BALANCING DEVELOPMENT AND POLITICS:

RENEWING OUR LOVE FOR OUR COUNTRY

STATE OF THE NATION ADDRESS

by

HIS EXCELLENCY
PROFESSOR ARTHUR PETER MUTHARIKA
PRESIDENT OF THE REPUBLIC OF MALAWI

On the occasion of

THE STATE OPENING OF THE 4TH MEETING IN

THE 48TH SESSION OF PARLIAMENT AND THE
2020/2021 BUDGET MEETING

LILONGWE

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 YOUR EXCELLENCY PROFESSOR GERTRUDE MUTHARIKA,
FIRST LADY OF THE REPUBLIC OF MALAWI;

 RIGHT HONOURABLE CATHERINE GOTANI HARA, M.P.,

SPEAKER OF THE NATIONAL ASSEMBLY;

 YOUR LORDSHIP HONOURABLE ANDREW NYIRENDA, SC,

CHIEF JUSTICE;

 HONOURABLE DEPUTY SPEAKERS;

 HONOURABLE LEADER OF THE HOUSE;

 HONOURABLE CABINET MINISTERS AND DEPUTY

MINISTERS;

 HONOURABLE JUSTICES OF APPEAL AND JUDGES OF THE

HIGH COURT;

 HONOURABLE LEADER OF THE OPPOSITION;

 LEADERS OF POLITICAL PARTIES REPRESENTED IN

PARLIAMENT;

 HONOURABLE MEMBERS OF PARLIAMENT;

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 HIS EXCELLENCY JORGE DAVIDE GUNE, DEAN OF THE
DIPLOMATIC CORPS AND HEADS OF DIPLOMATIC
MISSIONS;

 MR. LLOYD MUHARA, CHIEF SECRETARY TO THE

GOVERNMENT;

 SENIOR GOVERNMENT OFFICIALS;

 DISTINGUISHED INVITED GUESTS;

 LADIES AND GENTLEMEN.

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INTRODUCTION

Madam Speaker, we have come to Parliament because we have a

duty to serve our country and the people that voted for us; and we
are all here because we represent Malawians.

It is important for us to define the mission that brings us here; the

mission by which we want to serve Malawians. The first step in
solving a problem is to identify, define and accept the problem.

The first problem we have experienced in the past year is that we

like politics more than development in this country. We have
forgotten our love for our country.

Let us also admit we have become a divided nation. We have been

thinking and voting on regional lines for some time now. We often
forget that we are one people, one country, one Malawi. Let us unite.

We have allowed Malawi to be a country where we offend and hurt

others in the name of human rights. We have allowed others to kill,
burn property and frustrate development in the name of human
rights. Is that the Malawi we want?

Let us accept that we have people who think they can lead Malawi by
destroying the only country we have. We are sometimes hungry for
destruction more than we desire peace and unity. Let us love our
country.

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Let us admit we have a crisis. Coronavirus is real and coronavirus is
a global crisis. Malawi is not being spared. Yet, we are taking this
problem lightly.

Let us admit we have a dilemma between going to an Election too

soon or preventing the spreading of Coronavirus. As a nation, we
need to make a collective decision. This Parliament must make its
voice heard before the people.

And let us also admit that we sometimes do what is not right

because the Court has said so. But let us remember that Parliament
is more supreme above the Courts. We are elected members who
represent the people and we have the authority to make laws for the
Judiciary to interpret.

Madam Speaker, I want Malawi to be a country where everyone

must be accountable. Nobody should be above the law and nobody
should be above criticism. The essence of democracy is that
everyone must be accountable to someone else. Only God is
accountable to no one.

The President and the Executive are always held accountable every
day by this House and the people. Parliament is held accountable.
But who holds the Judiciary accountable?

I respect the Courts. Speaking my views when the Courts err is not
attacking the Courts. This poor thinking must stop. As a matter of

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fact, no judge in this country must live in fear if you have a clear
conscience. Just do your job right!

This Parliament respects the Courts. But that does not mean that we
must agree with every judgement that comes from the Courts. We
must all hold one another accountable.

Let me say one thing for record. With the decision which the Court
has made on the issue of irregularities, we will never, never have a
valid and credible Election in this country because there will always
be some irregularities in any Election. We have set a precedence by
which the next Election will be even more disputable.

We have set a precedence when your election as Members of

Parliament can be nullified just because a well-meaning officer tried
to correct a mistake using tippex.

I was voted by the people as President exactly through the same

process that voted for every Member of Parliament and ward
councillors. And I was sworn in as President of this country.

Section 83 of The Constitution of Malawi prescribes the

foundational constitutional order of this country. According to this
Section, “The President shall hold office for five years from the date
that his or her oath of office was administered, but shall continue in
office until his or her successor has been sworn in.” Those of you who
are plotting otherwise will be undermining the constitutional order
and therefore committing treason.

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From today, anyone can now rush to Court and demand nullification
of an Election because an officer corrected an error even if that
correction does not affect the result of the Election. Is that the
Malawi we want?

The essence of an Election is that we must go into office by the will

of the people. In every modern democracy, the will of the people is
in the numbers that vote for us. The Court failed to show or prove
that irregularities affected the result of the Election.

In as far as the result of an Election is intact, then the will of the

people prevails. We cannot, and we should never, nullify an Election
if any irregularities do not affect the results of the Election.
Nullifying an Election is nullifying the will of the people.

I raise these matters before this House because we represent the

people. Some of the politicians destroying this country are not even
represented in this House. I raise these matters because I have one
plea to Parliament. For the sake of developing our country, for the
sake of the people, let us use our authority to set right what is not
right.

I therefore call upon this Parliament to make sober decisions, for the
sake of Malawians. Let us set aside politics and love our country.
It is for this reason that I have entitled my address “Balancing
Development and Politics: Renewing Our Love for Our Country”.

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MACRO-ECONOMIC ENVIRONMENT

Madam Speaker, it must go on record that Malawi’s economy has

been resilient. We have survived one crisis after crisis. Rising from
the ruins of Cashgate, crossing times of floods, and surviving
scorching famines. We have survived the worst of the times.

The country has just survived the economic shocks of the Cyclone
Idai. That cyclone was so devastating that we needed $365 million
(Three Hundred Sixty-Five Million Dollars) for recovery and rebuilding
broken lives. Then came another round of shocks in the economy –
political violence!

The political violence of the last one year disrupted businesses,

undermined revenue and slowed down the economy. I must report to
this Assembly that the vandalism; burning of Government and
private property; the cold blooded murders and mob killings; and the
scaring away of tourists and investors has cost us K62 billion. The
same suffering poor Malawian taxpayers and victims of the violence
will pay the cost.

I must also report that one ulterior motive for the violence was, in
some people’s words, “to obliterate the DPP economy” and label my
Government a failure. They failed. The negative drive to close down
borders and airports was intended to shut down taps of revenue,
suffocate the economy, subject innocent Malawians to suffering and
create anger to incite people into the streets and overthrow my
Government. We survived.

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As soon as violence failed to shut down our borders and cripple the
economy, Coronavirus came and locked down the world. Business
has slowed down, revenue collection undermined and demand to
spend on social protection increased.

Madam Speaker, this is part of the context in which our budget

comes this year. In spite of the challenges, the economy continues to
grow. The International Monetary Fund has once described Malawi
as an excellent and overperforming economy.

Although post-election violence and Coronavirus has shaken the

economy in the past fiscal year, the economy remained defiantly
resilient because we built solid foundations for growth in the first
five years.

I am optimistic that this country will continue to do well because we

continue standing on solid economic fundamentals. We maintain
record low interest rates, a stable currency, single digit inflation
rates and low budget deficits.

With a real GDP growth rate of 5.1 percent, we still have managed to
achieve the 2019 targeted 5 percent of economic growth. This is an
improvement from the 3.9 percent real GDP growth registered in
2018.

The growth has been driven by favourable rains and the

macroeconomic stability which my Government has maintained.

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However, economic growth rate of 5.5 percent that was projected for
2020 has been challenged by Coronavirus. This pandemic has
affected many growth sectors of the economy. As a result, the
economy is now projected to register an estimated GDP growth of
only 1.9 percent in 2020.We have also revised downwards the real
GDP growth projection for 2021 from an anticipated growth of 5.8
percent to 4.5 percent.

Madam Speaker, as a way of cushioning the effect of the pandemic

on livelihoods, my Government has introduced tax reliefs for
consumers and businesses, reduced fuel prices, increased health
care spending and emergency cash transfers to vulnerable people.

The cash transfer intervention is targeting the peri-urban areas in

Mzuzu, Lilongwe, Blantyre and Zomba cities, covering approximately
172,337 households. Each household is receiving MK35, 000 per
month. This intervention is expected to run for 6 months, starting
from June, 2020.

Fiscal Policy

Madam Speaker, the 2019/2020 fiscal year started on a promising

note in terms of domestic revenue collection. We registered positive
growth in revenue collection compared to the last fiscal year.
However, revenues outturn will fall short of target because of the
post-elections violence during the first half of the fiscal year, and
Coronavirus during the second half. For this reason, we will focus on
addressing revenue shortfalls in the coming year.

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On the expenditure side, we will focus on creating incentives for the
private sector to encourage growth and job creation. At the same
time, we will do everything possible to accommodate Coronavirus
spending. We will continue with aggressive social protection
programs. We will internally create funding for the Coronavirus
crisis by delaying spending in non-health areas that are not
essential to tackling the immediate crisis.

This year, Government will roll out the long awaited New Integrated
Financial Management and Information System (IFMIS) on 1st July,
2020. This new system will tightly close loopholes of pilferage and
smoke out ghost workers more effectively than ever. With this
system, I have a message to all officers working in the public service.
If you dare get tempted to steal money from Account Number One,
we will catch you and arrest you. There will be no more cashgates.

Monetary Policy

Madam Speaker, in 2019, monetary policy focused on preserving

inflation in single digit and steer it towards the medium-term
objective of 5.0 percent. We also focused on ensuring that the value
of the Kwacha is relatively stable; and ensuring recovery of private
sector credit to support economic activity.

In order to achieve these objectives, the monetary policy rate was

progressively lowered from 16.0 percent to 13.5 percent. The
Liquidity Reserve Requirement (LRR) on domestic currency
deposits was reduced from 7.5 percent to 5 percent and the Liquidity

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Reserve Requirement on foreign currency deposits was reduced
from 7.5 percent to 3.75 percent.

These policy interventions, the objectives of monetary policy in 2019

were largely achieved. Headline inflation generally remained in single
digit, averaging 9.4 percent in the year. Similarly, the Kwacha
remained relatively stable in 2019. Gross official reserves were
recorded at US$846.6 million in 2019, equivalent to 4.05 months of
import cover compared to US$755.2 million (equivalent to 3.6
months of import cover) in 2018.

Growth in credit to private sector was strong in 2019 as it closed the

year at 21.3 percent. In contrast, annual growth rate of private
sector credit stood at 11.5 percent in 2018. In real terms, private
sector credit grew by 8.8 percent in 2019 compared to 1.4 percent in
2018.

Going forward, Government is committed to maintaining inflation in

single digit with the ultimate goal of stabilizing it at 5 percent in the
medium term. In 2020, inflation is projected to average 8.8 percent,
although the risks are skewed to the upside due to the Coronavirus
pandemic.

Furthermore, the Reserve Bank of Malawi will ensure that foreign

exchange reserves are always above 3 months of import cover in
2020 and progressively build the reserve position to the medium
term target of 6 months of import cover.

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International Monetary Fund (IMF) Extended Credit Facility

Madam Speaker, we have been implementing the third Extended

Credit Facility (ECF) under the International Monetary Fund. Malawi
has so far successfully completed three program reviews. This has
led to the IMF’s disbursements of program resources amounting to
US$112.0 million. The ECF program is on track and the fourth and
final review is scheduled for September, 2020.

National Planning Commission

Madam Speaker, the National Planning Commission which my

Government established in 2017 has embarked on envisioning
process of developing the successor to Vision 2020. I officially
launched the nation-wide consultations on the development of the
new Vision early this year. The Commission is in the process of
taking the consultations to all the parts of the country.

AGRICULTURE AND WATER DEVELOPMENT

Madam Speaker, let me assure Malawians that in the 2020/2021

agriculture season, the country will have enough food. This is largely
due to good rains in most parts of the country and an increase in
farm inputs uptake by smallholder farmers. Preliminary crop
estimates projections indicate that maize production will increase
from 3.3 million metric tonnes to 3.7 million metric tonnes
representing 11.5 percent increase.

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To ensure national food security, Government has engaged ADMARC
and NFRA as well as private institutions to secure the national grain
and build our Strategic Grain Reserve (SGR) stocks to more than
217,000 metric tonnes. Government has allocated MK9.2 billion in
the current Financial Year to procure about 46,000 metric tonnes of
maize. Purchase of this grain has already started though ADMARC.

Farm Input Subsidy Programme

Madam Speaker, during the 2019/2020 Fiscal Year, Government

made some improvements in the implementation of the Farm Input
Subsidy Programme (FISP). Government contributed about
MK15,000 per 50kg bag of inorganic fertilizers and MK6,000 for
every cereal seed packet. In addition, legume seed was provided free
to smallholder farmers.

In order to improve the Programme further, Government will, in the

forthcoming fiscal year, increase local SMEs participation and
introduce electronic FISP coupons to curb fraud.

During the year under review, the agricultural sector registered a

number of achievements, including:

 launching and commencing the implementation of the

Agriculture Commercialization (AGCOM) Project. The project is
providing matching grants to farmer groups across the country;

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 implementation of the Sustainable Agriculture Production
Programme (SAPP) in the six target districts of Chitipa,
Nkhotakota, Balaka, Lilongwe, Blantyre and Chiradzulu.
Cumulatively, 350 groups have been provided with Village
Challenge Fund (VCF) matching grants to undertake various
enterprises.

Irrigation Development

Madam Speaker, Government recognizes the fundamental role that

irrigation plays in the economic growth and development of this
country. During the Financial Year, Government has been
implementing the Irrigation Master Plan and Investment Framework
to further develop irrigation in the country.

Implementation of projects under this framework has seen the total

irrigation area increase from 116,000 to 119,000 hectares,
representing 2 percent increase. In addition, the Government
launched and commenced implementation of the Shire Valley
Transformation Programme targeting about 100,000 smallholder
farmers. This is billed as revolutionary irrigation farming in Malawi
and the whole of Southern African Region.

In the 2020/2021 Financial Year, Government will construct 15

smallholder solar powered irrigation schemes totaling 220 hectares
in the Southern and Central Regions under Malawi Drought
Recovery and Resilience Project (MDRRP).

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Water Supply and Sanitation Services

Madam Speaker, during the 2019/2020 Financial Year,

Government implemented a number of initiatives aimed at improving
access to potable water in the rural and urban areas. These include:

 rehabilitation of 12 gravity fed schemes, development of 450

boreholes and construction of 266 sanitation facilities in
schools, market centers and health centres in Rumphi,
Nkhotakota, Phalombe, Mangochi and Ntcheu under the
Sustainable Rural Water and Sanitation Infrastructure Project
and the Malawi Drought Recovery and Resilience Project;

 drilled 440 boreholes thereby bringing the total number to 545

across all the 19 drought affected districts;

 completed the construction of new water supply system from

Likhubula River in Mulanje to Blantyre City. This brings an
additional 20,000 cubic meters of potable water to the city of
Blantyre and surrounding areas;

 continued with construction works to raise Kamuzu Dam 1

under Lilongwe Water Board; and

 completed the rehabilitation and expansion of Dowa, Dwangwa,

Salima, Nkhotakota and Ntchisi Schemes under Central Region
Water Board.

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In the forthcoming Financial Year, Government plans to rehabilitate
7 gravity fed schemes and rehabilitate 560 boreholes under the
Malawi Drought Recovery and Resilient Project in 19 drought
affected districts.

Madam Speaker, Government will continue with construction of

new water supply systems, rehabilitation and extension of existing
schemes through the various projects currently under
implementation but also introduce new projects to start in the
upcoming Financial Year. These include:

 completion of the rehabilitation of 6 gravity fed schemes under

the Sustainable Rural Water Supply and Sanitation Project;
 rehabilitation of Nkhatabay Water Supply System; and
 construction of New Water Source on Shire River for Blantyre
Water Board.

EDUCATION, SCIENCE AND TECHNOLOGY

Madam Speaker, Government is implementing several initiatives in

the education sector to improve the provision of quality, accessible
and relevant education to the people of Malawi. During the year
under review, Government continued to construct 250 secondary
schools across the country under the Secondary Education
Expansion Development Project. The Project is being implemented in
two phases. So far, construction works in the sites under phase I
have commenced.

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Let me report on the major achievements made in the Basic
Education Sub-sector. Government:

 continued with construction of 14 new Primary Schools in

Urban and Rural Areas and Provision of Equipment. I am
pleased to report to this august House that construction work
progress of the project is at 60 percent with six sites roofed;
and

 commenced the Expansion and Upgrading of Domasi College of

Education in September, 2019. Construction works are
expected to be completed in November, 2020.

With regard to tertiary education, I am pleased to report to this

august House that Government abolished the quota system of
selecting students into higher education institutions. All students
will now be selected on merit.

Government also increased enrolment in universities from 34,000

students in 2018/2019 academic year to 36,000 students in
2019/2020 academic year, representing 6 percent increase.

Following the closure of schools in March this year owing to the

Coronavirus Pandemic, Government has put in place measures to
ensure continued learning for our children whilst at home. These
include:

 online learning for secondary school learners; and

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 emergency Radio Education Programme through the public
broadcaster specifically targeting primary school learners.

Madam Speaker, in the forthcoming Financial Year, Government

will:

 complete construction of three (3) Teacher Training Colleges for

primary school teachers in Mchinji, Rumphi and Chikwawa;

 establish the Teachers Council, a regulatory body for teachers in

the country; and
 Continue recruitment and deployment of teachers especially in
rural primary schools in order to reduce the high pupil teacher
ratio.

ENERGY AND MINING DEVELOPMENT

Madam Speaker, Government continues to implement programmes

that are geared towards improving energy generation, transmission
and distribution.

During the period under review, Government:

 continued with the implementation of extended MAREP Phase 8

Programme in which a total of 606 rural centres were electrified
through grid connection thereby increasing access to electricity
in the rural areas;

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 successfully developed and negotiated the Access to Clean and
Renewable Energy (ACRE) Project which will be supported by the
United Nations Development Programme (UNDP). The Project
aims at promoting the dissemination of renewable energy
technologies for power supply, lighting and heating and will be
implemented over a four-year period up to 2023; and

 continued with construction of Tedzani IV Hydropower Station

which will add 18 megawatts to the national grid by October,
2021.

Madam Speaker, Government will, in the coming Financial Year,

undertake the following initiatives:

 develop a 350 megawatts hydropower project at Mpatamanga

Gorge on the Shire River;

 complete construction works for Tedzani IV Hydropower Plant;

 complete the 60 megawatts Solar Power Plant at Nanjoka in

Salima;

 commence construction works of 20 and 21 megawatts Solar

Power Plants at Golomoti and Nkhotakota respectively;

 implement the Malawi – Mozambique Interconnector Project that

will allow Malawi to increase the power supply capacity by 50
megawatts; and

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 implement the MAREP Phase 9 Programme which will electrify
over 500 rural centres.

Madam Speaker, as regards mining, Government continues

supporting the growth and development of the mining sector in the
country. During the year under review, Government implemented
the Geological Mapping and Mineral Assessment Program in order to
unveil the country’s true mineral potential.

Let me also report to this august House that Government has

established a National Mining Investment and Development
Company to champion investment in the mining sector. In addition,
Government is in the process of establishing a Malawi Mining
Regulatory Authority which will regulate the mining sector.

NATURAL RESOURCES AND CLIMATE CHANGE

Madam Speaker, Government continues to protect the natural

resources and implement interventions aimed at mitigating the
negative impact of climate change. In this regard, Government
created the Climate Change Management Fund in order to provide
financial resources for stimulating cooperation, participation and
implementation of climate change interventions in the country.

Government will implement the following mitigating measures of

climate change in the next financial year:

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 protect 88 forest reserves and 20 state owned plantations
(90,000 hectares) from high levels of encroachments and fires
and regulate movement of forest products both locally and at
international level; and

 continue to enhance private sector involvement in the

management of forest reserves and plantations.

YOUTH DEVELOPMENT AND EMPOWERMENT

Madam Speaker, Government recognizes that a large population of

the country is composed of the youth. In this regard, Government is
implementing deliberate programmes which are aimed at promoting
youth employment in the country.

In the Financial Year under review, Government achieved the

following in addressing some of the challenges affecting our youth:

 implemented the Jobs for Youth (J4Y) project which will create
17,000 jobs;

 rehabilitated Ngala, Naminjiwa and Mbandira community

technical colleges in Karonga, Nkhotakota and Phalombe
districts

 respectively, and Neno Youth Development Center in Neno; and

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 identified construction sites and engaged contractors to
construct Nyasa Big Bullets and Be-Forward Wanderers
stadiums.

Going forward, Government will continue implementing youth

friendly programmes that will provide employment to our ever
growing youth population.

TRADE AND INDUSTRY DEVELOPMENT

Madam Speaker, Government recognizes the important role that

trade and industry play in the socio-economic development of our
economy.

To this end, Government continues to undertake several reforms to

facilitate an enabling environment for investments. These reforms
include Electronic Permit (E-permit) System that has reduced the
time it takes to obtain various permits such as Business Residence
Permit and Temporary Employment Permit from six months to five
days.

Government reviewed the Investment and Export Promotion Act

which aims at strengthening Malawi Investment and Trade Centre in
order to improve its capacity on investment and trade promotion.
The Bill is expected to be tabled in this august House.

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In the next Financial Year, Government will:

 continue to create a conducive environment for trade and industry

by reviewing related national policies including Business Licensing
Policy and Anti-Counterfeit Policy; and

 continue the implementation of the National Export Strategy

which focuses on strengthening the private sector, investment
promotion, trade facilitation and economic empowerment.

TOURISM DEVELOPMENT

Madam Speaker, tourism remains a priority sector and a vehicle for

economic growth and wealth creation. However, the emergence of
Coronavirus Pandemic has adversely affected the sector’s
contribution towards Gross Domestic Product (GDP).

The anticipated financial and job losses in the sector are huge and
likely to worsen should the pandemic persist. However, in order to
mitigate the impact of the pandemic, Government is implementing the
following measures:

 suspension of 1 percent Tourism Levy on tourism goods and

services consumed;

 general deferment of business loan repayments; and

 encouraging voluntary pay cuts in the sector to sustain existing

jobs.

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Government is also considering establishing a bailout fund to support
the tourism sector.

In order to build resilience in post-COVID-19, Government is

developing a National Tourism Crisis Management Strategy and Plan
for effective coordination of crisis management in the sector.

Government will soon undertake a comprehensive review of the

Tourism and Hotels Act to among others, establish a semi-
autonomous Tourism Authority. Government will also develop a
Tourism Master Plan and carry out a feasibility study for the
development of Nankumba peninsular as a tourism hub.

TRANSPORT INFRASTRUCTURE

Madam Speaker, Government continues to provide direction and

facilitate the development of the transport sector. Road transport
currently remains a pre-dominant mode of transport although efforts
are underway to improve the other modes of transport through the
implementation of the Transport Master Plan.

In the year under review, Government implemented a number of

road projects which include:

 Dowa-Chezi Road, with a continuation of the road from Dzaleka

passing through Dowa Boma to Chezi on Salima-Lilongwe Road
covering a 14.7 km stretch which has been completed;

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 Kawere-Mkanda Road involving upgrading to bitumen standards
of 10 km road from Mchinji Boma to Kapiri which has been
completed;

 phase II of Construction of Thyolo – Thekerani – Muona –

Makhanga Road, which is estimated to be completed by
December, 2020;
 Lirangwe – Chingale – Namatunu – Machinga Road, involving
upgrading of 62 km earth road to bitumen standard;

 Upgrading of the Ntcheu – Tsangano Road, involving upgrading

of 64 km of the earth road from Tsangano Turn-Off to Mwanza to
bitumen standards;

 Rumphi – Hewe Turn – Off, involving improvement of a 20km

stretch from Chikwawa on the road to Nyika to Hewe Turn – Off;
and

 Njakwa – Livingstonia Road, involving upgrading to bitumen

standard of the 75 km earth road, and the project is currently at
65 percent completion.

In order to ease traffic congestion which has of late affected our

major cities, Government is implementing some road projects to
improve the flow of traffic in the cities and urban centres. Some of
these interventions include:

 construction of Traffic Interchange at Area 18 on the Parliament

Roundabout – Bingu National Stadium Road in Lilongwe which
will be completed in the next financial year; and

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 upgrading of the M1 Road in the city of Lilongwe involving
construction of dual carriageway from Chidzanja Road Junction
to Mchinji Roundabout. Construction works on this project will
commence soon.

Turning to rural roads, Government has launched 72 contracts for

construction of bridges with funding from the Roads Fund
Administration as a complementary package to rural road
improvement projects under MASAF and CDF.

Some of the road construction projects that will be launched in the

coming Financial Year include:

 rehabilitation of sections of M1 Road from Kamuzu International

Airport – Mzimba Turn Off Junction and Kacheche – Chiweta;
covering a total distance of 347 km;

 upgrading of the road from Nsipe to Liwonde covering 55km; and

 construction of weighbridge stations in Dedza, Bwengu in

Rumphi and Madziabango in Chikwawa.

We will also be implementing a Toll Gate system on selected sections

of the M1 Road to generate additional revenue for road maintenance
in the country.

Madam Speaker, Government recognizes the contribution that air

transport makes to both tourism and international business. In
order to sustain this contribution, Government has recently been

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prioritizing infrastructure improvement in all major airports in the
country.

Government has also procured navigation and communication

equipment, and 5 fire-fighting engines for Kamuzu and Chileka
International Airports in order to ensure safety and security of our
airports and airspace.

Turning to rail transport, Government, through the National

Transport Master Plan, is implementing the following projects: -

 construction of a combined rail/road bridge for the Ruo

Breakaway at Osiyana near Makhanga in Nsanje on the Limbe–
Marka Railway Line and Thyolo–Makhanga Road;

 rehabilitation and upgrading of a 399 km Nkaya – Mchinji

Railway Line;

 rehabilitation and construction of Limbe – Sandama section on

the Limbe – Marka Railway Line; and

 construction of a new railway bridge across the Shire River at

Shire North in Balaka.

Government continues to implement the Likoma Jetty project, which

commenced in 2019/2020 Financial Year. Considerable progress
has been achieved in the construction of the Jetty whose completion
would be very beneficial especially to Malawians living on the islands
of Likoma and Chizumulu.

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INFORMATION AND COMMUNICATION TECHNOLOGY

Madam Speaker, Government recognizes that knowledge is power.

As such, Government is committed to put in place a conducive
environment to ensure that the citizenry have greater access to
adequate information to make informed decisions and contribute to
the socio-economic development of the country.
I am pleased to inform the august House that during the period
under review, Government:

 increased mobile penetration from 40.3 percent in 2018 to 48.1

percent in 2019;

 scaled up internet penetration from 28.1 percent in 2018 to 32.1

percent in 2019; and

 increased operators’ growth from 11 in 2018 to 15 operators in

2020.

In order to sustain the gain registered in the ICT, Government will

continue to invest in information, civic education and
communications technology through implementation of projects
focusing on rural and urban technology needs.

HEALTH AND POPULATION

Madam Speaker, we are working towards achieving Universal

Health Coverage (UHC) to ensure that all Malawians, irrespective of

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their social and economic status, are able to access quality,
equitable and affordable health care.

In order to expand health service delivery in the country,

Government continued to construct and rehabilitate District
Hospitals, Community Hospitals, Health Centres, and Health Posts
across the country. I am pleased to report that the National Cancer
Centre is now operational and Phalombe District Hospital will be
operational later in the year.

Government continues to provide enough resources for procurement,

storage and distribution of medical supplies in the country. The
Central Medical Stores Trust was recently recapitalized to the tune of
MK5 Billion. As a result of this recapitalization, availability of
medicines and medical supplies in all hospitals has improved from
an average of 73 percent in 2018/2019 Financial Year to 75 percent
in 2019/2020 Financial Year. It is expected that by end of June this
year, the availability of medicines and medical supplies will increase
to 85 percent.

Injuries, including road traffic accidents, feature among the top ten
contributors to ill health in Malawi. For this reason, Government has
introduced a fully operational pilot Emergency Medical Service along
the M1 stretch from Blantyre to Ntcheu with a toll-free number (118)
to call in case of an accident.

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Under this medical service, Government has trained 443 community
members as first responders to accidents, 34 ambulance drivers and
89 health workers in accident victim management. In addition,
twelve (12) purpose-built fully equipped ambulances have been
procured. Government is also constructing the Lilongwe Institute of
Orthopedics and Neurosurgery with support from development
partners to cater for health care needs arising from road traffic
accidents, among others.

CORONAVIRUS

Madam Speaker, let me now talk about the coronavirus pandemic.

As we are aware, coronavirus has taken the world by surprise. This
is an unprecedented outbreak and it is devastating.

So far the world has registered over five million cases. More than
300,000 people have died. Health systems are struggling to cope.
Economies are crumbling. Human social cohesion is falling. And no
one has been spared.

Here in Malawi, since we registered the first confirmed case on 2nd

April, the numbers have been rising. We are over 350 cases now.
And experts warn us that we should brace for the worst. I repeat, we
must be ready for the worst.

At the same time, Madam Speaker, we can also be proud that we

acted faster in responding to the situation. You will recall, that on

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20th March, 2020, I declared a State of Disaster. I established a
Special Cabinet Committee on Coronavirus whose task was to
coordinate efforts in fighting the disease.

However, it became necessary to have an all-inclusive and multi-

sectoral unit to coordinate our fight. I therefore established the
Presidential Taskforce on Coronavirus which reports directly to me.
The taskforce is providing national guidance in the fight against the
pandemic.

Madam Speaker, Government, in consultation with Development

Partners, developed a National Coronavirus Preparedness and
Response Plan budgeted at K157 billion. Already, we have mobilized
over K14 billion.

In addition, in collaboration with World Health Organization (WHO)

and other partners, we have put in place a number of measures to
manage and reduce the spread of the virus. These measures include
the following:

● recruitment of 2,000 healthcare workers using local resources.

This is in addition to 1,617 healthcare workers that have been
recruited using Global Fund resources;

● increasing risk allowances for all healthcare workers in the

country;

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● raising awareness and disseminating information on measures
to control and prevent transmission of the virus to the general
public;

● capacity building for frontline Health Care Workers on case

management and infection prevention;

● strengthening surveillance and screening at points of entry;

● supporting Malawian students studying abroad with a relief

package to cushion them from the impact of lockdown as a
result of Coronavirus; and

● strengthening Laboratory Capacity to detect Coronavirus. To

date, we have established a total of 13 Coronavirus Testing sites.
These are:

i. Kamuzu Central Hospital;

ii. Partners in Hope Laboratory;

iii. National Health Reference Laboratory;

iv. Community Health Surveillance Unit (CHSU) in Lilongwe;

v. Queen Elizabeth Central Hospital;

vi. College of Medicine Laboratory;

vii. Malawi Liverpool Welcome Trust in Blantyre;

viii. Mzimba District Hospital;

ix. Mzuzu Central Hospital;

x. Zomba Central Hospital;

xi. Nsanje District Hospital;

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 xii. Thyolo District Hospital; and

xiii. Balaka Dream Molecular Laboratory.

Madam Speaker, let me take this opportunity to thank our

healthcare workers for all you are doing to save this country from
Coronavirus. From our Health Surveillance Assistants in the villages
to the doctors at our Central Hospitals and all technical experts in
various sections, you are the heroes and heroines in this war. We
thank you.

I want to assure you that my Government will do all that is

necessary to support you so that together we should defeat this
pandemic.

Let me also thank all Malawians and the private sector who are
adhering to the measures we put in place to prevent the spread of
the disease.

As I said in one of my statements, Coronavirus is a unique situation

to everyone in the world. Because of this uniqueness, there is no
model we can learn from to fight the disease. The only model is
ourselves.

Let me repeat; Coronavirus is real. Make no mistake about it. It is a

very serious problem. If we are not careful, we will suffer far worse

34
and long-term consequences than we have already suffered; and no
one will be spared.

So, let us stop politicizing the fight against Coronavirus. Let us all
pull in one direction to fight it. Each one of us has a role to play.
Together, we will defeat this enemy.

WOMEN EMPOWERMENT

Madam Speaker, let me now turn to the role and contribution of

women in development.

Women are at the centre of the development agenda of my

Government. We will continue to promote women into decision-
making positions.

We will also continue to implement programs that are aimed at

promoting the full participation of women in the transformation of
our country.

That is why we are implementing a number of initiatives aimed at

empowering women. In March this year, I launched the Women and
Youth Loan Program. In this program, the Malawi Enterprise
Development Fund will give out loans worth K15 billion to women
and youth in Malawi. We are empowering women so that they can be
drivers of development in Malawi.

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Madam Speaker, during the year under review, my Government
continued to expand the Social Cash Transfer Program to cover more
beneficiaries across the country. Supporting vulnerable women for
them to meet their daily needs is one way to ensure that women
benefit from the improving economy.

INTERGRATED RURAL DEVELOPMENT

Madam Speaker, as I have said before, our model of developing

urban centres and expecting that development will then spread to
the rural areas has failed. Many of them have no access to essential
social and economic amenities that we find in urban centres today.

We have been taking people to development. Now we must take

development to the people through a comprehensive social and
economic infrastructure development program for rural areas.

Madam Speaker, in the period under review:

● We continued with construction of rural growth centres such as

in Dowa, Chikwawa and Mchinji District Councils. These
projects are at 98 percent completion rate;

● We commenced the construction of rural and urban markets at

Kapiri in Mchinji, Namitambo in Chiradzulu, Songani in Zomba
and Mphanje in Thyolo; and

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● We completed the construction of Mulanje Mission Market and
Chinakanaka Market and Msikawanjala Market in Mulanje;
Nsanje Boma Market and Tengani Market in Nsanje.

Government is committed to ensuring that modern markets are

constructed in all parts of the country. We want to improve rural
marketing system and ensure that people in rural areas can easily
access goods and services.

These markets are part of the plan of my Government to make rural

areas centres of development in Malawi.

My vision is that rural areas should be self-sustaining. I want

citizens in rural areas to enjoy quality of life like those in urban
centres.

To make rural areas centres of development, my Government wants

every community to have the following:

1. Every community must be food secure;

2. Every community must have electricity;

3. Every community must have good road network;

4. Every community must have a secondary school;

5. Every community must have a community technical college;

6. Every community must have a hospital;

7. Every community must have potable water supply

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LANDS, HOUSING AND URBAN DEVELOPMENT

Madam Speaker, I now turn to Lands, Housing and Urban

Development. During the period under review, Government, among
other things started piloting the land reform agenda.

We continued implementation of the Decent and Affordable Housing

Subsidy Project (DAHSP) for vulnerable people;

After a long process, we finalized procurement processes for the

construction of 10,000 houses for National Security institutions
across the country.

In the 2020/2021 Financial Year, Government will continue with

implementation of various activities and projects in the sector
including the following:

● raising public awareness on land policies and the land reform

agenda;

● implementation of the DAHSP, including grant houses, and

houses for people with albinism; and

● construction of 10,000 houses for security institutions, with

1,000 houses expected to be completed during the year.

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DISASTER MANAGEMENT

Madam Speaker, turning to disaster management, Malawi was

affected by Cyclone Idai in early 2019. The cyclone made a landfall
in Mozambique and spread to Malawi. It resulted in heavy rains and
flooding which affected 13 districts in Malawi. Over 970,000 people
were affected and 60 were killed. The country is still reeling from the
effects of the Cyclone.

Government is therefore implementing recovery programmes in the

districts that were hit by floods caused by the Cyclone.

Madam Speaker, in order to enhance the country’s disaster

preparedness and response, Government is implementing the
National Resilience Strategy (NRS), starting with six disaster prone
pilot districts across the country.

FIGHT AGAINST CORRUPTION

Madam Speaker, fighting against corruption remains a priority of

my Government.

In the year under review, the Anti-Corruption Bureau (ACB)

successfully investigated and prosecuted a number of corruption
cases including money laundering, fraud and other related offenses.

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With regard to law enforcement, the ACB investigated a total of 127
cases of which 86 cases were completed.

Under prosecution, a total of 41 cases were prosecuted in various

courts out of which 8 cases were completed and 6 cases resulted
into convictions.

The ACB also launched the 2019-2024 National Anti-Corruption

Strategy which is designed to promote good governance and improve
service delivery in Malawi.

Moving forward, Government will continue to improve financing for

the Anti-Corruption Bureau and other relevant state organs for us to
intensify efforts in corruption prevention through public awareness
and investigation and prosecution.

But as I have said before, corruption is complex problem and we will

defeat it if everyone of us plays our role. Instead of politicizing the
problem, let us help the Anti-Corruption Bureau to fight it by
reporting any suspected cases.

Let me also assure this august House that my Government

guarantees total independence for the Anti-Corruption Bureau.

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INTERNATIONAL RELATIONS

Madam Speaker, Government continues to strengthen its bilateral

relations with countries and international organizations which we
share a common vision and aspirations with.

In the year under review, Government approved the establishment of

diplomatic relations with the Governments of Andorra, Vietnam and
Vanuatu among others.

I have also received Letters of Credence from 18 Heads of Missions

from both resident and foreign based Governments. This is a
demonstration of our commitment towards the strengthening of our
bilateral relations.

NATIONAL PEACE AND SECURITY

Madam Speaker, Government continues to strive to modernize

security apparatus through procurement of modern equipment,
recruitment and training of security personnel and infrastructure
development.

Malawi continues to deploy its security officers to regional

peacekeeping and security undertakings in the Eastern Democratic
Republic of Congo on the Southern Africa Development Committee

41
Force Intervention Brigade mandated under the United Nations
Organization Stabilization Mission in the DRC (MONUSCO).

Our men and women in uniform redeployed under such assignments

keep on showing bravery and professionalism which brings pride to
our nation.

In the 2020/2021 Financial Year, Government will:

● develop the Malawi Peace Commission Bill to establish the

institution that will facilitate peaceful resolutions of conflicts
across the country; and

● formulate the National Service Policy and National Defence

Policy.

PUBLIC SERVICE REFORMS

Madam Speaker, I wish to report that my Government’s Public

Service Reform Agenda remains on course. We are determined to
improve the efficiency and effectiveness of public service delivery in
the country. Through the various reforms that are under
implementation, we are moving in the right direction.

Government has, among others, enacted and developed Public

Service Reforms related laws and policies to provide legal backing
and policy direction in the implementation of the various reforms.

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In order to enhance awareness about these laws and policies
amongst public servants, Government has started training public
officers on the Malawi National Public Sector Reforms Policy and the
Malawi Public Service Management Policy.

In addition to the mainstream civil service, the Public Service Reform

Agenda has also been initiated in constitutional bodies and other
arms of Government in the past year.

CONCLUSION

In conclusion, Madam Speaker, we are in a crisis. We have a very

difficult road ahead of us. But not everything is lost. We continue to
deliver development in spite of the crises and challenges. When the
going gets tough, the tough get going. And we must be tougher!

Great countries have risen from the worst crises in human history.
We still have a bright future ahead.

What we need is to unite, to put our country first and speak with
one voice. Let us rise above partisan politics and put development
before politics. Malawi is bigger than us all and our children are
watching us.

God Bless You All.

God Bless Malawi.

Thank you.

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