Thursday, October 4, 2012

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
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