covering an area of about 780 hectares under the Agriculture
Infrastructure Support Project, and 150 hectares under the Climate Adaptation for Rural Livelihoods
and Agriculture Project in Karonga, Neno, Chikhwawa and Nsanje;
•
We completed maintenance of old government irrigation
schemes in Karonga, Nkhotakota and Machinga and
over 400 hectares was developed
for gravity fed irrigation in Blantyre, Thyolo and Phalombe districts;
•
We procured over 4000 treadle pumps through the Malawi
Flood Emergency Recovery Project funded by the World Bank and also undertook
surveys and designs of the 30 damaged irrigation schemes; and
•
We implemented the Karonga and Malombe Rice Production and
value addition project. This will irrigate 1,500 hectares for the production of
rice to be processed, graded, branded and packaged for both local and export
markets.
Mr. Speaker, Sir, to address food shortages in the
2016/2017 financial year, Government has provided ADMARC with financial
resources to procure maize soon after harvest to ensure that markets are fully
stocked with commercial maize.
Government has also invited
interested private sector investors to undertake commercial irrigation farming
in order to boost maize production beginning this year. The programme will also involve medium-scale
farmers and smallholder farmers to either utilize their existing irrigation
facilities or rent unutilized irrigable land. Government will guarantee to buy
the maize produced through the National Food Reserve Agency. We will also
prioritize the development of dams and boreholes to reduce dependence on
rain-fed agriculture. I have also directed that FISP should undergo further
reforms to ensure that the programme is efficiently and effectively
implemented. In the end, FISP must be run like in the private sector.
Mr. Speaker, Sir,
in addition, Government will revamp extension farmer linkages by
deploying more Field Assistants across the country and improving on their
mobility through the procurement of
motorcycles and vehicles including mobile vans.
Tobacco Production and Marketing
Mr. Speaker, Sir, we are all aware
that the tobacco industry has been facing a number of challenges. These include
over-production, high rejection rates and low prices. We are therefore taking appropriate measures
which include reviewing the Tobacco Act in order to address the structural
challenges.
Mr. Speaker, Sir, Government will this year adopt the
National Agriculture Policy, the National Irrigation Policy, National Fisheries
and Aquaculture Policy, and the National Seed Policy and Bill. We need
appropriate agricultural policies to guide the sector.
Greenbelt Initiative
Government continues to prioritize
investment in the Greenbelt Initiative in order to increase productivity of
selected high value crops. I am, therefore, pleased to report that construction
of the irrigation infrastructure and the sugarcane factory in Salima were
completed. Sugarcane nursery development is underway and planting on the 439
hectares will commence later this year.
Under the GBI, Government has an
ongoing Land Management Contract with Malawi Mangoes limited where land has
been provided to Malawi Mangoes for the production of bananas and mangoes.
Mining Development
Mr. Speaker, Sir, Malawi’s unique mineral potential
continues to attract interest from both local and foreign investors. We are now
focusing on creating an appropriate investment environment by reviewing of
mining legislation and establishment of mining cadaster, among other things. I
am pleased to report that Government finally launched the countrywide airborne
geophysical data in August, 2015.
Mr. Speaker, Sir, Government will continue to
collect, assess and disseminate geo-scientific data related to geology and
mineral resources of Malawi. Clients
can now access the data for use in mineral exploration, infrastructure
development and general research.
Natural Resources and Environment
Management
Mr. Speaker, Sir, we have taken some measures to
safeguard the country’s environment and natural resources. Government has
initiated the process of placing Viphya Plantation and Thuma and Dzalanyama
Forest Reserves under private sector management. We have also developed a National
Charcoal Strategy in order to promote sustainable production of charcoal
and alternative sources of energy for domestic use.
In the 2016/2017 fiscal year,
Government will strengthen the legal policy and regulatory framework for the
effective management of its natural resources and environment. We will enact
the Environment Management Bill (2016) and also adopt the National Climate Change
Management Policy. Further, we will approve the revised National Forestry
Policy and also enact the Environment Management Bill (2016).
Industry, Trade and Private Sector
Development
Mr. Speaker, Sir, Government continues to implement
the National Export Strategy in order to build the economy’s productive
base. In the ending financial year, Government implemented a number of policy,
administrative, regulatory and institutional reforms to enhance Malawi’s
attractiveness as a destination for private investment. In this regard:
•
Government launched the Malawi Business Registration
System which allows for online registration of businesses and companies;
•
Government developed a collateral registry at the
Department of Registrar General to improve business registration and ensure
investors access to capital from the Banks;
•
Government operationalized the Companies Act (2015)
through the passing of the Insolvency Bill;
•
Government commenced the establishment of the Malawi Trade
Portal to facilitate the Ease of Doing Business in the country; and
•
Government formulated and approved the National Trade
Policy and the National Industrial Policy
Mr. Speaker, Sir, these reforms will improve Malawi’s
competitiveness in Doing Business with the world. The reforms will also attract
private investment, which is necessary for economic growth, job creation and
poverty reduction.
Mr. Speaker, Sir, Government also facilitated
bilateral discussions with potential investors through the first ever Malawi
Investment Forum. This forum attracted a lot of high profile foreign investors.
Government also conducted bilateral meetings with the Chinese Government on
priority projects for Malawi. I am pleased to report that the discussions with
potential investors have already started bearing fruits. As I speak, we have
already granted investment certificates worth $124 million.
Furthermore, Mr. Speaker, Sir, the Chinese
Government approved the immediate implementation of three priority projects.
These are the Chileka International Airport Project, the 300 Megawatt
Kam’mwamba Coal Fired Power Plant project and the E-Government (National
Identity) Project. The Chinese Government also agreed to bring investors to
support value addition in a number of products particularly those featured in
the National Export Strategy such as oil seed products; sugarcane products;
cotton, textile and apparel; hides and skins, among others. This is part of the
seven major projects approved by the Chinese Government.
I would also like to report that
Government continued to facilitate the accreditation of the Malawi Bureau of
Standards in support of industrial development. Government is committed to the
construction of the State of Art Laboratory in Blantyre, whose ground breaking
ceremony took place in February, 2016.
Mr. Speaker, Sir, during the
2016/2017 financial year, Government will continue implementing reforms in
order to enhance Malawi’s attractiveness as an investment destination. The
reforms will now include reviewing the Regulations to establish Export
Processing Zones, which will in turn facilitate the promotion of
industrialization.
Labour and Employment
Mr. Speaker Sir, labour plays a vital
role in the socio-economic development of the country. Government, therefore,
is committed to promoting a high quality, skilled and productive workforce.
In order to improve quality in our
technical colleges, Government is constructing ICT and Business Centres,
classrooms and workshops at Lilongwe, Nasawa, Salima and Soche Technical
Colleges.
Mr. Speaker, Sir, Government is aware
that Malawi has available skilled labour that can foster development of our
country. In order to provide job opportunities to the available labour force,
Government will review the current Temporary Employment Permit procedures. We
will tighten the issuance of Temporary Employment Permits to ensure that only
special skills which are not available in the country are considered.
Mr. Speaker, Sir, in order to bridge the information gap
between employers and the labour force, Government is currently developing a
Labour Market Information System which will increase access to and availability
of labour market information in the country. The system will also help
Government to modernize public employment services.
In this financial year, Mr. Speaker,
Sir, Government continued to conduct labour inspection in workplaces to ensure
that workplaces complied with regulatory framework on occupational health and
safety standards. We inspected about 500 workplaces during the year under
review.
Mr. Speaker, Sir, delay on workers compensation
payments has been a major concern for a long time. In response to this undesirable
situation, Government is developing a Workers’ Compensation Fund. Apart
from helping to speed up workers compensation payments, the Fund will also
guarantee availability of finances. This will reduce financial burden to the
Government and the private sector.
Tourism, Wildlife and Culture
Mr. Speaker, Sir, the tourism sector
has a huge potential to contribute to our country’s economic growth and
development. However, the slow pace of growth of this sector remains an area of
concern to the Government.
In order to create new impetus in the
sector and realize full potential, I have, therefore, moved the Department of
Tourism from the Ministry responsible for Information to the Ministry
responsible for Industry and Trade. Tourism must be understood as an industry.
Government will implement more
measures to drive tangible growth and success in the tourism industry. These
include:
•
implementing the Malawi Tourism 2020 Strategy;
•
reviewing the Tourism Policy;
•
upgrading to bitumen standards access roads to places
with tourist value; and
•
constructing the Malawi Institute of Tourism Campus in
Lilongwe.
Further, Government will expedite the
enactment of the National Heritage Council Bill law to ensure promotion
and preservation of the country’s rich cultural heritage.
Integrated Rural Development
Mr. Speaker, Sir, Government is aware that for this
nation to develop, priority must be given to the development of rural areas. In
view of this, Government remains committed to improving the living standards of
the rural poor.
During the year under review,
Government completed construction of Rural Growth Centers at Jenda in Mzimba,
Malomo in Ntchisi and Monkey Bay in Mangochi districts. Government also
completed construction of a modern market at Nkhamenya in Kasungu District;
Nthandizi, Phalula and Ulongwe markets in Balaka District; and Mbulumbuzi
Market in Chiradzulu District.
Mr. Speaker, Sir, with regards to
implementation of social support programmes, Government disbursed a total of
US$20.4 million to a total of 450,131 households through the Community Driven
Public Works and Social Cash Transfer components of the programme.
Mr. Speaker, Sir, during the 2016/2017 fiscal year,
Government will continue implementing the Social Support programme in order to
provide cash transfers to poor households. This will enable them purchase
subsidized farm inputs and food during the lean season. Government will also
complete the second phase of Rural Growth Centers; and complete devolution
of functions to Local Authorities.
INFRASTRUCTURE DEVELOPMENT
Transport Infrastructure
Mr. Speaker, Sir, a good transportation system is a
fundamental prerequisite to any country’s economic growth and human
development. That notwithstanding, our transport costs remain among the highest
in the region.
Realising this need, Government has
been undertaking measures to reduce transport costs through the implementation
of the National Transport Policy which we launched in April, 2015.
Through this policy a number of remedial measures in the transport are being
undertaken as follows.
Road Transport
In order to increase the amount of
resources available for road maintenance, Government, in the 2015/2016 financial
year, implemented a number of reforms. These reforms aimed at increasing
resources collected by the Roads Fund Administration. The structure of the fuel
levy was revised from an absolute figure to a percentage of pump price; and
this led to a 60 percent increase in the resources available for road
maintenance programs. The collection of transit fees in all our border posts
was outsourced on an agency arrangement with the Malawi Revenue Authority in
order to reduce transit fee leakages. This led to a 30 percent increase in
revenues collected from transit fees.
Despite this significant increase in
resources available for road maintenance, the annual financing gap still
remains high at about US$55 million. In order to reduce this financing gap,
Government is exploring the possibility of tolling selected roads under Public
Private Partnership arrangement, to provide extra resources for road
maintenance.
Mr. Speaker, Sir, Government will also continue
working towards improving accessibility and mobility for the country’s rural
population through maintenance and construction of new roads in rural areas,
focusing on those areas that are economically active. Some of the key rural
roads upgrading projects that Government will focus on in the 2016/2017 financial
year include:
•
The resumption of
the Zomba – Jali – Kamwendo – Phalombe – Chitakale road; and the Thyolo -
Thekerani - Muona - Bangula Road;
•
The continuation of the Jenda-Edingeni Road;
•
The Completion of the Chiringa – Miseu Folo - Chiradzulu
road; and
•
The Completion of the Lumbadzi – Dowa – Chezi Road
upgrading.
Mr. Speaker, Sir, with regard to improvement of the condition
of the existing roads, a number of roads in the main cities of Blantyre,
Lilongwe, Zomba and Mzuzu have been targeted for rehabilitation in 2016/2017
fiscal year and beyond, with a view to improving the flow of traffic and
reducing congestion which of late has become a common problem.
Mr. Speaker, Sir, other road projects
which are scheduled for commencement in the next fiscal year include:
•
Karonga – Songwe Road Rehabilitation Project
•
Mzuzu – Nkhata Bay Road Rehabilitation Project; and
•
Liwonde – Mangochi Road Rehabilitation Project.
Mr. Speaker, Sir, I am pleased to
report that Government, through the Directorate of Road Traffic and Safety
Services has been upgrading the Malawi Traffic Information System with new
modules being added to the system in phases. This system has automated and
integrated all aspects of traffic and safety services. Mr. Speaker, Sir, one of
the benefits that has accrued from the improved system is an increase in
revenues collected by the Directorate.
Mr. Speaker, Sir, in order to reduce
congestion at Road Traffic and Safety Services centres, Government will
outsource Vehicle Inspection Services to private service providers. An
inspection and testing equipment has already been procured to facilitate this
process.
Rail Transport
Mr. Speaker, Sir, regarding rail
transport, Government has continued to prioritize the Nacala Corridor. I am pleased to report that a 138 km railway
line between Nkaya and Kachaso and a 100km section between Nkaya and Nayuchi
became operational in December last year. However, the operations are being
threatened by attacks along the line.
Government is doing everything possible to stop the attacks. Mr.
Speaker, Sir, let me also take this opportunity to urge all Malawians to show a
sense of patriotism and respect for private and public property, as continued
sabotage of the trains will eventually lead to an increased cost of goods and
services caused by increased transportation costs.
Water Transport
Mr. Speaker, Sir, with regard to
water transport, let me reiterate Government’s commitment to the Shire-Zambezi
Waterway Project.
Mr. Speaker, Sir, the Governments of
Malawi, Mozambique and Zambia secured resources from the African Development
Bank through SADC to conduct a comprehensive feasibility study. I am pleased to
report that the preliminary findings of the study showed that the two rivers
are navigable. The three Governments will, therefore, meet in the next few
months to consider the full report and reach an agreement on the way forward.
Upon implementation of this project, it is expected that transport costs will
fall by 30 percent.
Air Transport
Mr. Speaker, Sir, we need to start
thinking of Malawi as an air-linked country. Air transport continues to
play an important role in the development of our economy. Government is, therefore, working towards
creating an enabling environment to facilitate the operations of air transport.
Mr. Speaker, Sir, let me report that
Government has sourced funding from the Japanese Government for the expansion
of the terminal building at Kamuzu International Airport. This will include
construction of a new forward holding departure lounge; and rehabilitation of
the domestic passenger facilities. Construction works are expected to start in
July, 2016. In addition, under the Chinese infrastructural projects, a new
airport will be built at Chileka. Government also plans to rehabilitate and
improve the Mzuzu Airport.
Water
Development
Mr. Speaker, Sir, Government remains
committed to the provision of safe water to the masses across the country. It
is for this reason that Government has taken significant steps in establishing
the National Water Resources Authority which will serve as a regulatory
body for water resources management.
During the year under review,
Government:-
•
continued with construction works on Liwonde Barrage and
new Liwonde Bridge;
•
continued implementing the Songwe River Basin Development
Programme in collaboration with the Government of the Republic of Tanzania. Our
aim is to improve living standards of the basin population for both countries;
and
•
Government also completed construction of water supply systems
in Dedza, Chitipa, Nkhata-Bay and Chikhwawa districts.
Mr. Speaker, Sir, in the 2016/2017
financial year, Government will:
•
continue with expansion works in developing ground water
and drilling boreholes in areas with low water supply coverage;
•
operationalise the National Water Resources Authority; and
•
continue with construction works on gravity-fed water
supply schemes.
Government is aware of the water
shortages experienced particularly in the cities of Lilongwe and Blantyre.
Government will continue to implement short, medium and long term strategies to
address the prevailing situation, including construction of a dam across
Diamphwe River in Lilongwe, drawing water from Lake Malawi, and tapping water
from Mulanje Mountain to Blantyre.
Energy Development
Mr. Speaker, Sir, Government is determined to restructure the
energy industry with the aim of providing a level playing field for private
sector participation in the generation and supply of electricity. In this
respect, ESCOM will be responsible for transmission and distribution and a
separate Electricity Generation Company will be responsible for generation of
electricity. An enabling Bill will be
presented to this August House during this sitting.
Mr. Speaker, Sir, Government has so
far signed 26 Memorandum of Understanding with potential Independent Power
Producers Investors in the Power Sector. The project proposals range from
solar, coal and hydropower generation technologies.
Apart from the Malawi Challenge
Account Project whose main focus is rehabilitation and upgrading of Nkula A and
building of high voltage transmission across the country, Government is also
implementing the Energy Sector Support Project funded by the World Bank and
African Development Bank. The project
focuses on conducting feasibility studies for additional Hydro Power generation
in the country.
In the coming fiscal year, Government
will continue providing solutions to challenges faced in the energy
sector. Among priority projects,
Government will soon sign a financial Agreement with the Exim Bank of China for
Kam’mwamba Coal Fired Power Project.
Information and Communication
Technology
Mr. Speaker, Sir, Information and
Communication Technology (ICT) is one of the key catalyst for socio-economic
development. Government is, therefore, taking progressive steps to improve ICT
governance by creating the enabling environment for development of ICT. In this
regard, I am pleased to report that the E-Transactions Bill, Communications
Bill, and Access to Information Bill were submitted to this august House and are
awaiting enactment.
Government has also completed
implementing various national and regional communications infrastructure
projects. Our goal is to improve the speed, cost and penetration of the
internet services. We have now launched the fibre optic project
connecting Malawi through Zambia and Tanzania.
SOCIAL SUPPORT AND DISASTER RISK
MANAGEMENT
Disaster Risk Management
Mr. Speaker, Sir, in response to food shortages
caused by the adverse weather conditions, Government has been providing relief
food and cash to the targeted food insecure households. This is being done with support from
development partners, civil society organisations, the private sector and
individuals within and outside the country. This far, a total of 70,000 metric
tons of maize was released for distribution to the targeted food insecure
households.
Mr. Speaker, Sir, disaster recovery
interventions are being guided by the National Disaster Recovery Framework
which was developed after carrying out post disaster needs assessment. The assessment revealed that MK168.6 billion
is required for disaster recovery interventions. I am pleased to report that
MK53.4billion has already been secured from the World Bank under the Malawi
Flood Emergency Recovery Project. I, therefore, once again appeal to
Development and cooperating partners, NGOs, the private sector and individuals
to contribute towards the implementation of the national disaster recovery
framework.
Mr. Speaker, Sir, in terms of
progress made in the implementation of the disaster recovery framework, I wish
to report that:-
•
798.6 kilometers of feeder roads have been rehabilitated,
118.9 hectares of land re-afforested and 5.7 kilometers of irrigation canals
that were damaged by the floods have been
re-constructed using labour intensive methods;
•
a total of 33, 241.64 metric tons of maize was procured
for restocking the Strategic Grain Reserve;
•
reconstruction and improvement of roads and bridges in the
affected areas is under way; and
•
a thorough assessment of all education and health
facilities that were heavily damaged by the floods in Mulanje and Nsanje
districts has been done and reconstruction works will commence soon.
Further, we have so far provided
relief assistance in terms of food and non-food items to about 32, 198
households in 25 districts.
Going forward, Government will:-
•
facilitate the development of a National Disaster Risk
Management and Resilient Framework;
•
promote the implementation of community based risk
reduction interventions such as afforestation programmes to address disaster
risks;
•
finalise the review of the Disaster Preparedness and
Relief Act; and
•
continue the implementation of recovery interventions
under the Malawi Floods Emergency Recovery Project.
Elderly and Persons with Disabilities
Mr. Speaker, Sir, the Government
remains committed to improving the welfare of the elderly and those living with
disabilities. Therefore, during the 2015/16 financial year Government provided
various vocational and skills training to over 216 persons; launched the
National Disability Mainstreaming Strategy; and undertook an investigative
study to establish the root cause of attacks and killing of persons with albinism.
The study was conducted in Machinga, Mulanje, Zomba, Dedza and Chitipa
Districts. Government has prosecuted those suspected to be engaging in these
heinous activities and they have been speedily convicted by our courts.
Mr. Speaker, Sir, Government undertook a
comprehensive public awareness on promotion and protection of the human rights
of older persons and on the fight against witchcraft related violence. Being elderly is not a crime and, therefore,
all old persons must be respected, protected, and taken care of.
Government will in the next financial
year intensify awareness campaign on the rights and welfare of people with
disability, review the 1911 Witchcraft Act and develop a National
Elderly Bill for presentation to this august house.
SOCIAL DEVELOPMENT
Public Health
Mr. Speaker, Sir, Government is
committed to ensure healthy lives and promote well-being for all Malawians.
Government is, however, aware, that the health sector continues to face a
number of challenges, including critical shortage of staff, essential drugs and
equipment. Government has, and will continue to work tirelessly in order to
address these challenges. During the 2015/2016 fiscal year, Government, through
the Central Medical Stores Trust, developed a Concept of “MUST HAVE” list of
medicine and medical supplies. This will rationalize the use of the scarce
resources that are made available for procurement of health commodities.
In order to address the shortage of
medical personnel, Government is currently processing the recruitment of 1,412
young men and women who have graduated from the Malawi College of Health
Sciences and the Christian Health Association of Malawi (CHAM) training
colleges. We have also received a list of 51 fresh graduate Medical doctors, 10
Optometrists, 28 Physiotherapists and 34 Pharmacists from the College of
Medicine, who will be placed on 18 months internship at Queen Elizabeth Central
Hospital and Kamuzu Central Hospital.
Mr. Speaker, Sir, to further improve
delivery of health services, during the 2015/2016 fiscal year, Government:-
•
continued the construction of 140 houses under Umoyo
Housing programme and five flats for staff;
•
signed a Memorandum of understanding with Christian Health
Association of Malawi aimed at
increasing access to essential health services especially for rural remote
communities; and
•
secured resources from Global Alliance for Vaccines and
Immunisations for non-traditional vaccines amounting to over 14 million
USD.
Mr. Speaker, Sir, in the forth coming
year, Government will:
•
continue to provide
resources to Central Medical Stores Trust on a quarterly basis to enable the
Trust to, among others, process tenders in a more predictable and efficient
manner;
•
reduce pilferage of drugs through strengthening oversight functions of
hospitals by health advisory committees;
•
review the Pharmacy, Medicines and Poison Act,
specifically to ensure that stiffer penalties are included in this Act; and
•
commence construction of New Phalombe Hospital.
Malaria, HIV and AIDS Management
Mr. Speaker, Sir, with regard to Malaria, HIV and
AIDS management, I am pleased to report that Government secured resources from
Global fund for Malaria, HIV and TB. These resources will ensure
complementation of Government’s efforts in reducing cases of malaria as well as
increasing the number of people receiving free Anti-Retroviral Therapies.
Education, Science and Technology
Mr. Speaker, Sir, education is a
means for building human capital. Government is, therefore, committed to
ensuring provision of quality education at all levels.
I am pleased to report that, during
the year under review, notable achievements were made in the sector including
the following:-
•
timely payment of teachers’ salaries across the country
owing to the decentralization of payment of salaries of teachers to the
education divisions;
•
opening of Chiradzulu Teachers’ Training College which has
a capacity of 560 student teachers;
•
construction of laboratories and libraries in 33 Community
Day Secondary Schools. These will give students a better chance to compete with
their counterparts learning in conventional secondary schools on equal basis;
•
upgrading of 33 Community Day Secondary Schools to
conventional secondary schools; and
•
the Establishment of a Higher Education Students Loans and
Grants Board to manage the loan facility for students in public universities.
Mr. Speaker, Sir, in the next
financial year, Government will, among others:-
•
commence the construction of three teacher training
colleges in Rumphi, Chikhwawa and Mchinji districts;
•
continue with the construction of Machinga and Thumbwe
Secondary School;
•
upgrade 21 CDSSs to conventional secondary schools; and
•
continue with the expansion of infrastructure in the
various public universities and four Technical Colleges in Lilongwe, Salima,
Soche and Nasawa.
Gender, Women and Development
Mr. Speaker, Sir, Government is determined to empower
women by ensuring that they are active participants in the development of this
country. In this regard, in the year
under review, Government:-
•
launched the revised 2016-2021
National Gender Policy which will guide gender mainstreaming and women
empowerment initiatives;
•
institutionalized gender
mainstreaming in academic institutions by facilitating development of gender
policies in our Public Universities;
•
trained 246 Magistrates, Police
Prosecutors and Social Welfare Officers in Gender Related Laws; and
•
undertook mobile court sessions
through which 49 gender based related cases were handled in 14 districts.
Mr. Speaker,
Sir, in the 2016/2017 financial year, Government will scale up women economic
empowerment activities. Among other things, Government will provide various
business skills to Village Savings and Loans business groups.
Child Protection and Development
Mr. Speaker, Sir, children need love, care and
protection because experiences they undergo as they grow up will affect their
destiny. To this end, Government remains committed to the protection of our
children, as well as the provision of Early Childhood Development (ECD) centres
across the country.
During the year under review,
Government:-
•
completed the construction of 8 ECD centres;
•
raised awareness of ECD programmes amongst the public
through the launch of the Early Childhood Development week;
•
strengthened the child protection system through training
of 80 trainers; and
•
re-united 72 street children with
their parents and guardians;
In the coming financial year,
Government will continue to increase access to Early Childhood Development
Services by constructing more ECD centres and protecting our children from all
forms of abuse. We will also roll out Child Protection Information
Management System at District level; and continue removing street kids and
beggars from the streets.
Lands, Housing and Urban Development
Mr. Speaker,
Sir, land still remains the basis for achieving socio-economic development.
Realising this, Government has continued to work tirelessly to make land
available to all Malawians and credible foreign investors. Additionally,
Government is committed to ensure the provision of decent and affordable houses
for Malawians in rural and urban areas. To this end, Government has continued
to implement the Decent and Affordable Housing Subsidy Programme (Cement
and Malata) which was launched during the 2014/2015 fiscal year.
In this
regard, during the 2015/2016 fiscal year, Government:-
•
under the Decent and Affordable Housing Subsidy
Programme, completed 1,700 houses whilst 8,040 are under construction;
•
Continued to provide mortgage loans for purchase and
construction of houses by public officers through the public servants House
Ownership Scheme; and
•
Allocated 94.8 hectares to Daeyang Luke Hospital in
Lilongwe City under Phase III for the construction of the University Teaching
Hospital among other projects.
Mr. Speaker,
Sir, in the
coming financial year, Government will continue implementing the Cement and
Malata Programme to ensure that rural areas have decent houses. There is no
turning back because we have an obligation to improve the quality of life for
those who cannot afford.
Youth Development and Empowerment
Mr. Speaker, Sir, as you are aware,
more than 60 percent of our population is made up of the youth. If empowered,
they will certainly play an assertive and constructive role in the development
of our nation. Therefore, Government will continue to empower the youth in a
number of porgrammes. These include the construction of Youth Multipurpose
Learning Centers, which provide a platform for the youth to access a variety of
education and skills building programs.
I am pleased to inform this august
House that Government launched the first ever Youth Status Report which
captures indicators that can be used to assess the status of young people in
our country. This enables us to make more informed decisions for the Youth.
In the coming financial year,
Government will continue to implement programmes that will empower the youth to
become productive citizens of our nation.
Democratic Governance
Mr. Speaker, Sir, my Government is determined to
promote the rule of law, justice, democracy and good governance. The Government
is also committed to promote strict adherence and observance of the tenets and
dictates of the Constitution in order to promote the welfare of Malawians.
Government remains committed to
ensuring that the poor and vulnerable people are not denied access to social
services through corruption, fraud and theft. For this reason, my Government
remains resolute to prosecute cases involving theft of public funds popularly
known as cashgate.
My Government handled 21 Cashgate
cases. We have concluded 6 of them and 13 are at advanced stages. More
prosecution is to come.
We will recruit more lawyers in order
to efficiently and effectively deliver services in all spheres of justice
delivery. Government will also embark on initiatives and reforms that
revolutionize the operations of the Ministry of Justice and Constitutional
Affairs as part of Public Sector Reforms. For example, the Government plans to
establish online case management system and a computerized civil registry to
improve data management and tracking of case files. This will help Government
and all stakeholders to easily follow and track cases as they progress at every
stage. Government will also computerize the record management system at the
Administrator General’s Department to ensure improved management of deceased
estate case files.
Mr. Speaker, Sir, Government will also develop the
National Prosecution Policy. This will provide guidelines for the conduct of
public prosecutions by setting standards that will underpin all prosecutorial
principles and practices of common values. As a result, these measures will
promote consistency and professionalism in key decision making processes and
trial practices.
Mr. Speaker, Sir, with regard to international
obligations, I am pleased to report that my Government has made great strides
in meeting Malawi’s international human rights obligations by leading efforts
to clear Malawi’s State party Report backlog. In the 2015/2016 financial year,
Malawi successfully presented her initial and combined report on the African
Charter on Human and People’s Rights and the Protocol on the Rights of Women.
In fact, Malawi was recorded as the first country to comply with the African
Commission state party reporting Guidelines. Malawi also successfully presented
her 7th periodic report on the Convention on the Elimination of Discrimination
Against Women (CEDAW) and her second cycle report on the Universal periodic
Review (UPR) to the United National Human Rights Council.
The Fight against Corruption
Mr. Speaker, Sir, my Government
maintains a zero tolerance stand against corruption. We are prosecuting 50
cases in the courts involved in theft of public funds, including those involved
in cash gate. So far, 12 convictions have been secured, whilst the other cases
are at various stages of trial in the courts. Investigations are also
continuing in other cases and once these are concluded the suspects will be
brought before the courts to be charged and tried.
I also wish to report that the
Anti-Corruption Bureau, in consultation with various stakeholders, is
coordinating efforts to review the National Anti-Corruption Strategy. This
will provide a more holistic focus to tackling the problem of corruption. In
addition to this, the fight against corruption is also being strengthened
through various prevention and public education initiatives.
Mr. Speaker, Sir, Government is aware
of the challenge of resources that the fight against corruption faces.
Government will, therefore, continue to ensure that resources and other support
are provided to consolidate efforts to tackle corruption in Malawi.
Public Sector Reforms
Mr. Speaker, Sir, as you are aware, I
have prioritized the reform agenda since taking Office in May, 2014. I
established a Public Service Reforms Commission to help in the implementation
of the reforms agenda. Under the Vice President’s supervision, Government is
implementing bold and decisive reforms to ensure a well-motivated, competent
and result-oriented public service. In our transformation drive, we aim to
instill a business-like culture that will increasingly hold public officials
and service providers accountable for their decisions and actions.
Mr. Speaker, Sir, Controlling
Officers in Government Ministries, Departments and Agencies are now signing
binding performance contracts to deliver on certain targets and outcomes. Soon
these contracts will also be signed by individuals and there will be
consequences for poor performance.
I have also instructed that
performance evaluation should be conducted by entities outside Government, in
order to lend some objectivity, credibility and integrity to the whole
exercise.
During the year under review,
Government:-
•
On a pilot basis, turned Lilongwe and Mangochi Post
Offices into One Stop Shop Service Centres in a bid to facilitate easy and
quick access to public services;
•
commenced implementation of reforms aimed at improving
service delivery in sixty four parastatal organizations including the three
regional boards, ADMARC, ESCOM and MBC to mention but a few;
•
strengthened the Road Traffic and Safety Services
including decentralizing the Malawi Traffic Information System in Lilongwe,
Blantyre, Mzuzu and Zomba and
establishment of auxiliary centres at City Centre in Lilongwe and Makata
in Blantyre;
•
launched Malawi Community of Practice on managing for
development results;
•
established the Greenbelt Initiative Holdings Limited in
order to accelerate investments in the irrigation sector;
•
initiated the establishment of Malawi School of Government
that will, among other things, promote skills development, responsible
behaviour and productive work culture within the Civil Service;
•
collaborated with the Parliamentary Committee on
Government Assurance and Public Sector Reforms;
•
commenced construction of the Malawi Bureau of Standards
Standardized Quality Assurance and Meteorology Laboratory. This will enable
testing and certification of Malawian products for export to be done locally;
•
reduced the number of Principal Secretaries from 46 to 20
as part of the process to rationalize the public service; and
•
Conducted a personnel audit in all Ministries, Departments
and Agencies to enable us reconcile records and make appropriate decisions in
view of the soaring wage bill;
Mr. Speaker, Sir, these are only
highlights. Much more is happening.
In the forthcoming fiscal year, we
will continue to:-
•
review the Service Commissions;
•
resuscitate Integrated Rural Growth Centres to promote
establishment of Satellite Model Villages;
•
review the Public Service Act (1994) and develop a Public
Service Management Policy; and
•
construct four more One Stop Shop Service Centres in
Salima, Mzuzu, Mzimba and Blantyre using part of the US$15 million grant
funding from the World Bank.
Again, these are only highlights.
National Peace and Security
Mr. Speaker, Sir, Government
recognizes that national peace and security are a prerequisite for socio-economic
and political development. It is for this reason that Government has continued
to put in place peace and security arrangements.
Mr. Speaker, Sir, in order to
counteract new and complex areas of security such as transnational organized
crime and illegal migration, Government continues to strengthen our security
institutions to enable them adequately respond to the prevailing security
threats.
During the year under review,
Government recruited an additional 1,800 new officers in the Malawi Police
Service. In so doing, we reduced the police officer to population ratio from 1
to 1,300 to 1 to 1,100. This is a 15 percent improvement. Our target is to
achieve the United Nations benchmark of 1 to 500 and completely minimize crime.
Further, Government is implementing a
universal and compulsory registration of births and deaths. This is currently
piloted in four districts of Chitipa, Lilongwe, Ntcheu and Blantyre. Structures
are being put in place in the remaining districts, and it is expected that
every district will be registering births and deaths by the end of this year.
All this is building on the process towards registration and issuance of
national identity cards to all bona-fide Malawians, resident aliens and an
additional Identification system for refugees and asylum seekers.
Mr. Speaker, Sir, Government has already identified a
reputable international firm to roll out the registration and issuance of
National Identity cards to Malawians from the age of 16. The pilot phase is
expected to issue 5,000 Identity cards and later reach 100,000 Malawians in
selected districts and Traditional Authorities by December, 2016. We will issue
over 9 million Identity cards by July, 2018.
Mr. Speaker, Sir, Government is currently hosting
over 25,000 refugees and asylum seekers from the central and north east African
regions, and over 10,000 asylum seekers from Mozambique. To ensure that we
manage the entry and exit of our borders, we are currently in the process of
automating our border posts. The project will enhance tracking of immigrants
and increase efficiency in clearing both people and goods.
Other reforms and measures in the
pipeline include automation of the Permit Issuance System and installation of
E-visa Application and Issuance System.
Moreover, we also intend to enhance
the security policy and legislation framework. We will introduce the first ever
National Security Policy and Migration and Citizenship Policy. Laws that
are under review include the Refugees Act, the Prisons Act and the Firearms
Control Act.
As regards to peace support
operations, Mr. Speaker, Sir, the Malawi Defence Force continues to
participate in various peace keeping operations. Currently, Malawi Defence
Force is participating in observer missions in Darfur, Ivory Coast and
Democratic Republic of Congo. These Missions provide the opportunity for our
military personnel to acquire special skills and experience which is critical
to capacity building of our Defence Force. I am pleased to report that the
Malawi Defence Force has consistently been commended by the international
community for its discipline.
In the coming financial year,
Government will continue to provide the necessary support to our security
institutions in order to ensure the safety and security of all people in this
country. Among other measures, we will:
•
recruit more officers and make security machinery more
visible, accessible and responsive;
•
ensure that our security institutions continue to work
with relevant stakeholders in the protection of the rights of persons living
with albinism, children, the elderly and other vulnerable groups;
•
intensify border patrols and constructing one-stop shops
in order to curb cross border crimes; and
•
procure and install improved security communication
infrastructure to improve coordination.
International Relations
Mr. Speaker, Sir, in line with the
policy objective of safeguarding Malawi’s foreign interests abroad, socially
and economically, the main thrust of Government’s foreign policy has been
development diplomacy. Government has, therefore, worked hard in this regard,
and registered a number of successes in the past financial year.
In order to expand physical presence
in other jurisdictions, Government opened a new Embassy in Geneva, Switzerland,
with accreditation to United Nations agencies based in Geneva. The main aim of
opening this embassy is to strengthen strategic ties with the Government of
Switzerland and other European countries as well as all other Geneva based UN
Agencies. Malawi has also recently opened a Consulate in Tete, Mozambique, to
facilitate trade and investment between Malawi and Mozambique.
Government has also maintained
cordial and fraternal relations with the Government of the Republic of
Tanzania. This has been manifested in the wellbeing of our two peoples and
continued growth in trade and business engagements between our two countries.
This notwithstanding, the two Governments continue to work on an amicable
solution to the so called Lake Malawi boundary dispute. I say “so clear”
because the issue of the boundary has been so clear for 126 years.
Mr. Speaker, Sir, during the 2016/17 fiscal year, Government
plans to rationalize our foreign missions in order to make them lean and
efficient with the right numbers of personnel with requisite competences. We
will also recall individuals who, in some cases have stayed in these missions
for up to 10 or 15 years!
CONCLUSION
Mr. Speaker, Sir, before I conclude,
let me emphasize that we are making progress and delivering on our electoral
mandate despite the challenges that we are facing as a nation at the moment. In
saying this, I know and understand that there is still more that needs to be
done. As a small player in a highly complex, volatile and globalized economy,
we are bound to face many more challenges along the way due to externally
induced pressures and shocks.
Mr. Speaker, Sir, in such
unpredictable and competitive environment, Government will do everything
possible within its powers to safeguard the interests of our nation. I have no
doubt whatsoever that the resilience that we have always shown as a nation will
once again prove vital in addressing most of the prevailing economic and social
problems. It is our duty to ensure that the economy is revived faster so that
Malawians can begin to lead a fulfilled and dignified life. Government
considers the enjoyment of this right as being sacred and absolute.
Mr. Speaker, Sir, I therefore call
upon all Malawians to unite in building a better and inclusive society for all.
At fifty plus as an independent nation, I feel we are at the critical stage of
development where patriotism, hard work, discipline, commitment to duty and
above all selflessness and sacrifice must be exemplified by all of us including
members of this august House. All the efforts by the Government shall be in
vain if we do not bury our differences and put the interests of our country and
people first. There must be no room for divisive elements and complacency in
our society. We all must sacrifice, and subject our own personal needs to the
needs of our nation.
Mr. Speaker, Sir, I am emphasizing unity because we will from
time to time, as a nation, be required to make difficult but necessary choices.
We will also be required to carry out strategic reforms that must put our
country on a sustainable path for sustainable growth. That journey must begin
now and involve all of us. Our collective resolve should be to employ
innovative ways that will expedite and maximize delivery of the much needed
basic services to the people of Malawi - the hallmark of the DPP Manifesto. We
must target and achieve radical economic transformation.
I would, therefore, like to salute
various local, international and bilateral development partners for their
contribution towards the development of our country and ameliorating the
suffering of Malawians. You did not hesitate to come to our rescue when I
appealed for support towards food shortages in the country as the realities of
climate change continue to affect us. Guided by the famous saying a friend
in need is a friend indeed, we will continue to work together in addressing
the socio-economic challenges facing our nation today.
I would also like to thank all
Malawians and in, particular, leaders of various faith based organizations who
regularly come to discuss with me on various issues affecting our nation. I see
them as a moral compass and conscience of our society. In that vein, I reaffirm
today that I am open to honest and constructive conversations on development of
our beloved nation.
Members of this august House also
deserve special recognition for the important role that you have played in the
past twelve months. Let us continue working together in the furtherance of our
national interests. After all, we belong to different branches of the same
Government. History has placed on our shoulders, an important responsibility of
changing the circumstances of our people together. History will harshly judge us
if we fail to seize this God-given opportunity to bring about the much needed
change.
Above all, Mr. Speaker, Sir, I am
indebted to the Almighty God for the peace and stability that we continue to
enjoy in this country. This gives me hope and confidence that most of our
present predicaments will shortly be history.
God bless you all
God bless Mother Malawi
Thank you, Mr. Speaker, Sir.
