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REPUBLIC OF MALAWI

DELIVERING SUSTAINABLE DEVELOPMENT

STATE OF THE NATION ADDRESS

by

HIS EXCELLENCY
PROF. ARTHUR PETER MUTHARIKA,
PRESIDENT OF THE REPUBLIC OF MALAWI

On the occasion of

THE STATE OPENING OF THE 3RD MEETING IN


THE 47TH SESSION OF PARLIAMENT AND
2018/2019 BUDGET MEETING

LILONGWE

Friday, 4th May, 2018


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

• RIGHT HONOURABLE DR. SAULOS KLAUS CHILIMA,


VICE PRESIDENT OF THE REPUBLIC OF MALAWI;

• RIGHT HONOURABLE RICHARD MSOWOYA, 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;

• HIS EXCELLENCY KIKKAN HAUGEN, DEAN OF THE


DIPLOMATIC CORPS AND HEADS OF DIPLOMATIC
MISSIONS;

• MR. LLOYD MUHARA, CHIEF SECRETARY TO THE


GOVERNMENT;

• DISTINGUISHED INVITED GUESTS;

• LADIES AND GENTLEMEN.

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INTRODUCTION

Mr. Speaker, Sir, my Address this year is on delivering


sustainable development.This is the title of my Address. My
message is simple. We have delivered to the people, and we
will continue delivering.

This month, four years ago – we were speaking of a broken


economy, stagnated projects and smashed hopes. Today, we
have the economy fixed, confidence regained, projects moving,
and hope rising.

Those of us who are proud of our nation should celebrate our


economic efforts as a country. We all know that nothing works
when the economy doesn’t work. And we know that a working
economy is the beginning of a prospering nation.

The question is not whether Malawi is developing or not. The


question is: which way is Malawi developing? Every time I come
to address this house, we all want to know the policy direction
we are taking this country.

On this day, we all ask: where is our country coming from? We all
ask: in what state is our country? And we all ask: what is our
government doing?

As we ask what Government is doing, let us also ask what role


each one of us is playing in developing our nation. Let us
examine our responsibility.

Mr. Speaker, Sir, in this country, many people do not want to


distinguish politics from development. We are a nation that
carries our politics too far to the point of destroying
development.

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There are people whose only dream is aspiring to destroy this
country. For example, the recent demonstrations were planned
to trigger riots which was to lead to breaking and burning of
property.

They wanted to create a state of chaos, panic and fear to make


Malawi ungovernable. While we are rebuilding the economy,
there are people who think of destroying it. This is unacceptable.

We enjoy our freedom of expression. But our political freedom


must never bring disorder in this country. We want to develop
this country.

There are people who cannot respect the principles of our


governance. Our respect for governance must begin with our
respect for this august House. We cannot be Parliamentarians
who make laws in this House and go out to demonstrate against
our own laws. This spirit of lawlessness cannot be accepted.

While you and I are making every effort to build confidence in


Malawians, there are people whose job is creating hopelessness
in the people. There are people whose job is discouraging
Malawians who want to work for their lives and for this nation.
This must stop because we are destroying our own country.
Destroying the self-confidence of the people is destroying the
country.

Let us learn to be proud of our efforts as a nation. We can differ


on politics, but we must agree and unite on developing this
nation.

The first point that we need to be proud of is what we have done


in macro-economic performance. Indeed, let me proceed to
outline our macro-economic outlook.

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Macro-economic Outlook

Mr. Speaker, Sir, our macro-economic outlook is very bright.


Nobody says we have achieved economic perfection. Nobody
should say we don’t have challenges.

But we agree that there is now a clear sense of economic


direction and that we can count our achievements as a nation.
In general, we have achieved macro-economic stability, inflation
reduction and a rebound in economic growth.

The International Monetary Fund has just given us a vote of


confidence. This week, the IMF has approved a new Extended
Credit Facility for the next three years. This means the IMF is
satisfied with our economic management.

Mr. Speaker, Sir, Honourable Members! We are making history.


In 2014, we had a deficit that nearly equaled our annual
national budget. It has taken us three years to turn around the
economy from the devastation of cashgate, and through national
disasters of floods, drought and hunger.

Four years ago, inflation was at 24 per cent. Today, we have


delivered a single digit inflation. Four years ago, interest rates
were at 25 per cent. Today, interest rates are at 16 per cent. We
have taken our foreign currency import cover from the lowest
point to the highest point in our economic history. From an
import cover of below 2 months, our import cover now stands at
6 months. Our local currency is now stable and predictable.

In these few years, we have taken GDP Growth Rate from 2.4
per cent. In 2018, we expect growth to be at 4 per cent. In 2019,
we expect growth to rise to 6 per cent.

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Mr. Speaker, Sir, this House may ask: is our economic
performance benefiting our people? The answer is yes! Our
progress does not mean all people are economically equal. That
does not happen anywhere on earth. The point is: there are signs
of progress with more people participating in the economy to
create their own opportunities.

With the state of our economy, our business community find it


easier to access forex for smooth cross-border trade. For two
years now, prices of fuel have not risen. Consumers tell us prices
of many goods in shops and fares of buses have been stable.

There is more business in construction materials because


Malawians are building more than ever – and you can see this
all around us. Malawians are buying more cars than ever
because more and more people can afford a car. You can see the
rising population of vehicles on our roads. You can see the rising
demand for fuel as new filling stations are rising everywhere.

In our villages, you can see more men and women constructing
modern houses with iron-sheets. In our communities, you can
see young men buying motorbikes because now they can afford.
These motorbikes are transforming the transport system in rural
communities.

Mr. Speaker, Sir, whether we like it or not, whether we have


chosen to see or not to see – there is a quiet economic
revolution slowly happening among our own people while we
watch.

With a growing economy, revenue grows; and with growing


revenue, we can do more for our people using our own national
resources.

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Within the means of our resources, we are delivering more roads
to the people; delivering new desks to our schools and delivering
rural electricity to various trading centres and communities.

We have delivered a new road to the people of Kasiya and Santhe


with our own resources. We are delivering a road to the people
of Njakwa, Livingstonia and Chitimba with our revenue. In June,
we are starting the road from Rumphi to Nthalire and Chitipa via
Nyika National Park with our local resources. This is what
happens when an economy is growing.With our resources, we
are delivering new infrastructure in our universities.

This year, we will do more to collect more revenue and deliver


more services. We expect to implement broad-based tax reforms
that foster a simple, efficient, transparent and fair tax system. At
the same time, we expect to increase salaries of our civil servants
as a motivation across the board.

Mr. Speaker, Sir, let me now turn to Agriculture. We are heavily


investing in irrigation because this is what will make us a
resilient economy. We want to be an economy of all seasons, an
economy that stands against climate fluctuations.

We are transforming agriculture by moving from subsistence to


commercial farming. In order to achieve this goal, we are
implementing the Malawi Agricultural Commercialisation
Project. We will select and focus on crops for value chains. We
will form cooperatives in order to create productive alliances and
value addition chains.

We are also implementing the Agricultural Sector-Wide


Approach Programme. Our goal is to enable small-holder
farmers to have access to investment capital and markets.

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As part of this program, we plan to construct 4,000 kilometers
of roads in order to enable our farming communities access
markets. This work began in March. As I speak, 40 contractors
are already on the ground upgrading rural access roads and
building bridges in various communities.

We are also in the process of delivering the Nthola-Ilola-Ngosi


Irrigation Scheme to the people of Karonga. We are developing
Nchalo Irrigation Scheme. More investors are coming to develop
new farms and increase value addition. For example, a new farm
in Chapananga is investing in aquaculture and production of
biofuels from bamboos. This is innovative.

We have a major Greenbelt project on smart irrigation farming


targeting 24,000 hectares. Investors are set to partner with
Nchalo Farmers’ Association.

Finally, we are implementing the Shire Valley Transformation


irrigation programme. This programme covers about 40,000
hectares. This is our project – funded by a loan from World
Bank. By August, we should start constructing intake canals.

Mr. Speaker, Sir, the complete picture of our irrigation program


says one thing. Malawi’s irrigation programme is going to be the
biggest irrigation program in the Southern Africa Region.

MINING DEVELOPMENT

Mr. Speaker, Sir, in recognition of the huge potential the mining


sector has on the country’s economic growth and development,
Government has been implementing a number of initiatives
aimed at increasing investments in the sector.

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Some of the initiatives include: capacity building in mining
contract negotiation and in development of modern mining
agreements. We want ensure that we enter into mining
agreements that are balanced, equitable, fair and beneficial to
the people.

We have also adopted a regionally competitive Mining Fiscal


Regime. This will ensure that investors will have confidence in
the sector. Increased investment in mining will result in job
creation and more revenue for social and economic growth.

Mr. Speaker, Sir, we are reviewing the Mines and Minerals Act
of 1981 and the Petroleum Act of 1983. We want to improve the
legal environment of the mining industry to enhance
development of the sector and increase its benefits to the people.
The Bills are expected to be tabled in this sitting of Parliament.

PRIVATE SECTOR DEVELOPMENT, INDUSTRY AND


TRADE

Mr. Speaker, Sir, we are moving Malawi from aid to trade. For
us to realize this, we are promoting Foreign Direct Investment.
We need to have bigger private sector and a smaller Government
that is efficient. We need private sector investment for job
creation and an expanded revenue base.

The Foreign Direct Investment program is now paying off. We


now have a textile company being established in Salima. This
company will eventually produce yarn and cloth for export to
China, India, United States, South Africa and other countries.

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We have also seen the coming of business parks in Lilongwe and
Blantyre besides other investments.

Mr. Speaker, Sir, I have one appeal to Malawians. Let us be


creative and innovative in our business spirit. Malawi has a lot
of products that are rated among the best in other countries.
What we need is to brand them with the best pride of Malawi.
Chambo is known to be one of the best tasty fish in the region.
Kilombero rice and our macadamia nuts are very well known in
countries like Scotland. These are only some examples. Let us
brand our products as the best of Malawi.

INTEGRATED RURAL DEVELOPMENT

Mr. Speaker, Sir, let me now speak about integrated rural


development. Our goal is to take development to the people
instead of taking people to development. Malawians in rural
areas should not be going to the city in search of opportunities
and a higher quality of life. Let us take opportunities to the
communities. People in rural areas also deserve a high quality of
life. That is why we are building rural roads, developing rural
growth centres, constructing stadiums, providing rural
electricity and taking the internet fibre optic backbone to the
people.

In the 2017/18 financial year, we have delivered the Nthalire


Rural Growth Centre to the people of Chitipa. It is now ready for
handover to Chitipa District Council for operations.

We have delivered Nambuma Rural Growth Centre to the people


of Dowa. To complete the work, we have designs in place for the
Dowa-Nambuma road. The road will be constructed using fuel
levy.

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We have delivered Malomo Rural Growth Centre in Ntchisi. For
easy access to the centre, we have advertised for contractors for
Malomo-Ntchisi Road. The project will be funded by fuel levy.

We have delivered Jenda Rural Growth Centre and it is now


ready for handover to M’belwa District Council.

We are finalizing Mkanda Rural Growth Centre in Mchinji. We


will hand it over the to the people of Mchinji within 2018. We
have also started constructing a tarmac road to Mkanda.

In addition, we are finalizing works on Chitekesa Rural Growth


Centre in Phalombe and Chapananga Rural Growth Centre in
Chikwawa.

Mr. Speaker, Sir, let me talk about stadiums we are


constructing in rural areas. These facilities are important. Ask
the youth and they will tell you their value to us as a society.
Sports is the pride of our country and we need to support it.

Let us provide facilities and support Malawians who love


sports – and there are many of us. Those who say we must stop
building stadiums do not wish our youth and sports lovers well.
Therefore, we will continue building stadiums in our cities and
rural areas.

TOURISM, WILDLIFE AND CULTURE

Mr. Speaker, Sir, Malawi continues to be one of the world’s best


tourism destinations. This month of May, Malawi has been
recognized by the CNN as one of the best 15 destinations to be
visited in the world. There have been more of such reports.

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Government remains committed to develop the tourism sector
by providing enabling policy and legal frameworks. We have
therefore developed the National Tourism Policy and the
National Wildlife Policy. We are also inviting serious investors to
invest in tourism.

As Government, we will continue to provide infrastructure that


facilitates tourism. In Mangochi, we will expedite plans to
construct a new airport that can take the world directly to Lake
Malawi.

As most of us know, Nyika National Park is rated in the top ten


of the most beautiful places in Africa. The road from Rumphi to
Nthalire and Chitipa via the national park should make this
park more accessible to the world.

We will continue providing infrastructure such as access roads


to more facilities to attract more tourists.

However, let me urge the Ministry responsible to create more


global networks that sell Malawi to the world. There is demand
for information on Malawi out there.

PUBLIC HEALTH

Mr. Speaker, Sir, let us now talk about health. Our goal is to
ensure good health for every Malawian.

We want to improve access to health services by expanding some


of the existing health facilities and constructing new ones. Very
soon, we will stop sending our people to South Africa, India and
Tanzania for cancer treatment.

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Construction of Malawi’s first-ever national Cancer Centre is
progressing well and the project is expected to be completed
before end of this year.

Progress on Phalombe District Hospital and Domasi Community


Hospital projects is also on course.

Mr. Speaker, Sir, Government is establishing boards to run


Kamuzu Central Hospital, Queen Elizabeth Central Hospital,
Zomba Central Hospital, Mzuzu Central Hospital and Zomba
Mental Hospital. This will improve management of the hospitals
and ensure more efficient delivery of services to our people.

Government has procured medical equipment worth 5.9 million


dollars for 49 health facilities. Some of the equipment has
already started arriving in the country. Each of the 49 facilities
will get standard minimum package of the equipment required
to provide essential health care.

Let me also report that we are addressing shortage of health


workers by among others, filling some of the vacant positions
using the Global Fund grant and our own local resources.

These include nurses for the vacant posts at the New Paediatric
Surgery and Intensive Care Unit at Queen Elizabeth Central
Hospital. We are also recruiting 858 health workers for the
different levels of health care system using the current Global
Fund grant.

Mr. Speaker, Sir, Government is determined to end the problem


of drug theft in public health facilities. We established the Drug
Theft Investigation Unit to investigate cases of suspected theft of
medicines and medical supplies. The trend of drug theft is
declining.

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In addition, Cabinet has approved the Pharmacy and
Medicines Regulation Bill, 2018, which provides stiffer
penalties for offenders in drug supplies.

I should also report that we are globally doing well in our


management of HIV and AIDS. Malawi is one of the top-rated
countries in the world in the fight against HIV and AIDS.

Government places priority on the fight against HIV and AIDS.


We have continued to scale up free treatment program. As a
result, we have reduced new HIV infections by 42 per cent
between 2003 and 2017.

However, malaria continues to be a global public health


problem. In the country, malaria alone contributes 30 per cent
of all Out-Patient Department cases and 40 per cent of all
admissions.

We are therefore taking serious steps to achieve the global target


of eliminating malaria by 2030. I am, therefore, pleased to
announce that on all malaria impact indicators, the country is
on track to achieve strategic targets and move into the
elimination phase of the disease.

EDUCATION, SCIENCE AND TECHNOLOGY

Mr. Speaker, Sir, quality education is key to the


socio-economic development of our country. To this end,
Government is committed to provide high quality education to
its citizens.

Let me report to this House some of the major achievements we


have delivered to the people.

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In the Basic Education Sub-sector, we have recruited and
deployed 34,700 primary school teachers across the country
since 2014. We are making progress with construction of 3
Teacher Training Colleges in Rumphi, Mchinji and Chikwawa.
These will be completed in 2 years’ time.

Currently, we have delivered over 200 classrooms and other


facilities such as teachers’ houses. We are also constructing
286 more classrooms in schools across the country.

In the forthcoming Financial Year, we will commence the


construction of more primary schools in the cities of Lilongwe,
Blantyre, Zomba and Mzuzu.

Mr. Speaker, Sir, in secondary education sub-sector,


Government has recruited, promoted and upgraded about 2,500
teachers. We want every child to attend school. We have
therefore increased bursary and cash transfer schemes to needy
students in secondary schools. No child should fail to be
educated because of poverty because it is the poor child who
most needs education.

In addition, we are constructing more girls’ hostels, laboratory


and library blocks in the country.

At the same time, we are promoting quality and increasing


access to university education. We have constructed new
infrastructures at Chancellor College, the Polytechnic, Mzuzu
University and Lilongwe University of Agriculture and Natural
Resources.

This House should also note that we are delinking colleges of


the University of Malawi to become independent universities. We
want them to grow and take in more students across the
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country. Further, we have started constructing Mombera
University in Mzimba in order to improve livestock production
for local consumption and export.

GENDER, WOMEN AND DEVELOPMENT

Mr. Speaker, Sir, we are taking necessary steps to ensure


increased participation of women in the 2019 tripartite elections.
We have mounted the 50-50 campaign in line with our
aspirations and international agreements on gender equality.

Mr. Speaker, Sir, we have adequate legal and policy framework


to guide implementation of gender programmes and safeguard
the rights of women.

Let me also report that we have nullified 600,000 child


marriages. Children that have been withdrawn from child
marriages are now back in schools.

Over the past year, we have harmonized gender related laws. At


the same time, we have also established the Women Economic
Empowerment Fund to accelerate the implementation of 40:60
quota representation as provided in the Gender Equality Act of
2013.

CHILD PROTECTION AND DEVELOPMENT

My Government cares for and values our children. We have


therefore revised the National Early Child Development Policy to
facilitate early childhood development services for all our
children.

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Government has constructed 141 Community Based Childcare
Centres across the country. We have trained over 14,000
caregivers.

We have also rolled out the Child Protection Information


Management System in ten districts. This system will provide
accurate and real time data on children issues for our decision
making. Government will roll out the system to all remaining
districts.

THE ELDERLY AND PERSONS WITH DISABILITIES

Mr. Speaker, Sir, the elderly and persons with disabilities have
equal rights to all of us. My Government will therefore continue
to promote the quality of life of older persons and persons with
disabilities.

During the 2017/18 financial year, Government provided


vocational skills and rehabilitation training to 296 persons with
disabilities.

We also provided various assistive devices to 753 persons with


disabilities and older persons. We launched the Disability
Communication Strategy.

We increased intake of students at Mulanje Vocational and


Rehabilitation Training School for the Blind following
construction of modern hostels at the institution.

Mr. Speaker, Sir, in 2016, Government commissioned a study


on the life of elderly people in the country. Based on the findings
of the study, we will work on a pension scheme to eradicate
social and economic hardships the elderly face.

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In the coming financial year, we will review the Witchcraft Act of
1911 to strengthen the protection of older persons from
witchcraft related violence.

We will continue to implement the National Response and Action


Plan on Albinism.

We will construct a Rehabilitation and Vocational Skills Training


Centre for persons with disabilities in the Northern Region.

YOUTH DEVELOPMENT AND EMPOWERMENT

Mr. Speaker, Sir, youth empowerment is a priority of my


Government.

We have seen young people graduating from the community


colleges we are establishing. They have gone out to become
entrepreneurs and create jobs.

We are delivering the Jobs for Youth Project with support from
the African Development Bank. Our youths are being trained in
skills for businesses.

We are training youth at SMEDI for them to operate business in


the agriculture supply chain.

We have delivered to our youth community stadiums for their


recreation and talent development.

We have expanded and re-equipped our four National Technical


Colleges and our public universities for the training of our youth.

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SOCIAL PROTECTION PROGRAMMES

Mr. Speaker, Sir, Government will continue to implement


programmes that uplift living standards of our people.

We have therefore scaled up social cash transfer from 18 to all


28 districts. Now we are giving money to more than 300,000
households.

Through Public Works Programme, we are supporting 986,000


households each year. People are using this money to buy food,
farm inputs and school materials for their children.

ROAD INFRASTRUCTURE

Mr. Speaker, Sir, we promised roads to the people of Malawi.


Roads are development. We have delivered roads to the people.

We have rehabilitated the 81.7 km Chikwawa-Ngabu-Bangula


Road. We have completed the phase 1 of upgrading of the
Jenda-Edingeni Road. This involves upgrading of 15 km from
Jenda to Chindoka.

We have completed the upgrading of Milepa-Chiradzulu road


section of the Chiringa-Migowi-MiseuFolo-Chiradzulu and
Nguludi Spur Road Project.

Mr. Speaker, Sir, a number of projects are at different stages of


completion. These include:

n Zomba-Jali-Phalombe-Chitakale Road,

n Lilongwe Old Airport-Kasiya-Santhe Road,

n Mzuzu-Nkhata Bay Road,


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n Karonga–Songwe Road,

n Njakwa–Livingstonia Road,

n Liwonde-Mangochi Road,

n Parliament Round About–Bingu National Stadium


Dual Carriage Way,

n Dual Carriage Way from Chileka Airport to Clock


Tower in Blantyre, and

n The Blantyre Ring Road where the first phase from


Chigumula to Mpemba has started.

We have just started constructing phase 1 of the Ntcheu–


Tsangano-Neno Road and the Lirangwe–Chingale–Machinga
Road.

In the forthcoming financial year, we are planning for Phase 2 of


Lumbadzi–Dowa–Chezi Road, Kawere – Mkanda Road and Phase
2 of Jenda–Edingeni Road.

Mr Speaker, Sir, the people in the cities of Mzuzu, Lilongwe,


Zomba and Blantyre can see that we are modernizing their cities
with dual carriage ways and interchanges.

We have delivered improved roads to the people in the townships


in these cities.

However, Mr. Speaker, Sir, I am aware that Lilongwe City


Council has been underperforming in this area. There is no
excuse. I urge the Parliamentary Committee on Local Authorities
to do its job and make the Council perform.

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WATER TRANSPORT

Mr. Speaker, Sir, Government has continued to invest in the


water transport subsector. In March this year we completed the
rehabilitation of the Nkhata-Bay Jetty which sunk in 2016.

In the coming financial year, we will procure two patrol boats to


enhance law enforcement and ensure that only licensed vessels
operate on Lake Malawi.

We also have plans to roll-out freight services to Mbamba Bay on


the Mtwara Corridor, introduce a regular freight service between
Chilumba and Liwonde and construct a port at Liwonde.

RAIL TRANSPORT

Mr. Speaker, Sir, Government completed the rehabilitation of


99 km section of the rail network from Nkaya to Nayuchi.

We also completed the rehabilitation of the 96 km Limbe-Nkaya


section of the rail network as well as spot railway rehabilitation
of the Balaka-Salima-Kanengo section of the rail network.

We have started rehabilitating the 399 km railway section from


Nkaya to Mchinji.

Mr. Speaker, Sir, I have more news.

We are reviving the railway from Limbe to Beira and designs are
almost completed. We expect to start construction works by the
end of the year.

We are negotiating for a new railway from Lilongwe to Mbeya in


Tanzania. But we are also going to construct another railway
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from Mbeya to Chilumba to connect with water transport where
we will add more vessels to sail as far as Monkeybay. The
Memorandum of Understanding has been signed and we expect
the project to be on Build-Operate-and -Transfer model.

At the same time, we intend to dualise the M1 Road from


Blantyre to Karonga. Let us change Malawi once and for all.

AIR TRANSPORT

Mr. Speaker, Sir, we are transforming air transport in the


country.

Let me report that the process of establishing a Civil Aviation


Authority to discharge functions previously carried out by the
Civil Aviation department is under way.

We are making progress with rehabilitation and expansion


works at Kamuzu and Chileka International Airports.
Construction works at KIA are scheduled to be completed in
April, 2019.

Mr Speaker, Sir, we are also negotiating with investors to


construct a new international airport in Mangochi and we are
making good progress. This airport will come with high standard
hotels and transform tourism along Lake Malawi. Time has come
to transform this country, and that is what we are doing.

WATER DEVELOPMENT

Mr. Speaker, Sir, we continue to make some significant


progress in the area of water development.

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We have delivered portable water to the people of Chitipa
through the Kelenge Water Supply System.

We have delivered water to people of Mangochi through the New


Mangochi Water Supply Treatment Works.

And works are in progress for the Likhubula-Blantyre Water


Supply System.

Mr. Speaker, Sir, I should also report that upgrading of Liwonde


Barrage is on track and works are expected to be completed by
end October, 2018. The Liwonde Barrage is an important
infrastructure as it regulates the level and flow of water in the
Shire River for various purposes. This includes water supply,
hydroelectricity generation, irrigation and control of flooding.

ENERGY

Mr. Speaker, Sir, I always say the first step towards solving a
problem is to accept the problem. You cannot solve a problem by
denying it.

My statement is not a blame of the past. My statement is an


explanation of the causes of our situation and what we are doing
about it.

Let us accept that power shortage is a problem in this country.


Let us accept that power shortage has been a problem for many
years because we never invested to solve the problem. In short,
for fifty years, we never cared much that this country would
have eighteen million people in need of energy.

Mr. Speaker, Sir, when I hear Malawians being angry because


we have power shortage, I understand. We have let down

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Malawians for too many years since Independence. When people
point fingers at me, I also understand that it is the sacrifice of
leadership to carry the responsibility of those who governed this
country before me.

But let us accept that the little hydropower we invested in is


facing serious challenges because climate is adverse and water
levels in Lake Malawi keep fluctuating. And let us accept that we
are the only Government that is confronting the power problem
head-on!

Let me also emphasise to this House that the diesel generators


are only temporary. And yes, temporary measures are expensive.
That is the cost we pay for neglecting our energy sector for fifty
years as a country.

We are the first Government to declare comprehensive plans to


end power shortage now and for generations to come. This
country needs not less than 2,000 megawatts in order to serve
our households, serve the manufacturing industry and for
Malawi to start serious mining.

That is why I have directed that we must double the current


power supply of 360MW to 720MW by 2020. And we must
generate at least 1,000MW by 2023. That is why we are
diversifying power generation into coal energy, wind power, solar
power, gas power and expand the current hydro system by
building dams.

We are working on inter-connections with our neighbouring


countries to tap power already generated out there.

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We are making progress with plans to construct a dam on Shire
River in order to expand our hydro-power system. We are going
to construct a dam at Mpatamanga Gorge.

The feasibility was done and World Bank has committed to co-
finance the project. This project will add 300 megawatts to the
national grid and it will add capacity to Kapichira with at least
another 100 megawatts.

We continue to pursue implementation of the Kam’mwamba


Coal Fired Power Plant for 300 megawatts. We have resolved
most of the challenges that have delayed us and we are making
progress. Our target of completion of construction remains the
year 2021.

We are also negotiating for another 500 megawatts coal fired


power project in the Neno side. This is to be implemented by
Millennium Energy.

We are negotiating another coal power plant that can potentially


produce 300 megawatts in Liwonde.

We are also negotiating with yet another coal fired power plant
in either Salima or Golomoti.

There are several more long-term projects we are pursuing


because I want this country to resolve the power shortage
problem forever. We need to say farewell to blackouts. And we
will do it!

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INFORMATION AND COMMUNICATION TECHNOLOGY

Mr. Speaker, Sir, Government is committed to provide enabling


environment for the development of the Information
Communications and Technology (ICT) Sector.

In the past two years, my Government has enacted progressive


laws to make the sector effective and robust. These laws include
the E-transactions and Cyber Security Act, the Communication
Act and the Access to Information Act.

Last year, I launched the National Fibre Backbone Project. We


want to connect all major sectors of the economy and
Government agencies in the country to a high speed optical fiber
based.

We want rural communities to access ICT right in their


communities. We have therefore delivered 114 telecentres to the
people.

Mr. Speaker, Sir, in the next financial year, Government will


start constructing 30 additional telecentres in new
constituencies across the country.

We will continue with Connect a School project to ensure that all


Government secondary schools have well serviced computer
laboratories

LANDS, HOUSING AND URBAN DEVELOPMENT

Mr. Speaker, Sir, I promised decent houses to the poor. I come


here to report that we are delivering.

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The Decent and Affordable Housing Subsidy Programme is
making good progress.

As I speak, we have delivered houses to more than 11,000


households who would not have been able to afford a decent
home.

Mr Speaker, Sir, let me stress here that my Government will


continue with this programme. Some of the Honourable
Members here and critics out there are against this programme.
They themselves have more than one big house. But they do not
want a widow who stays in a shack to own just a small decent
house. Stop being selfish! We will keep delivering decent houses
to those in need.

Mr Speaker, Sir, in the 2017/18 financial year, Government


continued to implement measures aimed at improving land
tenure and security.

This year, Government will develop subsidiary legislation for the


10 pieces of land related laws that were enacted in 2016.
Currently, only the subsidiary legislation for the Customary
Land Act has been finalized and is currently in force.

Government will also develop and implement a rollout road map


for the improved land administration and governance
programme in line with the new Land Laws.

THE FIGHT AGAINST CORRUPTION

Mr. Speaker, Sir, my Government remains steadfast in the fight


against corruption.

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That is why we have been increasing budget allocations to
institutions such as the Anti-Corruption Bureau and Financial
Intelligence Authority.

As I speak, Government is investigating a total of 1,009 cases.


Out of these, 640 were completed. Of the completed cases, 143
were recommended for prosecution. Further, 3,786 corruption
complaints were also handled and processed.

Mr. Speaker, Sir, Government continues to promote integrity,


accountability and transparency in various public and private
institutions in the country through implementation of
corruption prevention programs as well as capacity building for
institutional integrity committees.

Let me repeat what I have said before. I will not shield anyone
who is suspected of corruption. No one is above the law. There
is evidence that people in my Government can be investigated
and prosecuted.

There is also evidence that we are containing and reducing


corruption. There are international reports on record testifying
that my Government is fighting corruption successfully.

The challenge we face is that while we are fighting corruption,


some are politicizing corruption. Let me repeat. Stop politicizing
corruption and join me in fighting corruption. Stop denying
corruption and join me in fighting corruption. Fighting
corruption demands a collective fight. Let us join hands and
fight corruption.

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2019 TRIPARTITE ELECTIONS

Mr. Speaker, Sir, next year we are holding tripartite elections.


The Malawi Electoral Commission has already started
preparations for the elections.

In this regard, I would like to appeal to all Malawians and all


political parties to ensure a peaceful process towards the
elections.

I further appeal to all eligible citizens to register for them to be


able to vote next year.

PUBLIC SECTOR REFORMS

Mr. Speaker, Sir, we launched the Public Sector Reforms


Programme in 2015 to improve public service delivery.

We have delivered the National ID to 9 million citizens. Now we


will be giving health services to only our citizens.

With the ID, we have made it easy for our people to access
services such as passport and licence processing.

With the ID, we have flushed out ghost beneficiaries and


duplication in social welfare programmes such as Public Works
Programme and Social Cash Transfer.

With the ID, the risk of non-repayment of loans has gone down.
Financial institutions will easily be doing background checks on
the credibility of the borrower. This will lower the cost of
borrowing.

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We have delivered the ID to the people of Malawi, and everyone
agrees this is transformation. The Malawi Identity Card is one of
the best IDs in the world. Our next move Mr. Speaker, Sir, is to
ensure that we undertake a collective effort to integrate all
possible social services on the ID.

Therefore, I would like to urge the Ministry responsible to


convene all stakeholders and agree on a plan for integrating
various social services on the ID. This must happen sooner than
later. I want the ID Card to be fully maximized.

In the 2017/18 financial year, we piloted Mlambe One Stop


Service Delivery Centre. We are bringing public services under
one roof. This is saving time and costs to our people.

In the next financial year, we will establish 8 more Mlambe


centres across the country.

Mr. Speaker, Sir, to deepen Public Sector Reforms, we have put


in place policy and legal framework to guide the implementation
of the reforms in all the sectors.

In February this year, Government adopted the first ever Malawi


Public Sector Reforms Policy and Malawi Public Service
Management Policy. The Malawi Public Sector Reforms Policy
will institutionalize the reforms in all branches of Government.

Mr. Speaker, Sir, Government will also review various


legislations such as Public Service Act and its regulations.

We will harmonize the 8 Public Service Commissions into the


Malawi Public Commissions Act and its regulations.

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We have finalized a Bill for the establishment of the Malawi
School of Government to provide training for leadership and
management in the public service.

NATIONAL PEACE AND SECURITY

Mr. Speaker, Sir, peace and security are critical to development.


My Government will continue to implement measures to sustain
the peace and keep our people safe.

On this note, we have increased the number of police officers


and equipped them with modern public order equipment. With
support from the Peoples Republic of China, the Malawi Police
Service has received over 100 vehicles to ease mobility
challenges.

We have a plan to construct police forensic laboratory as a major


step in the fight against crime.

Mr. Speaker, Sir, this year we have launched the National


Security Policy and the National Peace Policy. These documents
will enhance collaboration and coordination among state
security agencies as well as non-state actors.

To improve the management of immigration and citizenship


services, we are strengthening immigration services through
recruitment of more officers and the introduction of Integrated
Border Control System.

We will also be adopting automated Permit and Visa processing


and issuing systems.

Mr. Speaker, Sir, let me report that Government is


implementing several projects in Malawi Defence Force units

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across the country, including maintenance of office buildings,
connection of all military establishments to utilities and
construction of dwelling units.

In conclusion, Mr. Speaker, Sir, we have delivered. And we are


delivering!

But we need our collective support to develop our country.

We have proven that Malawi can rise and shine if we work with
patriotism, integrity and hardwork.

We have tried and proven that we can transform this country.

We have proven that we can make Malawi a prosperous nation.


Now, let us move with that conviction.

God bless our country.

Thank you!

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