Saturday, October 13, 2012

MISA joins organisations from across the continent to commemorate the 10th anniversary of the Declaration of Principles on Freedom of Expression in Africa, and calls on governments to enact Access to Information legislation and decriminalise free speech


Media Institute of Southern Africa
Promoting media diversity, pluralism, self-sufficiency and independence
i;STATEMENT FOR IMMEDIATE RELEASE

October 12, 2012
 
MISA joins organisations from across the continent to commemorate the 10th anniversary of the Declaration of Principles on Freedom of Expression in Africa, and calls on governments to enact Access to Information legislation and decriminalise free speech
 
The 10th anniversary of the Declaration of Principles on Freedom of Expression in Africa is today being commerated in the Ivorian capital of Yamoussoukro where the 52nd Ordinary Session of the African Commission on Human and People’s Rights (ACHPR) is taking place. The event has been organised by the Special Rapporteur on Freedom of Expression and Access to Information in Africa, Commissioner, Pansy Tlakula, in collaboration with Article 19, the Center for Human Rights and the University of Pretoria.
 
The Declaration of Principles on Freedom of Expression in Africa was adopted by the ACHPR at its 32nd Ordinary Session held in October 2002, which represented an important milestone for the advancement of freedom of expression and access to information on the continent.
 
The anniversary of the Declaration coincides with the 10th anniversary of the African Union as well as the 25th anniversary of the Commission, providing an important opportunity to reflect on human rights developments on the continent since the creation of the Commission, as well as the contribution the Declaration of Principles on Freedom of Expression in Africa has made to the work of the Commision and the overall human rights environment in Africa. 
 
During the commeration ceremony the Special Rapporteur on Freedom of Expression and Access to Information in Africa will launch a Pan African campaign to decriminalise free speech on the continent, calling on States to observe their obligations in accordance with the declaration, and repeal legislation which infringes upon citizens’ right to freedom of expression. In particular the Special Rapporteur will call upon states to repeal criminal defamation, criminal libel, sedition, insult laws and false news laws which have had a particularly chilling effect on freedom of expression and media freedom over the last number of decades.
 
MISA has worked tirelessy for over twenty years on campaigns to decriminalise free speech in order to create a more condusive environment for the media and the public in Southern Africa to freely express their thoughts and opinions. MISA extends heartfelt congratulations to the Special Rapporteur on this new Pan African initiative. It is hoped the initiative will encourage leaders across the continent to rid their countries of non-progressive and archaic laws which violate the right to freedom of expression.
 
The Declaration has provided and important impetus to MISA’s work over the past decade and has informed much of its work around decriminalisation and access to information. In particular the Declaration has played a significant role in the drafting of the 2011 African Platform on Access to Information (APAI) declaration. It is with this in mind that the commerations provide an ideal opportunity to replect on the last 10 years with respect to developments on the continent regarding freedom of expression, media freedom and access to information.
 
Whilst there have been some very positive developments on the continenet since it’s adoption, MISA recognises that much work still needs to be done to ensure that the principles of the declaration are abided by in the Southern African region and that citiznes enjoy this right undeterred by repressive legislation.
 
On the 10th anniversary of the Declaration of Principles on Freedom of Expression in Africa, and at this time that MISA itself is celebrating 20 years of advocating for media freedom and freedom of expression in Southern Africa, we would like to call on governments in Southern Africa and accoss the continent to enact access to information legislation and repeal repressive legislation that criminalises free speech.
 
ZoƩ Titus
MISA Regional Director
 

Friday, October 12, 2012

Lost but Found



By Richard Chirombo
At one point, the situation was so precarious that all I thought was that finding the way back to my destination- Paulos Nthara Village in Mzimba South West constituency- would be a long battle.
I found myself in this situation on Wednesday, 10 October 2012, some three days after I left Blantyre for the land of the great Ngoni traditional leader, Inkosi ya Makosi M’mbelwa, in Mzimba.
When I first heard that I could be on my way to Mzimba a week before on a trip premised on the by-elections that were taking place in Mzimba Central and Mzimba South West constituencies on October 9 this year, I was thrilled. This is because, apart from visiting the central business district en route to either Mzuzu or Blantyre, I had never been to Mzimba district- in the true sense of the words.
This fascination was fanned by the many stories I heard about Mzimba, stories that mostly start and end with the mention of Hora mountain.  There is, also, this cultural thing about the annual Umthetho event held at Hora.
I also heard and read about the many ways the Ngonis of Mzimba hold on to their culture, one of which being the dowry (lobola) culture. To the Ngonis, life is precious and cannot be given for free. Hence, lobola.
However, as one of my new-found friends, Jolamu Sakala,   told me, lobola helps people value the gift of life, “but does not mean selling one’s daughter to the husband who pays some heads of cattle as an expression of his commitment and love for the wife-to-be”.
Sakala told me: “Look, it is not a question of what you pay, but what you show by paying: commitment. Apart from this, you are also showing gratitude to the parents of the woman for all the good work they have done. As you know, the Ngonis are a grateful people.
“The way I know it, lobola is not a hindrance to marriage. I know of tens of men who are married but have not finished paying what they were told to pay in cattle. Over time, they will. So, it is just a question of showing commitment, and living by the dictates of our culture,” Sakala, father of three from Mseya village, explained.
It is these feel-good stories that pushed me on in the days preceding the trip, until that final moment on Sunday, October 7, came and we saw ourselves boarding a coach at the bus terminal adjacent  to the Blantyre Post Office (in Blantyre Central Business District).
When the conductor stood up around 07:30 am, and asked us to “close our eyes and pray” (who started this thing about closing our eyes to pray, by the way? What is wrong with those who pray with their eyes wide open?), we knew the journey was here for the taking. What with the bunch of jokers who filled this bus to the brim!
Their handy jokes started right in Blantyre when, after the ‘safe-journey’ prayer, the conductor asked us to tighten our belts. One of the passengers shouted: “What are you talking about? Why are you telling us to tighten our belt, but you have mentioned nothing about food? People like me, frequent air travelers, feel hungry the moment we are told to tighten our seat belts because we know that food is coming. Do you want us to tighten the belts on ‘empty stomachs’? No!”
Half the bus choked with laughter. When we arrived at Lizulu in Ntcheu, one of the passengers phoned a man he said was his ‘rich friend’ in Mzimba, telling him that he was on his way to the Mzimba (apparently, he was also going to Mzimba), and signing off by asking whether the ‘rich man’s’ family had already had an ‘early’ lunch there.
The joking bunch pounced on the talk again, lambasting the passenger who called for having “useless” rich friends. “What kind of rich friend is this? Instead of him telling you that he is driving all the way from Mzimba to pick you up here at Lizulu (Ntcheu), all he is telling you is that they have not had lunch yet, and that they will keep some food for you! The rich friends I have tell me to drop off when I call them, and come to pick me up in their fuel guzzling vehicles. They don’t mind the distance; they are rich!”
While we thought we were through these jokes, one more was to come between Mponela Trading Centre and Jenda Road Block. As one goes towards Jenda, there is a small dam to the left. Fishermen crisscross their nets in the seemingly still waters while, on the right side of the road, the grass is so green it has become the abode of cattle and their shepherds.
When one of the passengers saw the dam, he shouted: “Tanzania is very ruthless. How can our neighbor grab the ‘whole lake’ and leave us with this dam as our portion. No, no, no. We want the whole of the lake, and not this small dam- a dam which cannot even accommodate one Illala!”
Not that we were taken by surprise. I remember that, when we arrived at Senzani Road Block, and a policeman trooped into the bus to look for whatever those guys are on the look-out for, one of the passengers told him in his face: “What are you looking for, Sir? Can’t you see that this is around 10 o’clock? Chamba tatumiza kale usiku, where were you? (we have already trafficked  our chamba during the night!).”
When the police officer finished his job, he went outside (as usual) but could not help but point a finger at the one who had mouthed those words. The officer was laughing. And, so, were we.
Between these laughs and my anticipation to set foot on the skeletons (remote areas) of Mzimba, we finally made it to Mzimba Boma, from where were taken to Saulos Nthara Village, located some two kilometres  from Edingeni- the abode of Vice-President Khumbo Kachali. It takes one hour- traveling fast; really fast- to get to Saulos Nthara village.
We spent the whole of Monday dancing the day away in the shadows of a giant mahogany tree. As we whiled the day away, people from the village- I later gathered that these were election monitors to be deployed by one of the contestants in the Mzimba South West by-elections- came and gathered under the same tree. Under this tree, they discussed issues ranging from how they would thwart the vote rigging plans of their competitors, code number for polling stations, number of people expected to vote, deployment plans, among others.
One of the officials was holding a piece of paper outlining code numbers, centre number, voters expected. Suddenly, a whirlwind which started lightly some 10 metres away grew in intensity, took the course of the mahogany tree, and blew the paper with the code numbers away. This ‘crazy’ act was followed by shouts: “They have stolen the important paper away! They are reading it by now! The whirlwind has stolen the paper!”
All the people left whatever they were doing and run into the bush to no avail. Some came back five minutes later. Some came back 20 minutes later. They came with one answer: We have not found that piece of paper!
The next day- which was Election Day, October 9- I found myself in Mseya Village. I actually announced my arrival in the village around mid-night. I arrived in a lorry and did not get to know the roads we took in mind because it was night.  All I knew was that, before being dropped, we had been to Edingeni, Ekwendeni, Mzoma and, then, Mhlafuta. I was here to observe the conduct of the elections.
Although voting was marred by voter apathy, with almost half of the prospective voters staying away, it was encouraging to see old and physically-challenged visit polling centres and vote.   They had this strong conviction to participate in the affairs of their country. I also observed how the votes were being counted at Mhlafuta Polling Centre, and was impressed with the level of transparency.
During the voting day, I had also had the opportunity to shake the hand of the chairperson of the Episcopal Conference of Malawi, Bishop Joseph Zuza twice. First, when he came to see the presiding officer, who I later learned is his biological sister, and in the afternoon. Vice-President Kachali had also passed by the centre, on his way from voting at Mzoma, and waved at the voters as he passed.
People’s Party official, Frank Mwenifumbo, also visited the centre around 10 o’clock in the morning, and picked a quarrel with Democratic Progressive Party monitors, whom he accused of having no accreditation. It had to take the intervention of the presiding officer and police officers deployed at the place to tell him that the DPP monitors were accredited by the Electoral Commission.
Vote-counting finished at exactly 10 pm. All the people dispersed, except Sakala- who told me that, since the generator set was switched off, he wanted to go home. I said I would stay at the centre and wait for our lorry. The driver had promised that we would be picked. However, facing the prospect of staying alone, and in utter darkness, with my luggage full of belongings, I decided to follow Sakala, who had hosted me the previous day.
Reluctantly,  I followed him to his home- located some two kilometres away. Then, around mid-night, we heard the sound of the lorry, but by the time we reached the place it had dispatched me the previous day, we were 10 metres late. We tried to whistle the driver down, but he did not hear us. I was lost!
Unfortunately, all my two mobile phones had run out of battery power, and Sakala’s phone was switching itself off the moment we tried to call, or attempted to receive a call. This happened all night. In the morning, Sakala told me he had a friend who had a phone in the village, but his phone, too, had no power.
I, then, asked how long it would take me to travel from the village to Edingeni. He said four hours. His wife told me to remain in the village until the next day, but I told them I would walk. After all, four hours is not such a long time. Good of my host, he promised to escort me to the road that would take me to Edingeni. After showing me the way, he turned back, and I was all alone.
I had walked about five kilometres just knowing that I was going to Edingeni, but without knowing how to get there, when I decided to ask someone about the distance I was remaining with. The time was 9 o’clock in the morning, and he told me I would be at Edingeni by, at least, 5 pm. I was alarmed. Did Sakala mislead me? I questioned myself.
I decided to proceed with the journey, telling myself I had walked long distances before. I could see that people were looking at me with fascination- perhaps because of the luggage I was carrying and, perhaps, because I was walking on foot. The one thing I learned while here is that the people of Mzimba love bicycles- what with the long distances!
But almost all the bicycles have one fault” they have no brakes! Young men cycle without brakes. Old men cycle without brakes. In fact, one female granny nearly hit me with her bicycle because I was late to hear her shout: Give way, give way- no brakes!
As I moved on, ready to conquer the distance, I saw a Range Rover coming my direction. The vehicle was coming from Paulos Nthara Village to pick me up.
Sakala’s phone, I later learned as I headed for the Mahogany tree, had finally worked and Sakala was able to tell them the road I had taken. And it was only then that I realized how long the distances were. I took us about 50 minutes to drive our way to the destination village.
     

     



Thursday, October 4, 2012

Malawi's Economic Recovery Plan

Introduction
The Government of Malawi implemented the first Malawi growth and Development
Strategy (MGDS) from 2006 to 2011, as its overarching medium term development
framework aimed at reducing poverty through economic growth and infrastructure
development. During that period, the economy registered an average growth of 7 per
cent. It is now the second year of implementation of MGDS II, covering the period
2011 to 2016
During the first year of the MGDS II implementation, Malawi faced a number of
macroeconomic challenges. These challenges included reduced disposable incomes
due to poor tobacco revenues, scarcity of foreign exchange and power disruptions.
Consequently, economic performance slowed down and Growth Domestic Product
(GDP) grew by only 4.3 per cent compared to 6.9 per cent projected in the MGDS II.
The severe shortage of foreign exchange had negative impact on imports of strategic
commodities including fuel and industrial raw materials. This situation was
exacerbated by an overvalued official exchange rate and tight administrative
regulations.
Although average inflation rate in 2011 remained at a single digit (7.6) the country
started experiencing a steady rise in general price levels from early 2011, reflecting a
pass through effect from increased petroleum pump prices and continued fuel supply
disruptions. Consequently, the average annual inflation rate for 2012 has been
projected to accelerate to 18.4 per cent.
It is with the above background that Cabinet directed that an Economic Recovery
Plan should be developed. The Recovery Plan outlined reforms that were to be
undertaken to improve the country’s prospects for socio-economic growth. It also
outlined the areas that the country would focus on for quick economic gains. The
recovery plan has been enriched by Cabinet discussions and the National Dialogue
on the Economy that took place in Mangochi from 29
th
June, 2012 to 1
st
July, 2012.
The Recovery Plan
Given the economic challenges outlined earlier, implementation of the Economic
Recovery Plan was urgent. Thus the recovery plan embraced a set of immediate
(within 3 months), short term (1 year) and medium term (2-5 years) policy reforms
aimed at restoring external internal economic stability. It further proposed measures
to cushion the vulnerable from the impact of any reforms particularly the exchange
rate policy. In addition the plan proposed increasing resource allocation to areas that
would address constraints to economic growth such as energy and to those aimed at
boosting production for the export market.
Immediate Policy Reforms
A. Exchange
Rate
Adjustment:
The
axle
for
Malawi
regaining
macroeconomics balance is a realignment of the exchange rate regime to
one that is credible to all market players and allows business to return to
normal. To this end, the following reforms were implemented:
 Immediate removal of restriction on the foreign exchange bureau market as
was the case before the devaluation, in August 2011, to allow them
determine their own mid-rate;

 The devaluation of the Malawi Kwacha to the country’s major trading
currencies was effected in May, 2012;
 A flexible exchange rate regime was adopted;
 Discontinuation of the pre-screening requirement of imports in excess of
USD50, 000 allowing importers to freely import their requirements; and
 Reversal of surrender requirements for tobacco dollars and allow tobacco
proceeds to go to commercial banks
B. Foreign Exchange Reserve Cushion: In order for the exchange rate
reforms not to be economically and socially disruptive, there was need for
some foreign exchange reserves. The foreign exchange reserves would be
essential to meet the need for strategic fuel supplies, social support package
and outstanding arrears on foreign bills. To this end, the following measures
were undertaken:
 Conclusion of negotiations on the resumption of support from United
Kingdom and other development partners;
 Resolution of misunderstanding with some development partners on
governance concerns, including those raised by the Millennium Challenge
Corporation;
 Conclusion of the new extended credit facility (ECF) with the International
Monetary Fund (IMF) which will trigger Balance of Payments and budget
support from bilateral and multilateral partners.
It is expected that the above measures would complement the inflow of foreign
exchange from exports of agriculture products such as tobacco, sugar, tea and
cotton
C. Fuel Pricing: Over the past years the Government has been controlling fuel
pump prices. This meant subsidising fuel when international prices rise and
thus accumulating deficits in the Price Stabilisation Fund (PSF) hence posing
a risk to the budget. To eliminate this risk, the country returned to the
Automatic Pricing Mechanism (APM)
D. Monetary Policy: The success of the proposed macroeconomic reforms
hinges on implementation of monetary policy that is less expansionary and
accommodating. It was imperative to tighten monetary policy by increasing
the cost of credit and mopping up excess liquidity. Going forward, periodic
use of interest rates, as and when market conditions dictate will be
instrumental to the smooth conduct of monetary policy
Short Term Reforms (1 year)
A. Social Support Package: Economic reforms normally bring unintended
negative socio-economic impacts on the general population which need to be
mitigated. This is particularly so for the poor and vulnerable households in
both rural and urban areas. Therefore as the country is implementing the
reforms, it is imperative that interventions to protect the most vulnerable
communities be scaled up. To this effect, Government will undertake the
following programmes:
 Scaling up Labour Intensive Public Works Programmes (LIPWP)
 Scaling up the Farm Input Subsidy Programme (FISP)
 Scaling up legume seed multiplication, agro-forestry and soil conservation,
multiplication of cassava cuttings and sweet potato vines and extending
village savings clubs
 Scaling up School Meals Programme and Vitamin A Supplementation; and
 Continuing the Social Cash Transfer Programme
B. Fiscal Policy: The conduct of fiscal policy in the Financial Year (FY) 2012/13
is critical to the success of the recovery plan. The impact of some of the
activities implemented within the 3months with flow through the financial year.
To this effect, the recovery plan was crafted taking into consideration the
capacity to generate domestic revenue and inflow of donor funds against
expenditure pressures such as growing wage bill, the social support
interventions, as well as the need to support sectors that stimulate economic
growth.
Accordingly for FY 2012/13 a decision was made to prioritize expenditures to
sectors that would enhance economic growth, create employment, and boost
production and diversification for the export market for quick foreign exchange
generation. The prioritized sectors for rapid foreign exchange generation
include agriculture, fisheries and tourism. To this end, efficient and reliable
energy will be required to promote value addition, export diversification and
boost growth in these sectors and other potential sectors such as mining
Medium Term Reforms (2 – 5 years)
Benefits of implementing the short-term activities outlined above would flow into the
medium term. It is expected that the economic challenges the country is
experiencing would stabilize in the medium term. The medium term agenda for the
country is outlined in the MGDS II. However, considering the constraints and
challenges the country is experiencing, the National Dialogue of the Economy
proposed that priorities in the MGDS II should be reviewed and refocused for rapid
gains.
Medium term Focus Areas
Economic growth in Malawi is constrained by a number of factors including energy,
transport and limited exports. To contain the situation the country will ensure that
energy generation and supply, transport infrastructure and exports diversification are
addressed quickly. Tourism, mining, manufacturing, commercial farming and agro-
processing will assist in generating the desired foreign exchange earnings. Going
forwards, focus will therefore be placed on the following sectors:
 Energy;
 Tourism;
 Mining;
 Agriculture; and
 Transport infrastructure and ICT
Energy
The country continues to face a number of challenges in the energy sector. These
include inadequate capacity to generate electricity and intermittent supply.
Consequently, economic activity in areas such as mining and manufacturing are
affected.
Government will therefore support investments in energy generation and supply in
order to generate and distribute sufficient amount of energy to meet national socio-
economic demands. It will endeavour to, among other activities to do the following:
 Continue financing works at Kapichira II Rehabilitation Project;
 Establish new hydro stations;
 Continue pursuing the Millennium Challenge Compact with a view to widen its
scope;
 Manage the demand in the industry by encouraging economic usage of
electricity, including use of energy of saver bulbs;
 Encourage regional interconnectivity;
 Explore establishment of coal generated electricity;
 Enhance research in other sources of energy including wind and solar; and
 Promote Public and Private Partnership (PPP) in energy generation and
distribution
Tourism
Tourism has the potential to generate revenue, employment, improve infrastructure
and promote Micro Small and Medium Enterprises as well as conserve wildlife and
culture. The sector has direct linkages with other sectors of the economy. However,
the industry faces a number of challenges which include poor supporting
infrastructure, poor service delivery, uncoordinated and insufficient marketing of
tourism products and inadequate purpose built infrastructure.
To promote the industry, Government will undertake the following:
 Develop support infrastructure (electricity, water and transport);
 Restock game reserves and national parks and protecting animals
 Intensify marketing of the country as a preferred tourist destination and
aggressively put measures to increase flights to Malawi, including direct flights
from Europe;
 Undertake a program to educate more trained staff, supervisors, and
managers in the tourism sector;
 Enhance marketing of Malawi’s tourism products;
 Restore and improve tourism assets, including supporting the restocking of
game and parks;
 Simplify the system of Visa Issuance for tourists; and
 Improve tourism investment climate
Mining
Malawi has abundant mineral resources that can be exploited. These resources
include bauxite, heavy mineral sands, monazite, coal, uranium, precious and semi-
precious stones, limestone, niobium, dimension stones and rock aggregates. Growth
in this sector has slowed due to inadequate availability of energy. It is, therefore,
expected that with improvement in the energy sector, there will be availability of
electricity, which will in turn help to develop the mining sector and hence improve the
country’s foreign exchange earnings.
To derive maximum potential of the mining industry, Government will aim at
increasing production and value addition of mineral resources. To achieve this, the
following will be undertaken:
 Establishment of legal and institutional framework;
 Updating the geological information system;
 Undertake a crash program to train mining engineers, legal experts in mining
and other related fields in the sector;
 Enhance oil exploration and capacity building initiatives in the sub-sector;
 Enhance oil exploration and capacity building initiatives in the sub-sector;
 Ensure transparency in all mining contracts and close monitoring; and
 Promoting participation of local and foreign investors in the mining industry
Agriculture
Agriculture remains key to the country’s economic growth, wealth creation and food
security. However, the sector is still dependent on rain-fed and subsistence farming.
It is characterised by low absorption of improved technologies, poor infrastructure,
inadequate markets and inadequate investment in mechanisation.
The sector is dominated by tobacco and subsistence maize production hence the
need for diversification and a focus on commercialisation for export markets. Besides
diversification of crops, the sector will also focus on animal farming and fisheries.
The following actions will be undertaken:
 Diversify and upscale production of key crops that have potential for export
market-including groundnuts, rice, coffee, sunflower, soya, pigeon peas,
cotton and sugar;
 Continue the Greenbelt Initiative with focus on irrigation farming of high value
crops, aquaculture and animal farming;
 Enact and implement amendments to the land legislation, including the
enactment of the Land Bill;
 Review the strategic Crops Act as it disadvantages some crops and brings
distortions in the industry;
 Encourage large-scale commercial farming;
 Adopt Integrated Production System (IPS) which will promote contract
farming;
 Support agro-processing;
 Increase cage farming in fisheries to meet local demand for export market;
 Improved animal farming; and
 Increase and improve agricultural extension services
Transport Infrastructure Development and ICT
Poor transport infrastructure continues to impinge on domestic and international
trade and therefore posing major challenge to economic growth and development.
Similarly, poor ICT discourages movement of vital information that is necessary for
improvement of trade. Government will therefore aim at improving infrastructure
development programmes focusing on road, rail, air transportation and ICT
Rail Transport
Government will aim at reducing transport cost by making rail transport safe, efficient
and competitive by undertaking the following:
 Rehabilitate and expand the railway line and related infrastructure; and
 Create linkages to ports, industrial sites and regional and international
markets focusing on those that are linked to the priority crops and clusters
Road Transport
Considering that road transport is the dominant mode of transport in Malawi,
Government will target reducing cost of high transportation in the country by:
 Continuing to construct, rehabilitate and upgrade road infrastructure;
 Improving network of feeder roads, focussing particularly on roads that
support growth of selected crops such as sugarcane, groundnuts, soya and
sunflower for production, processing and export; and
 Developing strategic corridors that are cost effective for international trade.
Air Transport
Government will continue to aim at improving air transport efficiency to encourage
trade, tourism and investment by:
 Improving, promoting and providing safe, efficient, reliable aviation
infrastructure and services;
 Promoting a competitive and efficient air transport industry including by
decisively solving the problems of Air Malawi; and
 Promoting PPPs to facilitate private investment
ICT
Government will aim at improving usage and adoption of electronic and online
services; availability of service; geographical coverage; and usage of modern
broadcasting technology and reducing communication costs by:
 Improving the regulatory framework for the sector;
 Liberalising the mobile telecommunications sector to encourage new
international entrants; and
 Ensuring liberal regulatory environment regarding international ICT gateway
licences.
Annex III shows a list of prioritized projects to be implemented by these sectors.
GOVERNANCE
Good governance in the implementation of this plan will play a critical role in
achieving social and economic development of the country. It will enhance efficiency
in institutions and sustain a stable economic and political environment necessary for
economic growth and effective functioning of public services. It will also promote rule
of law, human rights, and guarantee property and personal rights which attract
private sector investment
Implementation Framework
Evidence shows that programme implementation in Malawi has to some extent not
been successful due to a number of factors ranging from lack institutional capacity to
deliver and coordination of challenges. The success of the recovery plan will
therefore, hinge on the strong institutional arrangements and coordination of various
activities in the Plan.
In this regard, the Ministry of Economic Planning and Development (MoEPD) in its
mandate to provide strategic direction for the economy through designing and
formulating long and medium term national development strategies will coordinate
the implementation of this recovery plan. This coordination role will be strengthened
and supported by the Office of the President and Cabinet (OPC). OPC will provide
overall oversight and supervisory function to ensure that the Recovery Plan is
implemented. The Ministry of Finance (MoF) will provide resources to the sectors
that will be implementing the plan. Furthermore, it will prioritise expenditures to these
growth enhancing sectors. To this end, Fiscal Policy will therefore aim at spurring
fiscal consolidation, reinforcing resilience to shocks and supporting private sector led
growth. The Reserve Bank of Malawi (RBM) is expected to pursue prudent monetary
policy, through restrained monetary aggregate growth, to contain aggregate demand
and inflation pressures and shift demand toward domestic output.
Lead ministries in the various sectors mentioned herein will spearhead the
implementation. They will provide coordination roles and functions at sector level.
The Civil Society and private sector are expected to implement specific activities and
provide oversight and accountability functions. Donors and cooperating partners are
expected to provide technical and financial support for the implementation of the
recovery plan. Donors and cooperating partners are expected to provide technical
and financial support for the implementation of the recovery plan to ensure the
country moves on to prosperity.
Monitoring and Evaluation (M&E)
All development endeavours will run well if they are cited on a good M&E framework.
Supervision of the process and monitoring of results is thus critical for achieving the
set objectives and outcomes. In this regard, the recovery plan will be subjected to a
quarterly review by the Cabinet or the Cabinet Committee on the Economy and
Public Sector Reforms to assess progress made towards the implementation of the
Plan. MoEPD and OPC as the coordinating and overseeing institutions for the
recovery plan will serve as the Secretariat in the implementation of the Plan by
ensuring that information is available for decision making. The Plan has also
assigned responsibilities and timeframes for implementation. The success and
effective implementation will hence not only depend on MoEPD and OPC at the
Central Level but also lead Ministries at sectoral levels. It is imperative, therefore,
that all institutions actively and effectively execute their roles and responsibilities. To
this end, the M&E Matrix is presented in Annex 2

Presidential Statement in Malawi's Economic Recovery Plan

Presidential Statement
When I took over the office of the President of the Republic of Malawi, on April 7
th
,
2012, the country was facing serious challenges such as shortage of foreign
reserves, scarcity of fuel and essential drugs in hospitals. Some industries were
operating below capacity due to inadequate imported raw materials and others
literally closed down. In my state of the Nation Address delivered during the state
opening of the 2012/13 National Budget, I highlighted these challenges.
To forestall these problems, my Government formulated and is implementing an
Economic Recovery Plan to ensure that our country returns on track to prosperity.
The recovery plan identifies areas of intervention in the immediate, short and
medium term. Some of the measures including the devaluation of the Malawi
Kwacha, setting a market determined exchange rate, restoration of bilateral and
multilateral relations and the repelling of punitive laws in our country have already
been implemented.
The conference on the National Dialogue on the Economy which took place at
Sunbird Nkopola Lodge, Mangochi, solicited views from a wide range of experts on
restoring the country’s economy in order to strengthen the road map for economic
recovery.
The conference acknowledged that the MGDS II remains the overarching single
reference document for the country’s development agenda. However, it observed
that MGDS II, which was formulated prior to the coming in of my Government, had
too many priorities, and, that there was a need to focus on a few priorities that are
pro-growth, represent quick wins, and are highly effective. The conference identified
diversified commercial agriculture, tourism, energy, mining and infrastructure
development as sectors that can achieve this goal. The other reason is that the
MGDS II does not take care of strategies that can be implemented to take the
country out of the economic crisis that was experienced.
The Recovery Plan in its original format for Malawi has been reviewed and it now
outlines the way forward for the country in the short and medium term to achieve
quick development results.
I therefore, urge all stakeholders to support the recovery plan to ensure that the
goals and targets that have been set are achieved within the time period of its
implementation.
May God bless our country

Mrs Joyce Banda
President of the Republic of Malawi
PRESIDENT OF THE REPUBLIC OF MALAWI



Education, Science and Technology)
OFFICE OF THE PRESIDENT AND
CABINET
(OVERSEER)
CABINET COMMITTEE ON THE
ECONONOMY AND PUBLIC SECTOR
REFORMS
MINISTRY OF ECONOMIC PLANNING
AND DEVELOPMENT
(COORDINATOR)
MINISTRY OF FINANCE
(FISCAL POLICY)
RESERVE BANK OF MALAWI
(MONETARY POLICY)
MOAFS
MOTPW
MOEM
MOTWC
MOICE
MOGCSW
MOEST

Annex I: Matrix of Recovery Plan Policies
Focus Areas
Objective
Time Frame
Responsibility for
Implementation
Status
Exchange rate
adjustment
immediate
Reserve Bank of Malawi
Done
Forex Exchange
Reserve Cushion
Cushion Forex availability
Immediate
Development Partners
Partially
done
Fuel Pricing
Reduce Pressure on the budget
Immediate
Fuel Pricing Committee
Done
Fiscal Policy
To improve mobilisation of and efficient
utilisation of resources
Immediate to
short term
Ministry of Finance
Partially
done
Monetary Police
To anchor price dynamics in order to maintain
low and stable inflation
Short-term
Reserve Bank of Malawi
On going
Sectoral Resource
Allocation
To prioritise expenditure to sectors that would
enhance economic growth
Short term
Ministry of Finance
Partially
done
Mining
To improve foreign exchange earnings
Short term
Ministry of Energy and
Mining
On going
Energy
To generate and distribute sufficient amount of
energy to meet national demand
Short to
medium term
Ministry of Energy and
Mining
On-going
Tourism
To improve forex earnings
Short to
medium term
Ministry of Tourism,
Wildlife and Culture
On-going
Agriculture
Ti improve forex earnings
Short to
medium term
Min of Agriculture and
Food Security
On-going
Social Support
Mitigate unintended socio-economic impacts of
the recovery plan
Short to
medium term
MEPD, MOEST,
MoGCSW
On-going
Transport
Infrastructure and ICT
Improving the movement of goods and services
and the sharing of information to facilitate trade
Medium term
MoTPW, MoICE, OPC (e-
government)
On-going

Annex II: M&E Matrix
Key Indicators (Output/Outcome)
Baseline:
april 2012
Target:
December 2013
Responsible
Institution
Frequency of data
collection
Economic Reforms
Import Cover
1 months
3 months
RBM
Monthly
Inflation (CPI)
12.4
Single digit
MoEPD/NSO
Monthly
Annual GDP Growth rate (%)
4.3
5.7
MoEPD
Annual
Agriculture and Fisheries
Percentage of food secure population
89
100
MoEPD (MVAC)
MoAFS
Annual
Number of fingerlings produced
700, 000
1, 050, 000
MoAFS
Annual
Quantity of Fish landed/Captured from lakes and
Rivers (MT)
72, 000
81, 000
MoAFS
Annual
Percentage of Farmers accessing Agricultural
Markets
40
50
MoAFS
Annual
Increased export earnings from agricultural
commodity crops
MIT
Annual
Energy
Rate of power outages (Hrs/day)
2
1
MoEM
Annual
Number of new power stations constructed
0
1
MOEM
Annual
Percentage of households with access to
electricity
10
12
MOEM
Annual
Mining
Percentage Contribution of Mining to GDP
10
14
MoEM/MoEPD
Annual
A detailed geological map of Malawi produced
0
1
MoEM
End of Period
Skills of artisanal and small scale miners (ASM)
increased (number of ASM trained)
560
1, 500
MoEM
Annual
Investment in the mineral sector increased
(number of newly opened mines)
2
3
MoEM
Annual
Tourism

Distance of protected area access roads
constructed and rehabilitated
300
500
MoTWC/MoTPW
Annual
Number of marketing and awareness campaigns
250
500
MoTWC
Annual
Percentage Contribution of Tourism to GDP
2
MoTWC/MoEPD
Annual
Transport Infrastructure
Percentage of Road and Rail network in good
condition
i.
Road
ii.
Rail
55
33
56
41.7
MoTPW
Annual
Number of Passengers by air
371, 371
408, 404
MoTPW
Annual
Tonnage moved by air
4, 123
7, 900
MoTPW
Annual
ICT
Proportion of the Population using ICT Services
i.
Telephone lines per 100 population
ii.
Cellular line subscribers per 100
population
iii.
Internet Users per woo population
36.3
0.80
20
41.23
0.83
23.49
MoICE/MACRA
Annual

Annex III: List of Projects by Sector
SECTOR
PROJECT
Energy
I.
Kholombidzo Hydro-Electric Project
II.
Thermal Power (Coal Generation Project)
III.
Regional Power Interconnection Project
Mining
i.
Aerial Mapping
ii.
Updating of geological mapping
iii.
Mining projects with confirmed minerals
Tourism
i.
Tourism Marketing Promotion and Publicity Project
ii.
Institutional Reform and Capacity Development
Project
iii.
Development of Tourism Products
ICT
i.
National ICT Development Programme (has three
components including e-government)
Transport Sector
i.
Rehabilitation of Beira/Sena and Nacala Railway
Lines
ii.
Construction of Biriwiri-Tsangano-Neno-Mwanza,
Rumphi-Nyika-Chitipa, Lilongwe-Old Airport-Kasiya-
Santhe and Lirangwe-Changalume-Machinga roads
Agriculture
i.
Production of legumes and pulses, rice, coffee,
sunflower, cotton, sugar, paprika and spice in Malawi
ii.
Livestock production (sheep, goats, cattle)
Note: The list of Projects is not exhaustive

Fuel Prices Down Again

Fuel prices went up yesterday, only to come down today.
It just explains how unsettled the Joyce Banda administration is.

Ombudsman Meets Blantyre Residents Friday

Kindly be informed that Hon. Ombudsman will be having an Open Day on Friday, where she will be meeting members of the public to address their concerns. It will be an informal meeting where anyone could meet her without booking an appointment.

The venue is Office of Ombudsman offices in Kannabar House opposite Mount Soche Hotel. Time: 9am - 5pm.

The meeting is also open to the media so if you have questions to ask her, this is your time.

Lilongwe and Mzuzu folks get ready for your time on 16 and 19 October respectively.

Chief Secretary to Government NOT fired


State House
Lilongwe
Press Statement
3rd October, 2012

Chief Secretary to Government NOT fired
State House would like to dismiss reports circulating on social media networks that the Chief Secretary to the Government Mr. Bright Msaka, SC, has been fired as false.
Commenting on the rumours Presidential Press Secretary Steven Nhlane said:  “The reports are a total fabrication and those circulating them have their own hidden agendas for doing so. This must be the work of some mischievous people.”

Steven Nhlane
Presidential Press Secretary
03/10/12

Again: Fuel Prices Up!!!


Regulating Energy for Sustainable Development

PRESS RELEASE

The Malawi Energy Regulatory Authority considered recent trends in the world petroleum products prices and other macroeconomic fundamentals.

FOB Prices

Since the last pump price revision of 7th September 2012, average FOB prices on the international market increased by 1.05% and 2.50% on diesel and paraffin respectively. During the same period average FOB prices for petrol slightly declined by 0.56%.

Exchange Rate

The exchange rate of Malawi Kwacha to the US Dollar has depreciated by 6.73% over the same period of time from K288.99 to the USD Dollar noted on 7th September 2012 to K308.45 to 1US Dollar on 2nd October 2012.

Resultant In Bond Landed Cost (IBLC)

A combined effect of the FOB prices and the exchange rate of Malawi Kwacha to the US Dollar has resulted in increased landed cost for petrol, diesel and paraffin by 5.66%, 7%, and 8.12% respectively.

In line with the Automatic Pricing Mechanism (APM), MERA has revised upwards the pump prices of petrol, diesel and paraffin.

Effective 6:00am on 4th October 2012 maximum pump prices for petroleum products will be as follows;






All filling stations are therefore required to display pump prices being charged on clearly visible signage within their premises.




L.Y. ZINYEMBA
CHAIRPERSON
MALAWI ENERGY REGULATORY AUTHORITY
3RD OCTOBER 2012