An advertisement supplement by UPPER REACH
Thursday August 5, 2010
Leadership and
progress in the warm
heart of Africa
Napoleon Bonaparte once
said, “Impossible is a word to
be found only in the dictio-
nary of fools.” This is a state-
ment the President of the Re-
public of Malawi, Dr Bingu Wa
Mutharika, would agree with.
In just over six years as head
of state, he has set out and
achieved seemingly impossible goals for his nation. With
his impressive background as an economist, the Pres-
ident has brought change to his country that can only
be described as transformational. Food security was
rapidly and sustainably achieved, the economy grew in
leaps and bounds, despite the global downturn, and the
country has remained peaceful, stable and democratic
during this dynamic period.
Over the last five years GDP has grown annually by
an average of 7.5 per cent, an impressive feat given
worldwide economic conditions and the fact that Malawi
as a country faces many challenges. During his inau-
guration in May 2009, President Mutharika laid out his
hope for continued growth, “I reiterate that Malawi has
great potential to achieve a faster rate of development
and to get out of the poverty trap. The next five years
will be exciting for Malawi as it will provide new oppor-
tunities for growth, new investments and a new hope
for the Malawi nation.”
Dwarfed by its neighbours Malawi is one of the small-
est nations in Southern Africa, being only slightly larger
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EC4N 7DZ
Tel. 02079592424
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MAL AWI PRO JECT TE AM:
Marko Rankovic, Fabiana Burbano
and Alana Kalin
MALAWI
This and other UPPER REACH reports can be read online
www.upper-reach.com
than Portugal, and has the disadvantage of being land- Dr Bingu Wa
locked. It is economically underdeveloped, largely agrar- ‘Malawi has great Mutharika,
ian and densely populated. Until President Mutharika President of the
attained office, the country had repeatedly faced seri- potential to achieve Republic of Malawi,
ous food shortages caused by bad harvests as recent-
ly as 2002. The establishment of food security became a faster rate of is the first Malawian
to be appointed
the President’s most well known policy success.
Through a specially designed subsidy program for
development and Chairman of the
African Union
farmers, President Mutharika has converted Malawi’s
food deficit into a food surplus – turning the famine-rav-
to get out of the
aged country into a food exporter. The trend is set to con-
tinue with the implementation of a national irrigation
poverty trap’
plan, the Green Belt Program, which will lessen Malawi’s
dependence on rain-fed crops.
Malawi has been called “the warm heart of Africa” due ‘The next five years
to the friendly nature of its people. However for 30 years
under its first president, Dr Hastings Banda, Malawi was will be exciting for
an isolated one-party state. Since the introduction of
multi-party politics in the early 90s, there has frequently Malawi as it will
been reference to the political instability brought about
by democracy and the idea of reverting to autocracy provide new
has often been discussed openly by the media and politi-
cians. President Mutharika has consistently reiterated
opportunities for
his commitment to democracy: “We have demonstrat-
ed that we, the people of Malawi, are able to embrace
growth, new
our democracy with zeal and determination. We have
shown the need to work together to ensure that democ-
investments
racy matures and bears the desired fruits. As we strive and a new
to nurture our freedom, let us make democracy a bea-
con of hope and a symbol of our country’s survival.” hope for the
In recognition of these and other domestic achieve-
ments, Dr Mutharika was appointed chairman of the Malawi
African Union on January 31, 2010. This is the first time
that a Malawian has held this prestigious position. He nation’
has laid out a bold new vision for Africa with a focus on
eliminating famine, fighting poverty, promoting good
governance, economic development and better con-
nections, both physical and otherwise within the African
continent. By using Malawi as a model there is hope that
Africa can make great strides in solving problems that
have plagued it for so long. ■
AN INDEPENDENT SUPPLEMENT BY UPPER REACH ON MALAWI

2 MALAWI
The land of plenty
Malawi has achieved lasting food security through a government-run fertiliser scheme for smallholder farmers. It is also planning an ambitious irrigation
program to reduce its dependence on rainfall. All of this is taking place during an era of increasing foreign investment in the agricultural sector
griculture is Malawi’s most important
A area of the economy. It employs more
people than any other sector, accounts
for the largest percentage of GDP and
is the main export earner. The country has the
right climate, environment and human resources
to maintain a thriving sector.
Despite these blessings, Malawi has histori-
cally been plagued by problems of food securi-
ty. Combinations of drought and soil degrada-
tion have caused bad harvests time and time
again, subsequently resulting in shortages. The
population increase witnessed over the last cen-
tury has placed a strain on the nation’s tradi-
tional food production capabilities and irregular
rainfall caused by climate change has com-
pounded the problem.
Even as recently as 2005 Malawi was forced
to import huge quantities of the country’s most
popular staple crop, maize, to meet domestic
The government’s Green Belt Initiative aims
to bring more of Malawi’s agriculture under
irrigation, as demonstrated by these Illovo
Sugar fields
Sugar giant develops Malawi
When Illovo, Africa’s largest sug-
ar producer arrived in Malawi in
1997 it had major plans for in-
vestment and development. By 2000 it had spent $25
million expanding its two operations in Dwangwa and
Nchalo and has maintained the trend by annually rein-
vesting up to $10 million. Today it produces some
300,000 tonnes of sugar per year and exports almost a
third of that to earn valuable foreign exchange for the
country’s economy. Outside of South Africa it is the fifth
largest company by market capitalisation in SADC.
As impressive as these figures are, it is Illovo’s in-
vestment in the Malawian people that is significant. It is
the second largest employer in the country with almost
12,000 employees. Experts estimate the trickle-down
effect multiplies this number by a factor of 20, given
the close family networks in Malawi. This means that al-
most a quarter of a million men, women and children
are directly and indirectly supported by Illovo.
An advertisement supplement by UPPER REACH
demand. This followed poor harvests in 2002 that
affected millions.
Coming to power in the wake of this disaster,
the administration of President Bingu Wa Muthari-
ka was able to quickly establish food security on
a sustainable basis. This success has been mirac-
ulous, turning Malawi from famine prone to food
exporting in just a few years.
To contrast just how effective government pol-
icy has been, last season Malawi produced 1.1
million more tonnes of maize than the country
requires annually and now exports this excess
to neighbouring countries. This is indeed a far cry
from half a decade ago when several million
Malawians were affected by food shortages.
This remarkable achievement was made pos-
sible by government support for the smallhold-
er farmers who make up the backbone of Malawi’s
agricultural sector. All across the scenic Malaw-
ian countryside, local farmers work small plots
On its estates, the company provides 4,400 free
houses for workers and 12 clinics that provide treat-
ment for approximately 25,000 patients per month, of
which 25 per cent are non-employees. Schools for
13,000 children are also supported by Illovo.
When the company took over operations 13 years
ago it had 62 expatriate personnel. This has been re-
duced to 30 today in a strategy of localisation of man-
agement positions.
Promising young Malawian graduates are placed on
Manager in Training (MIT) programs, which include ex-
changes with other Illovo operations internationally.
There are currently 19 managers on MIT programs and
the aim is to develop local talent to take up manageri-
al positions within the company.
Illovo is currently planning further expansions
which will increase its production.
www.illovosugar.com
of land perhaps comprising of less than a few
acres each. These small areas of cultivated land
combine to feed the country.
The Ministry of Agriculture and Food Security,
which falls under the Office of the President, im-
plemented a fertiliser subsidy scheme directed
at these smallholder farmers. In rural areas all
over the country, the government distributes
subsidised fertiliser with the goal of boosting
maize harvests.
Another vital input provided is better quality
seeds of maize varieties that provide more boun-
tiful yields than those normally found in Malawi.
With their soil enriched and planted with bet-
ter varieties of maize, these farmers are able to
produce larger volumes of crops, growing more
than enough maize to meet the country’s needs.
The surplus is exported to neighbouring states
and some is even donated to nations in need.
In order to solidify the progress made in food
Bakhresa: a model investor
When the sole Malaw-
ian grain milling com-
pany that went into
liquidation was priva-
tised in 2003, Bakhresa Grain Milling from
neighbouring Tanzania saw opportunity. It
acquired the asset and installed state-of-
the-art computerised milling technology
that increased capacity from 100 to 250
metric tonnes per day (tpd). This new sys-
tem was officially inaugurated by Presi- ABUBAKAR SAID SALIM tpd. This will eliminate the nation’s need for
dent of Malawi Ngwazi Dr Bingu Wa BAKHRESA, MD of
Mutharika on May 20, 2006, heralding the Bakhresa Grain Milling neighbouring COMESA and SADC countries.
beginning of a new era for the wheat mill.
Former workers were reinstated with wage increases,
free meals and offered benefits such as interest-free
personal loans. With its highly motivated workforce the
mill produced flour at a rate never seen before and the
flow on effect was felt across the country, with large re-
Thursday August 5, 2010
security, the Malawian government is embark-
ing on a new irrigation program to remove de-
pendence on rain fed crops in case of drought.
The country is rich in water resources, with one
of the Africa’s largest lakes making up a signifi-
cant portion of its territory, as well as its feeder
rivers. Existing infrastructure does not allow for
this valuable resource to be tapped.
The government’s Green Belt Initiative plans
to utilise abundant water resources to produce
year-round crop production independent of rain-
fall. Already it is being implemented in many lake
and riverside locations where land can be made
sustainably arable. Approximately 100,000 pumps
have been distributed to farmers to allow them
to establish long lasting irrigation systems.
Combined with fertiliser subsidies, this ini-
tiative has the potential to create long lasting
food security for Malawi in the face of drought
or natural disaster. ■
tailers and small-scale bakers alike benefit-
ting by distributing or cooking with Bakhre-
sa flour.
In addition to the flour, the company al-
so produces 1,000 tonnes of laundry soap
per month as a valuable diversification that
has become popular with local consumers.
To meet growing demand, Bakhresa is in-
stalling a second computerised wheat mill
to increase production from 250 to 500
flour imports and enable it to export flour to
Currently Bakhresa is in talks with poten-
tial partners in neighbouring states, such as Zimbabwe,
to facilitate this significant step forward for Malawi as a
value-added exporter.
www.bakhresa.com

Thursday August 5, 2010
Large investments in mining
boost GDP and employment
Pro-business legislation and Malawi’s
first large-scale mining project at
Kayelekera have opened the way for
greater private sector investment to tap
into the country’s largely unexploited
mineral deposits
eyond any doubt, mining is transforming
B Malawi’s economy. During the 30-year rule
of Kamuzu Banda immediately after inde-
pendence, no large-scale mining operations
or investments took place. Now, 16 years after the col-
lapse of his dictatorship, geologists have confirmed
Malawi has significant mineral deposits under its soils.
“Malawi is endowed with various mineral deposits,
most of which remain unexploited. These include ura-
nium, which we have now started exploiting, gold, di-
amonds, bauxite, lime and heavy mineral sands, just
to mention a few,” said President Bingu Wa Mutharika
in his augural speech for his second term at the helm
of the country, following a landslide victory in the gen-
eral elections of May 2009. “My government will intensify
policies to attract foreign investors to come to Malawi
and undertake mineral exploration and mining ven-
tures. We will continue to devise policies that aim at
promoting investment in this sector.”
Proof of the country’s mineral potential is evident at
the fully operational northern mining activities of Pal-
adin Africa, a subsidiary of Australia-based exploration
and development company Paladin Resources. The
company’s Kayelekera uranium mine is set to change
the economic landscape of Malawi. “For the first time
in the history of our country, Malawi is going to gener-
ate revenues in excess of $200 million a year. That is
a very significant figure, which will make up about 10
per cent of our GDP, representing a very big contribu-
tion to our economy coming from the mining sector,”
says Grain Malunga, Member of Parliament for Chikhawa
North and Minister of Natural Resources, Energy and
the Environment.
The project employs around 1,000 people. In terms
of socio-economic benefits, the mine has provided
nearby Karonga Town with a new water regulation sys-
tem. “About $8 million has been spent on the water sup-
ply project as a contribution from the mine,” says Mr
Malunga. “The mine has assisted the local communi-
ties in teaching and training in terms of agricultural ac-
tivities. They can grow vegetables and other crops to
supply the mine. You can already see the benefit to lo-
cal communities from practicing modern forms of agri-
culture. The livelihood of the people around the project
is increasing and the educational system is improving.
There is now a good primary school with good facilities,
so education levels will be raised as well. These are some
of the activities going on because of the mine. And this
is all from just one project.”
MERA to spark energy PPPs
Boosting energy supply is vital in realising the gov-
ernment’s vision to transform Malawi from a predom-
inantly importing and consuming economy into a
manufacturing and exporting country. As in most de-
veloping countries, Malawi’s energy sector has not
fully reached its potential owing to a number of
structural, operational and institutional challenges.
The government is determined to avoid power
shortages hampering the nation’s economic
progress. Malawi currently suffers from electricity ra-
tioning and frequent power interruptions owing to a
major shortage of capacity for electricity generation.
It currently has an installed capacity of around
285MW, with the latest recorded maximum demand
being 273 MW during 2009. According to the Malawi
Energy Regulatory Authority (MERA), the actual de-
mand is estimated to be around 300 MW.
MERA was established in January 2008 to regu-
late both the economic and technical aspects the en-
An advertisement supplement by UPPER REACH
MALAWI 3
‘For the first time in the
history of our country,
Malawi is going to
generate revenues in
excess of $200 million
a year; 10% of our GDP
will come from mining’
GRAIN MALUNGA
Minister of Natural Resources,
Energy and the Environment
‘We are getting a lot of
positive feedback with
regard to the
attractiveness of
Malawi as a destination
for investment. We
have several projects
related to energy’
Chitewa Falls and other sites near the Paladin project are protected by responsible mining
EUNICE KAZEMBE
Minister of Industry and Trade
The Kayelekera uranium project is a successful mod- who have hesitated to invest in Malawi before will now Metals of Australia is currently exploring for niobium
el for foreign investment in Malawi. It is the first major be forthcoming once the PPP legislation is enacted,” and tantalum in the southern part of Mzimba district.
investment in mining in the country and it has opened says Ms Kazembe. It is looking to start operations in 2012 at one of the
the door to large-scale mining. “We are getting a lot of Malawi is endowed with many rivers, offering a great largest niobium mines on Earth. The government is
positive feedback with regard to the attractiveness of deal of potential in terms of hydropower generation. The providing the project with technical expertise and Globe
Malawi as a destination for investment,” says Eunice government wants to see hydropower sites developed Metals is working with South Africa’s Thuthuka Group
Kazembe, Minister of Industry and Trade. “Of course, to provide enough energy to support the nation’s ex- to see which is the best possible method to extract the
there are a few challenges, such as energy. We as a gov- panding industries. “At the same time, we expect this niobium, tantalum, uranium and zircon from the rock.
ernment are working on that, and we have several pro- to bring us an opportunity to export electricity through “All factors considered it is going to be the third largest
jects lined up related to energy, beginning with the regional interconnections,” says Mr Malunga. “But the producer of niobium and tantalum in the world,” says
Kapichira hydropower project, followed by Nkula A and first priority is to look at the hydropower potential of Mr Malunga. “We expect this project to contribute in ex-
Nkula B rehabilitation projects. The other project is the our country and, if need be, also look at solar and wind cess of $100 million per annum.”
interconnector that will link us to Mozambique. Nego- power hybrid systems for power generation.” “I would like to invite the whole world to come to
tiations are still continuing between Malawi and Mozam- The state-owned Electricity Supply Corporation of Malawi,” says Ms Kazembe. “We have access to re-
bique on the best modalities of implementing the in- Malawi (Escom) used to hold a monopoly on energy gional and international markets such as the Common
terconnector. The Millennium Challenge Account of the generation. The minister adds, “But now we have opened Market for Eastern and Southern Africa (COMESA),
United States’ government is also coming in to assist up for private sector investment, either as indepen- which is a grouping of 19 countries, and the Southern
us with the rehabilitation of the hydropower plants.” dent power producers (IPPs) or going into public-pri- African Development Community (SADC), which is a
The government is keen to involve the private sec- vate partnerships (PPPs). We are now promoting some grouping of 14 countries. We also have market access
tor as much as possible. It is working on a public-pri- of the sites on our rivers so that private sector investors to the U.S. through the African Growth and Opportuni-
vate partnership (PPP) bill to create the legal frame- can come into the energy sector.” ty Act (AGOA) and also to the European Union (EU)
work for PPP projects so that the private sector can in- Investment opportunities also exist in tapping into through the Everything But Arms (EBA) Initiative, as
vest in infrastructure projects. “The medium-term out- Malawi’s sizable coal deposits, which could be used well as access to the Chinese and Indian markets. This
look for energy is very positive, and we hope that those for power generation and for export. In addition, Globe is the place to come to set up businesses.” ■
ergy sector in Malawi. “We have various options for
development in the power sector,” says Dr Welton D
Saiwa, MERA’s acting chief executive. “Out of these
we have a capacity of 1,000 MW in terms of hy-
dropower potential that can be developed in the
country. We have Lake Malawi and the Shire River,
which offers potential for further development of
power stations.” He notes that 300 MW could be de-
veloped at both Mpatamanga and Colombizo, either
by the private sector or in partnership with the gov-
ernment, as MERA is pushing for private sector in-
vestment through public-private partnerships
(PPPs) and other commercial investment models.
MERA offers licences for private entities to get in-
volved in six main areas of the energy sector in
Malawi: coal supply; renewable energy supply; elec-
tricity supply; rural electrification activities; liquid fu-
els and gas production; and liquid fuels and gas sup-
ply operations.

4 MALAWI
Transport infrastructure
revitalises economy
The government of landlocked Malawi is investing billions in improving the country’s transportation infrastructure with massive road rehabilitation initiatives,
railway network upgrades and a landmark waterway project with a new inland port that will reduce shipping costs and spur greater import and export activity
eliable and modern infrastructure and a
R strategically planned transportation net-
work are essential for any country’s growth.
In its drive to reduce poverty and create
wealth in Malawi through sustainable economic growth,
the government has therefore singled out transport
infrastructure development as one of the key six pri-
ority areas of its Malawi Growth Development Strate-
gy (MGDS), along with agriculture and food security;
irrigation and water development; energy generation
and supply; integrated rural development; and pre-
vention and management of nutritional disorders,
HIV and AIDS.
Unbroken transport chains are vital for the smooth
distribution of goods and services that will enhance
domestic and foreign trade and feed the nation’s so-
cial and economic growth. In his opening statement
of the MGDS, President Bingu Wa Mutharika highlights
the need for private sector involvement in develop-
ing Malawi’s transportation network, commenting
that “political will, change of mindset and coopera-
tion among the stakeholders will be paramount for
the successful implementation of the strategy.”
As such, the government has taken great strides
in recent years to create an enabling environment for
private sector participation. In addition, it has made
considerable efforts to make improvements to Malawi’s
infrastructure, such as improvements to roads, bridges
and railways, as well as the renovation of airports
and the launch of a major waterways project. A new
runway at Likoma has been built, the runway at Ka-
muzu International Airport is currently being upgraded
An advertisement supplement by UPPER REACH
to international standards and the terminal buildings
at Chileka and Karonga airports have been rehabili-
tated. More significantly, a landmark inland port pro-
ject at Nsanje is already well under way.
Road upgrades and rehabilitation
Over the past six years, the transport sector has
undergone a massive transformation with the con-
struction of new urban, rural and feeder roads. Many
main roads and even some frequently used minor
roads have been tarred, bridges have been renewed
and upgraded and a great deal of rehabilitation and
maintenance work is ongoing.
“Malawi has three regions. In each region we are
constructing at least three new roads. Our focus is
on bringing these roads up to bitumen standards. We
are upgrading most of the feeder roads to gravel
roads, so they are all-weather roads,” says Minister
of Transport and Public Infrastructure Khumbo Kachali.
“Why are we doing this? In order for people to do busi-
ness, they need reliable roads so that the trans-
portation of their goods is not hindered. This has
been a big setback in previous regimes, because the
roads were in a very bad state. My apologies to those
who are visiting Malawi for the first time, as you will
find that we are blocking a lot of roads. This is be-
cause we want to give you the best. We want to make
a difference in the President’s five-year mandate
from 2009 to 2014. Our vision is to ensure that Malawi
is a leader in terms of roads in sub-Saharan countries.
We are doing a lot of construction as a result.”
The government is implementing a road sector
Thursday August 5, 2010
programme that provides a short to
long-term investment framework for
both classified and unclassified roads
across the country. The initiative in-
cludes provision for the improvement
of urban roads where traffic volumes
have increased over the years and al-
so for the development of rural road in-
frastructure to ease remote communi-
ties’ access to health, education and
other social facilities and services.
Examples of the government’s multi-
billion-dollar efforts include the reha-
bilitation of the roads from Salima to Li-
longwe and from Mchinji across the bor-
der into Zambia; construction and re-
habilitation of the road from Nkhatabay
through Mzimba into Zambia, Rwanda
and Burundi; construction of the road
from Nsanje in the south to Thyolo via
Chiromo; and the construction of a rail
and road bridge at Chiromo over the
country’s largest river, the Shire River,
which includes protection of areas prone
to washaways.
Rail infrastructure
The government is working to reha-
bilitate the country’s railway network to
create a seamless link with the neigh-
bouring networks of Zambia, Tanzania
and Mozambique.
‘If you look at Dubai, it has been
“In terms of the railway system, we
have a comprehensive program that we
transformed into a duty-free
are proposing to our donors and we are
looking at linking it with our colleagues,”
area. This is the model we want
says Mr Kachali. “We have a dry port in to bring to Africa’
Chipata, Zambia, linking Malawi. Our rail-
way extends to Zambia and people there KHUMBO KACHALI
can use our railway to export goods up Minister of Transport and Public Infrastructure
to Nacala in Mozambique. We are also
in the process of looking for funds to renovate the is expected to cost around $6 billion (£3.9 billion).
whole Nacala route. So, there is quite a lot happen- Phase one is almost complete, with the first ship ex-
ing as regards the rail system.” pected to dock at Nsanje by the end of August. Phase
The government has committed to invest in the two will add container terminals, warehouses, hos-
rehabilitation of some 500 miles of rail network to pitality facilities and an aerodrome.
provide greater access to Nacala Port and the new “If you look at Dubai, it has been transformed as
inland port at Nsanje. a duty-free area. This is the model we want to bring
to Africa,” says Malawi’s transportation minister. “We
Nsanje World Inland Port want Nsanje to become a duty-free inland port and
Linking landlocked Malawi to the Indian Ocean by to have barges shipping between Shire to Zambezi
taking a fresh look at an old transportation route is up to the port of Chinde, the Port of Nacala or Beira.
set to have a major effect on Malawi. Missionaries in All we need is the Shire and Zambezi waterway to have
the 19th century, as well as Scotland’s intrepid ex- its hub at Nsanje.”
plorer Dr David Livingstone, recognised the Zambezi The port will be linked to the national road and rail
River as the easiest route to access the hinterland. networks and not just Malawi stands to benefit from
A government project re-opening the Shire and the project but also Mozambique, Zambia, Zimbab-
Zambezi Rivers to commercial navigation has been we, Tanzania, Rwanda, and Burundi.
launched to provide a direct waterway transport sys- Easier transportation will boost imports and exports,
tem between Nsanje in Malawi and the port of Chinde as well as reduce costs, and help Malawi to capitalise
in Mozambique at the mouth of Zambezi on the In- on the increasing economic integration in the region
dian Ocean, a distance of approximately 150 miles. through unions such as COMESA (Common Market
The project does not solely entail the rehabilitation of Eastern and Southern Africa), SADC (Southern
of the waterway into a more modern shipping chan- African Development Community), ECOWAS (Eco-
nel. Anchor to the success of the government’s ini- nomic Community of West African States), and the
tiative is the construction of the Nsanje World Inland Maghreb Union.
Port. The initiative is the brainchild of President The project will also divert a substantial amount
Mutharika and is a project that is very close to his of traffic from the roads thereby easing the pres-
heart. In 2005 he took the proposal to the African Union sure on road maintenance. The resulting savings can
and received the full support of the governments of then be invested in the government’s priority eco-
Malawi, Zambia and Mozambique. nomic growth and poverty reduction programmes.
“A brief feasibility study indicated that this project The minister adds, “I am looking forward to in-
is viable. As a landlocked country, it will reduce the vestors coming to invest in the Nsanje World Inland
cost of transportation for Malawi by about 50 to 60 Port. Companies have already shown some interest.
per cent,” says Mr Kachali. “If goods are going to Zam- We would not like to build the Nsanje World Inland
bia, Rwanda and the other side of Mozambique and Port as a government entity, but used on a BOT (build-
Tanzania, there will be a reduction in shipping costs. operate-transfer) basis or a private partnership. We
The cheapest form of transport in the world is over would like to see an environment created to be con-
water, and we would like to explore that.” ducive enough for business purposes. I am inviting
Portuguese multidisciplinary engineering group Mo- investors to come and explore what we have in the
ta-Engil is behind the construction of the port, which Nsanje World Inland Port.” ■
 An advertisement supplement by UPPER REACH
Thursday August 5, 2010
MALAWI 5

Building a better life for

the country’s poor
An acute demand for affordable housing is of pressing concern for Malawi, as the UN estimates the country needs to build 21,000 new homes a year over the next
decade. Also, living conditions in the informal settlements that have arisen in the main cities due to rapidly rising urban migration are in urgent need of improvement
ne of the government’s key pri- migration of people from the rural areas in-

O orities is to address Malawi’s

massive housing shortage. Many
rural villages feature traditional
huts of unbaked brick and thatched roofs,
or alternatively square, baked-brick homes
to town. Even if they do not find jobs, they
still come to stay and build houses that are
not adequate. We want to find ways to up-
grade these slums,” says Mr Mwanza. “We
have gone to other places in the world that
with metal sheeting roofs, and mostly are doing that. With finance I think we will
without running water or electricity. Rapid- be able to make the lives of those who live
ly increasing urbanisation has created un- in slums better than it is at the moment.
planned neighbourhoods in cities and We need to provide facilities like roads, wa-
sparked a huge demand for urban ter, sewage and disposable systems, which
dwellings. Malawi’s government is aiming are not available in the slum areas.”
to address these challenges through the According the 2008 census, the urban
Ministry of Land, Housing and Urban De- population in Malawi has been on the in-
velopment and more specifically through crease from about 850,000 in 1987 to 1.4
its agency, the Malawi Housing Corpora- million in 1998 and to 2.0 million in 2008,
tion (MHC). although an estimated 85 per cent of the
A United Nations (UN) Habitat housing population still live in rural areas.
profile report estimates that 20,000-21,000 The government and the MHC need ex-
new houses per year are needed in order ternal help in tackling the challenges ahead.
to meet the projected demand of 254,500 In July 2009, the MHC submitted a proposal
houses by 2020, which breaks down to the asking UN-Habitat to donate plant and
construction of more than 400 new house- equipment. In turn, the agency set about
holds every week. “That is a tall order but developing slum areas in Blantyre, Zom-
we are trying to find every means possi- ba, Lilongwe and Mzuzu. “We will be able
ble to bridge that gap. For example, we are to use our own resources to develop roads
talking to the private sector to find out how and improve accessibility to these places,”
we can form joint ventures with the gov- says Mr Matiya. “The immediate benefits
ernment to be able to provide more homes. of improving accessibility, free of charge,
The government and the MHC cannot pro- to the informal settlements of the coun-
vide housing at the rate that is required.
We need to find other means of acquiring
‘We are talking to the private sector ‘We need to provide facilities like try is to promote economic activity. It will
also provide water, improve sanitation and
housing as quickly as possible,” says Pro-
fessor Peter Mwanza, Minister of Lands,
to find out how we can form joint roads, water, sewage and disposal facilitate garbage collection because city
council vehicles will be able to go into the
Housing and Urban Development.
“If we segment the current demand of
ventures to be able to provide more systems in the slum areas; it will informal settlements to collect rubbish.
This will lead to the achievement of one of
21,000 houses per year in terms of high,
medium and low incomes, then the ma-
homes as quickly as possible’ promote economic activity’ the Millennium Development Goals (MDGs)
of improving water and sanitation within
jority of the 21,000 fall into the lower in- PROF PETER MWANZA GOLDEN MATIYA the informal sector.”
come bracket,” says MHC’s managing di- Minister of Lands, Housing and Urban Development General Manager of the Malawi Housing Corporation He adds, “We have taken, like the po-
rector, Golden Matiya. “In 1964, the MHC litical leadership, a zero tolerance policy on
was established to meet the demands of the lower in- MHC also offers private tenants a ‘build and sell’ pro- that and make sure that everything is planned proper- corruption. We have done a cleanup and sought to mod-
come bracket. That has remained our intention up to the gramme and is currently in the process of developing ly,” says the minister. ernise the MHC through setting up a website where we
present day and our strategic plan intends to ensure that 120 plots for Standard Bank. “We are also engaged with In addition to creating new residential areas, the gov- intend to promote our offerings. This includes market-
those needs are addressed.” tobacco companies like TAMA in a build and sell pro- ernment has embarked on a slum upgrading programme ing our products to potential buyers and to the interna-
The urgency to expedite the availability of houses saw gramme. As we move forward, the plan is to accelerate to improve life in the unplanned, ad-hoc areas that have tional market. The MHC is now in a state to receive tech-
the MHC hammer out a five-year strategic plan that runs the delivery of houses for the lower income bracket of sprung up, especially in Lilongwe, Blantyre and Mzuzu. nical assistance through joint ventures. We are ready to
through to 2012, which essentially lays out plans to con- society through several different approaches,” says the “Most cities in the world have slums because there is a engage in win-win partnerships.” ■
struct 4,200 houses, develop 5,800 plots, build 16 blocks managing director, who adds that MHC is working with
of lots, build 17 hostels for university students and main- a South African company to build pre-fab houses.
tain the agency’s existing 6,600 houses. The government is putting measures in place to en-
Currently the MHC is involved in the construction of sure the construction rush does not create clumsy ur-
houses for the military, in Chilumba and Karonga, and ban environments that shame the country’s immense
is also providing 1,900 houses for the police across the natural beauty. The minister says, “In order to do any kind
country. “The government has asked the MHC to build of development in Malawi, whether farming in the rural
these houses to ensure that there is adequate security areas or manufacturing development in town, you first
not only for the residents but also for foreign investors. need land management. The land must be serviced, sur-
Crime scares investors away and for the current gov- veyed, planned and you must record the information so
ernment to attract foreign investors, it was necessary when you allocate that land you have information on it.
to make an investment in the police services for the This way development can be orderly.”
country,” says Mr Matiya. He cites the new inland port at Nsanje as an example
Over the past 18 months, the MHC has also been con- of cautious development. “Nsanje is going to become a
structing houses for private tenants from the low, mid- big city because it is a port and it is in a very nice loca-
dle and high-income groups. “These houses we have tion. At the moment we are looking at extending the port
been talking about are being built entirely from our own and how the town will be built. We have already advised
resources. Our two main sources of income are gener- the people not to just come in haphazardly. We have this
ated through the rent that tenants pay for both our hous- situation in Malawi where people from rural areas can
es and plots,” says Mr Matiya. come, get a piece of land and build on it. We want to stop

6 MALAWI
Astute policies prompt an influx
of new banking institutions
Malawi’s strong and consistent economic growth has created an environment ripe for the expansion of its banking sector. The economy has increased on
average by 7.5 per cent annually over the past five years and new initiatives aim to capitalise on opportunities for SMEs, partnerships and regional integration
oosted by legislative changes, particularly
B the revision of the Banking Act of 1989,
Malawi’s rapid economic growth has resulted
in the country now having 15 financial in-
stitutions in 2010, increasing from five in 1995. Sound
fiscal management and policies from the Reserve
Bank of Malawi have allowed the sector to remain
transparent and well regulated. Such encouraging
economic conditions have lead to wider commercial
lending, more retail banking and a rapid expansion in-
to rural areas not previously served by banks. Legis-
lation for microfinance is also on the cards, which will
allow banks to look into alternate lending options for
a greater number of people.
In 2004 Malawi adopted the Malawi Growth and De-
velopment Strategy, which identified the areas in need
of greatest economic attention. Initial priorities in-
cluded agriculture, irrigation, HIV management and
energy, among others. As a result, the economy reg-
istered very high growth rates, averaging around 7.5
per cent per annum for the period 2004 to 2009,
helped by Malawi’s financial sector’s relative isolation
from the global economic crisis. “We had general elec-
tions in 2009 and the President and his party won by
a big majority, mostly on account of good economic
performance,” says Minister of Finance Ken Kando-
do. “Consequently, we have expanded the list [of pri-
orities] to nine areas, to include issues of climate
change, youth empowerment and industrial develop-
ment. In terms of budgets, it means we make sure that
we allocate enough resources to those areas. Of course
As the economy grows, financial institutions such as Standard Bank are widening access to banking services
An advertisement supplement by UPPER REACH
there are many other areas that are not on that list
that we also finance. In a nutshell we have an economic
strategy that has proven to be successful and we shall
maintain that strategy for the foreseeable future.”
According to Dr Perks Ligoya, governor of the Re-
serve Bank of Malawi, the rapid economic growth ex-
perienced here has been mostly thanks to astute de-
cision-making and proactive government policies tar-
geted at the right sectors of the economy and soci-
ety. Being a predominantly agricultural country, Malawi
depends heavily on agricultural production, which pro-
vides around 40 per cent of the nation’s GDP and has
been significantly boosted by the government’s input
‘We have an
economic strategy
that has proven to be
successful and we
shall maintain that
strategy for the
foreseeable future’
KEN KANDODO
Minister of Finance
subsidy programme. In the early days, in the 1970s
and the 1980s, subsidies were directed towards large
estates. Today, however, government policy targets rur-
al smallholder farmers. With government subsidies,
smallholders are able to procure financial backing for
agricultural production and this has brought about
the biggest success in Malawi: food security. “That is
now assured and as a government we are looking at
ways it can be sustained, or if we indeed have to phase
out, we have to make sure that we do not leave any-
body behind; that those who were helped before have
reached a certain level whereby they can be self-suf-
ficient,” says Dr Ligoya. “Then we can concentrate on
the hardcore poor until everyone in the rural areas
can be assisted. We think that is the biggest driver of
growth in Malawi.”
The governor adds, “In Africa we are the model for food
security. There is no country on the continent that has
done better than us. Last year we ranked as the sec-
ond highest growing economy in the world after Qatar.”
As the economy grows, demand for hard currency
increases. The central bank has done a sterling job of
effectively controlling money circulation and supply,
helping to bring inflation and interest rates down to
manageable levels. Inflation is now in single figures
and interest rates are around 15 per cent – down from
a high of 45 per cent in 2003. “We are able to do that
because we have a very strong team, assisted by our
colleagues at the International Monetary Fund (IMF),”
comments Dr Ligoya. “We successfully completed
programmes such as the Poverty Reduction and Growth
Facility (PRGF), which we are proud of and received
praise from various observers.” He adds that a new
three-year programme with the IMF Extended Credit
Facility, confirmed earlier this year, totals some $80
million (£53 million) and has brought new a lease of
life in economic management here.
Thursday August 5, 2010
Both the Ministry of Finance and the central bank
are looking for ways to encourage the expansion of
banking and credit facilities to rural areas and to small
and medium-sized enterprises (SMEs). Microfinanc-
ing and public-private partnerships (PPPs) are new
areas under investigation.
The entrance of a raft of new banking institutions
in Malawi is adding impetus to the government’s dri-
ve towards financial inclusion. “A big revolution that
is happening in Africa is in money transfers. In Kenya,
Uganda and Tanzania, you can use your mobile phone
to send money to whomever and we have now start-
ed that in Malawi. Some 80 per cent of the Malawian
‘No country in Africa
has done better than
us. Last year we
ranked as the second
highest growing
economy in the world
after Qatar’
DR PERKS LIGOYA
Governor of the
Reserve Bank of Malawi
population is rural and this will definitely have an ef-
fect on activities of the rural poor. If you look at the fig-
ures and the macroeconomic framework we have built
together with the IMF, you can see that for the next three
years our GDP will not be less than 8 per cent,” says
Dr Ligoya.
The finance minister says that the financial sector
can help investors maximise opportunities in various
other sectors, particularly mining, tourism, energy
and agribusiness. He points out that Malawi is a mem-
ber of various regional groupings, such as SADC and
COMESA. “At the moment, all of the countries in this
region are moving towards regional integration. Peo-
ple from Europe or America should see Malawi as part
of a wider market,” says Mr Kandodo.
In July the minister revealed that Malawians would
soon be sharing trade using direct currency from
neighbouring countries as Malawi will soon engage
Zambia, Mozambique and Tanzania in a currency repa-
triation programme. “This will speed trade of goods and
services along the borders as the agreement allow
the four countries to accept each other’s currencies.
The country's foreign exchange reserves will also be
safeguarded,” he says. ■

Thursday August 5, 2010
Standard Bank unveils its
vision with new products
Standard Bank sets the banking yardstick in Malawi. Its
tailored financial services span the gamut of banking
needs, from encouraging the massive unbanked sector
to get involved through to providing comprehensive pro-
fessional and commercial services, as well as connect-
ing the Malawian diaspora with home.
“As our name implies, we are the standard of banking.
We have been pioneers in a lot of products. That gives us
a strong competitive advantage and we are the leaders
in terms of products that come onto the market,” says
Charles Mudiwa, managing director of Standard Bank.
“Having said that, we are also focused on competition,
because it forces us to be more innovative and step up
our game and always be on the lookout. This can only
benefit both our shareholders and customers.”
As part of its 40th anniversary celebrations, Standard
Bank unveiled its vision for the future of banking in
Malawi with a departure from the usual one-size-fits-all
approach. Its new personalised solutions are honed to
four strategic segments: Maziko Banking, Achiever
Banking, Priority Banking and
Private Banking.
Maziko Banking offers a sim-
ple, affordable banking solution
to low income earners and at-
tracts the unbanked population,
which is estimated at around
nine million people. Achiever
Banking is for young graduates
and entrepreneurs seeking a
banking partner that recognises
their achievements.
Priority Banking is of interest
to customers with a flair for
achievement and want invest-
ments, while Private Banking
serves high flyers who desire a
truly prioritised banking experi-
ence. Both Priority and Private
Banking customers have their own private banker to at-
tend to them as part of the package. “It is part of innova-
tion,” says Mr Mudiwa.
Also, the bank’s Investment Banking Unit has been
held up as a prime example of the constant evolution of
Malawi’s banking sector. Part of the bank’s corporate
and investment division, it offers four main products:
project finance, property finance, asset finance and cor-
porate advisory services.
“We set up the Investment Banking Unit because
Malawi is a growing country and its economy is expand-
ing. As such, there are a lot of investors coming in,” says
Mr Mudiwa. “We have been the lead finance arranger for
the Paladin mine project and we were the leading
arranger for the government in fertiliser transactions
and deals. We are also talking to another couple of initia-
Indebank to target SMEs
A rebranded Indebank unveiled its new look at the
end of March at the opening of its new Capital City
Branch in Lilongwe. The new image showcases the
bank’s development into a fully-fledged commercial
bank over the past nine years. In addition to a new lo-
go that reflects the bank’s evolution ‘without losing
sight of its heritage’, the new motto ‘Your Partner in
Banking’ expresses the bank’s commitment to tailor-
ing banking solutions to customers’ needs.
Founded in 1972 as an investment and develop-
ment bank, Indebank later converted into a commer-
cial bank in 2001 and has since expanded its branch
network following significant growth in business,
year in, year out. It ended 2009 recording growth of
65 per cent in loans and advances and a 44% in-
crease in deposits.
“As the economy grows, opportunities in the banking
sector have been increasing,” says William Chatsala,
managing director of Indebank. “On 31st March, 2010,
we opened our ninth branch. We should be opening up
two more branches to close 2010 with 11 offices.”
The new branch will target government, corporate,
non-government and diplomatic communities around
the capital, making it easier and more convenient for
them and also SME and individual customers to ac-
cess the bank’s services and ATMs.
At the opening, governor of the Reserve Bank of
An advertisement supplement by UPPER REACH
tives in the energy sector and the agro industry where
we are providing advice and arranging funding. We feel
this market requires a local partner who understands
the market and can provide local expertise in invest-
ment banking; previously a lot of companies had to im-
port this from outside either through the IFC or other in-
ternational organisations. We have the capacity not just
in Malawi, but also through our global partnerships.”
The bank is part of the Standard Bank Group, which
has extensive operations in 17 African countries and ac-
tivities in 16 countries overseas, with a particular focus
on emerging market focus. The group has been lauded
as Africa’s top bank in The Banker magazine’s annual
rankings and has also jumped to 106th place in its list
of the world’s top 1,000 top banks. The awards are in
recognition of the bank’s efforts to constantly seek out
solutions to customers’ needs, such as its innovative in-
ternet and mobile phone banking services.
Furthermore, Standard Bank is the only bank listed on
the local stock market that is presently recommended
‘We are the standard
of banking. We have
been pioneers in a lot
of products [and]
been the lead finance
arranger for the
Paladin mine project’
CHARLES MUDIWA
Managing Director of
Standard Bank
as a ‘buy’ by investment analysts. Locally, the bank has
the best risk management practices and greatest po-
tential to structure complex deals, coupled with market
leadership in foreign exchange transactions.
On April 27, 2010, Standard Bank launched Contract-
Save, a straightforward flexible investment account that
helps people save for upcoming events, such as holi-
days, school fees or weddings, and even features an op-
tional free death benefit. Linda Mchombo, marketing
manager of Standard Bank, says, “The ContractSave Ac-
count is there to promote a savings culture in Malawi.
ContractSave does not have any transactional costs
and has many benefits, such as high interest rates of up
to 7 per cent and a bonus interest of up to 30 per cent to
ensure that more and more people save and are getting
more value out of their money.”
Malawi, Perks Ligoya, commended Indebank for its
expansion efforts, remarking that it mirrors the gov-
ernment’s drive to boost financial inclusiveness in
the country. In fact, the government has become the
majority shareholder in the bank after buying a 41.38
per cent stake in Indebank in June that was previous-
ly held by the Mauritius investment group Trans
Africa Holdings Ltd.
“We are able to increase points of representation
because there is business out there. There are many
more customers that we can reach out to and contin-
ue to grow our bank,” says Mr Chatsala. “At the mo-
ment most of our business is with the corporate sec-
tor; only about 20% of our business is with small and
medium-sized enterprises [SMEs]. However, our
strategy is to increase the business we do with the
SME sector. We have put together a plan that will see
us rolling out an SME strategy that will change the
way the numbers look. Going forward, we will focus on
SMEs without losing the focus that we already have
on the corporate and personal banking segments.”
The bank is open to joint ventures and collaborates
with various external financial institutions in financ-
ing the processing of Malawi’s vital agricultural com-
modities. Indebank has also worked with some direct
foreign investors in expanding production capacity
for the tea and cotton industries.
FDH Bank: a boost for ‘the
backbone of the economy’
In 2008, FDH Bank opened its doors and became the
newest kid on Malawi’s banking block. The bank is led
by a highly experienced team of bankers, headed by
managing director Jimmy Kayuni, who has 23 years
experience in the banking industry. It has gained
great ground in only two years, growing rapidly from
a market capitalisation of £1 million to £3.3 million
and now boasting 11 branches. “There are a lot of un-
banked citizens out there. The idea or strategy be-
hind bringing people to the banking sector is through
microfinancing. That is a window that the group is
looking at opening up,” Mr Kayuni says.
The bank is the latest member of FDH Financial
Holdings, which was the first financial institution to
be set up by an indigenous Malawian family. The
group started out in 2002 as First Discount House,
an investment company that deals in government
bonds and the trading of government securities, Trea-
sury bills and open market instruments by the Re-
serve Bank of Malawi. Over the years it added a
‘There are a lot of
unbanked citizens
out there. We are
bringing people to
the banking sector
through
microfinancing’
JIMMY KAYUNI
Managing Director of
FDH Bank
stockbroker arm, FDH Stockbrokers Limited, and also
acquired a forex (foreign exchange) bureau de
change operation.
“We have seen growth of at least 7 per cent con-
sistently over the last four years,” says founder and
CEO of FDH Financial Holdings Thomson F. Mpinganji-
ra. “If you look at the balance sheets of Malawi’s
banks now, they are predominantly lending to the
private sector. That has grown tremendously. It is ex-
citing. In terms of the profitability of the banks, the
biggest component is forex revenues. But that should
not surprise anybody. If the economy is a predomi-
nantly importing, that means there is scope and op-
portunity in the forex for those who are involved in
the buying and selling of foreign currency. That is
where we are.”
MALAWI 7
FDH Bank has identified small and medium-sized
enterprises (SMEs) as its core market. “Obviously the
industrial base of [Malawi’s] economy is very narrow.
It is difficult for a new bank to break into this sector
but we are doing it. If you are able access forex, then
the giant [companies] will come to you. Everybody is
scrambling for forex. However our focus is on the
SMEs,” says Mr Mpinganjira.
“We have a traditional setup where we started off
with the discount house. We were into money market
trading of securities and we have vast experience in
areas like commercial paper, which most institutions
are not fully up-to-speed with,” adds the CEO.
In the agricultural sector, large tobacco buyers oc-
casionally contract farming with clubs of 12, 15 or 20
growers, financing the farmers directly. “We are get-
ting the clubs to open accounts with us. So we are
able to build the client base while at the same time
having a window to extend financing,” says Mr Kayu-
ni. “The other area that we want to concentrate on is
trade finance. We are
in the market looking
for credit lines that will
facilitate that.”
Management at FDH
believes Malawi is head-
ed for greater heights,
with agriculture continu-
ing to be the backbone of
the economy and the min-
ing sector set to take off.
“Banking has been
healthy, perhaps be-
cause we are not heav-
ily exposed to the ex-
ternal conditions, ex-
cept for the stock mar-
ket, with respect to
emerging market in-
vestors pulling out and going to their cheaper do-
mestic markets. But we notice that those markets
are going up again so we expect them to come back
sooner or later,” says Mr Mpinganjira.
Opportunities abound for overseas banks to part-
ner with Malawian banking institutions.
“The banking sector is really the engine of any
economy, which is precisely why all of the developed
economies had to rescue their banks. If the banks
are not there and cannot provide credit, the economy
does not exit. We have a vibrant banking sector,”
says the CEO. “For those foreign institutions that are
interested to come and partner with a local bank, we
are here. We understand what Malawi needs and the
needs of Malawians. We are poised to grow. These are
exciting times for Malawi.”
 An advertisement supplement by UPPER REACH
Thursday August 5, 2010
8 MALAWI

New licences spark competition

in the fledgling telecom industry
Malawi’s ICT sector is one of the telecom markets in Africa with the highest growth potential. Market liberalisation, as well as regulatory and structural
reforms, has contributed to the rapid expansion seen in the industry over recent years. Very low penetration rates mean there is still ample room for growth
ollowing the privatisation
F in 2005 of the incumbent
MTL (Malawi Telecommu-
nications Ltd) and the in-
troduction of CDMA2000 fixed-wire-
less services, the fixed-line sector
in Malawi has seen a revival. Com-
petition for MTL in the landline sec-
tor arrived in early 2010 with the
launch of a second operator, Access
Communications (ACL), which was li-
censed in 2007. ACL may also even-
tually venture into the mobile sector
here, as the CDMA2000 technology
it uses supports full mobility.
The networks of both MTL and ACL
support high-speed internet services and the broad-
band sector will greatly benefit from a national fibre-
optic backbone that is in the process of being im-
plemented. The internet market currently has 15 li-
censed ISPs, but the limited availability and high
cost of international bandwidth has so far held back
growth and kept broadband prices high.
In the mobile sector, the imminent launch of a
third network, G-Mobile, and the licensing of a fourth
later this year, mean the mobile market is also set
to gain from increased competition, breaking a du-
opoly previously held by Zain Telecom and TNM, the
mobile arm of MTL.
“Fifteen years ago we only had one telephone op-
erator but as of now we have three mobile operators
and two fixed-line operators. This is a tremendous im-
‘Now we have three
mobile operators
and two fixed-line
operators. This is a
tremendous
improvement ’
LECKFORD MWANZA THOTHO
Minister of Information and
Civic Education
provement and as a government we are in the process
of engaging the fourth mobile operator. We are trying
to make people aware of what is going on within the
country as well as outside,” says Leckford Mwanza
Thotho, Minister of Information and Civic Education.
Market penetration by the end of 2010 in Malawi’s
telecoms market is projected to reach 27 per cent in
the mobile sector, 2.4 per cent for landlines and 4.4
per cent in the internet market, making them among
the lowest rates on the continent.
The growth of the ICT sector is key for the country’s
development and it is a large contributor to the nation’s
GDP. Charles Nsaliwa, director general of the Malawi
Communications Authority (MACRA), says, “Recent
studies have revealed that for every 10 per cent growth
in ICT, there is at least 1 per cent growth in GDP.” ■
G-Mobile
rolls out
A combination of strong economic
growth and low subscriber numbers
has created tremendous opportunities
for mobile phone operators in Malawi.
G-Mobile is the newest of the country’s
three license holders, and the compa-
ny plans to roll out its services in the
third quarter of this year.
G-Mobile’s CEO, Peter Davies, elabo-
rates on the strategy, “We will start in
the major cities and then grow out over a two-year peri-
od and cover the entire country. From a financial invest-
ment point of view, we have already invested much to
get the core infrastructure available and will start de-
ploying countrywide from September, commencing with
the four cities of Blantyre, Lilongwe, Zomba and Mzuzu.”
The company’s goal is to establish a high quality ser-
vice to distinguish it from competitors. To date in Malawi,
an array of factors including logistical difficulties has
created a high rate of dropped calls and other service is-
sues with established operators. G-Mobile’s ethos is to
raise the quality of services seen in the market while at
the same time maintaining competitive pricing.
From a human resources standpoint G-Mobile is com-
mitted to employing locals. It is a Malawian company
with international investment behind it and G-Mobile it-
‘We will start in
the major cities
and then grow out
over a two-year
period and cover
the entire country’
PETER DAVIES
CEO of G-Mobile
self has incorporated lessons learned in similar markets
in eastern and southern Africa into its design. As Mr
Davies explains, “We have modelled ourselves on about
seven countries of similar size, population and econo-
my. Our guiding principles will be ensure the company
staff provides accountability, accessibility, affordability,
simplicity, innovation and empowerment to our cus-
tomers and the country as a whole, which we call the
pentagram of guiding principles.”
In terms of products, G-Mobile is seeking to match
or exceed the technology currently available in
Malawi and plans to introduce 3G services immedi-
ately. Mobile banking and fund transfer technology
is an area being focused on, with Electronic Voucher
Distribution Systems (EVDS) currently being negoti-
ated with local banks.

Advancing ICT development

MACRA is ensuring that Malawi’s dynamic ICT install internet connec-
tion points in all the dis-
sector is providing commercial opportunities for tricts. Zain Malawi Lim-
investors as well as ensuring that rural popula- ited will ensure network
connectivity in the dis-
tions are not left behind. Renewed growth in the tricts as well, with the
provision of solar pow-
industry means more jobs and services for many ered telephone bureaus
in all trading centres in
In 1998 the Malawi government founded the Malawi opened small phone booths, so that the districts.
Communications Regulatory Authority (MACRA) has improved the rural population’s The Malawian ICT sec-
through an act of parliament. The authority was disposable income.” tor has seen renewed
established with the mandate of regulating the Apart from achieving its agenda interest from investors
communications sector in terms of telecommu- through ICT operators, MACRA also with MACRA receiving
nications, broadcasting, postal services and us- embarked on special projects through numerous inquiries
age of radio frequencies. MACRA’s operations com- its corporate social responsibility pro- from both domestic and
menced two years later in 2000 and as an Infor- gramme by establishing multipur- foreign investors. In-
mation Communications Technology (ICT) regulator pose telecentres. The telecentres of- vestment by Malawi
MACRA advises Malawi government on policy mat- fer various ICT services, which include Telecommunications
ters pertaining to communications services and Internet, fax, photocopying, lamina- Ltd (MTL) has also dra-
creates rules and regulations that govern the en- tion and computer tutorials. The ob- matically improved
tire sector. MACRA monitors activities of licensees jective is to speed up development of Malawi’s connectivity
to enforce compliance with set regulations, the law ICT skills in rural areas. to the rest of the world.
and license conditions. This began with a pilot at the Goliati The market is dynamic
The authority has taken keen interest in en- Telecentre in Thyolo district and was with a number of de-
suring that people across the country are bene- officially opened in January 2009. Fol- velopments and the en-
fiting from ICT services, especially those living in lowing this was the opening of Limbi- try of new operators.
underserved areas. In order to further this goal, ka Telecentre in Mangochi district in In 2009, MACRA opened two telecentres, in Goliati in Thyolo district and Limbika in Mangochi Further opportunities
during license negotiations with prospective ICT the eastern part of the country along district, that offer the general public numerous ICT services exist to develop the sec-
operators MACRA ensures that plans of rolling out Lake Malawi, which is considered the tor, as Mr Nsaliwa ex-
to rural areas are clearly stated. The objective is hub of tourism. essary equipment before identifying entrepre- plains. “I think the world should know that there are
to ensure that areas perceived as non-commer- Currently MACRA is finalising construction of a neurs to manage them. huge opportunities to invest in Malawi in ICT services.
cially viable have access to ICT services, which will telecentre in the northern, central and southern Apart from the telecentre project, MACRA is also The legal framework is excellent and the oppor-
lead to development of local communities. regions of Malawi respectively. The International implementing the Universal Access project under the tunities for infrastructure development are there.
Charles Nsaliwa, director general of MACRA de- Telecommunications Union (ITU) has partnered Infrastructure Services Project coordinated by the We want to have an increase in investment in ICT
scribes the benefits of ICT roll-outs to these areas: with MACRA by providing ICT equipment for all the Ministry of Development, Planning and Corporation services and there are approaches right now in IT.
“There have been benefits for the communities in centres. In addition the project has now been ex- with funds from the World Bank. The project aims The telecommunications sector in Malawi is fully
terms of income. With the growth in the mobile and tended to more districts under management of to provide road infrastructure, water services, elec- liberalised and therefore we as a nation are willing
telecommunications industry this means that local entrepreneurs in the districts. This means tricity and ICT services in the country. In the pilot to license any service provider in any service.” ■
there are more people employed in the industry. MACRA will identify existing buildings, refurbish phase ten districts will benefit from internet and tele-
Some are selling phone cards and others have them to suit its requirements and install all nec- phone services. Globe Internet was contracted to www.m acr a.or g.mw

Thursday August 5, 2010
‘We are addressing affordability
and the spread of telephony’
Zain Malawi’s pioneering innovations
have enabled Malawi’s mobile telecoms
sector make outstanding strides recently,
especially in rural areas, and gained it 72
per cent of the nation’s growing market
n tandem with the country’s economy, the mobile
I telecom industry here has made outstanding progress.
In 2 003, only 1 per cent of Malawi’s population had
a mobile phone. By the end of 2009 that figure had
swelled to 18 per cent – representing a massive increase
of 63 per cent and one of the highest growth rates on
the continent – and estimates project mobile penetra-
tion in Malawi to reach 27 per cent by the end of this year.
“If you look at Malawi’s GDP growth miracle, a lot of it
has come from the work that has been done in telecom-
munications, simply by connecting people and provid-
ing a platform for people to conduct business,” says
Fayaz King, managing director of Zain Malawi, the coun-
try’s indispensible mobile services operator. Last year
it paid in excess of K7.6 billion (£32.5 million) in various
taxes to the Malawi government and it has created over
80,000 indirect jobs and business opportunities through
30,000 retail outlets and 15 local distribution partners.
The launch of Zain’s ultra low-cost handset radically
changed the wireless telecom landscape in Malawi by
dramatically widening access to mobile technology and
services. Retailing for 1,499 Kwacha (£6.40), the hand-
set was one of the most affordable in the world. “That
revolutionised how business was done here and our busi-
ness took off,” says Mr King. “We grew our subscriber
base to 1.8 million customers, which is one million more
An advertisement supplement by UPPER REACH
FAYAZ KING, CEO of Zain Malawi, left, discusses technology to expand mobile telephone coverage into rural
areas with Special Advisor to the UN Jeffrey Sachs, centre, and UN Secretary General Ban Ki-Moon, right
than our nearest rivals, and it will continue to grow.”
Many small villages have no access to electricity, so
it is impossible to charge a mobile phone, rendering a
handset of little use. So Zain set up special solar-pow-
ered sales centres all over the country, serving as charg-
ing points and outlets for top-up vouchers. “If you go out
into rural areas you will find a solar panel on top of our
brightly coloured magenta kiosks,” says the MD. “In each
one there are ten charging points and it’s a free charg-
ing service we offer. Madonna visited one of the sites and
she saw the solar panels in practice. She had been there
before and when she came back she was shocked at
the amount of development that had taken place.”
In 2008 the government removed duty on mobile
handset but a 10 per cent excise duty was added to
airtime. Earlier this year, Mr King attended a confer-
ence of the African Union and the Economic Com-
mission for Africa's finance ministers. During his ad-
dress, Mr King called for a review of taxes charged on
airtime units, noting, “In France one person works for
two minutes to afford a one minute call on a cell
phone; in Zambia one works for 97 minutes to meet
the cost of a one-minute call; while Malawians are sup-
posed to work for 158 minutes for the same.”
MALAWI 9
“We are addressing the issue of affordability and the
spread of telephony,” he adds. Another initiative of Zain’s
is its Kodo Kodo payphone concept. For only 350 Kwacha
(£1.50), Malawians can purchase an innovative pay-
phone card. Mr King explains, “It’s very similar to a bank
chip in a credit card. You stick the card into the payphone
and you can send SMS, voice calls, and even receive send
money. You can perform basically all the functions of a
mobile phone except carry the handset.”
The company has a strong social responsibility
ethos. Mr King comments, “We entered into a revenue-
sharing relationship with particular health centres,
which get a decent portion of the phone’s revenues
to use in their community-based programs.” The
company also has a safe motherhood programme
that provides medical care and support to pregnant
women in isolated areas.
Zain’s ZAP facility, available on even its cheapest
phones, enables banking and cash transfer opera-
tions and is opening up financial services to a large,
unbanked population.
At the upper end of the mobile spectrum, Zain of-
fers smartphone and BlackBerry services and is
rolling out fast 3G HSDPA+ connectivity for its cus-
tomers wanting mobile internet access.
In June, a $10.7-billion buyout of Zain Africa
will lead to Zain Malawi rebranding as Airtel in Oc-
tober, as it becomes a 100 per cent subsidiary of
Bharti International. The move lifts India’s largest
telecom service provider into the world’s top five
operators. Bharti Africa’s CEO has confirmed the
group plans to invest £65.6 million in Malawi over
the next three years to extend coverage and reach
out further to Malawi’s rural communities and
help the country’s economy grow. ■

10 MALAWI
Education, cornerstone
for self-improvement
As a top priority for the Millenium Development goals, issues that prevent absences from school are being addressed,
infrastructure of schools is improving and new univerisities are being built. However, there is still a long way to go
Madonna holds the foundation stone for the Raising Malawi Academy for Girls on the outskirts of Lilongwe
igh dropout rates, limited university places, high
H pupil:teacher ratios, empty bellies and lack of
facilities will soon be problems of the past if
the government’s most recent educational re-
forms go through as planned.
Although the current situation may sound grim to
many, it is actually an improvement over things just 16
years ago, when free primary schooling didn’t even ex-
ist. Today’s situation is also better than it was ten years
ago when the budget wasn’t large enough to cover teach-
ers, learning materials or infrastructure.
When President Mutharika took office in 2004 he in-
creased funding for the sector by 50 per cent and vowed
to improve the quality of and access to education, as well
as adapt the curriculum to increase its relevance to the
country’s development needs. In line with this, the gov-
ernment integrated science and technology in the na-
tional development process, merging the Ministry of
Education with the Ministry of Science and Technology.
To a large extent, these efforts were successful: 1,000
classrooms were built, 66 community day secondary
schools were built or rehabilitated, more than 4,000
teachers were trained, education facilities in universi-
ties were expanded, and 405 Braillers and 6,000 Braille
textbooks were distributed. Yet there is still much to be
done.
Re-elected in 2009, President Mutharika said in his
inaugural speech that his commitment to improving
education was unfailing: “For the next five years, my ad-
ministration will continue to invest heavily in the edu-
cation sector.”
In this year’s State of the Nation address, the Presi-
dent outlined the main challenges in this area.
“First, to establish more universities and institutions
for higher learning to absorb a growing number of sec-
ondary school graduates. Second, to make our educa-
An advertisement supplement by UPPER REACH
President Mutharika has
identified education,
science and technology
as the key ingredients
needed to catalyse
Malawi’s development
tion system directly relevant to our development needs.
Hence, our government prioritised education, science
and technology because this sector is a catalyst for de-
velopment,” he said.
In the 2008-2009 school year, 5,200 students were
eligible for university. Sadly, there was only space for
1,200. To redress this problem, the President proposes
building several new universities over the next ten years,
spread across the country. The southern region will have
the Malawi University of Science and Technology (MUST)
in Thyolo, for which initial funding has already been
sourced from China. Chikhwawa will host the Universi-
ty of Bangula, with special facilities devoted to cotton
research and water resources management.
In the east, Mangochi will be home to the new Uni-
versity of Marine Biology and a new Research Institute
for the Green Belt Initiative. In Malawi’s central region,
the Bunda College of Agriculture will be upgraded and
transformed into the Lilongwe University of Agriculture
and Natural Resources. The central region will also see
the new University of Nkhotakota built.
To the north, Mzuzu University is being expanded,
while Mzimba district will have the new University of
PHOTO: Fabiana Burbano
Mombera, specialising in advanced livestock research.
The town of Karonga will receive a new Mineral Research
College and a Rice Research Institute.
It isn’t only higher education, however, that will ben-
efit from the new set of reforms; primary and secondary
schools are also the target of investment.
“In the long term we are building more teacher train-
ing colleges in order to produce more teachers. The tar-
get is to reduce the teacher-pupil ratio to 1:40 by 2013,”
says the Minister of Education, Science and Technolo-
gy, Dr George Chaponda. This is in contrast to the class-
es of 150 or more that teachers often face today. Addi-
tionally, the ministry is building special housing in rur-
al areas to incentivise teachers to leave the cities and
head to where they are badly needed.
Increasing enrolment and lowering dropout rates is
another task at hand. Because many must walk sever-
al miles on an empty stomach, it is not uncommon for
children to simply not attend. Therefore, the Ministry has
introduced a school-feeding programme with the help
of UNICEF, the World Food Programme (WFP) and the UK-
based Department for International Development (DFID),
to encourage more children to come to school.
Females comprise another at-risk group of school
children. “One of the reasons for the dropout rate is that
there are not many hostels for girls,” explains Dr Chapon-
da. “After secondary school they have to live in rented
houses which pose a security risk for them. To counteract
this we’re building more girls’ hostels. We’re also en-
couraging girls to come back to school after they’ve had
a baby.”
President Mutharika admits that his proposals are “am-
bitious”, yet “pragmatic and implementable”. However,
he appeals to all political parties, all NGOs, humanitari-
an organisations and international development part-
ners to support his forward-looking strategy. ■ bring the problem under control.
Thursday August 5, 2010
Battling
malaria
needs public
and private
initiatives
The mosquito-born infectious disease malaria is
one of the world’s greatest health challenges. One
of the areas it is most lethal is sub-Saharan Africa,
where the disease is responsible for the deaths of
approximately one million children every year.
Malawi, like most countries in the region, is not im-
mune to the problem and the disease is wide-
spread in the country. Between July 2006 and
June 2007 there were around 4.4 million cases re-
ported in Malawi. Given that the country’s popula-
tion is estimated at 13 million, such a high in-
stance of infection demonstrates the seriousness
of the problem. It has a high social and economic
impact on the country and is responsible for an ar-
ray of health complications.
Malawi’s Ministry of Health estimates that the
disease is responsible for 33 per cent of the coun-
try’s outpatient visits and remains the number one
reason for hospital admissions of children under
five years old.
Malaria occurs across the country in its three
geographical zones: the highlands, lakeshore and
lowland areas. It is in the latter, particularly in the
more humid south, that climatic conditions result
in better breeding conditions for mosquitoes and
malaria is more prevalent. One of the country’s ear-
ly internationally known malaria victims was Mary
Livingstone, wife of the famous explorer and mis-
sionary David Livingstone. She died during the first
successful European expedition to Lake Malawi in
1862. David Livingstone himself later became a
victim of malaria and passed away in Zambia 11
years later.
For many Malawians today, malaria remains a
lethal threat to their lives. The Malawian govern-
ment, international organisations and non-govern-
ment organisations (NGOs) have devoted a range
of resources to combat this problem through the
country’s National Malaria Control Programme.
Together they run an array of prevention, aware-
ness and treatment programs, as well as supply
the key weapons to fight the disease: indoor resid-
ual spraying (to kill mosquitoes that enter homes),
insecticide-treated mosquito nets (to protect vul-
nerable sleeping people), insect repellents and
medication.
Most interestingly, however, some solutions in
Malawi’s war on malaria have sprung from a non-
traditional source – the local business community.
The country’s very first mosquito net factory
was recently established by local entrepreneur
Wasim Kassam and now employs around 70 peo-
ple. Health Net Ltd uses technology developed by
Sumitomo Chemical to produce the patented Olyset
Net. During the manufacturing process, special in-
secticides are added to the material which make
the finished product more effective than conven-
tional nets. Olyset Nets have a lifespan of five
years, which can be extended by respraying the
nets at a later period. The method of production
and the fact that the nets are made locally mean
the nets are more durable and affordable than im-
ports. Economist and renowned advisor to the UN
Jeffrey Sachs recently toured the factory and was
impressed with operations. A number of entities
have placed orders with Health Net, including
prominent international organisations.
In addition, foreign investor David Bisnowaty
has established a pharmaceutical factory on the
outskirts of Lilongwe that, like Health Net, offers
affordable, high quality solutions to combat malar-
ia. SADM Pharmaceuticals Ltd is the sole producer
of prescription-based medication in the country. As
a local supplier it produces anti-malarial medica-
tion at lower prices than imported equivalents, of-
fering a more accessible solution for the country.
Malaria remains Malawi’s most serious health is-
sue, but there is hope that a continued cooperation
between the government, international organisa-
tions, NGOs and the business community can help
 An advertisement supplement by UPPER REACH
Thursday August 5, 2010
MALAWI 11

Lake Malawi, the third largest and second deepest lake in Africa, is also called Calendar Lake as it is 365 miles long. Calm turquoise waters beckon snorkellers and boaters to take the plunge

A warm country in many ways

Malawi may be small in size, but what it lacks in square miles it definitely makes
up for in heart, soul, and of course, beauty. A welcoming population and myriad
national parks and reserves are just a few of the country’s wonderful attributes
ong and thin, Malawi hugs the eponymous can visit different tribes who will not only teach but al-

L body of water that ranks third among Africa’s

largest lakes and eighth in the world. Lake
Malawi, also known as Lake Nyasa, provides
the country with a soothing fresh water shoreline that
stretches for 365 miles, as well as with the world’s
so demonstrate special facets of their culture, includ-
ing their food, how they raise their children, marriage
ceremonies and free time activities.
“You cannot talk about tourism without knowing the
culture of Malawians... When we talk about tourism, it’s
most diverse population of fish. Moreover, Malawi is home not just tour operator packages, or the lake, or the game
to the third largest mountain in Africa, Mount Mulanje. reserves. We mean everything, including the culture
Malawi has embarked on an ambitious programme of the people of Malawi,” explains the Minister.
to promote tourism, and in doing so, capitalises on the Aside from the crystalline waters and picture per-
country’s many strengths. The Ministry of Tourism, fect beaches of Lake Malawi (which will play host to
the sixth annual award-win-
‘When you look at ning Lake of Stars music and
arts festival in October), vis-
the faces of the itors are pleasantly surprised
by breathtaking landscapes
Malawians, they of rugged mountains, fertile
valleys, forested plateaus
are not people who and lazy rivers, all teeming
with wildlife, including the
you will feel do complete set of the Big 5 as
well as hippos. At the nu-
not want you here. merous game reserves (ie
Majete, Vwaza Marsh, Ka-
They smile’ sungu and Nkhotakota) and
national parks (ie Nyika, Li-
wonde, Lengwe, and Cape
ANNA NAMATHANGA KACHIKHO Maclear-Lake Malawi) wild
Minister of Tourism, Wildlife and Culture animals can easily be spot-
ted in their natural habitats.
Wildlife and Culture, headed by Anna Namathanga The 2009/10 fiscal year witnessed a 29 per cent
Kachikho, has identified four basic ingredients that are rise in visits, with approximately 800,000 tourists
ultimately integrated in a special kind of Malawian pack- choosing Malawi as their destination. While tourism
age: the warm and friendly people, the culture, the facilities have managed to keep up with the growing
amazing scenery and the wildlife. demand, the government seeks to spur further tourism
The term “the Warm Heart of Africa” didn’t just invent development and consequently offers sector specific
itself; rather, it stems from the friendliness and hospi- incentives to attract investment. Furthermore, the
tality of the Malawian people. As Mrs Kachikho puts it, state is planning to build a modern Malawi Institute of
“When you land in Malawi, you feel that warmth. When Tourism Campus in Lilongwe, to build a larger and more
you look at the faces of the Malawians, they are not peo- skilled labour force for the tourism and hospitality in-
ple who you will feel do not want you here. They smile.” dustry.
Working hand in hand with the welcoming people is As the sector grows, much care is also being taken
the cultural aspect. Cultural tourism in Malawi is de- to ensure its sustainability. Through the Benefiting
signed to give the visitor an authentic and well-round- Sharing Scheme, for example, profits from protected ar-
ed experience of different tribal cultures. Visitors will eas are split 50/50 between the government and the
do more than just scratch the surface by, say, going surrounding communities in order to better encourage
A favourite among visitors: ‘roughing it’ in style and watching some of the world’s largest mammals in action
on a safari or tasting a traditional dish. Here, tourists conservation. ■
 An advertisement supplement by UPPER REACH
Thursday August 5, 2010
12 MALAWI

A vision of economic
development for Africa
Dr Bingu Wa Mutharika, President of Malawi and Chairman of the African Union, urged African ministers to promote sustainable growth before macro-economic
stability at this year’s joint annual meeting of finance, planning and economic development ministers, where he outlined his vision for the future
romoting high-level
‘The agenda for Africa is
P sustainable growth
to reduce unem-
ployment in Africa
was the theme of this year’s
joint annual meetings of the
indeed very simple. We
need to launch each and
‘African Union Conference of
African Ministers of Economy
every African country on a
and Finance’ and the ‘Eco- path to sustainable
nomic Commission for Africa
Conference of African Minis- development and on the
ters of Finance, Planning and
Economic Development’. At the road from poverty to
event, held in Lilongwe on
March 29, 2010, President Bin- prosperity’
gu Wa Mutharika laid out his
ambitious vision for Africa’s
economic growth, highlights
of which are featured here:
‘We need rapid and
“The agenda for Africa is in-
deed very simple. We need to
sustainable level of
launch each and every African
country on a path to sustain-
economic growth within a
able development and on the stable political and
road from poverty to prosper-
ity. In order to do this the eco- economic environment’
nomic development pundits
have prescribed various pre-
scriptions in the past. Many
of them have been imple- ‘Five years from now Africa
mented to the letter by the
African governments and yet must be able to feed itself
Africa is still classified as a and no child in Africa
PHOTO: Amos Gumulira

least developed continent

more than 50 years after at-
taining independence. What
should die of hunger,
is going wrong?
The Washington Consensus
malnutrition or starvation’
tells us that African countries DR BINGU WA MUTHARIKA
must stabilise first in order President Bingu Wa Mutharika, right, with the Chair of the AU Commission Jean Ping, left, at the joint AU/ECA conference in March in Lilongwe President of the Republic of Malawi and
to grow. And I am saying no. Chairman of the African Union
Africa must grow first and
then stabilise. So there goes the battlefield between ing a low rate of inflation in order to not allow the This is the absence of good governance. Fast state and government unanimously agreed – that for
what Washington wants us to do and what Africa price structure to escalate beyond the reach of and sustainable macroeconomic growth results the African people to escape the vicious circle of
wants to do. The choice therefore is between Africa the ordinary citizens. It also involves the mainte- from good governance. Indeed empirical evidence poverty, we must make certain determinations and
appeasing Washington in order to get a few dollars nance of a stable exchange regime that makes it shows that no economy in the world can grow if it take certain actions. We agreed at that meeting that
of donor funding or indeed for some us to get jobs possible for financial and planning institutions, is poorly governed. In Malawi we have proved this agriculture and food security should be top priority
in Washington, or to take action now to rescue the the business community as well as civil society to to be true. for the next five years. We agreed that food insecu-
majority of our people out of poverty. predict with a reasonable degree of certainty what What is the future agenda for Africa? You may re- rity disturbs peace and security on our continent.
African governments now must implement home- the value of their investment, wealth and bank ac- call that at the last meeting of the African Union in We therefore resolved that five years from now
grown policies conceptualised, designed and owned counts will be six months, one year or two years February this year, during which I was elected chair- Africa must be able to feed itself and that no child in
by the African people. Such policies must be im- down the line. man, I proposed – and the assembly of heads of Africa should die of hunger, malnutrition or starvation.”■
plemented, monitored and evaluated by our own ex-
perts. In such a paradigm, the role of the World
Bank, the International Monetary Fund and the de-
velopment partners would be to support the home-
grown policies and to ensure that macroeconomic Can Africa learn from Malawi’s example?
growth and development are sustained.
The choice is for Africa to take action that will Prior to beginning his political career, President Many suffer without access to electricity despite the one of the President’s key advocacies for the rest of the
bring Africa to the level where we can effectively par- Mutharika worked in a variety of positions within gov- abundance of generation potential and excess supply continent, as is the establishment of domestic stability
ticipate in global finance and economic issues. ernments and international organisations and he is well in certain areas. Trade remains difficult between and peaceful foreign relations, once again something
What will be the African choice? known as a World Bank economist. He has written a African countries due to lack of interconnecting trans- Malawi has achieved. These policies have won Presi-
Empirical evidence shows that what Africa needs range of books and papers on the very issues he has port infrastructure – a legacy of the colonial period. The dent Mutharika powerful allies internationally. As re-
today is not macroeconomic stability. We need a successfully addressed domestically in Malawi, includ- effects of climate change have exacerbated natural dis- cently as July 6, 2010, on the eve of Malawi’s Indepen-
rapid and sustainable level of economic growth ing combating poverty and establishing food security. asters such as drought and flood, meaning that African dence Day, US Secretary of State Hillary Clinton praised
within a stable political and economic environment. It is specifically these areas – the struggle against governments more than ever need to cooperate to sup- the US-Malawi relationship, adding, “We will also contin-
What does this mean? poverty and famine – that have been his priority focus port their populations. ue working with President Mutharika as the current
A stable political environment embraces demo- since his appointment as chairman of the African Union During the state of the nation address on May 24, chair of the African Union to combat hunger and food in-
cratic governance, rule of law, safeguarding human (AU) on January 31, 2010. Can the experience of Malawi 2010, the President raised these very issues as para- security, promote regional security and stability, and
rights, holding regular polls, and fair and credible reversing food shortages be adapted to the rest of mount to Malawi’s chairmanship of the AU: “In this re- advance good governance and human rights through-
elections. It also means building a national dialogue Africa? Are there lessons from Malawi’s consistent eco- gard, we have advanced an agenda for Africa to focus out Africa”
and consensus for majority parties to accommo- nomic growth that can be applied to other African coun- on agriculture and food security, to be supported by Much still remains to be done in Malawi, as it does
date legitimate concerns of minority opposition tries, many of which have greater natural resources transport infrastructure development, energy and cli- across Africa. President Mutharika has reiterated to his
parties. It also means opposition leaders graceful- and assets? mate change management. These priorities are in line people and his ministers not to rest on their laurels but
ly accepting defeat when the electorate has spo- It is the point of resources that President Mutharika with our own national development agenda.” continue working hard to advance the nation: “I would
ken through the ballot box. has repeatedly returned to. Despite the vast natural Like Malawi, there are many health and education is- like to impress upon all Malawians that the success we
A stable macroeconomic environment on the wealth of the African continent, its abundance of arable sues to be addressed. These remain crucial develop- have so far attained should not make us to relent in our
other hand involves the maintenance of low in- land, minerals, hydrocarbons and even incredible ment goals both for the country and the continent. efforts, rather this should give us the impetus to strive
terest rates in order to allow ordinary citizens to tourism potential (as the 2010 FIFA World Cup in South Underpinning a future solution for these issues, and for greater success. The whole world is looking at us to
borrow money, service their loans and grow their Africa recently highlighted), the majority of its inhabi- Malawi’s own domestic success, has been the adher- see if we can sustain the rates of growth and develop-
businesses. It involves the government maintain- tants remain poor. ence to democracy and good governance. This remains ment that we have achieved for our country.”