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INTRODUCTION
Mr. Speaker, Sir, I am pleased to deliver this morning the State of the Nation
Address to this august House, and to officially open the 2016/2017 Budget
Meeting.
Before I proceed, allow me, Mr. Speaker, Sir, to convey my deepest condolences
to the entire Honourable House and the bereaved family on the sudden death
of Honourable Billy Kanjira Banda who, until his death, was a Member of
Parliament for Mchinji West Constituency. May his soul rest in eternal peace.
Mr. Speaker, Sir, let me proceed by outlining the gains we have made so far as
a nation and then outline some of the plans for the 2016/2017 financial year.
Mr. Speaker, Sir, the title of my Address today is: Towards Recovery and
Sustainable Socio-economic Development.
This country knows well that we have faced challenges for the past two years.
But we cannot keep bemoaning our challenges. The question is: how are we
redefining ourselves as a nation and emerging out of the challenges.
I am pleased to report that the economy is slowly stabilizing. We took tough
measures to contain our situation, and it was not easy. The resumption of the
Extended Credit Facility with International Monetary Fund (IMF) is testimony
that our austerity measures and fiscal discipline are bearing fruits.
More than ever, we are optimistic that Malawi can do better. We now believe we
can gradually wean ourselves from donor dependency. We have illustrated that
with our own resources well managed, we can make Malawi a country where
our potentials and dreams are realized.
Mr. Speaker, Sir, I have some good news on infrastructure for the financial
sector. The National Switch was implemented in the 2015/2016 financial year.
Government also commenced work on installation of Micro Finance Institution
Transaction Processing Hub. Once installed, the hub will serve as a common
Management Information System for Micro Finance Institutions.
negatively affected crop production including maize the staple food. Maize
production has declined by 12.4% in the 2015/16 growing season. Thus, maize
production declined from about 2.8 million metric tons in 2014/15 growing
season to about 2.4 million metric tons in 2015/16. The country will, therefore,
experience a deficit over another deficit registered in the previous season.
Over three million Malawians are expected to be food insecure.
Mr. Speaker, Sir, this august house must note we have already declared
Malawi a State of Disaster and appealed for humanitarian relief assistance.
Mr. Speaker, Sir, let me put it on record that Government distributed in the
past year relief maize to about 2.8 million food insecure people in 25 districts.
This maize was drawn from the Strategic Grain Reserve. We used Government
resources and funds from the World Bank through the Malawi Floods
Emergency Recovery Project. Through ADMARC, a total of 110,000 metric tons
of maize was procured from Zambia and locally and sold to the general public
at a subsidized price. And as the Government pronounced, no single person
died from hunger.
Mr. Speaker, Sir, in addition, a consortium of International Non-Governmental
Organizations also contributed towards the relief program in form of cash
transfers that benefited about 430,000 Malawians.
Vulnerable households in
all the 28 districts were also provided with sweet potato vines and cassava
cuttings to mitigate food shortage.
Mr. Speaker, Sir, besides mitigating the food shortages;
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rice to be processed, graded, branded and packaged for both local and
export markets.
Mr. Speaker, Sir, to address food shortages in the 2016/2017 financial year,
Government has provided ADMARC with financial resources to procure maize
soon after harvest to ensure that markets are fully stocked with commercial
maize.
Government has also invited interested private sector investors to undertake
commercial irrigation farming in order to boost maize production beginning
this year.
linkages by deploying more Field Assistants across the country and improving
on their mobility through the procurement of
and the National Seed Policy and Bill. We need appropriate agricultural policies
to guide the sector.
Greenbelt Initiative
Government continues to prioritize investment in the Greenbelt Initiative in
order to increase productivity of selected high value crops. I am, therefore,
pleased to report that construction of the irrigation infrastructure and the
sugarcane factory in Salima were completed. Sugarcane nursery development
is underway and planting on the 439 hectares will commence later this year.
Under the GBI, Government has an ongoing Land Management Contract with
Malawi Mangoes limited where land has been provided to Malawi Mangoes for
the production of bananas and mangoes.
Mining Development
Mr. Speaker, Sir, Malawis unique mineral potential continues to attract
interest from both local and foreign investors. We are now focusing on creating
an appropriate investment environment by reviewing of mining legislation and
establishment of mining cadaster, among other things. I am pleased to report
that Government finally launched the countrywide airborne geophysical data in
August, 2015.
Mr. Speaker, Sir, Government will continue to collect, assess and disseminate
geo-scientific data related to geology and mineral resources of Malawi.
Clients
can now access the data for use in mineral exploration, infrastructure
development and general research.
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Mr. Speaker, Sir, we have taken some measures to safeguard the countrys
environment and natural resources. Government has initiated the process of
placing Viphya Plantation and Thuma and Dzalanyama Forest Reserves under
private sector management. We have also developed a National Charcoal
Strategy in order to promote sustainable production of charcoal and
alternative sources of energy for domestic use.
In the 2016/2017 fiscal year, Government will strengthen the legal policy and
regulatory framework for the effective management of its natural resources and
environment. We will enact the Environment Management Bill (2016) and also
adopt the National Climate Change Management Policy. Further, we will
approve the revised National Forestry Policy and also enact the Environment
Management Bill (2016).
Industry, Trade and Private Sector Development
Mr. Speaker, Sir, Government continues to implement the National Export
Strategy in order to build the economys productive base. In the ending
financial year, Government implemented a number of policy, administrative,
regulatory and institutional reforms to enhance Malawis attractiveness as a
destination for private investment. In this regard:
Mr. Speaker, Sir, these reforms will improve Malawis competitiveness in Doing
Business with the world. The reforms will also attract private investment,
which is necessary for economic growth, job creation and poverty reduction.
Mr. Speaker, Sir, Government also facilitated bilateral discussions with
potential investors through the first ever Malawi Investment Forum. This forum
attracted a lot of high profile foreign investors. Government also conducted
bilateral meetings with the Chinese Government on priority projects for Malawi.
I am pleased to report that the discussions with potential investors have
already started bearing fruits. As I speak, we have already granted investment
certificates worth $124 million.
Furthermore, Mr. Speaker, Sir, the Chinese Government approved the
immediate implementation of three priority projects. These are the Chileka
International Airport Project, the 300 Megawatt Kammwamba Coal Fired Power
Plant project and the E-Government (National Identity) Project. The Chinese
Government also agreed to bring investors to support value addition in a
number of products particularly those featured in the National Export Strategy
such as oil seed products; sugarcane products; cotton, textile and apparel;
hides and skins, among others. This is part of the seven major projects
approved by the Chinese Government.
I would also like to report that Government continued to facilitate the
accreditation of the Malawi Bureau of Standards in support of industrial
development. Government is committed to the construction of the State of Art
Laboratory in Blantyre, whose ground breaking ceremony took place in
February, 2016.
Mr. Speaker, Sir, during the 2016/2017 financial year, Government will
continue implementing reforms in order to enhance Malawis attractiveness as
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Mr. Speaker, Sir, delay on workers compensation payments has been a major
concern for a long time. In response to this undesirable situation, Government
is developing a Workers Compensation Fund. Apart from helping to speed up
workers compensation payments, the Fund will also guarantee availability of
finances. This will reduce financial burden to the Government and the private
sector.
Speaker,
Sir,
with
regards
to
implementation
of
social
support
INFRASTRUCTURE DEVELOPMENT
Transport Infrastructure
Mr. Speaker, Sir, a good transportation system is a fundamental prerequisite
to
any
countrys
economic
growth
and
human
development.
That
notwithstanding, our transport costs remain among the highest in the region.
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and
mobility
for
the
countrys
rural
population
through
The
Mr. Speaker, Sir, with regard to improvement of the condition of the existing
roads, a number of roads in the main cities of Blantyre, Lilongwe, Zomba and
Mzuzu have been targeted for rehabilitation in 2016/2017 fiscal year and
beyond, with a view to improving the flow of traffic and reducing congestion
which of late has become a common problem.
Mr. Speaker, Sir, other road projects which are scheduled for commencement
in the next fiscal year include:
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Water Development
Mr. Speaker, Sir, Government remains committed to the provision of safe water
to the masses across the country. It is for this reason that Government has
taken significant steps in establishing the National Water Resources
Authority which will serve as a regulatory body for water resources
management.
During the year under review, Government: continued with construction works on Liwonde Barrage and new Liwonde
Bridge;
continued
implementing
the
Songwe
River
Basin
Development
An
enabling Bill will be presented to this August House during this sitting.
Mr. Speaker, Sir, Government has so far signed 26 Memorandum of
Understanding with potential Independent Power Producers Investors in the
Power Sector. The project proposals range from solar, coal and hydropower
generation technologies.
Apart from the Malawi Challenge Account Project whose main focus is
rehabilitation and upgrading of Nkula A and building of high voltage
transmission across the country, Government is also implementing the Energy
Sector Support Project funded by the World Bank and African Development
Bank.
will soon sign a financial Agreement with the Exim Bank of China for
Kammwamba Coal Fired Power Project.
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a total of 33, 241.64 metric tons of maize was procured for restocking the
Strategic Grain Reserve;
Further, we have so far provided relief assistance in terms of food and non-food
items to about 32, 198 households in 25 districts.
Going forward, Government will:
finalise the review of the Disaster Preparedness and Relief Act; and
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therefore, all old persons must be respected, protected, and taken care of.
Government will in the next financial year intensify awareness campaign on the
rights and welfare of people with disability, review the 1911 Witchcraft Act
and develop a National Elderly Bill for presentation to this august house.
SOCIAL DEVELOPMENT
Public Health
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signed
Memorandum
Association of Malawi
of
understanding
with
Christian
Health
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continue to
quarterly basis to enable the Trust to, among others, process tenders in
a more predictable and efficient manner;
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Mr. Speaker, Sir, in the next financial year, Government will, among others:
launched the revised 2016-2021 National Gender Policy which will guide
gender mainstreaming and women empowerment initiatives;
Mr. Speaker, Sir, in the 2016/2017 financial year, Government will scale up
women economic empowerment activities. Among other things, Government
will provide various business skills to Village Savings and Loans business
groups.
Child Protection and Development
Mr. Speaker, Sir, children need love, care and protection because experiences
they undergo as they grow up will affect their destiny. To this end, Government
remains committed to the protection of our children, as well as the provision of
Early Childhood Development (ECD) centres across the country.
During the year under review, Government:
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Continued
to
provide
mortgage
loans
for
purchase
and
Mr. Speaker, Sir, in the coming financial year, Government will continue
implementing the Cement and Malata Programme to ensure that rural areas
have decent houses. There is no turning back because we have an obligation to
improve the quality of life for those who cannot afford.
Youth Development and Empowerment
Mr. Speaker, Sir, as you are aware, more than 60 percent of our population is
made up of the youth. If empowered, they will certainly play an assertive and
constructive role in the development of our nation. Therefore, Government will
continue to empower the youth in a number of porgrammes. These include the
construction of Youth Multipurpose Learning Centers, which provide a
platform for the youth to access a variety of education and skills building
programs.
I am pleased to inform this august House that Government launched the first
ever Youth Status Report which captures indicators that can be used to assess
the status of young people in our country. This enables us to make more
informed decisions for the Youth.
In the coming financial year, Government will continue to implement
programmes that will empower the youth to become productive citizens of our
nation.
Democratic Governance
Mr. Speaker, Sir, my Government is determined to promote the rule of law,
justice, democracy and good governance. The Government is also committed to
promote strict adherence and observance of the tenets and dictates of the
Constitution in order to promote the welfare of Malawians.
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party reporting Guidelines. Malawi also successfully presented her 7th periodic
report on the Convention on the Elimination of Discrimination Against Women
(CEDAW) and her second cycle report on the Universal periodic Review (UPR) to
the United National Human Rights Council.
strengthened
through
various
prevention
and
public
education
initiatives.
Mr. Speaker, Sir, Government is aware of the challenge of resources that the
fight against corruption faces. Government will, therefore, continue to ensure
that resources and other support are provided to consolidate efforts to tackle
corruption in Malawi.
Public Sector Reforms
Mr. Speaker, Sir, as you are aware, I have prioritized the reform agenda since
taking Office in May, 2014. I established a Public Service Reforms Commission
to help in the implementation of the reforms agenda. Under the Vice Presidents
supervision, Government is implementing bold and decisive reforms to ensure
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On a pilot basis, turned Lilongwe and Mangochi Post Offices into One
Stop Shop Service Centres in a bid to facilitate easy and quick access to
public services;
strengthened
the
Road
Traffic
and
Safety
Services
including
collaborated
with
the
Parliamentary
Committee
on
Government
commenced
construction
of
the
Malawi
Bureau
of
Standards
Mr. Speaker, Sir, these are only highlights. Much more is happening.
In the forthcoming fiscal year, we will continue to:
review the Public Service Act (1994) and develop a Public Service
Management Policy; and
construct four more One Stop Shop Service Centres in Salima, Mzuzu,
Mzimba and Blantyre using part of the US$15 million grant funding from
the World Bank.
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Identity cards and later reach 100,000 Malawians in selected districts and
Traditional Authorities by December, 2016. We will issue over 9 million Identity
cards by July, 2018.
Mr. Speaker, Sir, Government is currently hosting over 25,000 refugees and
asylum seekers from the central and north east African regions, and over
10,000 asylum seekers from Mozambique. To ensure that we manage the entry
and exit of our borders, we are currently in the process of automating our
border posts. The project will enhance tracking of immigrants and increase
efficiency in clearing both people and goods.
Other reforms and measures in the pipeline include automation of the Permit
Issuance System and installation of E-visa Application and Issuance System.
Moreover, we also intend to enhance the security policy and legislation
framework. We will introduce the first ever National Security Policy and
Migration and Citizenship Policy. Laws that are under review include the
Refugees Act, the Prisons Act and the Firearms Control Act.
As regards to peace support operations, Mr. Speaker, Sir, the Malawi Defence
Force continues to participate in various peace keeping operations. Currently,
Malawi Defence Force is participating in observer missions in Darfur, Ivory
Coast and Democratic Republic of Congo. These Missions provide the
opportunity for our military personnel to acquire special skills and experience
which is critical to capacity building of our Defence Force. I am pleased to
report that the Malawi Defence Force has consistently been commended by the
international community for its discipline.
In the coming financial year, Government will continue to provide the
necessary support to our security institutions in order to ensure the safety and
security of all people in this country. Among other measures, we will:
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International Relations
Mr. Speaker, Sir, in line with the policy objective of safeguarding Malawis
foreign interests abroad, socially and economically, the main thrust of
Governments foreign policy has been development diplomacy. Government
has, therefore, worked hard in this regard, and registered a number of
successes in the past financial year.
In order to expand physical presence in other jurisdictions, Government
opened a new Embassy in Geneva, Switzerland, with accreditation to United
Nations agencies based in Geneva. The main aim of opening this embassy is to
strengthen strategic ties with the Government of Switzerland and other
European countries as well as all other Geneva based UN Agencies. Malawi has
also recently opened a Consulate in Tete, Mozambique, to facilitate trade and
investment between Malawi and Mozambique.
Government has also maintained cordial and fraternal relations with the
Government of the Republic of Tanzania. This has been manifested in the
wellbeing of our two peoples and continued growth in trade and business
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rationalize our foreign missions in order to make them lean and efficient with
the right numbers of personnel with requisite competences. We will also recall
individuals who, in some cases have stayed in these missions for up to 10 or
15 years!
CONCLUSION
Mr. Speaker, Sir, before I conclude, let me emphasize that we are making
progress and delivering on our electoral mandate despite the challenges that
we are facing as a nation at the moment. In saying this, I know and
understand that there is still more that needs to be done. As a small player in a
highly complex, volatile and globalized economy, we are bound to face many
more challenges along the way due to externally induced pressures and
shocks.
Mr. Speaker, Sir, in such unpredictable and competitive environment,
Government will do everything possible within its powers to safeguard the
interests of our nation. I have no doubt whatsoever that the resilience that we
have always shown as a nation will once again prove vital in addressing most of
the prevailing economic and social problems. It is our duty to ensure that the
economy is revived faster so that Malawians can begin to lead a fulfilled and
dignified life. Government considers the enjoyment of this right as being sacred
and absolute.
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Mr. Speaker, Sir, I therefore call upon all Malawians to unite in building a
better and inclusive society for all. At fifty plus as an independent nation, I feel
we are at the critical stage of development where patriotism, hard work,
discipline, commitment to duty and above all selflessness and sacrifice must be
exemplified by all of us including members of this august House. All the efforts
by the Government shall be in vain if we do not bury our differences and put
the interests of our country and people first. There must be no room for divisive
elements and complacency in our society. We all must sacrifice, and subject
our own personal needs to the needs of our nation.
Mr. Speaker, Sir, I am emphasizing unity because we will from time to time, as
a nation, be required to make difficult but necessary choices. We will also be
required to carry out strategic reforms that must put our country on a
sustainable path for sustainable growth. That journey must begin now and
involve all of us. Our collective resolve should be to employ innovative ways
that will expedite and maximize delivery of the much needed basic services to
the people of Malawi - the hallmark of the DPP Manifesto. We must target and
achieve radical economic transformation.
I would, therefore, like to salute various local, international and bilateral
development partners for their contribution towards the development of our
country and ameliorating the suffering of Malawians. You did not hesitate to
come to our rescue when I appealed for support towards food shortages in the
country as the realities of climate change continue to affect us. Guided by the
famous saying a friend in need is a friend indeed, we will continue to work
together in addressing the socio-economic challenges facing our nation today.
I would also like to thank all Malawians and in, particular, leaders of various
faith based organizations who regularly come to discuss with me on various
issues affecting our nation. I see them as a moral compass and conscience of
our society. In that vein, I reaffirm today that I am open to honest and
constructive conversations on development of our beloved nation.
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Members of this august House also deserve special recognition for the
important role that you have played in the past twelve months. Let us continue
working together in the furtherance of our national interests. After all, we
belong to different branches of the same Government. History has placed on
our shoulders, an important responsibility of changing the circumstances of
our people together. History will harshly judge us if we fail to seize this Godgiven opportunity to bring about the much needed change.
Above all, Mr. Speaker, Sir, I am indebted to the Almighty God for the peace
and stability that we continue to enjoy in this country. This gives me hope and
confidence that most of our present predicaments will shortly be history.
God bless you all
God bless Mother Malawi
Thank you, Mr. Speaker, Sir.
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