Malawi Growth and Development Strategy - from poverty to prosperity 2006-2011

1.1 OVERVIEW ............................................................................................................................... 1

1.2 MAIN ASSUMPTIONS OF THE MGDS ........................................................................................... 2

1.3 OUTLINE 2 BACKGROUND ............................................................................................................................... 3

2.2 MALAWI POVERTY REDUCTION STRATEGY .................................................................................. 3

2.4 MALAWI ECONOMIC GROWTH STRATEGY .................................................................................... 4

2.5 MILLENNIUM DEVELOPMENT GOALS ........................................................................................... 4

2.6 MALAWI GROWTH AND DEVELOPMENT STRATEGY FORMULATION PROCESS .................................. 6

2.7 MALAWI GROWTH AND DEVELOPMENT STRATEGY FRAMEWORK ................................................... 7

2.8 POVERTY, SOCIAL PROFILES AND VULNERABILITY ....................................................................... 7 MACROECONOMIC FRAMEWORK ..............................................................................................10

3.1 MACROECONOMIC DEVELOPMENTS ...........................................................................................10

3.2 MEDIUM TERM MACROECONOMIC PROSPECTS ...........................................................................10

3.2.1 Economic Growth ....................................................................................................10

3.2.2 Monetary Policy Objective........................................................................................11

3.2.3 Fiscal Policy Objective .............................................................................................11

3.3 MGDS Budget Framework...........................................................................................11 KEY PRIORITY AREAS OF THE MGDS ........................................................................................12 4.1: OVERVIEW.....................................................................................................................12

4.2 KEY PRIORITY AREAS...............................................................................................................14

4.2.1 Agriculture and Food Security ..................................................................................14

4.2.2 Irrigation and Water Development............................................................................19

4.2.3 Transport Infrastructure Development......................................................................20

4.2.4 Energy Generation and Supply ................................................................................22

4.2.5 Integrated Rural Development..................................................................................23

4.2.6 Prevention and Management of Nutrition Disorders, HIV and AIDS.........................25 ix Malawi Growth and Development Strategy MGDS THEMES .............................................................................................................................30

5.1 THEME ONE: SUSTAINABLE ECONOMIC GROWTH........................................................................31

5.1.1 Sub Theme One: Maximizing contribution to economic growth through potential growth sectors..........................................................................................................32 5.1.2 Sub Theme Two: Enabling Environment For Private Sector Development ............35

5.1.3 Sub Theme Three: Export Led Growth.....................................................................36 5.1.4 Sub Theme Four: Conservation of the natural resource base .................................37

5.1.5 Sub Theme Five: Economic Empowerment ............................................................39

5.1.6 SUB THEME SIX: LAND AND HOUSING ..............................................................................41

5.2 THEME TWO: SOCIAL PROTECTION AND DISASTER RISK MANAGEMENT ...................43

5.2.1 Sub Theme One: Protecting The Vulnerable............................................................44 5.2.2: Sub Theme Two: Improving Disaster Risk Management ....................................45

5.3 THEME THREE: SOCIAL DEVELOPMENT ..........................................................................47

5.3.1 Sub Theme One: Health and Population................................................................48

5.3.2 Sub Theme Two: Education .....................................................................................50

5.3.3 Sub Theme Three: Gender.....................................................................................51

5.4 THEME FOUR: INFRASTRUCTURE DEVELOPMENT.........................................................53

5.4.1 Sub-Theme One: Air and Rail Transport.................................................................54

5.4.2 SUB-THEME TWO: INFORMATION, COMMUNICATION AND TECHNOLOGIES ..................................55

5.5 THEME FIVE: IMPROVED GOVERNANCE ..........................................................................59

5.5.1 Sub Theme One: Macroeconomic Growth ...............................................................61

5.5.2 Sub Theme Two: Public Policy Formulation, Fiscal Management, Public Sector Management and Corruption....................................................................................62

5.5.3 Sub Theme Three: Decentralization .......................................................................64 5.5.4 Sub Theme Four: Developing a Strong Justice System and Rule of Law ................65

5.5.5 Sub Theme Five: Security ........................................................................................66

5.5.6 Sub Theme Six: Corporate Governance ..................................................................67 IMPLEMENTATION, .......................................................................................................................70

6.1 Implementation Modalities of the MGDS .....................................................................70

6.2 Prioritization and Costing of MGDS activities ..............................................................71 6.3 Roles of key stakeholders in the implementation of the MGDS ...................................72

6.4 Monitoring and Evaluation ...........................................................................................73

6.5 Needs Assessment......................................................................................................74 ANNEXES ....................................................................................................................................78 ANNEX 1:SUMMARY OPERATIONAL MATRIX.........................................................................79 ANNEX 1.1: KEY PRIORITY AREAS SUMMARY OPERATIONAL MATRIX .........................79 x Malawi Growth and Development Strategy ANNEX 1.2: SUMMARY OPERATIONAL MATRIX BY THEMES ..........................................87 ANNEX 2: MGDS DETAILED MATRICES................................................................................106 ANNEX 2.1: MGDS DETAILED MATRICES BY KEY PRIORITY AREAS............................106 ANNEX 3: MGDS ACTIVITY COSTING AND PRIORITIZATION..............................................185 ANNEX 3.1: DETAILED PRIORITIZATION AND COSTING BY KEY PRIORITY AREA......185 ANNEX 3.2: PRIORITIZATION AND COSTING BY THEME................................................197 ANNEX 4: MGDS NEEDS ASSESSMENT SUMMARY ............................................................236 ANNEX 4.1: KEY PRIORITY AREAS HUMAN RESOURCE REQUIREMENTS ..................236 ANNEX 4.2: KEY PRIORITY AREAS CAPITAL REQUIREMENTS .....................................238 ANNEX 4.3: OTHER FOCUS AREAS HUMAN RESOURCE REQUIREMENTS .................241 ANNEX 4.4: OTHER FOCUS AREAS CAPITAL REQUIREMENTS ....................................248 xi Malawi Growth and Development Strategy Executive Summary The Malawi Growth and Development Strategy The Malawi Growth and Development Strategy (MGDS) is the overarching strategy for Malawi for the next five years, from 2006/07 to 2010/2011 fiscal years. The purpose of the MGDS is to serve as a single reference document for policy makers in Government; the Private Sector; Civil Society Organizations; Donors and Cooperating Partners and the general public on socio-economic growth and development priorities for Malawi. The overriding philosophy of the MGDS is poverty reduction through sustainable economic growth and infrastructure development. The MGDS identifies six key priority areas which define the direction the country intends to take in the next five years to achieve economic growth and wealth creation which are critical for immediate improvement in the economic well-being of Malawians. These are agriculture and food security; irrigation and water development; transport infrastructure development; energy generation and supply; integrated rural development; prevention and management of nutrition disorders, HIV and AIDS. These six key priority areas will accelerate the attainment of the Millennium Development Goals (MDGs), thereby recognizing the importance of sectors of health, education, gender, environment and governance. In this regard, the MGDS maintains a balance between the economic and social sectors of the economy. In the medium- term, this is expected to bring about prosperity, reduce poverty and achieve the MDGs in order to make life better for all Malawians. In order to support the six key priority areas, the development framework of the MGDS is built around five broad thematic areas namely sustainable economic growth; social protection; social development; infrastructure development; and improved governance. The activities in the themes have been systematically prioritized and realistically costed taking into account the limited resource envelope. The MGDS builds on the Malawi Economic Growth Strategy (MEGS) that emphasizes the need to create a conducive environment for private sector investment to stimulate economic growth. As such it recognizes the important role of the private sector in promoting economic growth. It also incorporates lessons from the implementation of the Malawi Poverty Reduction Strategy (MPRS). Hence, the MGDS recognizes the need to invest in social development through education, health, good governance and the need to protect the most vulnerable. The process of developing the MGDS has been participatory involving all key stakeholders including Government, Parliament, Private Sector, Civil Society, Donors, Co-operating Partners and the General Public. More importantly the preparation of the MGDS has been country led and owned, therefore, making it a document for the nation. xii Malawi Growth and Development Strategy Malawi Economic Growth Strategy The Malawi Economic Growth Strategy (MEGS) was inspired from a joint realisation by Government and the private sector that the economy had been registering negative growth and that remedial measures had to be put in place to reverse the trend. This was in recognition of the fact that the MPRS could not adequately stimulate sustainable economic growth. There was therefore need for rapid broad-based growth to expand the sectoral sources of growth. This would deepen and sustain the gains from agriculture, achieve food security and make the economy less susceptible to external shocks like weather, changes in terms of trade, political developments in the region, and fluctuations in external aid flows. The MEGS focused on strategies and actions that did not require substantial additional spending by Government and instead could be achieved through refocusing of existing resources by developing a more conducive set of policies that would stimulate private sector investment and trade. It was envisaged, in the medium term, that Government would create the enabling environment through policy reforms with financial and technical support from donors. In this regard, the MGDS could not re- invent the wheel but rather consolidate the economic growth policies and strategies from the MEGS and lessons from the MPRS to inform the new policy direction articulated in this document. Malawi Poverty Reduction Strategy Implementation Review Poverty has not changed significantly for the past seven years. According to the Integrated Household Survey 2004/05, the current status of poverty shows that 52.4 percent of the population lives below the poverty line1, i.e. about 6.3 million Malawians are poor, with the poorest people in the Southern Region, and rural areas being poorer than urban areas (where poverty rates are at 25%). The poor still have poor socio-economic indicators with food security being a continuing threat to better life. Female headed households are worse off and income inequality persists in Malawi with the richest 10 percent of the population having a median per capita income that is eight times higher (MK50,373 per person per annum) than the median per capita income of the poorest 10% (K6,370 per person per annum). Approximately 30% of the poor moved out of poverty during the period, while 30% of the non-poor moved into poverty. This suggests that there is continued economic vulnerability in Malawi. On the economic front, the main macroeconomic indicators remained unsatisfactory with the increase of domestic debt stock as a major setback. Lack of fiscal discipline has in the past contributed to unsustainable increase in the domestic debt. The combination of high interest rates and large stock of short-term domestic debt exacerbated pressure in the operation of the budget as most resources went into debt servicing. The MGDS incorporates lessons learnt from this review while taking into consideration the current political, economic and social developments in the country. It has also been aligned with existing key sectoral strategies and policies from both 1 The data from the IHS2 is not directly comparable to the past poverty levels. A change in survey instruments and methodology, required an effort to compute the poverty rates for the previous IHS using the current methodology. In this exercise, poverty estimates from IHS1 were estimated using regression models to impute expenditure per capita based on comparably measured household characteristics. The IHS1 poverty rates were calculated at 54% xiii Malawi Growth and Development Strategy private and public stakeholder institutions. Government will spearhead the implementation of the MGDS. However, all stakeholders have varying responsibilities in the implementation process to ensure the attainment of the set goals. MGDS Resource Envelope and Budget Framework The successful implementation of the MGDS will depend on the resource envelope that will be revised from time to time. The total revenue and grants is currently programmed to average 38.5 percent of GDP for the next five years. Tax revenue is expected to remain at about 21 percent of the GDP in the medium term. The total government expenditure is expected to average about 39 percent of the GDP in the current MGDS macroeconomic framework. However, capital expenditure still remains low but it is the intention of Government to increase it during the period of the MGDS. In the previous strategies, resource allocations were tilted towards general administration and social services. The emphasis of the MGDS is to balance between economic and social sectors. The overall fiscal balance is expected to average 1.0 percent of the GDP. The MGDS budget framework is supposed to create an enabling environment for private sector development and improve economic infrastructure such as road networks, energy, water systems and telecommunication. In addition, Government will implement a number of structural reforms to strengthen public expenditure management, tax system and administration, parastatal reform, civil service reform, decentralization, and good governance. Key Priority Areas of the MGDS The MGDS contains six key priority areas identified as necessary to achieve its overall objective. Implementation of these key priority areas is expected to enable Malawi to achieve immediate economic growth and wealth creation which are critical for immediate improvement in the economic well-being of Malawians. As outlined above, the key priority areas are agriculture and food security; irrigation and water development; transport infrastructure development; energy generation and supply; integrated rural development; and prevention and management of nutrition disorders, HIV and AIDS. The key priority area on agriculture and food security has been chosen from theme one on sustainable economic growth. Transport infrastructure development; energy generation and supply; and irrigation and water development; have been taken from theme four on infrastructure development. This emphasizes Government’s commitment to achieving immediate economic benefits that would translate into the socio-economic well-being of Malawians in the medium-term. The key priority area on integrated rural development comprises elements of all the five themes of the MGDS. The choice of this key priority area reflects Governments commitment to improving lives of the rural poor through infrastructure development and economic empowerment. Lastly, the key priority area on the prevention and management of nutrition disorders, HIV and AIDS has been isolated from theme three on social development emphasizing Government’s commitment to achieving the MDGs. The xiv Malawi Growth and Development Strategy six key priority areas are therefore within the five thematic areas and are summarized below: 1. Agriculture and Food Security Agriculture is the single most important sector of the economy as it employs about 80 per cent of the workforce, and contributes over 80 per cent of foreign exchange earnings. Above all it also contributes significantly to national and household food security. However, agriculture in Malawi is characterized by low and stagnant yields, over dependence on rain-fed farming which increases vulnerability to weather related shocks, low level of irrigation development, and low uptake of improved farm inputs among others. Consequently, Malawi continues to suffer from chronic food insecurity with many of the problems being structural and economic in nature. The goal is therefore to increase agriculture’s contribution to economic growth, by not only increasing production for food security, but also for agro-processing and manufacturing for both domestic and export markets. Agricultural Productivity: It is expected that value adding and smallholder productivity will be increased while orienting smallholders to greater commercialization and international competitiveness. The strategy also envisages increased livestock production to meet domestic demand. Key strategies include: contract farming, strengthening linkages of farmers to markets, creating a balance between domestic and export oriented markets and provide effective extension services. Agro-processing: The medium term expected outcomes for agro-processing are focused on tea, tobacco, sugar,cotton and wheat. • Tea: Tea production will be increased, especially clonal tea varieties that are competitive at the world market. Focus will be on increasing estate and smallholder profitability and re-investment by uprooting the old varieties and replacing them with the new clonal tea varieties. Tea processing will also be promoted to increase value added and the private sector will take a leading role. • Tobacco: Malawi will maintain a position of market leader in burley tobacco, ensure quality and add value to tobacco through processing and manufacturing. Malawi will also increase production of flue cured and Northern Dark Fired tobaccos by rationalization of fees, creating a more efficient and fair system between farmers and auction floors, strengthening contract farming, and exploring additional markets for tobacco, including tobacco products. Common strategies for smallholder farmers include establishing cooperatives, providing farmers with inputs and better extension services, and irrigation. • Sugar: In the medium term, sugar production will increase by 23 percent. The industry also expects to continue to move up the value chain. The main strategy is to promote out-grower schemes in the sugar industry. • Integrated Cotton Industry: The medium term outcome for the sector is increased production of garments made from locally woven cotton cloth as opposed to imported synthetic fabrics. Key strategies include focusing efforts xv Malawi Growth and Development Strategy on identifying and negotiating trade opportunities at the global level. Due to the highly competitive nature of the industry, it will look for opportunities where it has a comparative advantage and not attempt to replicate all steps in the value chain. • Wheat: There is need to increase wheat production in the country. Since 1991/92 season, annual wheat production has remained below 2000 metric tonnes which is far short of the estimated consumption of 60,000 metric tonnes. The medium term expected outcome is increased production of wheat from the current hectarage of 2000 to 30,000 hectares. The key strategies include encouraging production of improved varieties of wheat, irrigation, processing and marketing. Food Security Food will be available for all Malawians in sufficient quantities and qualities at affordable prices. Key strategies will include improving agricultural productivity and increase the variety of food available at household, community and national levels; implementing policies to improve the functioning of the maize markets; improving the ability to import and distribute food through better domestic and regional connectivity; providing means for Malawian’s to gain income and put in place effective social protection programs with improved targeting and implement a nutrition strategy while improving coordination and management of food aid. 2. Irrigation and Water Development Irrigation and water development is key to Malawi due to its direct linkages with agriculture and energy. Irrigation will contribute towards reduction of the over dependence on rain-fed agriculture while proper conservation of water will also contribute towards the generation of electricity. Key strategies include construction and promotion of small and medium scale irrigation schemes to enhance food and cash crop production. 3. Transport Infrastructure Development Better domestic and regional connectivity entails improving the current state of transport infrastructure. However, the state of Malawi’s transport infrastructure is characterized by poor road network, poor and limited access to ports, limited air links, inadequate freight and rail capacity. The inadequacy of the transportation infrastructure results in high costs of production, where transportation represents 55 percent of costs, compared to 17 percent in other less developed countries. With the new policy direction, it is expected that improved transportation will contribute to reduced lead times on export, decreased cost of domestic trucking, lower costs of cross-border and transit trade with neighbouring countries, lower cost to reach domestic, regional and international markets (supply and distribution) and improved mobility and connectivity of rural producing communities to markets. • Roads: In the medium term, efforts will be on improving mobility and accessibility of the population to key road corridors within Malawi and out of Malawi while facilitating the improved mobility and accessibility of rural communities to goods and services at low cost. xvi Malawi Growth and Development Strategy • Water transport: The key medium term outcome for water transport is improved inland shipping network that is active in local and international shipping, trade and tourism in a safe manner while protecting the environment. Efforts will be directed towards plans to navigate the Shire so that the country could have direct access by water to the ports along the Indian Ocean through the Shire-Zambezi Waterway. 4. Energy Generation and Supply Energy is a crucial input into any industrial processing and serves as the life-blood for any economy. Malawi is relatively well endowed with a wide variety of energy resources but a full potential of the energy sub-sector remains far from being realized owing to a number of structural, operational and institutional challenges. The provision of energy in Malawi is inadequate, unreliable and inaccessible to all who need it largely on account of lack of competition in the sector, non-functioning power plants and inability to generate sufficient amounts of energy. The objective of the MGDS is to reduce the number and duration of blackouts, increase access to reliable, affordable electricity in rural areas and other targeted areas, improve coordination and the balance between the needs for energy and those of other high growth sectors such as tourism and mining. 5. Integrated Rural Development The MGDS recognizes that broad based economic growth and development cannot be achieved if rural areas with potential for growth are sidelined. In this context, Government will strive to promote the growth of rural growth centers. The objective is to re-distribute wealth to all citizens while also mitigating the negative consequences of rural-urban migration. The long-term goal is to develop rural growth centers to contribute effectively to economic growth through the creation of employment opportunities thereby enhance the redistribution of wealth to all citizens and reduce rural-urban migration. In the medium-term it is expected that developed rural growth centers will create employment that will enhance incomes for rural communities and in-turn reduce rural-urban migration trends. Emphasis will be placed on infrastructure development such as roads and communications, energy supply, agro-processing and manufacturing. This is envisaged to promote private sector investment that will create employment and improve incomes of the rural people. 6: Prevention and Management of Nutrition Disorders, HIV and AIDS. HIV and AIDS: The MGDS incorporates strategies of the National Action Framework on AIDS and the UNAIDS three-ones principles – one agreed action framework, one national AIDS coordinating authority, and one agreed country level monitoring and evaluation system. It seeks to not only halt and reverse the spread of HIV and AIDS, but also to decrease the negative impact of the epidemic on people living with AIDS and reduce the economic and social consequences for those who care for people living with HIV and AIDS. Malawi like many other Sub-Saharan African countries has been severely affected by HIV and AIDS. Its impact remains devastating and the country’s efforts are inadequate given the pace of the spread of HIV and AIDS. Poverty and HIV and AIDS are reciprocally influenced. The national adult HIV prevalence in the reproductive age group of 15-49 years has slightly declined from 14.4percent in 2003 xvii Malawi Growth and Development Strategy to 14.0 percent in 2005. The country still faces a number of challenges in containing the spread and impact of HIV and AIDS on development. Key constraints in containing the HIV and AIDS scourge are: hunger and poverty which make individuals more vulnerable to infection; inadequate supply of Anti-retrovirals (ARVs) and access to nutritious diets. . The long-term goal is to prevent further spread of HIV and AIDS and mitigate its impact on the socio-economic and psychosocial status of the general population and high risk groups. It is expected that in the medium-term there will be behaviour change of people particularly the high risk groups, increased number of people accessing voluntary counselling and testing (VCT), improved health status or extended life of the infected people through increased uptake of ARVs and nutrition therapy. Nutrition: In the medium term, efforts will focus on ensuring effective utilization of quality food and the biological utilization of nutrients in the body; reduced levels of malnutrition among all Malawians; reduced incidences and cases of dietary related non-communicable diseases and micro-nutrient disorders; and increased productivity and availability of food crops. Key strategies include enhancing coordination of nutrition programmes, building capacity for nutritionists and dieticians, and community nutrition workers. Interaction of Nutrition, HIV and AIDS: The HIV and AIDS pandemic has compounded the dual burden of malnutrition and disease. It increases the body’s need for micronutrients, calories and protein while simultaneously decreasing the body’s ability to work. This means that as more nutritious food is needed within a household, less labour is available with which to produce or obtain it. This leads to less nutritious food for everyone else in the household and inadequate diet for the person living with HIV and AIDS. The long-term goal is to improve the nutritional status and support services for people living with and affected by HIV and AIDS. In the medium-term, It is expected that there will be increased knowledge of the interaction between nutrition and HIV and AIDS; improved and diversified dietary practices for people living with HIV and AIDS; and increased provision of HIV and AIDS-related nutrition interventions. Other Focus Areas of the MGDS In addition to the six key priority areas described above, the MGDS also focuses on areas of health, education, gender, environment, governance and protection of the vulnerable among others. The MGDS recognizes that a healthy and educated population is necessary if Malawi is to achieve sustainable development. In this regard, the MGDS also seeks to achieve and sustain Millennium Development Goals (MDGs). Areas of focus include the provision of the essential health package, and development of health infrastructure. In education, emphasis is on providing adequate learning and teaching materials, rehabilitation and construction of modern schools at all levels. The MGDS also focuses on good governance as it is a prerequisite for achieving sustainable economic growth and development. Furthermore, the MGDS recognizes that equal participation in economic activities and sustainable management of the environment are critical for the development of the country. It is also a fact that while most may benefit from economic growth and development, some may be left out due to their inability to actively participate in the development xviii Malawi Growth and Development Strategy process. Government has put up plans to provide social protection to these marginalized groups of people. These include the elderly, women, people with disabilities and children. Social protection programmes will be developed in line with human capital needs to transform these groups to access social basic needs. Malawi Growth and Development Strategy Framework The five broad themes are: sustainable economic growth; social protection; social development; infrastructure development and improving governance. The rest of the focus areas are within these themes as outlined below: Theme One: Sustainable Economic Growth The achievement of sustainable economic growth is necessary if the vision of creating wealth and employment, transforming the country from a predominantly consumption-based economy to a predominantly production-based economy, and turning it into a middle-income economy is to be achieved. To this end, Malawi will seek to increase domestic and foreign private investment in productive sectors. It will also seek to promote exports by addressing supply-side constraints, to diversify the economy and ensure that this growth is shared among all Malawians. The strategy for sustainable economic growth requires action on multiple fronts. In order to generate immediate economic benefits for the people, Government will in the short to medium term prioritise agricultural productivity of key crops such as maize, tobacco, tea, sugar and cotton to improve the food security situation and agro-processing for export. As such issues of agriculture and food security have been isolated as a key priority area as outlined above. The rest of the other focus areas are as below: Sub-Theme One: Maximizing the contribution to economic growth through the potential sectors of growth High growth sectors will be positioned to realize economic growth in the longer term (by taking away constraints to growth) and increase employment in the medium term. • Tourism: Malawi will be established as a principal and leading eco-tourism destination in Africa and domestic tourism will be increased. Strategies to be pursued include: increasing capacity to service additional tourists in international competitive accommodations; improving transportation links to tourism destinations; increasing attractiveness of national parks for tourism and eco-tourism and improving tourism marketing regionally and internationally. • Mining: In the medium term, production will be increased and efforts geared towards value adding by all miners. The main strategies for mining include: developing a functioning institutional setting to promote mining, ensuring compliance by small, medium and large scale miners with environmental and safety standards; supporting small scale miners by integrating them in the minerals market and increasing their value added; and increasing investment by private sector companies in medium and large scale mining. • Manufacturing: The medium term outcome is to lay the foundation for manufacturing to take off. Key strategies include: improving the quality of products and productivity of both labour and capital; enhancing skills through better integration of science and technology into vocational training; xix Malawi Growth and Development Strategy improving standard certification capacity; developing additional incentives for investment including redefining the roles and responsibilities of support institutions. Sub-Theme Two: Enabling environment for private sector led growth The private sector is a recognized engine of growth. It is expected that in the medium term, there will be: an increase in the number of firms that are producing goods that are competitive in regional and international markets, in terms of both product quality and price; and that the number of Malawian firms which are contributing to exports will increase as will the supply of goods for the domestic market. The key strategies include: addressing the infrastructure constraints; ensuring sustained macro-economic growth; improving vocational training through the current educational system; and updating equipment to meet international certification standards; implementing tax reforms as defined by the tax review; and improving coordination for domestic and international investors to resolve problems in accessing information. Sub Theme Three: Export Led Growth Malawi continues to be a member of both SADC and COMESA. The national export strategy will include promoting production of goods and services where Malawi has comparative advantage to take advantage of the existing regional markets. Key strategies include: reducing the cost of reaching external markets by focusing on linkages to Mozambique through the Shire Zambezi waterway, reduced restrictions on air transport; reducing lead times on export and improve efficiency of customs operations, improve marketability of export products through improved certification, trade network and information for export. Sub Theme Four: Conserving the Natural Resource Base This strategy recognizes that sustainable use of natural resources contributes to many of the goals in the MGDS. This includes fisheries, forestry, and the environment. (a) Fisheries: Malawi will ensure sustained fish availability for food as well as income generation. Key strategies include: increasing and sustaining the productivity of small and large scale fisheries for both domestic and export markets; enforcing legislation to ensure sustainable production of fish; promoting the use of modern techniques of fishing; capacity building through community training; and development of small scale fish farming and deep-water fishing. (b) Forestry: The country will ensure sustainable use and management of forestry resources. Key strategies include: improving productivity and value added by the industrial forestry sector; increasing reforestation efforts for key areas; improving enforcement of regulations for forestry management; initiation of reforestation and environmental rehabilitation programmes in priority areas; and introducing incentives for private sector participation. c) Environmental Protection: Efforts for environmental protection will focus on improving compliance with environment and natural resource management laws. Key strategies include: improving enforcement of environmental policies, legislation and cooperation in environmental, natural resource management and development; raising awareness of issues of protecting the environment; and incorporating xx Malawi Growth and Development Strategy environmental concerns in school curricula and establishment of an environmental management information system. (d) Wildlife: The overall goal is to conserve and manage protected areas and wildlife. In the medium term, the sub-sector is expected to conserve, manage and develop wildlife resources to effectively contribute towards sustainable development of biodiversity and the tourism industry in Malawi. Sub Theme Five: Economic Empowerment The productivity of rural communities and businesses will increase to enhance employment and income especially by increasing number of women and youths who actively participate in economic activities. Key strategies include: targeting infrastructure development to ensure that rural communities are linked to markets; developing rural cooperatives to lower transaction costs and helping communities with collective bargaining; strengthening the policy environment for micro-finance, including improved coordination of donor programs; offering vocational and other training for small businesses; and targeting women’s participation in economic growth activities. Sub Theme Six: Land and Housing The MGDS recognizes the importance of land as a basic factor of production as well as the sole source of livelihood for the majority of Malawians. However, inadequate access to land by majority of Malawians has been identified as one of the critical factors contributing to poverty in the country. The goal in the long term is to ensure tenure security and equitable access to land for the attainment of broad-based social and economic development through optimum and ecologically balanced use of land and land- based resources. It is expected that in the medium term there will be an efficient use of land and land based resources and equitable access to land by all productive Malawians and other investors. Among the key activities, there will be need to promote and facilitate opportunities for lowering land transaction costs and enhance the operation of effective land markets, and support the privatisation of some land services in an effort to encourage the development of private sector participation in land sector activities. Theme Two: Social Protection & Disaster Risk Management Protecting the most vulnerable will require action on four fronts namely: • Caring for the most vulnerable with limited factors of production (malnourished under-five children, school-going children, orphans, pregnant and lactating mothers, and destitute families); • Preventing the vulnerable from slipping into poverty due to economic shocks; • Increasing the assets of the poor to enable them to engage in economic development activities; and • Preventing disasters where possible and mitigating the negative impact of disasters on the vulnerable. Sub Theme One: Protecting the vulnerable Protection of the vulnerable is designed to ensure that the most vulnerable people with limited factors of production are sufficiently cushioned through programmes to improve health and nutritional status of under-five children, school-age children, xxi Malawi Growth and Development Strategy orphans, pregnant and lactating mothers and destitute families. The strategy will also focus on improving planning and integration of knowledge on the needs of the chronically poor; provision of opportunities for the poor farmers and rural communities to graduate from poverty by facilitating their integration in mainstream agricultural productivity and enabling them to accumulate wealth. Sub Theme Two: Improving Disaster Risk Management The main aim is to reduce the socio-economic impact of disasters as well as build a strong disaster management mechanism. The key strategy is enhancing disaster management, planning, and response. Among others, efforts will be made to promote the integration of disaster risk management into sustainable development planning and programming at all levels. Theme Three: Social Development The MGDS recognizes that human development is important if the country is to achieve its economic growth and development agenda. In addition, Malawi seeks to achieve and sustain MDGs which are also long-term targets and aspirations for the people of this country. As such, building a healthy, educated and gender sensitive population is a priority for Malawi. The strategy recognizes the interrelated nature of issues such as health, HIV and AIDS, nutrition, education, and gender hence the need to deal with these in a coherent and balanced manner. The overall goal is, therefore, to develop human capital for full participation in the socio-economic and political development of the country. The prevalence of HIV and AIDS in Malawi is very alarming. The country ranks as the 9th country in the world affected by the HIV and AIDS pandemic. The epidemic continues to grow as displayed by high annual infection rates at close to 100,000, especially among youths; high HIV and AIDS morbidity and mortality rates; increasing mother-to-child transmission; increasing number of destitute orphans at 70,000 being added annually; child headed households currently accounting for 15.0 percent; and increased absenteeism and manpower attrition. This situation is made worse with high rates of malnutrition resulting in increased nutrition disorders. It is for these reasons that Government has made the prevention and management of nutrition disorders, HIV and AIDS a key priority area for the next five years. Therefore, the sub themes on HIV and AIDS and nutrition are discussed under key priority areas above and in more detail in chapter 4. Sub Theme One: Health and Population: Improving health requires a multifaceted approach with a combination of preventive, educational and clinical measures. Key strategies include: increasing and retaining the number of well qualified health personnel; increasing availability and supply of drugs and preventing theft of drugs and equipment; improving health facilities and equipment; and improving financial management, monitoring and supervision of health care services. Sub Theme Two: Education: In the education sector, emphasis will be on equipping students, especially at primary school level with basic knowledge and skills to enable them function as competent and productive citizens; to provide academic basis for gainful employment in the informal, private and public sectors; and to produce high quality professionals with relevant knowledge. Key strategies include the provision of xxii Malawi Growth and Development Strategy teaching and learning materials, training of teachers, and construction of appropriate classrooms. Sub Theme Three: Gender: The overall priority goal is to mainstream gender in the national development process to enhance participation of women and men, girls and boys for sustainable and equitable development. Key strategies include undertaking affirmative measures to include women in decision-making positions; and promotion of advocacy for gender equality. Theme Four: Infrastructure Development Infrastructure is critical to achieving the growth and social objectives of this country. The MGDS is focused on five main areas of infrastructure, namely: transport; energy; water and sanitation; information and communication technologies; and science and technology research. All these are seen as prerequisites for the achievement of economic growth and development. However, Government has prioritized transport infrastructure in roads and the Shire-Zambezi Waterway for the next five years. Particular emphasis is being placed on reducing transportation costs by connecting production areas to both domestic and export markets. Energy generation and supply, irrigation and water development have also been identified as priority areas within the infrastructure theme. It is a national consensus that unless Malawi improves its energy generation and supply, particularly electricity, the MGDS will remain a mere dream. Equally so is the realization that the country needs to shift towards irrigation development in order to reduce over-dependence on rain-fed agriculture that has left this country vulnerable to weather shocks. In light of this, Government has also isolated energy generation and supply, and irrigation and water development as key priority areas of the MGDS. The other focus areas within infrastructure development are as follows; Sub Theme One: Air and Rail Transportation (a) Air Transport: Air transport is the most efficient and effective means of transportation in the world. However, Malawi faces a number of constraints such as airfreight costs which are higher than neighbouring countries, and landing rights restrictions and fees are prohibitive hence uncompetitive. While Malawi is striving to become a productive exporting economy the status of international airport facilities are in poor condition. In light of this, the focus of the medium term will be to ensure that the international airports conform to international standards through the provision of the relevant services and facilities. The goal in the long term is to reduce the cost of air transportation while ensuring international competitiveness. (b) Rail Transport: Rail transport still remains the cheapest form of transport in Malawi. However, its usage is limited but has potential for growth especially for moving both domestic and international cargo. The long-term goal is to have an efficient, affordable and effective rail network that eases pressure from the road network and provides an alternative means of transport both to people and transportation of goods. It is expected that in the medium term, the rail sub-sector will be a well-managed, viable and sustainable system that promotes accessibility as well as affordable and reliable movement of goods and people. xxiii Malawi Growth and Development Strategy Sub Theme Two: Information, Communication and Technology (ICT) Telecommunications: The long term goal is to have a well developed, affordable and efficient telecommunications system accessible to those who need it. The expected medium term outcomes will be an effective, affordable and efficient telecommunications system. Key strategies include: developing a system that is conducive to business operations; and enacting appropriate legislation that promotes interest of new entrants. Information Technology: In the medium term, the country shall have developed ICT infrastructure and improved e-governance. Broadcasting by radio and television will be the main focus for disseminating information to the public. Sub Theme Three: Research, Science and Technology The goal is to attain sustainable socio-economic development through the development and application of science and technology in order to improve industrial productivity and quality of goods and services. Theme Five: Improving Governance Good governance requires action on seven fronts as follows: • Achieving and sustaining macroeconomic growth, • Strengthening public policy formulation and implementation in a transparent and responsive manner, • Improving service delivery and accountability at the local level through decentralization, • Developing a strong justice system and rule of law, • Ensuring personal security, • Establishing an institutional setting for good corporate governance, and • Promotion of human rights. Sub Theme One: Macroeconomic Growth The goal is to sustain economic growth, reduce dependency on foreign aid and generate investor confidence. In the medium term it is expected that Malawi shall achieve a stable environment with low inflation, lower interest rates, stable and non- volatile exchange rates, sustainable domestic and external debt. Sub Theme Two: Public Policy Formulation, Fiscal Management, Public Sector Management, and Corruption: In Malawi, the public sector has in the past been characterised by poor management that has generated inefficiencies in the delivery of public goods and services. Government and its development partners are already addressing some of the challenges with interventions such as wage policy reforms, civil service reforms, capacity constraints and eradicating corruption. xxiv Malawi Growth and Development Strategy Sub Theme Three: Decentralization: In the medium term it is expected that local assemblies will be in full control of community planning at district level, ensure effective accountability and good governance, vibrant monitoring and evaluation system, clear and strengthened linkages of various policy reforms, and reduced conflicts of roles among various stakeholders at the district level. Sub Theme Four: Developing a strong justice system and rule of law: It is expected that Malawi shall have a more responsive and effective judicial authority with sustained administration of justice, increased public confidence in the judicial system and improved ability of private sector to obtain equitable and fair settlement of disputes in reasonable time and at reasonable cost. Sub Theme Five: Security: In the medium term, emphasis is to prevent and reduce crime levels. Key strategies include: improving the responsiveness of police to communities security needs by reducing the police-population ratio through recruitment and training of more officers; promoting effective prosecution and punishment; effective crime detection, investigation and prevention through the provision of adequate technical and financial support to the police; strengthening partnership for risk management between private sector and the police for protection of business property; and enhancing community integration and participation in crime prevention, and detection through civic education. Sub Theme Six: Corporate Governance: The implementation of the code of best practices on corporate governance in the medium term is expected to enhance private sector performance through reduced corruption and fraud and improve investor perceptions of Malawi as an attractive investment destination. This is expected to translate into increased levels of domestic and foreign direct investment. Key strategies include: popularising the need and role of the Institute of Directors to play a leading role in facilitating the adoption of good corporate governance code of best practices; mobilization of private sector support for this initiative which will facilitate the sustainable operations of the new institution and its operations. Sub Theme Seven: Human Rights Human rights are an integral part of the overall national development agenda. However, awareness of human rights is a concern among many people in Malawi. MGDS recognizes that empowering the most vulnerable groups that form the larger part of the population can effectively contribute to social, economic and political development of the country. In this regard the MGDS will therefore also focus on public awareness of human rights and acknowledgement of human rights responsibilities. MGDS Implementation, Monitoring and Evaluation The MGDS implementation will involve all stakeholders including; the Executive, Parliament, Judiciary, civil society organisations, private sector and the general public. It is expected that donors and co-operating partners will align their support and activities to the MGDS. The main tool for implementing the MGDS will be the annual national budget through medium term expenditure framework. The Public Sector Investment Programme (PSIP) will be aligned towards the medium term outcomes xxv Malawi Growth and Development Strategy and strategies in the MGDS. Budget submissions that either include activities outside the MGDS or exclude activities inside MGDS will be rejected. The monitoring of MGDS will be in accordance with the monitoring and evaluation master plan developed by Government in collaboration with the donor community. The stakeholders will align indicators in accordance with the MGDS themes and sub themes. The Government will also strengthen monitoring and evaluation capacity at the Districts and Town Assemblies level and enforce regular maintenance of infrastructure. xxvi Malawi Growth and Development Strategy Chapter 1 INTRODUCTION

1.1 Overview The Malawi Growth and Development Strategy (MGDS) is the overarching strategy for Malawi for the next five years from 2006/2007 to 2010/2011 fiscal years. It is the overarching operational medium-term strategy for Malawi designed to attain the nation’s Vision 2020. The main thrust of the MGDS is to create wealth through sustainable economic growth and infrastructure development as a means of achieving poverty reduction. It presents a policy framework that articulates issues related to both economic growth and social development. The policy mix of the MGDS is aimed at achieving the medium-term development objectives of sustainable economic growth and infrastructure development. The purpose of the MGDS is to serve as a single reference document for policy makers in Government, the Private Sector, Civil Society, Donors and Co-operating Partners on the country’s socio-economic development priorities. To ascertain immediate economic benefits for the people of Malawi, the MGDS will in the next five years place emphasis on six key priority areas of agriculture and food security; irrigation and water development; transport infrastructure development; energy generation and supply; integrated rural development; and prevention and management of nutrition disorders, HIV and AIDS. These six key priority areas are also expected to accelerate the attainment of the Millennium Development Goals (MDGs) in the areas of health, education, gender, environment, and governance. These six key priority areas have been selected from the broad MGDS framework of five thematic areas namely; sustainable economic growth; social protection; social development; infrastructure development and improving governance. The MGDS recognizes that issues of HIV and AIDS, science and technology, gender, empowerment and environment are cross cutting hence have been streamlined within the six thematic areas. The MGDS is a product of a highly consultative and participatory process that identified specific strategies and focus actions that will be pursued and implemented in the medium-term in order to attain the aspiration of the nation as articulated in the Vision 2020. The MGDS builds on the Malawi Economic Growth Strategy (MEGS) that emphasized the need to create a conducive environment for private sector investment to stimulate economic growth. The MGDS also incorporates lessons learnt from the implementation of the Malawi Poverty Reduction Strategy (MPRS). The MGDS has also been aligned with existing key sectoral strategies and policies from both private and public stakeholder institutions. Government will spearhead the implementation of the MGDS. However, all stakeholders have varying responsibilities in the implementation process to ensure the attainment of the set goals. Malawi Growth and Development Strategy

1.2 Main Assumptions of the MGDS The main assumptions of the MGDS are as follows; • Malawi achieves a sustainable macroeconomic growth within a stable political and economic environment. • Malawi attains a minimum annual growth rate of 6.0 percent of Gross Domestic Product (GDP) in order to meaningfully reduce poverty. • Malawi qualifies for debt relief under the Highly Indebted Poor Countries (HIPC) and Multilateral Donor Debt Relief Initiative (MDDRI). • Private sector invests and actively participates in socio-economic development activities. • Public and private sector investment in infrastructure as a pre-requisite for the creation of an enabling environment is realized and institutionalised. • There are adequate resources and capacity to provide educational needs at all levels, delivery of essential health package, prevention and mitigation of the socio-economic impacts of HIV and AIDS. • Good governance is entrenched and institutionalised to avoid wastage of scarce financial and other resources that would have otherwise contributed to the achievement of sustainable economic growth and development. • Effective social protection programmes are designed to mitigate negative side effects of growth and development. • There is political will and change of mindset to enforce the implementation of the national strategy over its period.

1.3 Outline The MGDS is organized as follows: Chapter 1 informs the introduction, which presents an overview and main assumptions. Chapter 2 is the background and provides the purpose, objectives and rationale of the MGDS. Chapter 3 summarizes macroeconomic environment within which the MGDS will be implemented and chapter 4 presents the key focus areas of the MGDS. Chapter 5 outlines the strategic framework of the MGDS and outlines in detail the five thematic areas. Finally, chapter 6 presents the implementation, monitoring and evaluation framework of the MGDS. 2 Malawi Growth and Development Strategy Chapter 2 BACKGROUND The MGDS is not a stand-alone policy document. It has been derived on the basis of the current long-term policy goal of the country prescribed in the Vision 2020 and past experiences in the implementation of medium term development objectives such as the MPRS and MEGS. The MGDS is not an alternative to MPRS or MEGS or the Vision 2020, but rather an implementable medium term strategy that translates the goals and objectives that emerged from a nation-wide consultation process and are reflected in Vision 2020. It intends to build a broad political consensus on the direction for economic growth and wealth creation.

2.1 Malawi Vision 2020 In the late 1990s, Malawi developed the Vision 2020, which was launched in 2000. This policy framework sets out a long-term development perspective for Malawi. It emphasizes long term strategic thinking, shared vision and visionary leadership, participation by the population, strategic management and national learning. The Vision 2020 states that “by the year 2020 Malawi as a God fearing nation, will be secure, democratically mature, environmentally sustainable, self-reliant with equal opportunities for and active participation by all, having social services, vibrant cultural and religious values and a technologically driven middle-income economy”. The fundamentals of the MGDS are based on the shared Vision 2020 and commitment of Malawians to improve their economic welfare.

2.2 Malawi Poverty Reduction Strategy In May 2002, the Government launched the MPRS which presented a first attempt to translate long-term strategy of Malawi Vision 2020 into medium term focused action plans. The MPRS became the overarching medium term strategy of the Government for reducing poverty in the country. The goal of the MPRS was to achieve “sustainable poverty reduction through empowerment of the poor.” The MPRS was built around four strategic pillars namely: sustainable pro-poor growth; human capital development; improving the quality of life of the most vulnerable; and governance. In addition, it had four key cross cutting issues namely: HIV and AIDS, gender, environment, science and technology. The implementation period for the MPRS was for a period of three years and it came to an end in the fiscal year 2004/05. In the second half of 2005, the MPRS was reviewed to draw lessons from its implementation. These lessons are summarized in the report “Comprehensive Review of the MPRS 2005” and its findings informed the strategic direction of the MGDS. The notable achievement of the MPRS was the decline in poverty levels from 54.1 percent to 52.4 percent. Also important was the fact that Ministries and Departments tried to implement their activities in line with the MPRS framework. However, there were some short falls that hampered the implementation process. These included failure by Ministries and Departments to translate the activities into the budget and 3 Malawi Growth and Development Strategy MTEF, slow implementation of the devolution process, and that funding was not based on pillars.

2.4 Malawi Economic Growth Strategy Under the first pillar of the MPRS, sustainable pro-poor growth, stakeholders noted that the strategies and actions were insufficient to achieve sustained annual economic growth of at least 6 percent. Further, the 2002/03 MPRS review revealed that housing and land policy issues among others were not well articulated to contribute effectively to broad based growth. While it identified certain sectors in terms of their growth potential, it neither focused on eliminating obstacles to growth on an economy-wide basis, nor did it sufficiently articulate the role of the private sector. Therefore, in July 2004, the Government of Malawi developed the MEGS in close collaboration with the private sector. The MEGS was not designed as an alternative to the MPRS, but rather as a complement to strengthen pillar one through investments that would directly impact on economic growth. The MEGS was indeed a joint realisation by Government and the private sector that the Malawi economy had been registering negative growth and that something had to be done in order to reverse the trend. Hence, the rationale for growth and diversification for Malawi was compelling because rapid broad-based growth was necessary to reduce poverty. Rapid broad-based growth was intended to expand the sectoral sources of growth, deepen and sustain the gains to be made from agriculture, and make the economy less susceptible to external shocks like weather, changes in terms of trade, political developments in the region, and fluctuations in external aid flows. The MEGS identified and prioritised key potential sectors that could generate growth in addition to the core agricultural sectors of tobacco, sugar and tea. These included tourism, mining, manufacturing with particular emphasis to agro-processing, cotton, textiles and garments. The MEGS also emphasized the need for the creation of favourable environment for private sector participation as it envisaged that the private sector was the engine of growth in the modern liberalised and globalised world. The MEGS focused on strategies and actions that did not require substantial additional spending by Government and instead could be achieved through refocusing of existing resources and by developing a more conducive set of policies that would stimulate private sector investment and trade in the immediate future. It was envisaged, in the medium term, that donor organisations would have a key role to play in creating a conducive environment for economic growth by supporting policy reforms and providing resources to support Government during the transitional period.

2.5 Millennium Development Goals Malawi as a nation remains committed to achieving the Millennium Development Goals (MDGs). The MGDS, being an over-arching strategic policy document for the next five years has been developed with strong linkages to achieve the MDGs. The emphasis to promote economic growth and development does not in anyway 4 Malawi Growth and Development Strategy substitute the need for providing social services which are particularly important to achieving the MDGs but rather it is envisaged that the benefits of economic growth will generate sustainable means for the provision of basic human needs to enable Malawi achieve the MDGs. The MGDS has attempted to translate the MDGs for Malawi in a localized context. All MDGs are therefore addressed in the strategy within the targets and strategies in that localized context. These MDGs are important to Malawi as they reflect improvements in the wealth and welfare of the people of Malawi. The MGDS recognizes the importance of the MDGs hence its strategies have been aligned to the MDGs outcomes as follows: • Poverty: The goal of the MGDS is to decrease poverty by 8.0 percent through a combination of: economic growth, economic empowerment and food security so that Malawians are less vulnerable to economic shocks; and take measures to protect those who temporarily fall into poverty through measures that increase assets for the poor. The strategy seeks to control fluctuations in poverty due to economic shocks to ensure that those who graduate from poverty stay above the poverty line and those above it do not fall into poverty. • Hunger: The MGDS seeks to directly decrease the proportion of the population who suffer from hunger and to improve their nutritional status. Cycles of hunger are a factor in people moving into poverty. Food security is therefore one of the key priorities; • Education: The MGDS seeks to increase enrolment to 95 percent and reduce the drop out rate to 5 percent by 2012. At the primary school level it is expected that there will be substantial reduction in absenteeism, repetition and dropout rates and high quality and relevant education. At the secondary and tertiary levels it is expected that there will be increased access and improved quality and relevant education for both sexes and people with special needs. • Gender: The MGDS addresses gender by integrating targeted programs for women to enable women be part of economic growth such as targeted programs for business development and micro-finance. The strategy for gender directly targets mainstreaming gender into the programs of Government and disaggregates information by gender. • Child Mortality: The MGDS addresses child mortality through improved access to essential health care services including integrated management of childhood illness and immunization, for example, oral rehydration therapy and antibiotics for diarrhoeal disease and acute respiratory infections. In addition, the strategy seeks to increase access to clean water and sanitation, improve the nutritional status of children and ensure food security; • Maternal Mortality: The MGDS recognizes that little progress has been made on maternal mortality. It, therefore, seeks to improve the antenatal care and basic emergency obstetric care. Measures are being taken through the Health Sector Support Program to directly tackle health-related issues for maternal mortality. It 5 Malawi Growth and Development Strategy is recognized that economic empowerment will also enable women to access better care services; • HIV and AIDS: The MGDS incorporates the strategies of the National AIDS Framework and the three ones. It seeks to not only reduce the prevalence and incidence of HIV and AIDS but also decrease the negative impact of HIV and AIDS on people living with AIDS and to reduce the economic and social consequences for those who care for people living with HIV and AIDS; • Malaria: The MGDS is tackling malaria through improvement of essential health care services, and realizing efficiency gains. It is expected that malaria incidences will decrease while the treatment of malaria will improve; • Environmental Sustainability: The MGDS recognizes that managing natural resources is an essential aspect of environmental sustainability. Thus, not only does the strategy directly consider environmental sustainability in forestry resources and fisheries, enforcement and education of environmental standards, but also it seeks to identify areas, such as eco-tourism, which have a positive spill- over effect on economic sustainability; and • Access to water: The MGDS seeks to improve access to clean water and sanitation in line with the MDGs. Malawi intends to increase access to water within 500m distance for all people, and thereby ensuring that basic water requirements of every Malawian are met while the country’s natural ecosystem is enhanced. The new emphasis in the policy direction does not necessarily imply a decrease in investment in the social sectors, but rather it seeks to strike an appropriate balance between investment in economic and social sectors. This would be achieved through reallocation of expenditure from non-priority sectors such as general administration to economic services and investment in productive sectors such as transport, energy and agriculture. In addition, it is recognized that intra social sector investment would be prioritised, stressing efficiency and effectiveness of social investment.

2.6 Malawi Growth and Development Strategy Formulation Process The Cabinet set up a Steering Committee to translate the Government’s vision for Malawi into an operational strategy for the medium term. The Steering Committee in turn set up a Technical Working Group (TWG) to lead the formulation of Malawi Growth and Development Strategy. The consultation process for preparing MGDS was done in two phases. The first phase started with internal Government discussions in order to develop a framework for further consultations. The priorities and approach of the strategy benefited from working sessions within Government and available data and evaluations of the implementation of the MPRS. A number of consultative meetings and workshops were held with all stakeholders to seek their input in the strategy. The second phase of the consultations involved the interface between the TWG with the MPRS Review Team. The findings of the comprehensive review of the MPRS whose consultations sought feedback from civil society on its implementation was 6 Malawi Growth and Development Strategy incorporated into this document. In addition, the MGDS incorporated inputs from Integrated Household Survey, Malawi Demographic and Health Survey and the Malawi Poverty Vulnerability Analysis. Further consultations were held with other stakeholders that included Government, Parliament, Judiciary, private sector, civil society, donors and co-operating partners and the general public.

2.7 Malawi Growth and Development Strategy Framework The Strategy is centered on achieving strong and sustainable economic growth in the medium-term. The MEGS has particularly informed the development of MGDS themes one and four on sustainable economic growth, and infrastructure development in order to achieve this objective. It is expected that the continued implementation of the MEGS strategies will generate immediate economic benefits that will translate into the well being of Malawians. The focus on infrastructure development will be key to enable private sector operate effectively and efficiently in the economy. The MGDS also emphasizes on building a healthy and educated human resource base, protecting and empowering the most vulnerable. As such themes two and three on social protection and social development are designed to achieve this objective. The successful implementation of the MGDS will depend on good governance environment within which there is a sound economic environment, high quality service delivery, effective institutions and rule of law, an efficient and effective public sector, and reduction in corruption. These issues have been comprehensively articulated in theme five on improving governance. For each of the thematic strategy areas, a detailed matrix has been developed and is presented in Annexes to this document. These matrices show the relationship between the longer term goals for Malawi, the expected medium term outcomes that should result from the priority actions and move the country closer to realizing the longer term goals, the constraints to achieving the expected medium term outcomes, and the proposed strategies and actions to address the constraints. The detailed matrices have been translated into a policy matrix which summarizes how the Government, in partnership with all stakeholders will implement the MGDS. The actions in the policy framework are priority actions that will feed into the yearly budget. Monitoring of progress on the actions, outputs, and expected outcomes will enable the strategy to be changed as conditions change during implementation while maintaining policy coherence over the period.

2.8 Poverty, Social Profiles and Vulnerability Poverty has not changed significantly for the past seven years. According to Integrated Household Survey 2004/05, the current status of poverty shows that 52.4 percent of the population live below the poverty line2. This translates into about 6.3 million Malawians who are poor, with the poorest people in the Southern Region and rural areas poorer than urban where poverty rates are at 25.0 percent. The poor still have poor socio-economic indicators with food security a continuing threat to better life, ability to integrate the poor into the economic fabric, and problems of 2 The data from the IHS2 is not directly comparable to the past poverty levels. A change in survey instruments and methodology, required an effort to compute the poverty rates for the previous IHS using the current methodology. In this exercise, poverty estimates from IHS1 were estimated using regression models to impute expenditure per capita based on comparably measured household characteristics. The IHS1 poverty rates were calculated at 54% 7 Malawi Growth and Development Strategy malnutrition. As can be seen from Table 2.1 below, improvements in health indicators have been unsatisfactory. Female headed households are worse-off and income inequality persists in Malawi with the richest 10 percent of the population having a median per capita income that is eight times higher (MK50,373 per person per annum) than the median per capita income of the poorest 10 percent (K6,370 per person per annum). However, the overall poverty figure masks fluctuations in poverty. That is approximately 30 percent of the poor moved out of poverty during the period, while 30 percent of the non-poor moved into poverty. This suggests that there is continued economic vulnerability in Malawi. In general, communities have experienced a decline in social and economic growth in the last 10 years. Malawi also has a very young and rapidly growing population, and this is a key factor explaining Malawi’s high and persistent poverty. More than half of the poor in Malawi are children. Malawi’s total population in 2005 was estimated at 12.3 million, of which about 60 percent is under the age of 20. Poor households in Malawi are generally larger than non-poor households. When looking at average household size by income decile, the relationship is evident. Households in the poorest decile are more than twice as large as households in the richest decile. Table 2.1 : Trends of selected health indicators for Malawi Indicator Baseline MPRS target Current situation Maternal mortality rate 1,120/100,000 400/100,000 1120/100,000 deliveries Deliveries conducted by trained health 56% - 58% personnel Contraceptive prevalence rate 25% 33% Infant mortality rate 104/1,000 90 76 Under five mortality rate 189 150 133 Fertility Rate 6.3 5.5 6.0 Children underweight (%) 30 20% 22% Under 1 immunization rate 54% - 55% ITN Coverage 13% - 42% Source: DHS 2005 In addition, social indicators have not improved significantly in the past several years. The MGDS is to reduce poverty levels of the country by 8 percent during the implementation period by creating necessary opportunities for development. The Poverty Vulnerability Assessment for 2006 suggests that the major factors affecting the level of household poverty are:3 household size, education, access to non-farm employment, access to irrigation, proximity to markets and trading centers, and access to tarmac roads. Access to larger landholdings and engagement in cash crop production also play an important role. Recent trends in human development indicators broadly support the fact that there has been little progress in reducing poverty. The Human Development Index has stagnated since the mid-1990s. While there have been improvements in the education and literacy, several health indicators have worsened over the past decade. Among 8 Malawi Growth and Development Strategy others, the number of physicians per population has fallen by half, and life expectancy has fallen from 46 years in 1987 to 37 years in 2005, largely due to the HIV and AIDS epidemic. Childhood immunization has also decreased from 82 percent in 1992 to 64 percent in 2004. Maternal mortality rates have increased from 620 in 1992 to 960 in 2004, although they are now on a decreasing trend. Child malnutrition has remained virtually unchanged since 1992, and almost half of children under five years of age in Malawi are stunted, and 22 percent are severely stunted4. 4 PVA Report June 2006 9 Malawi Growth and Development Strategy Chapter 3: MACROECONOMIC FRAMEWORK The prevalence of a favourable macroeconomic environment will create a precondition for sustainable economic growth and wealth creation. However, in the recent past, the country has experienced an unfavourable macroeconomic environment mainly due to fiscal indiscipline. This has resulted in high inflation rates, high interest rates, unstable exchange rates hence poor economic growth. It has also contributed to unsustainable increase in the domestic debt. The combination of high interest rates and large stock of short-term domestic debt has exacerbated pressure in the operation of the budget as most resources have gone into debt servicing.

3.1 Macroeconomic Developments The economic performance of Malawi has been dismal between 2001 and 2004. The real Gross Domestic Product (GDP) averaged 1.5 percent per annum. Savings and investment ratios have remained low over the period largely on account of low disposable incomes. National savings as a share of GDP has remained below 3.2 percent while gross investment has been below 11.2 percent. This disparity shows that investments have not been driven by national savings.

3.2 Medium Term Macroeconomic Prospects The macroeconomic framework for the MGDS is based on the commitment to the Poverty Reduction and Growth Facility (PRGF). Government is, therefore, committed to pursue sound economic policies geared at increasing and sustaining economic growth, reducing inflation rate, maintaining flexible exchange rate and improving foreign reserve position. In addition, increasing employment and improving the trade balance by enhancing the country’s export capabilities. The medium term macroeconomic objectives are presented in Table 3.2 below. Table 3.1: Macroeconomic Medium-Term Objectives 2003 2004 2005 2006 2007 2008 2009 2010 2011 Inflation Rate 9.8 13.7 16.9 9.8 6.4 7.2 5.0 5.0 5.0 GDP Growth 3.9 4.6 1.9 8.3 5.6 6.0 6.0 6.0 6.0 Net Domestic Debt5 22.3 22.6 21.5 23.3 20.8 17.6 10 10 10 Fiscal Balance6 -0.9 -4.1 -1.3 -0.9 -0.7 -1.1 -1.0 -1.0 -1.0 Gross Reserves7 1.4 1.3 1.6 2.0 1.9 2.1 3.0 3.0 3.0 Source: IMF

3.2.1 Economic Growth On average the economy is expected to grow by more than 6.0 percent annually during the period. This is expected to emanate from growth in the agriculture, manufacturing, mining as well as the service sectors. Consequently, per capita income is expected to increase from an average of US$160 per person to an average of US$450 by the end of 2011. 5 Percent of GDP 6 Percent of GDP 7 Months of imports, calendar year basis 10 Malawi Growth and Development Strategy

3.2.2 Monetary Policy Objective The monetary policy objective is to achieve low inflation and sustainable low interest rates. Inflation rate is expected to come down to 5.0 percent by the end of 2011. Broad money is expected to anchor the monetary programme with foreign exchange sales and open market operations as the main policy instruments in influencing liquidity in the economy. The exchange rate policy will still remain market determined.

3.2.3 Fiscal Policy Objective The medium term fiscal policy objective will strive to maintain fiscal discipline while balancing Government expenditure between productive and social sectors of the economy. It is expected that the underlying fiscal deficit will average 0.2 percent for the next five years. This will contribute to the creation of a favourable macroeconomic environment. The fiscal programme targets a significant repayment of debt as a means of reducing the interest burden to around 3.0 percent of GDP for the next five years. The domestic debt stock is expected to decrease from 21.5 percent of GDP in 2005 to less than 10 percent of GDP in 2011. This is expected to give relief to the Government budget.

3.3 MGDS Budget Framework The successful implementation of the MGDS will depend on the budget framework that will be revised annually. The total revenue and grants is currently programmed to average 38.5 percent of GDP over the period Tax revenue is expected to remain at about 21.0 percent of GDP. Table 3.2: Budget Framework 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 TRG8 38.8 43.5 39.7 38.5 37.3 38.5 38.5 Revenue 24.8 24.6 24.4 25.6 24.0 25.0 25.0 Tax Revenue 21.8 21.5 21.4 21.3 21.2 21.3 21.3 Grants 14.0 18.9 15.3 14.3 13.3 13.5 13.5 Total Expenditure 42.9 44.7 40.6 39.2 38.4 39.5 39.5 Current Expenditure 32.2 31.9 28.6 27.3 26.4 27.5 27.5 Capital Expenditure 10.4 12.8 12.0 11.9 12.0 12.0 12.0 Overall Balance -4.1 -1.3 -0.9 -0.7 -1.1 -1.0 -1.0 Nominal GDP 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: MEPD Total Government expenditure is expected to average about 39.0 percent of GDP. The overall fiscal balance is expected to average 1.0 percent of GDP. This budget framework is expected to stimulate economic growth and development. 8 Total Revenue and Grants 11 Malawi Growth and Development Strategy Chapter 4: KEY PRIORITY AREAS OF THE MGDS 4.1: Overview The MGDS identifies six key priority areas that define the direction the country intends to take in the next five years to achieve economic growth and wealth creation. Government will concentrate its efforts on these key priority areas in the medium- term in order to achieve its overall policy objective of economic growth as a means of reducing poverty in the country. The six key priority areas are: agriculture and food security; irrigation and water development; transport infrastructure development; energy generation and supply; integrated rural development; and prevention and management of nutrition disorders, HIV and AIDS. These are summarised in table 4.1. The key priority areas of agriculture and food security; transport infrastructure development; energy generation and supply; and irrigation and water development; emphasize Government’s commitment to achieving immediate economic benefits that would translate into the socio-economic well-being of people in the medium-term. The key priority area on integrated rural development comprises elements of sustainable economic growth, infrastructure development and governance. This reflects Government’s commitment to improving lives of the rural poor through economic empowerment and the development of rural growth centres. The key priority area on the prevention and management of nutrition disorders, HIV and AIDS emphasizes Government’s commitment to achieving its social development objectives. The implementation of these key priority areas will accelerate the attainment of the MDGs. Table 4.1: Summary of the six key Government priorities in the medium-term Key Priority Long and medium term goals Expected Outcome Area Agriculture • Increase agriculture productivity. • Increased value added to agricultural products and Food • No food shortages even in times by rural farmers and orient smallholder sub- Security of disasters (e.g. drought and sector to greater commercialization and floods). international competitiveness. • Increased exports of food • Food is available in sufficient quantities and staples. qualities and supplied through domestic • Increase the contribution of production or imports; agro-processing to economic • All Malawians have at all times physical and growth, move up the value chain economic access to sufficient nutritious food in key crops, and increase required to lead a healthy and active life. exportation of agro-processed • Increased contribution of agro-processing to GDP. products. An active inland network in local and international • To open up the linkages to the shipping that facilitates trade and tourism in a safe sea. manner. Irrigation and • To ensure that water resources • Increased agricultural land under irrigation. Water are well protected and managed • Reduced dependence on rain-fed agriculture. Development to meet agricultural, domestic • Basic water requirements of every Malawian and industrial demands. are met while the country’s natural ecosystem is enhanced. • Increased access to water is within 500m distances. 12 Malawi Growth and Development Strategy Key Priority Long and medium term goals Expected Outcome Area Transport • Ensure the provision of a • Improved mobility and accessibility of the Infrastructure coordinated transport population to key road corridors within Malawi environment that fosters a safe and out of Malawi and facilitate the continued and competitive operation of development of the country’s rural areas. commercially viable, financially • By 2011, 71% of the road network will be in sustainable, and environmentally good condition, 18 % in fair condition with friendly transport services and only 11 % in poor condition. enterprises Energy • To reduce the number and • Reliable and sustainable energy supply and Generation duration of blackouts, increase increased access. and Supply access to reliable, affordable • Increased access from the current 6% to 10% electricity in rural areas and by 2010 and 30% by 2020 other targeted areas (such as • biomass-commercial energy mix target of 75% social facilitates). - 25% is set for 2010. • Improve coordination and • Power supply is connected to SAPP. balance between the needs for energy and the needs of other high growth sectors (such as tourism). Integrated • To promote the growth and • Enhanced re-distributiio of wealth to all Rural development of rural growth citizens. Development centers. • Reduced negative consequences of rural-urban migration. Prevention • Reduce the spread of HIV and • Behavioural change of at-risk groups and AIDS in the general population • Prevention of mother to child transmission, Management and in high-risk subgroups. from blood supply/health facilities. of Nutrition • Improve the quality of life of • Equitable treatment for PLHA and mitigate the Disorders, those infected and affected by health impacts for PLHV of HIV and AIDS HIV and HIV and AIDS. (including ARVs). AIDS • Mitigate the health, socio- • Minimize the pain, suffering, anxiety and loss economic and psychosocial of service delivery at the individual, household, impacts of HIV and AIDS on community and national levels individuals, families, • Decrease work time lost due to caring for communities and the nation. PLHV and the amount of money at the • Active healthy life with reduced household level for care giving. burden of diet-related, illness, • Effective utilization of food that encompasses deaths and disability among the quality of the food allocated for men, women, boys and girls consumption and the biological utilization of living in Malawi. nutrients in the body • To improve the nutritional status • Information is used in decision making on and support services for people policies and program interventions and policies living with and affected by HIV are well coordinated across the various and AIDS. ministries. • Increased knowledge of the interaction between nutrition and HIV and AIDS; • Improved and diversified dietary practices for people living with HIV and AIDS; and • Increased provision of HIV and AIDS-related nutrition interventions. 13 Malawi Growth and Development Strategy

4.2 Key Priority Areas

4.2.1 Agriculture and Food Security Agriculture is the most important sector of the economy as it employs about 80 per cent of the workforce, and contributes over 80 per cent of foreign exchange earnings. Above all it also contributes significantly to national and household food security. However, agriculture in Malawi is characterized by low and stagnant yields, over dependence on rain-fed farming which increases vulnerability to weather related shocks, low level of irrigation development, and low uptake of improved farm inputs among others. Low profitability of smallholder agriculture has also been influenced by weak links to markets, high transport costs, few farmer organizations, poor quality control and lack of information on markets and prices. In addition, due to high risks in agricultural production and poor access to credit, investment and re-investment have been poor. Consequently, Malawi continues to suffer from chronic food insecurity at both household and national levels with many of the problems being structural and economic in nature. The main contributing factors include over-dependence on rain- fed agriculture, low productivity, low incomes, poor road infrastructure, poor functioning markets, weak private sector participation, poor early warning system and poor mechanization. In addition, past food security policies9 have been ineffective, resulting in stagnating aggregate food production and productivity, and poor functioning markets. The overall goal is, therefore, to increase agriculture’s contribution to economic growth, by not only increasing production for food security, but also for agro- processing and manufacturing for both domestic and export markets. Emphasis will be on enhancing agricultural productivity, promoting food security and agro- processing of key crops.

4.2.1.1 Agricultural Productivity Goal The long-term goal is to increase agriculture productivity. Medium Term Expected Outcomes There are three main medium-term expected outcomes and these are; (a) Increased value added to agricultural products by rural farmers and orient smallholder sub-sector to greater commercialisation and international competitiveness; (b) Increased smallholder agricultural productivity, and (c) Increased livestock production. 9 The Government’s food security policy through most of the 1990s has had two primary objectives: (i) ensuring a minimum of 1.8 to 2.0 million metric tons of domestic maize production’ and (ii) avoiding sharp increases in the maize price to consumers, especially during the lean season of November to March. The main instrument used to achieve the first objective has been the widespread promotion of hybrid maize and inorganic fertilizer packages through preferential or free distribution of seeds and fertiliser. To achieve the second objective, the Government relied on ADMARC to domestically buy maize at the time of harvest or import it and sell it during the rest of the year at (affordable) pan-territorial prices. Beginning in 1999/2000 pan-territorial prices were abolished, and the National Food Reserve Agency (NFRA) was created to manage the country’s strategic grain reserve (SGR). 14 Malawi Growth and Development Strategy Key Strategies Main strategies include: • Strengthening linkages of farmers to markets by connecting rural communities, targeting rural roads and developing farmer organizations and market information, • Encouraging the expansion and intensification of staple food production by smallholders, • Providing effective extension services with more decentralized service delivery for agribusiness skills, • Increasing the use of pest resistant varieties and promotion of pest management, • Promoting soil and water conservation and farming techniques; • Promoting irrigation farming; • Ensuring that existing land rights are recognized, clarified and secured by appropriate legislation, and • Encouraging and expansion of horticultural crop production for agro-processing .

4.2.1.2 Food Security Goal The long-term goal is to make Malawi a hunger-free nation. Medium Term Expected Outcome The medium term expected outcome is that food will be available for all Malawians in sufficient quantities and qualities, at affordable prices. Key Strategies. Main strategies include: • Improving agricultural productivity; • Implementing policies to improve the functioning of maize and other food crop markets; • Implementing policies that do not distort the market and which reduce dependency on food aid; • Putting in place an effective early warning system;. • Promoting income generating activities; • Improving the coordination and management of food aid and imports; and • Improving the ability to import and distribute food through better domestic regional connectivity, and • Construction of steel bin silos in strategic areas to improve medium to long term food storage capacity.

4.2.1.3 Agro-processing Goal The long-term goal is to increase the contribution of agro-processing to economic growth, move up the value chain in key crops, and increase exportation of agro- processed products. 15 Malawi Growth and Development Strategy Medium Term Expected Outcome The expected medium term outcome is substantial increase in contribution of agro- processing to GDP. The food and agro-processing sub-sectors account for more than 30 percent of manufacturing output with value addition ranging between 30-35 percent. MEGS identified agro-processing as a high growth potential sector. Under the sector, processing largely concentrated on tobacco, tea, sugar, cotton and wheat. However, agro-processing of fruits and vegetables, rice, cassava, macademia, cashew nuts, irish potatoes and spices has potential for growth, but each of these are currently relatively small. To achieve this, constraints facing the sector need to be addressed. These include poor and inadequate infrastructure such as roads and electricity. In addition, unfavourable macroeconomic environment, low level of vocational skills, weak marketing and distribution systems for raw crops, low productivity of smallholders, and high import duties on equipment. Key Strategies Main strategies include; • Improving infrastructure for agro-processing, • Reviewing the policy and regulatory frameworks impacting on agro- processing • Building capacity for small scale enterprises, and • Improving productivity of smallholder farmers. 4.2.1.3.1: Core crops of agro-processing The agriculture sector has in the past been dominated by tobacco, tea and sugar as the major foreign exchange earners. In the medium term these crops are expected to continue to dominate amidst the challenges they are currently facing. The importance of these crops for this country cannot be overemphasized hence efforts will continue going towards these crops in order to maximise their economic contributions to the agriculture sector in particular and the economy in general. The overall goal is to achieve sustainable agricultural production and increased incomes for farmers. (a) Tea Medium-term Expected Outcome The medium term expected outcome is increased production of tea, especially clonal tea varieties that are competitive on the world market. Adoption of clonal tea is a result of the limited prospects for the low yielding varieties currently grown.10.Though tea ranks next to tobacco as a major foreign exchange earner, its production faces a number of constraints including low private sector investment in irrigation, lack of appropriate factory shells, poor marketing system and high operational costs. Key Strategies The tea industry will focus on increasing tea estate and smallholder profitability and reinvestment, as well as value addition. The current strategies are centred on private sector taking a leading role, while Government focuses on the broader constraints, 10 Malawi Economic Growth Strategy 16 Malawi Growth and Development Strategy such as availability of reliable and cheap sources of power (electricity) and the creation of a favourable macroeconomic environment. The sub-sector and Government will work together to develop focused investment incentives and other measures to strengthen the industry. Other strategies include; • Promoting clonal tea variety to increase productivity, • Refurbishing factories, • Promoting market oriented processing of tea and • Improving the marketing system. (b) Tobacco Medium-term Expected Outcome The medium term expected outcome is value addition to tobacco and maintenance of market leader position in burley tobacco. Tobacco is the main export crop accounting for over 70.0 per cent of total export earnings. However, over the past several years, there has been a decline in average yields and profitability of Malawi´s tobacco. The sub-sector faces a number of constraints which include widespread use of low quality seed, increased incidences of disease and pests due to inadequate crop rotation, and significant post-harvest losses due to inadequate curing barn infrastructure. The decline in profitability is also due to inefficiencies in the current marketing system. The industry also faces regional competition. Key Strategies The main strategy is to increase production of flue cured, NDF tobaccos by rationalization of fees, creating a more efficient and fair system between farmers and auction houses, strengthening contract farming, and exploring additional markets for tobacco, including tobacco products. Other strategies include; • Establishing cooperatives, • Promoting tobacco products processing, • Providing farmers with inputs, and • Enhancing extension services. (c) Sugar Medium-term Expected Outcomes The medium term expected outcome is increased production of sugar by 23 percent. For Malawi to compete successfully as an international player in the sugar market, it needs to ensure that its sugar industry is profitable and is able to reinvest in growing and processing. However, the sub-sector is faced with a number of constraints which include access to the major European markets, and poor transport linkages to ports Key Strategies • Negotiating Economic Partnership Agreements (EPAs) with European Union to ensure fair trading of sugar, • Promoting out-grower schemes for smallholders, and 17 Malawi Growth and Development Strategy • Improving inter modal transport for effective linkages to ports. (d) Integrated Cotton Industry Goal The long-term goal is to develop a vibrant cotton growing and processing industry. Medium-term Expected Outcome The medium term outcome for the sector is increased production of garments made from locally woven cotton cloth as opposed to imported synthetic fabrics. This will require development of a local textile industry to increase the flow of cotton from growers and ginners, thereby having a positive impact on the cotton sector and opening up textile products for export. Currently, the linkages between the cotton sub-sector (production of lint cotton) and textile and garment production (manufacturing) are weak. In addition, there are opportunities for increased volumes of cotton lint export within the region, especially in South Africa and neighbouring countries. Key Strategies Government will encourage the integration of production, processing and marketing of cotton products. Other strategies include: • Producing raw cotton and ginning; • Garment manufacturing for export markets; • Reducing out of factory costs such as transportation; and • Identifying and negotiating trade opportunities at the regional, international and global level. Wheat Goal The long-term goal is to develop a vibrant wheat production and processing industry. Medium-term Expected Outcome The medium term expected outcome is increased production of wheat by expanding the current hectarage from 2000 hectares to 30000 hectares. Reliance on rainfed conditions, poor agronomic practices and seed quality, amongst other constraints have consequently led to low wheat production of below 2000 metric tonnes per annum since 1991/92 season. This is far short of the estimated national consumption of 60,000 metric tonnes per annum. Key Strategies The main strategy is to increase production, processing and marketing of wheat. 18 Malawi Growth and Development Strategy Other strategies include: • Promoting appropriate agronomic practices through extension and training; • Providing improved seed varieties and other farm inputs; • Promoting irrigation technology to expand production; • Promoting small and medium scale wheat processing, and • Improving market access and intelligence.

4.2.2 Irrigation and Water Development Irrigation and water development is key for Malawi due to its direct linkages with agriculture and energy. Irrigation will contribute towards reduction of the over dependence on rain-fed agriculture while proper conservation of water will also contribute towards the generation of electricity. In addition, water is also an important resource for both household and industrial use hence ensuring availability of water is therefore central to achieving the MGDS objectives. Management of water supply and sanitation draws many players from donor community, public entities, civil society and private institutions. Significant progress has been made with the introduction of coordination structures for the various players in the sector. Despite this, the sector faces challenges with the degradation of water resources, inadequate services coverage, increasing water demand as a result of increasing population, HIV and AIDS prevalence, insufficient capacity, inadequate promotion of hygiene and sanitation, lack of an integrated approach to water resources management and development, climate change and lack of mitigation measures for water-related disasters. On water resource management, the challenges are several, and these include lack of a good monitoring and evaluation system, and a good management information system resulting in improper documentation of information and lack of a consolidated database on water point allocations. In addition, vandalism and theft of water supply and sanitation facilities is wide spread in the sector. Goals The long-term goal is to ensure that water resources are well protected and managed to meet agricultural, domestic and industrial demands. Medium-Term Expected Outcome In the medium term, it is expected that Malawi will have increased access to water resources averaging a distance of 500m from communities. Key Strategies To achieve sustainable and integrated water resource management and development, Malawi will need more efficient and effective practices by among other things, empowering national authorities to manage using integrated water resource management approach and establish good monitoring systems. The provision of water will also be linked closely to agriculture and other environmental problems that affect water supply such as soil erosion due to poor farming practices. Main strategies include the following: 19 Malawi Growth and Development Strategy • Constructing and promoting small and medium scale irrigation schemes to enhance food crop production. • Constructing multi-purpose dams that apart from generating electricity will also be used for irrigation, piped water supply, as well as promoting fish farming. • Improving sustainable access to water supply and sanitation in urban, peri- urban and rural areas by establishing water supply and sanitation systems using demand responsive and demand driven approaches, and the establishment of contingency water supply reserves and sanitation backups. • Integrating rural water supply and participatory hygiene and sanitation transformation. • Empowering national authorities to manage water resources using integrated water resource management approaches; • Establishing good monitoring systems; • Improving the quality of surface and ground water and developing a system for pollution control; • Improving sustainable access to water supply and sanitation in urban, peri urban and rural areas by among others establishing water supply and sanitation systems using demand responsive and demand driven approaches; • Establishing contingency water supply reserves and sanitation backups; and • Integrating rural water supply with participatory hygiene and sanitation transformation.

4.2.3 Transport Infrastructure Development Better domestic and regional connectivity entails improving the current state of transport infrastructure in the country. However, the state of Malawi’s transport infrastructure is characterized by poor road network, poor and limited access to ports, limited air links, freight and rail capacity. The inadequacy of the transportation infrastructure results in high costs of production, where transportation represents 55 percent of costs, compared to 17 percent in other less developed countries. With the new policy direction, it is expected that improved transportation will contribute to reduced lead times on export, decreased cost of domestic trucking, lower costs of cross-border and transit trade with neighbouring countries, lower cost to reach domestic, regional and international markets (supply and distribution) and improved mobility and connectivity of rural producing communities to markets. Particular emphasis will be placed on the following two areas: • Improving mobility and accessibility of the population to key road corridors within and out of Malawi while facilitating the improved mobility and accessibility of rural communities to goods and services in the rural areas at low cost. • Implementing the Shire Zambezi Waterway programme in order to open up the country to the Indian Ocean.

4.2.3.1 Road Transport High transport costs and poor access to some parts of the country remain an important threat to fostering economic growth in Malawi. High transport costs partly result from the country’s landlocked position and small market size and also from the continuing inefficient operating environment faced by the domestic and international operators in 20 Malawi Growth and Development Strategy spite of liberalization of the transport sector. Poor access roads mainly result from the deteriorating condition of the country’s overall road network, especially in the rural areas. This problem is compounded by the enormous backlog for maintenance of the road infrastructure, unsafe and impassable road network (37 percent is in poor condition), lack of competition, and high road taxes which increases the cost of trucking. Poor quality feeder roads also impact on the ability of rural areas to engage in economic activities. Goal The long-term goal is to reduce the cost of road transportation in order to contribute positively to economic growth. Expected Medium Term Outcome In the medium-term improved transportation is expected to contribute to reduced lead times on export, decreased cost of domestic trucking, lower costs of cross-border and transit trade, lower cost to reach domestic, regional and international markets and improved mobility and connectivity of rural communities to markets. Efforts will emphasise on improving mobility and accessibility of the population to key road corridors within and outside Malawi while facilitating improved mobility and accessibility of rural communities to goods and services in the rural areas at low cost. Key Strategies The strategies will concentrate on ensuring availability of adequate, safe, reliable, efficient and economical transport services in key corridors that meet the country’s current road transport needs and aligned to the future vision. Main strategies will include: • Providing adequate network of roads based on appropriate standards through rehabilitation and upgrading of “all weather” roads to meet sub-regional agreed standards; • Undertaking routine road maintenance to clear backlog through use of modified “Performance-Based Term Maintenance Contracts”; • Building the capacity of local private sector to construct quality roads; • Replacing timber-deck bridges with concrete decks; • Maintaining urban and rural road networks; • Upgrading all unpaved roads from fair to good condition; • Involving the private sector in the monitoring and operations of road transport services; • Implementing appropriate road user charges; • Harmonising the country’s highway code, road signs, signals and axle-load regulations within the region; • Improving information coordination on the flow of regional and international cargo through the development of private sector freight forwarding companies; and • Creating one stop border post on all major transport corridors to allow for the smooth flow of traffic and developing an integrated approach to road safety. 21 Malawi Growth and Development Strategy

4.2.3.2 Water Transport Water provides a better and cheaper alternative means of transport for certain parts of the country and as a link to the sea. Malawi has not benefited much from this mode of transport because the port system is inadequate to handle the present exports of agro-processing industry and imports. Furthermore, siltation at Beira, which is the nearest port, is a major constraint. Given the current transport bottlenecks, this mode of transport has been prioritised as an alternative means for export-led growth. Government, therefore, has an obligation to maintain the ports and explore ways to involve the private sector. In view of this, Government has prioritised the Shire Zambezi waterway project as the main activity in this sub-sector. Goal The long-term goal is to open up the linkages to the sea. Expected Medium Term Outcome The expected medium term outcome is to ensure an active inland shipping network in local and international shipping, and that trade and tourism are facilitated in a safe manner while protecting the environment. Key Strategies For the water transport to be effective, the sub-sector will have to be closely linked to the rail and road networks. For instance developing the Shire Zambezi Waterways will demand that the rail from Nsanje to major commercial cities like Blantyre, Lilongwe and Mzuzu be developed or rehabilitated for maximum benefit. Main strategies will include: • Developing an efficient and productive maritime transport system that meets national and regional requirements; and • Dredging, opening up channels and acquiring badges or ships, which would navigate the Shire River through Zambezi and to the Indian ocean.

4.2.4 Energy Generation and Supply Energy is a crucial input into any industrial processing and serves as the life-blood for any economy. Malawi is relatively well endowed with a wide variety of energy resources but a full potential of the energy sub-sector remains far from being realized owing to a number of structural, operational and institutional challenges. The provision of energy in Malawi is inadequate, unreliable and inaccessible to all who need it. This is mainly due to lack of competition in the sector; siltation resulting from deforestation; poor farming practices and management; weeds and water hyacinth on the Shire River which affects hydro-generation; expensive spare parts which inhibit maintenance of equipment leading to frequent breakdowns; and lack of progress on regional interconnection and commitment to tap into other energy sources. In addition to these challenges is the limitation of public investment in power generation and widespread vandalism of equipment. A well-developed energy sub-sector can enhance stable supply of power, increased generation and transmission capacity for improved service delivery and increased output in the economic and social sectors, respectively. Increased generation and transmission capacity of electricity will support other programmes such as Malawi 22 Malawi Growth and Development Strategy Rural Electrification Project (MAREP). The sub-sector also has strong backward and forward linkages with other sub-sectors, for instance, use of power transmission lines would also increase capacity for telecommunications. The objective of the MGDS is to reduce the number and duration of blackouts, increase access to reliable, affordable electricity in rural areas and other targeted areas, improve coordination and the balance between the needs for energy and those of other high growth sectors such as tourism and mining. Goals The long-term goal is to generate sufficient amount of energy to meet the economic and social demands. Medium Term Expected Outcome In the medium term, it is expected that the country will have accessible, reliable and sustainable energy supply. At the same time, rural communities will begin to use alternative energy supplies in underserved areas while managing energy related environmental impacts. Key Strategies To achieve an efficient energy supply, strong inter-sectoral linkages especially with the water, natural resources and agriculture sectors will have to be established. An efficient supply of hydropower requires a constant supply of water through proper conservation of catchment areas, connections to neighbouring countries and exploring into other sources of energy. The sub-sector will also require strong public-private partnerships especially in generation, distribution and transmission. Main strategies include: • Improving efficiency in generation, transmission and distribution; • Ensuring provision of reliable electrification to key mining, irrigation, business, tourism, and other economic activities. • Improving management of Electricity Supply Commission of Malawi (ESCOM) and other service providers • Accelerating implementation of regional interconnectivity; • Constructing mini hydro power stations along the Shire and other major rivers to supplement electricity supply in the three regions. • Expanding the Rural Electrification Programme (increase resources, promote development of micro hydropower stations and use of solar energy for off grid power supply) and use of both grid and off-grid options; • Ensuring that energy provision takes into account and puts in place measures to deal with negative environmental impacts that may set in, and • Encouraging private sector investment in energy generation, transmission and distribution.

4.2.5 Integrated Rural Development The MGDS recognize that broad based economic growth and development cannot be achieved if rural areas with potential for growth are sidelined. In this context, Government will strive to promote integrated rural development among other things through rural growth centers. This is expected to resuscitate the rural economies and transform them into potential engines for economic growth that will contribute to 23 Malawi Growth and Development Strategy sustainable growth that will result in re-distribution of wealth to all citizens while also mitigating the negative consequences of rural-urban migration. Emphasis will be placed on infrastructure development such as roads and communications, energy supply, agro-processing and manufacturing. This is envisaged to promote private sector investment that will create employment and improve incomes of the rural people. Goal The long-term goal is to develop rural growth centers to contribute effectively to economic growth through the creation of employment opportunities thereby enhance redistribution of wealth to all citizens and reduce rural-urban migration. Medium-Term Expected Outcome In the medium-term it is expected that developed rural growth centers will create employment that will enhance incomes for rural communities and in-turn reduce rural-urban migration trends. Key Strategies; Integrated rural development calls for coordinated efforts from a number areas. In particular, the provision of key infrastructure is a prerequisite if rural growth centers are to develop. As such, the main strategies will include the following: • Promoting the growth and development of rural growth centers through the provision of utilities and communications network to facilitate the linkage of production areas to markets; • Implementing rural electrification programme effectively; • Promoting and implementing economic empowerment programes such as MARDEF and OVOP; and • Improving the process of providing title to land in order to encourage investment through ownership of land. 24 Malawi Growth and Development Strategy

4.2.6 Prevention and Management of Nutrition Disorders, HIV and AIDS Malawi like many other Sub-Saharan African countries has been severely affected by HIV and AIDS. Its impact remains devastating and the country’s efforts are inadequate given the pace of the spread of HIV and AIDS. Poverty and HIV and AIDS are reciprocally influenced. Despite coordinated efforts the country still faces a number of challenges in containing the spread and impact of HIV and AIDS on development. The HIV and AIDS pandemic has compounded the dual burden of malnutrition and disease. It increases the body’s need for micronutrients, calories and protein while simultaneously decreasing the body’s ability to work. This means that as more nutritious food is needed within a household, less labour is available with which to produce or obtain it. This leads to less nutritious food for everyone else in the household and inadequate diet for the person living with HIV and AIDS. This means that tackling HIV and AIDS problems alone will not be a lasting solution. As such, Government advocates the need for addressing issues of HIV and AIDS and nutrition as a package. This will translate in increased knowledge of the interaction between nutrition and HIV and AIDS; improved and diversified dietary practices for people living with HIV and AIDS; and increased provision of HIV and AIDS-related nutrition interventions. 4.2.6.1: HIV and AIDS Prevention and Management HIV and AIDS is a socio-cultural, economic, political, development and health issue which has brought havoc to all sectors of the economy in Malawi and other developing countries. This has created a big human power shortage of ranging between 25-60 percent in developing countries. It is a social problem because of its negative consequences on the communities and social structures. It is a cultural issue because some cultural practices and beliefs fuel the spread of the disease and mask positive traits of the system while encouraging stigma, discrimination and denial. It is a political problem because a sick person will not contribute to the political development of the country. It is a health issue because it affects directly a large number of people and the health-care system itself or fabrics of society. HIV and AIDS is an economic issue as it leads to reduction in economic growth by reducing the productivity of the labour force and drains investment resources in all sectors. HIV and AIDS is a development issue because it affects negatively all sectors of the economy. Malawi like many other Sub-Saharan African countries has been severely affected by HIV and AIDS. The first case was reported in 1985 and to-date, despite so many years of national response, the impact remains devastating and the country’s efforts are inadequate given the pace of the spread of HIV and AIDS. Poverty and HIV and AIDS are reciprocally influenced and Malawi happens to have more than 52.4 percent of its population living in poverty. The national adult HIV prevalence in the reproductive age group of 15-49 years has slightly declined from 14.4percent in 2003 to 14.0 percent in 2005. HIV and AIDS prevalence among antenatal clients has also declined from 19.8 percent in 2003 to 16.9 percent in 2005. Approximately 930,000 people are living with HIV and AIDS, including 70,000 children under the age of 15. According to the Malawi Demographic Health Survey (MDHS 2004), prevalence of HIV and AIDS was estimated at 12.8 percent of the population and around 30-35 percent of all pregnant women aged between 15 and 49 years and 640,000 people have died of AIDS at a rate of 86,000-100,000 annually. HIV and AIDS is now the 25 Malawi Growth and Development Strategy leading cause of death in the most productive age group, resulting in 50,000 to 70,000 adult and child deaths annually. HIV and AIDS mortality rate is close to 700 deaths per 100,000 people. Out of Malawi’s one million orphans, 500,000 have lost one or both of their parents to AIDS. A fifth of all households in Malawi take care of one or more orphans; 49 percent of these are female headed Malawi’s response to HIV and AIDS began in 1986, initially concentrating on preventing further transmission of the virus. Since then Malawi has demonstrated increased commitment to addressing HIV and AIDS through the establishment of the National AIDS Commission (NAC) in July 2001 to manage a multi-sectoral response to the pandemic. The country has made substantial investment to build and maintain a positive partnership with donors, bilateral and multilateral organizations and various stakeholders. Recently, Government has established the Malawi Partnership Forum on AIDS, where all stakeholders come under one umbrella for improved coordination and harmonization of the national response. Over the past fifteen years the country has moved from a point of denial to a situation where there is almost universal awareness of HIV and AIDS. In response to the burden of the epidemic on the formal health care system, the Government has encouraged communities and households to take up the challenge of providing home based care and support. At present, public organizations, community-based organizations (CBOs), Civil Society organizations, public, and private sector institutions have all become engaged in various ways in the fight against HIV and AIDS. This has led to a dramatic increase in the number of community groups providing home based care as well as increased number of trained community home based care providers. In order to institutionalise work on nutrition, HIV and AIDS, the Department of Nutrition and HIV and AIDS in the Office of the President and Cabinet was created to coordinate these activities. Nonetheless, Malawi still faces a number of challenges in containing the spread and impact of HIV and AIDS on development. Key constraints in containing the HIV and AIDS scourge are: hunger and poverty which make individuals more vulnerable to infection; inadequate supply of Anti-retrovirals (ARVs) and access to nutritious diets; low levels of education; limited institutional capacity; deep-rooted harmful socio- cultural values and practices, beliefs and traditions and poor coordination amongst the service providers. Goal The long-term goal is to prevent further spread of HIV and AIDS and mitigate its impact on the socio-economic and psychosocial status of the general population and high risk groups. Medium-term Expected Outcomes The medium-term expected outcomes include: improved behaviour change of people particularly the high risk groups which include the youth, commercial sex workers, mobile and other vulnerable populations; increased number of people accessing voluntary counselling and testing (VCT) and sexually transmitted infections (STI) management services; increased number of women accessing the Preventive Mother to Child Transmission (PMTCT) services; improved health status or extended life of the infected people through increased uptake of ARVs and nutritious diets and 26 Malawi Growth and Development Strategy nutrition therapy; and community home based care services; protection and care of children and families affected by AIDS; and improved planning, management and coordination of all stakeholders and development partners in the fight against HIV and AIDS increased number of traditional counsellors trained in HIV and AIDS education. Key Strategies HIV and AIDS requires a multi-pronged approach of prevention and treatment to reduce its spread and impact. Main strategies include: • Improving knowledge and capacity of young people, orphans, the elderly and physically challenged and other vulnerable groups to practice safer sexual intercourse and increase their access to HIV testing and counselling; and behaviour change. • Initiating and strengthening joint planning, monitoring and evaluation processes among national authorities, stakeholders and development partners; • Implementing and increasing equitable access to ARVs and treatment of opportunistic infections; • Building and strengthening the capacity of public and private organizations to mainstream HIV and AIDS into their core businesses; • Promoting high quality community home-based care services, adequate nutrition, including provision of nutrition therapy for people living with HIV and AIDS (PLHA); • Expanding services for prevention of mother to child transmission, testing and counselling, access to condoms, STI management, and access to behaviour change communication; • Integrating the elderly, orphans and the physically challenged affected by HIV and AIDS into the mainstream development • Promoting adequate nutrition, including provision of nutrition therapy that cover assessment, counselling, education and demonstration, supplementary feeding, therapeutic feeding, referral to health facility and production of high nutritive value foods for a nutritious diet to HIV and AIDS individuals; • Producing, enacting and enforcing HIV and AIDS legislation. • Improving the provision of support and protection of the infected and affected groups; and • Building capacity at all levels in the national response to HIV and AIDS with special focus for local service delivery. 4.2.6.2: Nutrition Nutrition is associated with health in the sense that malnutrition can lead to ill health. Malnutrition is both a cause and a consequence of poverty in developing countries and continues to retard economic growth and development. The effect of under nutrition is wasting, under-weight, stunting and mental retardation, which has far reaching consequences. A poorly nourished body is primary and highly susceptible to infections such as Tuberculosis, malaria, diarrhoea, acute respiratory infections, HIV and AIDS. Under nutrition is a factor commonly associated with maternal and child/infant mortality. Protein-energy malnutrition (PEM) is very high in Malawi, with under-five children stunting at 48.0 percent; wasting at 5.0 percent, increasing to 9.0 percent during the lean periods. Micronutrient malnutrition such as sub-clinical Vitamin A deficiency is at 80.0 percent of pre-school children, 38.0 percent of school 27 Malawi Growth and Development Strategy age children, 57.0 percent of child-bearing age women and 38.0 percent in men. Anaemia is at 73.0 percent of pre-school aged children, 22.0 percent of school aged children, 46.0 percent of non-pregnant women, 47.0 percent of pregnant women, and 17.0 percent of men. Iodine deficiency disorders are also common despite Malawi’s adoption of Salt Iodization Act. It is estimated that 64.0 percent of children have low Intelligent Quotient (IQ) in areas with high iodine disorders. The underlying causes of under-nutrition include household food insecurity resulting from inadequate food production or low incomes; poor child feeding and care practices; inadequate education and lack of knowledge which lead to poor food processing and utilization and sometimes cultural beliefs which deny women and children consumption of high nutritive value foods. In addition, poor institutional coordination of nutrition programmes has also been a big constraint. Goal The long-term goal is to ensure nutritional well-being of all Malawians. Medium-term Expected Outcome The key expected medium-term outcomes are effective utilization of quality food and the biological utilization of nutrients in the body; reduced levels of under nutrition; reduced incidences of dietary related non-communicable diseases and micro-nutrient disorders; increased human productivity; and strengthened structures and coordination for implementation of policy and programme and enhanced capacity for nutritionists and dieticians at all levels. Key Strategies Effective implementation of the nutrition strategies will require co-ordination among the key stakeholders. To successfully achieve the intended goal and outcomes, to a greater extent, will rely on what happens in other sectors like agriculture and food security, education, health and gender. Main strategies include; • Promoting the control, prevention and treatment of micro-nutrient deficiency disorders particularly those caused by vitamin A, iodine and iron deficiencies; • Promoting control, prevention and treatment of diseases that have direct impact on nutrition and human well-being; • Intensifying community nutrition assessment, counselling, education and demonstration, supplementary and therapeutic feeding, referral to Nutrition Rehabilitation Units; • Promoting the production of nutritious foods and livestock; • Harmonizing and improving food and nutrition security information system for evidence based interventions; • Reviewing and including nutrition in curricula of all learning and training institutions; • Targeting the elderly, pregnant and lactating mothers, under five and school going children, orphans and the physically challenged with nutrition services to improve their well-being; • Enhancing co-ordination of nutrition programmes; • Building capacity for nutritionists, dieticians, and community nutrition workers; 28 Malawi Growth and Development Strategy • Producing, enacting and enforcing nutrition legislation; and • Monitoring and managing dietary related non-communicable maladies. 4.2.6.3: Interaction of Nutrition, HIV and AIDS HIV and AIDS affects nutrition through increases in resting energy expenditure, reduction in food intake, poor nutrient absorption and loss, and complex metabolic alterations that culminate in weight loss and wasting. Malnutrition reduces overall immunity and increases the risk of diseases and related conditions, which expedite the progression of HIV into AIDS. HIV, in turn, destroys the natural immune system and increases the risk of infections and diseases. These diseases prevent adequate intake and uptake of vital nutrients. Additionally, both the disease itself and antiretroviral therapy increase the body’s overall nutrient demand. As the virus progresses from Stage 1 to Stage 2, a child’s energy demand increases by 10.0 percent, and by up to 20.0 percent at Stage 3. In HIV positive adults, caloric need can increase up to 30- 40.0 percent above the normal recommended daily energy requirement in stage 3. The HIV and AIDS pandemic has accordingly compounded the dual burden of malnutrition and disease. HIV and other chronic diseases increase the body’s need for micronutrients, calories and protein while simultaneously decreasing the body’s ability to work. This means that as more nutritious food is needed within a household, less labour is available with which to produce or obtain it. This leads to less nutritious food for everyone else in the household and inadequate diet for the person living with HIV/AIDS. Goal The long-term goal is to improve the nutritional status and support services for people living with and affected by HIV and AIDS. Medium-term Expected Outcomes The medium-term expected outcomes include increased knowledge of the interaction between nutrition and HIV and AIDS; improved and diversified dietary practices for people living with HIV and AIDS; and increased provision of HIV and AIDS-related nutrition interventions.11 Key Strategies ƒ Recruitment and training of adequate personnel; ƒ Reviewing and including nutrition, HIV and AIDS interaction in education curricula of all learning and training institutions; ƒ Compiling and disseminating best approaches to providing nutritional therapy to PLHA; ƒ Building capacity for nutrition service providers on specialised nutrition care for PLHAs; ƒ Providing workplace-based nutrition therapy to enhance positive living for PLHAs; ƒ Facilitating access to sustainable economic social protection for households affected by HIV and AIDS; and ƒ Building capacity at all levels with special focus on service delivery. 11 The main nutrition interventions include counselling on specific behaviours, prescribed/targeted nutrition supplements and linkages with food-based interventions and programmes. 29 Malawi Growth and Development Strategy Chapter 5: MGDS THEMES This chapter summarizes the other focus areas of the MGDS and these are outlined in the five themes that represent a broad framework of the economic growth and development priorities for Malawi. The six key priority areas discussed in the previous chapter have been singled out from these thematic areas being areas where Government will concentrate its efforts in the short to medium-term in order to realize immediate economic benefits for the well being of the people. The other focus areas outlined in the themes are also priorities for Malawi as the country strives to create a favourable environment for active private sector participation and investment in order to diversify the economic base, develop human resource base, promote good governance, and protect the most vulnerable people who may not benefit from the process of economic development. The five themes have been developed to offer a comprehensive package that deals with diverse issues facing this country. Government will pursue these issues with vigour there by achieve socio-economic development but also attain the MDGs. The five thematic areas are: Sustainable Economic Growth; Social Protection; Social Development; Infrastructure development and Improved Governance. 30 Malawi Growth and Development Strategy

5.1 Theme One: Sustainable Economic Growth Sustainable economic growth is central to Malawi’s ability to reduce poverty and achieve the MDGs. Without this growth, it will be impossible to deliver Government’s vision of creating wealth and employment for all the people of Malawi, transforming from a consumption-based economy to a production-based economy, and gradually emerging as an industrial nation. To this end, Malawi will seek to increase domestic and foreign investment in productive sectors. It will also seek to promote exports by addressing supply constraints, to diversify the economy and ensure that this growth is shared among all Malawians. The strategy for sustained economic growth requires action on multiple fronts in order to deliver on these national goals. These include: maximizing the contribution to economic growth through the potential growth sectors; putting in place an enabling environment for private sector led growth; improving regional integration; and empowering rural communities to be part of economic activities. Sustainable economic growth is comprised of six sub themes namely; potential growth sectors, enabling environment for private sector led growth, export-led growth, conservation of the natural resource base, economic empowerment, land and housing. Sub themes on agriculture and food security that are particularly key for the development of this country hence have been singled out and placed as a key priority area and are discussed in Chapter 4. Table 5.1 presents a summary of the long-term goals and medium-term expected outcomes of the sub themes under sustainable economic growth. Table 5.1: Summary of Theme One: Sustainable Economic Growth Sub Theme Long-Term Goal Medium-Term Outcome • Increasing productivity, • High growth is realised in tourism, 1. Potential growth diversify the economy mining, and manufacturing.; sectors and achieve export led • Increased productivity and protection growth. of natural resources (fisheries, • Increasing the forestry, mining, environment). contribution of tourism • To establish Malawi as a principal to GDP from 1.8 percent and leading eco-tourism destination to 8.0 percent by 2011. in Africa. • Increasing the • To increase production output and contribution of the value added by small, medium and mining sector to GDP by large-scale miners at least 10 percent annually. • Increasing manufacturing output with growing value addition, export development and employment creation. Sub Theme Long-Term Goal Medium-Term Outcome 31 Malawi Growth and Development Strategy 2. An enabling • Increase private sector • Increased business enterprises that environment for foreign and domestic contribute positively to economic private sector led investment growth and increase domestic market growth supply; • Increased foreign direct investment; • Improved private sector competitiveness. 3. Export led growth • Malawi becomes a net • Increased number of businesses exporter accessing the international markets with products 4. Conservation of the • Reduced environmental • To ensure sustained fish availability natural resource base degradation. for food and nutrition security as well • to maintain fish species as income generation. and bio-diversity. • To ensure sustainable use and management of forestry resources. • To ensure sustainable use and management of forestry resources. 5. Economic • Reduce income disparity, • Increased employment and income of Empowerment • Increase in employment, the poor from on and off farm and income activities; • Increased productivity of rural communities / businesses and their contribution to economic growth; • Women, youth and the disabled fully participate in economic activities. 6. Land and Housing • Ensure tenure security • efficient use of land and land based and equitable access to resources and equitable access to land land by all productive Malawians and other • Improved housing investors. delivery systems, processes, procedures, • Provision of adequate and conducive and services with framework for improved access particular focus on vulnerable and low- income groups

5.1.1 Sub Theme One: Maximizing contribution to economic growth through potential growth sectors The economy has shown fluctuating, but generally low growth rates over the last decade. The real GDP growth has been highly variable, mainly because of the poor performance of the agricultural sector due to over-dependence on rainfed agriculture, unfavourable macro-economic environment and high cost of production. The low growth rates, coupled with a population growth rate of nearly 2.0 percent per annum, have resulted in a sharp fall in per capita consumption. In general, there has been limited progress on economic base diversification. Therefore, agriculture continues to be the main source of economic growth for Malawi. The industrial sector remains basic and is constrained by high real interest rates, high transport and energy costs. Overall, the economy is vulnerable to a number of factors such as drought, high transport costs, and over-dependence on unreliable external aid. 32 Malawi Growth and Development Strategy Exports remain heavily concentrated in a narrow range of primary commodities, with tobacco accounting for over 70.0 percent of foreign exchange earnings. The majority of these commodities are sold at low and declining world prices. This is a result of limited value addition capacity within the manufacturing sector. Economic growth is further constrained by the land-locked nature of Malawi, low per capita income resulting in low effective demand within the country; unreliable infrastructure, chronic food insecurity and limited opportunities for exports. These represent special barriers to private investment and the strategies herein are designed to address these Malawi specific barriers. For Malawi to achieve an annual economic growth rate of at least 6.0 percent, there must be a concerted effort by the private sector, Government, and all stakeholders to accelerate growth and economic diversification. In much as the economy continues to be driven by the agricultural sector, the other sectors of manufacturing, mining, tourism and agro-processing will play an important role in generating economic growth. As such the creation of a favourable macroeconomic environment will be a prerequisite for investment in these sectors. The goal is to increase productivity, diversify the economy and achieve export led growth. To attain this, potential growth sectors will be positioned to realise the targeted economic growth and increase employment. The MEGS identified tourism, mining, manufacturing among others as potential high growth sectors. Currently, these sectors face specific constraints that hinder their ability to reach full potential. MGDS will, therefore, focus on addressing these specific constraints and engage private sector in honest dialogue to implement strategies to achieve the desired medium term outcomes. . (a) Tourism Long-term Goal Increase the contribution of tourism to GDP from 1.8 percent to 8.0 percent by 2011. Medium Term Expected Outcome To establish Malawi as a principal and leading eco-tourism destination in Africa. Apart from looking for tourists outside Malawi, there is also an opportunity to increase domestic tourism. According to the World Travel and Tourism Council, tourism is expected to generate 7.1 percent of new jobs annually in Malawi. It is expected that the contribution of the tourism sector to GDP will increase from 1.8 percent in 2005 to 8.0 percent by 2011. A number of constraints need to be addressed in order to achieve the expected outcome. These include; high transport costs and poor access roads to tourist destinations, poor and uncoordinated promotion activities, and threats to flora and fauna. Key Strategies Government will work closely with the private sector to strategically diversify tourism products, identify niche opportunities, and make Malawi’s tourist destinations a good value proposition against competitors in the region. To facilitate private sector investment in tourism Government will priotitise the construction and rehabilitation of roads and landing strips to key destinations, build capacity of communities in tourism 33 Malawi Growth and Development Strategy through tailor-made courses in training institutions and coordinate efforts for a unified position on tourism promotion to reach potential customers in international and regional markets. The main strategies include: • Develop quality and diversified products and services based on the natural and cultural resource heritage to attract tourists; • Increase capacity to service additional tourists in accommodation facilities that are competitive with other tourist destinations in the region, including transportation links to tourism destinations; • Improve the reach of tourism products to domestic, regional and international markets; and • Facilitate investment, infrastructure development and visitor management programmes in undeveloped areas with proven tourism potential. b) Mining Goal To increase the contribution of the mining sector to GDP by at least 10 percent annually. Medium Term Expected Outcome The medium term expected outcome for mining is to increase production output and value added by small, medium and large-scale miners, to supply industrial raw materials in the country (import substitution) and to begin exporting minerals. To achieve this, a number of constraints facing the sector need to be addressed. These include; lack of up-to-date information on mineral resources, poorly coordinated institutional setting, high initial investment costs and inadequate incentives for private sector to engage in medium scale mining. In addition, small-scale miners lack skills to add value to mineral products, while electricity disruptions threaten production and safety of miners. Key Strategies Government will work with mining companies to accelerate the geological and mineral data acquisition and dissemination to strengthen public-private partnerships in infrastructure provision. It will continue to provide extension services to small-scale miners to learn value added skills. It will also improve the regulation and monitoring of mining to reduce threats to the environment, enforce safety standards, and reduce smuggling. Main strategies include: • Strengthening the institutional capacity of Geological Surveys to effectively promote mining, monitoring and enforcement of environmental safety standards; • Ensuring compliance by small, medium and large scale miners to environmental and safety standards; • Supporting small scale miners by integrating them into the minerals market and increasing their value added; • Increasing investment by private sector companies in medium and large scale mining; and 34 Malawi Growth and Development Strategy • Providing up-to-date information and geographical mapping on mineral resources. C) Manufacturing Goal The long-term goal is to increase manufacturing output with growing value addition, export development and employment creation. Medium-term Expected Outcome The medium term outcome for the sector is to increase the contribution of the manufacturing sector to economic growth. Currently, the sector is small, output has stagnated and there is low capacity utilization across all sub-sectors. Capacity utilization is hindered by high cost of doing business and poor management. Most firms use relatively simple technology and rely on imports for their intermediate inputs. In addition, the industry faces difficulties in accessing markets due to low product quality and high costs of inputs, poor infrastructure (roads, water, and energy) and a discretionary system of taxes, rebates and incentives. Key Strategies The Government will work with the private sector to establish conditions for manufacturing to take off. The private sector will look for ways to strengthen the links with raw material sources, especially in the agricultural sector and consider additional processing in the rural areas. Government will also take appropriate measures to promote private sector investment among other things through empowering indigenous businesses. Main strategies include: • Improving the quality of products and productivity of both labour and capital; • Enhancing skills through better integration of science and technology into vocational training; • Enhancing the capabilities of Malawi Bureau of Standards and other related bodies to perform their functions; • Developing additional incentives for investment including redefining the roles and responsibilities of support institutions, and working to target infrastructure phasing to the benefit of the manufacturing sector; and. • Reducing the cost of doing business by reviewing licenses, taxes and good governance.

5.1.2 Sub Theme Two: Enabling Environment for Private Sector Development Government recognizes that the private sector is an engine for growth and wealth creation. In Malawi, the private sector is not well developed. Private sector investment has remained very low averaging around 3.0 percent of GDP. This low level of investment has negatively affected the economy´s ability to diversify the economic base and exports. This situation has arisen due to poor macroeconomic environment, high transportation costs, and supply-side constraints. The participation of private investors in the economy has also remained limited due to low investor confidence, poor management, and limited domestic market. 35 Malawi Growth and Development Strategy Goal The long-term goal is to create an enabling environment for private sector to increase domestic and foreign investment. To achieve this goal, Government will support, encourage and engage the private sector and all relevant stakeholders in result oriented dialogue to ensure tangible improvement in the business environment. Emphasis will be on economic policy, legal framework, infrastructure and good governance. Deliberate efforts will also be made to empower the indigenous Malawians so that they benefit from their engagement in the economic activities. Medium Term Expected Outcome It is expected that in the medium term there will be an increase in the number of local firms producing goods that are competitive in regional and international markets. MEGS highlights a number of constraints currently facing the private sector in Malawi. These include deterioration of infrastructure, irregular power supply, unreliable water supply and sanitation services, low access to credit, high tax rates and high transport costs. There is also a significant shortage of skilled workers to supply the private sector with a productive workforce. The education system is not producing enough graduates to meet current and future economic needs. Besides, training offered is inappropriate for business needs. This is further compounded by productivity losses due to high incidences of malaria, HIV and AIDS. Key Strategies. • Improving infrastructure especially access to reliable and seasonally priced electricity, water and improved inter-modal transport to regional and domestic markets through direct investment, privatisation, build, operate and transfer arrangements and public-private partnerships; • Improving vocational training by focusing on improving the TEVET system; • Improve worker productivity and ability of firms to produce quality products • Implementing tax reforms; • Improving coordination for domestic and international investors and access to information. • Improving micro-finance schemes and programmes; • Ensuring secure land registration and functioning land markets; and • Promotion of occupational safety and labour protection.

5.1.3 Sub Theme Three: Export Led Growth Goal The long-term goal is to turn Malawi from being a net importer to a net exporter and effectively integrate it into regional and international markets. Medium Term Expected Outcomes The medium term expected outcome is to increase the number of firms that are producing products that are competitive on regional and international markets. The national export strategy will include promoting production of goods and services where Malawi has comparative advantage to take advantage of the existing regional markets. There are a number of constraints to achieve this and these are unfavourable 36 Malawi Growth and Development Strategy macroeconomic environment, poor infrastructure, high transport costs, unfavourable terms of trade, over-reliance on neighbouring countries for transportation of imports and exports due to the land-locked nature of Malawi, and lack of direct flights to Europe seriously undermines the potential for both tourism and the exportation of high value fresh agricultural and horticultural produce. Key Strategies. • Reducing cost of reaching external markets due to infrastructure by focusing on linkages through Mozambique, the Shire Zambezi waterway, and reduced restrictions on air transport; • Reducing lead times on export and improved efficiency by improving the efficiency of customs, harmonizing border crossing with neighbours; • Improving marketability of products to international markets by improving certification (coupled with efforts under the enabling environment) and developing science and technology; • Improving trade network and information for firms for export; and • Maximizing the benefits of trade through better knowledge.

5.1.4 Sub Theme Four: Conservation of the natural resource base Conservation of the natural resource base is an important factor that will contribute to the achievement of the sustained economic growth and development objectives of the MGDS. It is recognised that weak management of natural resources is a major problem in Malawi. This is exacerbated by population growth, environmental degradation, and encroachment of agricultural and settlement activities on forestry and marginal lands. There are three main areas of focus: fisheries, forestry, and wildlife conservation management. The goal is to improve management of fish species, forestry and wildlife biodiversity and reduce environmental degradation and conserve the natural resource base, while contributing to economic growth. (a) Fisheries Fish from Lake Malawi is a major source of the population’s protein requirement, and the industry provides direct and indirect employment. However, this sub-sector is characterized by low productivity, decline in fishery levels due to over exploitation, poor pre- and post-harvest handling by communities, and poor enforcement of legislation and preservation of fish. Goal The long-term goal is to maintain fish species and bio-diversity. Medium term expected outcome The medium term outcome is to ensure sustained fish availability for food and nutrition security as well as income generation. It is expected that an estimated 500 fish-ponds will be constructed/ rehabilitated and stocked with fish for breeding in the next five years. 37 Malawi Growth and Development Strategy Key Strategies The main strategy is to increase and sustain the productivity of small and large scale fisheries for both domestic and export markets. To achieve this, the following actions will be pursued among others; • Enforcing legislation to ensure sustainable production of fish; • Promoting the use of modern techniques of fishing; • Capacity building through community training; and • Development of small-scale fish farming and deep-water fishing. (b) Forestry Goal The long-term goal is to reduce environmental degradation. Medium term expected outcomes The medium term outcome is to ensure sustainable use and management of forestry resources. Currently there is a high rate of deforestation and uncoordinated management of forestry resources resulting in a lack of policy coherence. The denudation of forest cover accelerates soil erosion and also erodes natural resource- based livelihoods. This is also caused by high dependence on wood as a source of household energy, limited skilled manpower, and dependence on public forests for raw materials. An estimated 200,000 hectares of forest-land is expected to be replanted by year 2011 in order to reverse the negative impacts of deforestation. Key Strategies • Improving productivity and value added by the industrial forestry sector, while balancing it with sustainable practices; • Increasing reforestation efforts for key areas; • Improving enforcement of regulations for forestry management; • Initiating afforestation and environmental rehabilitation programmes in priority areas; and • Introducing incentives for private sector participation in forestry. (c) Environmental Protection Goal The long-term goal is to conserve natural resource base through sustainable use and management of natural resources and the environment. Expected medium term outcome The medium term expected outcome is improved compliance with environment and natural resource management laws. The main constraints to improved compliance include weak enforcement capacity, few economic incentives for compliance, and conflicting service delivery in management of natural resources. In addition, there is very limited environmental awareness in Malawi. 38 Malawi Growth and Development Strategy Key Strategies • Improving enforcement of environmental policies and legislation; • Improving cooperation in environmental management, natural resource management and development; • Raising awareness of issues of environmental protection; • Incorporating environmental issues in school curricula; and • Establishing of an environmental management information system. (d) Wildlife Goal The long-term goal is to conserve and manage protected areas and wildlife. Medium-term expected outcome The medium term expected outcome is to conserve, manage and develop wildlife resources to effectively contribute towards sustainable development of biodiversity and the tourism industry in Malawi. Wildlife forms a big percentage of tourism attraction. The sub-sector is constrained by a number of factors and these include; poaching, poor infrastructure development, Tsetse fly infestation, human-animal conflicts and understaffing. Key strategies • Enforcing wildlife law; • Improving protected area infrastructure; • Eradicating tsetse flies in protected areas; • Improving capacity and institutional building for collaborative management; • Improving capacity for problem animal control; • Improving eco-tourism in protected areas; and • Improving wildlife research and monitoring capacity.

5.1.5 Sub Theme Five: Economic Empowerment Malawi’s experience with economic empowerment programmes can be traced to the early 1960s. Despite the various initiatives by Government, donors, and NGOs, most Malawians are still involved in low-return, small-scale enterprises. The large-scale, high-value businesses are owned by foreigners and a minority of Malawians. Situational analysis as part of the development of National Economic Empowerment Policy shows that lack of empowerment is caused by a number of factors and manifests itself in the inability by the majority of citizens to control their economic destiny. It affects citizens depending on their race, gender, age, location and economic disposition. Rural communities are most affected by lack of facilities and infrastructure supporting the development of businesses. With over 85.0 percent of the population living in rural areas, there is need to specifically target rural communities if a significant impact in empowering Malawians is to be made. This will require that private investment in these areas is fostered and the culture of handouts and political patronage to rural communities is curtailed. 39 Malawi Growth and Development Strategy Despite past efforts, women in Malawi remain marginalized compared to men. Women have less access to education, credit, land, and property. In addition, they have less access to employment opportunities both in the public and private sectors, technology, and other key market information to support their business activities. Unemployment among the youth has worsened over the last 20 years. Increasingly, the youth are completing their education with very little prospect of securing a job, or engaging in entrepreneurial activities. Due to lack of experience, very few employers are willing to recruit and train them on the job. Finally, people with disabilities are usually the most affected in terms of access to assets and other facilities required to become economically empowered. They experience difficulties accessing financial services and capital, skills development programmes, and technology developments. They are also the most affected by poor infrastructure such as roads, communication, and buildings not designed to accommodate or meet their special needs. A coherent and integrated approach is needed to contribute towards solving the various causes of disempowerment, which exist in different sectors of the poor and disadvantaged in Malawi. Goal The long-term goal is to create wealth for all people. Medium Term Expected Outcome The medium term expected outcome is to increase the productivity of rural communities and businesses, employment and income, increase the number of women and youth who are actively participating in public and private sectors and to ensure that the urban poor are able to contribute to economic development. Despite the various economic empowerment initiatives that Malawi has undertaken so far, many challenges remain that hinder Malawians from exploiting their full potential to participate in wealth creation. These include weak linkages to markets and few incentives for rural communities to organize themselves for productivity enhancement, limited access to micro-credit and high default rates, lack of business advisory services or training opportunities, and an increase in rural-urban migration. Key Strategies Economic empowerment has many facets, and therefore requires a multi-pronged approach. This requires proper coordination to avoid overlaps and conflicts. While many economic empowerment initiatives exist in Malawi, there is no overall coordinating institution. Many policies have not been implemented because there has been no specialised institution to take full responsibility and authority. To be effective, proper coordination, management, monitoring and evaluation of all economic empowerment initiatives are needed. The main strategies include; • Targeting infrastructure development to ensure that rural roads link rural communities to markets; • Developing rural cooperatives to lower transaction costs of dealing with rural entrepreneurs and helping communities increase their bargaining power. This will be through targeted programs for rural areas complemented by current programs undertaken by agro-processing companies; • Strengthening the policy environment for micro-finance, including improved coordination of donor programs to decrease market distortions. This will 40 Malawi Growth and Development Strategy focus on providing innovative credit schemes and developing a network of practitioners while enhancing mechanisms to decrease the default rate; • Offering vocational training and other training for small businesses; and • Targeting women and their participation in growth through business programs.

5.1.6 Sub Theme Six: Land and Housing Land is a basic factor of production as well as an important source of livelihood for most Malawians. There are three legally recognised types of land tenure in Malawi: customary, private and public. Customary land tenure is the most widespread category. However, other sub-tenures that are commonly practised by customary landholders (renting and borrowing) are not legally recognised. Registered private land (freehold and leasehold) accounts for less than 8.0 percent of the land area. Inadequate access to land has been identified as one of the critical factors contributing to poverty in the country. The land sector impacts on poverty in three main ways: inequitable access to productive resources and processes, unequal land distribution, and land tenure insecurity. However, discrimination in access to land based on social status, economic status and gender is a major constraint. For example, it is easier for rich people to access land than the poor, or where influential members of clans make unilateral decisions on land, very often without prior knowledge of other members of the groups. In addition, the following constraints or challenges have to be addressed; rapid population growth; poor land use practices, lack of effective representation of vulnerable groups in land administration and use matters, lack of awareness about the land policy and its implications on people’s livelihoods, poor formal land markets, and poor coordination among the existing network of field staff, NGOs, faith organizations, community based organizations etc on land matters. Goals The long-term goal is to ensure tenure security and equitable access to land for the attainment of broad-based social and economic development through optimum and ecologically balanced use of land and land- based resources. Expected Medium term Outcomes The medium term expected outcome is the efficient use of land and land based resources and equitable access to land by all productive Malawians and other investors. Key Strategies • promoting and facilitating opportunities for lowering land transaction costs and enhance the operation of effective land markets, • supporting the privatisation of some land services in an effort to encourage the development of private sector participation in land sector activities; • promoting community participation and public awareness at all levels, • ensuring the adoption of environmentally sustainable land use practices, legislating land with provisions that enshrine tenure security not only to enhance tenure security, but also build confidence and encourage investment on land. • Legislation of land that discourages discrimination on grounds of status, gender or vulnerability; 41 Malawi Growth and Development Strategy • Implementing transparent and accountable land allocation systems; and • Increasing tax on land to realistic levels that will discourage underutilization and speculation. 42 Malawi Growth and Development Strategy

5.2 THEME TWO: SOCIAL PROTECTION AND DISASTER RISK MANAGEMENT Achievement of sustainable economic growth and development by itself may not automatically translate into improved quality of life for the most vulnerable Malawians. It is therefore necessary to design programmes that will protect them as they may not be able to take advantage of the benefits from economic growth. It is also necessary to protect those that are not chronically vulnerable, but fall into vulnerability due to economic shocks from time to time. The recent poverty and vulnerability study noted that 95.0 percent of households surveyed reported at least one economic shock in the past five years, with most households experiencing more than one type of shock. Coupled with the findings that there was a 30 percent fluctuation in poverty between 1998 and 2005, the need to have programs that keep the non-poor from falling into poverty is essential.12 Recent analysis suggests that small increases in expenditure growth can move people out of poverty, while economic shocks can quickly push people into poverty. Thus, social protection strategies should include measures to decrease the risk of shocks and strengthen resilience to shocks (such as those identified in food security and economic empowerment). Social protection programs will therefore be designed to protect the most vulnerable. 13 . There is also need for measures to protect the most vulnerable groups like the elderly, the chronically sick, orphans and other vulnerable children, malnourished children, lactating mothers and destitute families. Special groups of persons with disabilities14 are also included in this category. These groups of people are vulnerable to risk and typically lack appropriate risk management instruments, which constrains them from engaging in higher return activities to enable them move out of chronic poverty. Populations affected by disasters also qualify for social protection since disasters affect the livelihoods and social economic asserts of affected groups. Social protection and disaster management are therefore necessary as they restore peoples’ capacity to attain prosperity, create wealth and contribute to economic growth and development. Table 5.2: Summary of Theme 2; Social Protection and Disaster Management Sub Theme Long Term Goals Medium Term Expected Outcomes Protecting the Vulnerable Improvements in the socio- The most vulnerable with limited economic indicators of the factors of production are sufficiently most vulnerable cared for as are the vulnerable who can be negatively impacted by economic shocks. Disaster Risk Reduction in the socio- The impact of disasters on the Management economic impact of disasters. vulnerable is reduced. Social protection is particularly important because it ensures that the vulnerable, who may be on the peripheral of economic activity and thereby not benefit from growth, 12 IHS2 data showed that 30% of the poor moved out of poverty during the period while 30% of the non-poor moved into poverty – thus not impacting the overall percentage of poor. 13 Vulnerability to risks, food security and social protection in Malawi, Preliminary results of the poverty and vulnerability assessment, workshop, Lilongwe December 7-8, 2005 14 The group “persons with disabilities” refers to persons with disabilities that are unable to create their own income and wealth. 43 Malawi Growth and Development Strategy are well protected. Three main areas of focus have been outlined. First is the sub theme on empowering farmers and rural communities by improving their integration into the economic market, increasing their productivity and contribution to economic growth. Secondly, the focus has been on the most vulnerable who may not be able to enjoy the benefits of growth and therefore there will be need to have plans in place for their protection. Lastly, focus has been on disaster management especially the scaling up of efforts to strengthen capacity for response. More importantly, there will be need to ensure that social protection programmes are formulated as a spring board for the poor and they should provide them with the capacity to come out of vulnerability and engage in productive work.

5.2.1 Sub Theme One: Protecting the Vulnerable Vulnerability can be defined as the likelihood of being harmed by unforeseen events, or susceptibility to exogenous shocks. The most vulnerable broadly include individuals or households affected by disasters; households headed by orphaned children, the elderly and single-parents (especially female heads); persons with disabilities; under-five children, lactating and pregnant mothers; orphans, and the unemployed and underemployed, and the land-constrained in rural areas. It is noted, however, that this general categorisation does not mean that all people or households falling under these categories are the most vulnerable. The determining factor is their inability to meet their basic needs and on the basis of poverty characteristics. Currently, efforts to protect the most vulnerable have faced many problems. Most of the past market-based policies and interventions have been inefficient, fiscally unsustainable and mostly benefiting the non-poor than the poor. Consequently, all the market-based policies of social protection were abolished under the economic reforms. The administered programs are fragmented, uncoordinated and are poorly targeted. On the other hand, direct assistance and social welfare transfers are small in size and limited in coverage, largely due to financial constraints. The informal social protection, likewise, has become over-stretched and vulnerable to shocks due to increased poverty and the HIV and AIDS scourge. Several key challenges and constraints have made it difficult to improve the quality of life of the most vulnerable. These include clear lack of focus in implementing cost- effective interventions especially the area of preventing and reducing the high prevalence of stunting and wasting in children less than two years of age. Inadequate planning and lack of integration regarding data on the country’s development and growth strategies on the one hand and the risks and obstacles to these strategies on the other hand, posed by structural weaknesses and fluctuating resource needs for the chronically poor. Poor targeting has also been a constraint mainly due to insufficient data regarding the characteristics, location, challenges and needs of the vulnerable. Other constraints include inadequate knowledge regarding processes, transfer mechanisms, power dynamics, and incentive structures of target communities; poor donor and stakeholder coordination in the design and delivery of programs, and this also touches on lack of coordination of social protection programs in general. 44 Malawi Growth and Development Strategy Goals The long-term goal is to improve the life of the most vulnerable. Medium Term Expected Outcome The expected medium-term outcome is to increase assets of the poor to enable them to meaningfully engage in sustainable growth and contribute to poverty reduction. Key Strategies In order to realize the goals and expected outcomes as outlined above, there is need to undertake the following strategies which complement efforts for economic empowerment and social development:- • Providing efficient and effective support to the most vulnerable with very limited factors of production. • Improving planning and integration of knowledge on the needs of the chronically poor. • Providing opportunities for the poor farmers and rural communities to graduate from poverty by facilitating their integration in mainstream agricultural productivity and enabling them to create wealth. Specifically, there shall be a provision of subsidized agricultural inputs to poor farm families; undertake public works programme (PWP). • Promoting savings culture in PWPs, and • Providing capital for income generating activities through programmes such as MARDEF 5.2.2: Sub Theme Two: Improving Disaster Risk Management Malawi is frequently affected by natural disasters and calamities. Apart from disasters that hit traditional disaster-prone areas like the Shire Valley, acute food shortage is the worst form of humanitarian crisis in Malawi. Lakeshore areas are also prone to severe flooding during years of heavy rains. Hailstorms also destroy crops, livestock, and other infrastructure thereby reducing productivity and removing the sources of livelihoods. It is therefore important to harness wealth creation and poverty reduction by putting in place adequate disaster risk management measures that go beyond emergency response to preparedness, prevention and mitigation as well as rehabilitation and reconstruction. Nevertheless, disaster risk management efforts face a number of challenges and constraints among which are inadequate funding, poor response to disasters and lack of an effective early warning system. Goal The long-term goal is the reduction in the socio-economic impact of disasters as well as building a strong disaster management mechanism. Medium Term Expected Outcome The expected medium-term outcome is reduced impact of disasters by improved disaster risk management. Key Strategies • Developing and strengthening institutions responsible for disaster risk management, 45 Malawi Growth and Development Strategy • Instituting necessary disaster risk management mechanisms • Implementing mitigation measures in disaster prone areas; • Integrating disaster risk management into sustainable development planning at all levels; • Developing and strengthen coordination of institutions in disaster management and relief services; • Establishing an early warning system for Malawi; and • Timely provision of emergency relief assistance to affected populations while measures shall be instituted aimed at improving mitigation and rehabilitation of areas affected by disasters. 46 Malawi Growth and Development Strategy

5.3 THEME THREE: SOCIAL DEVELOPMENT A healthy and educated population is necessary to achieve sustainable economic growth. By building a healthy and educated population as well as achieving economic growth, Malawi seeks to achieve and sustain Millennium Development Goals. Major economic sectors of agriculture and industry require an educated, skilled and healthy workforce to take on new challenges and achieve the goals of the sectors. The Strategy recognizes the interrelated nature of issues of education, health, population, HIV and AIDS, nutrition and gender. These issues therefore have to be dealt with in a balanced manner, without neglecting any one of them if Malawi is to achieve economic growth and development as well as achieve the MDGs. It is in this context that this Strategy proposes to address these issues in a coherent manner under one theme of social development. However, considering the impact that HIV and AIDS and malnutrition have on the economy, Government has placed these as key priorities for the short to medium-term. As such these issues have been taken from this theme and are discussed under key priorities in Chapter 4. The overall goal of this theme is to develop human capital for full participation in the socio-economic and political development of the country. Table 5.3: Summary of Theme 3; Social Development Sub-theme Goals Medium Term Expected Outcomes Health • Increase life expectancy. • People have better access and use of health services & • Decrease maternal mortality rates -- Decreased cases of preventable diseases ( e.g. Population by 50% from 984 deaths per malaria and TB) 100,000. -- Improved use of ORT for diarrhoea control • Decrease child morbidity and -- Use of modern contraceptives mortality including deaths due to -- ARV treatment regime are followed . diarrhoea especially in children -- Increased vaccination rates under 5 years of age --Increase life expectancy at birth from 40 to 45 years. • Reduce malaria cases by 50 %. • Improve TB cure to 70 %. Education • Primary: To equip students with • Reduced absenteeism, increased net enrolment, basic knowledge and skills to reduced dropout among girls and boys enable them to function as • Improved learning outcomes competent and productive citizens • Retain girls to complete the primary cycle in a free society • Reduced absenteeism to 5% by 2012 • Increased net enrolment to 95% by 2012 • Reduced dropout by 50% • Secondary: To provide the • Reduced absenteeism by 50% by 2012 academic basis for gainful • Increased net enrolment from 30% to 50% by 2012 employment in the informal, • Reduced dropout to 5% private and public sectors • Retain girls to complete the secondary cycle • Tertiary: Provide high quality • Increase undergraduate enrolment by 40% professional training in all fields • Increase post graduate enrolment ratio to 10% of the undergraduate student population • 35% female enrolment by 2010 • Improve curriculum to respond to national needs Gender • Contribution to socio-economic • Enhance participation of women and men, girls and boys. indicators and economic growth • Reduce gender inequalities (as measured by disaggregated access to services included in other parts of the strategy). 47 Malawi Growth and Development Strategy

5.3.1 Sub Theme One: Health and Population (A) Health A healthy population is not only essential but also a pre-requisite for economic growth and development. There is a very close and strong correlation between health status and level of development. That is, countries with good health are highly developed, whereas those with poor health are underdeveloped. Malawi’s health situation based on the health indicators such as maternal mortality rate, child mortality rate, child and maternal malnutrition, life expectancy, access to health facilities is very unsatisfactory. While some achievements have been made after implementing a number of policies, some of the health indicators are the worst in the world. For instance, for every 100,000 live births, 1,120 mothers die due to limited access to quality reproductive and health services, infant mortality and child mortality are estimated at 76 and 133, respectively per 1000 live births due to limited access to health services and malnutrition. Though Government is making efforts to bring about improved health, it faces a number of challenges. These include inadequate health personnel, prevalence of diseases such as HIV and AIDS, tuberculosis, malaria and acute respiratory infections, and migration of health personnel to other countries. Recent assessments have shown that there are more than 100,000 people per qualified physician. There is inadequate supply of essential drugs due to budgetary constraints, which is compounded by pilferage. In general, the health infrastructures or facilities are very poor. HIV and AIDS is a big challenge in attaining a healthy nation and this seriously affects development efforts in all sectors. The high prevalence of HIV and AIDS has seriously affected the health services delivery systems, subsequently the health status of the country’s population. Detailed situation analysis on HIV and AIDS and measures currently in place to contain the scourge and challenges being faced are presented in the subsequent section on HIV and AIDS. Goal The long-term goal is to improve health of the population at all levels in a sustainable manner. Medium-term Expected Outcome The expected medium term outcomes are, among others, improved provision of essential health care services; reduced infant mortality rate from 76 to 60 per 1,000 live births; reduced child mortality rate from 133 to 90 per 1,000 live births; and reduced maternal mortality rate by 50 percent from the current level of 984 deaths per 100,000 live births. Key Strategies Successful achievement of the intended goals and expected outcomes will, to a greater extent, rely on what happens in other sectors like production of food in agriculture, disease treatment and prevention in the health sector, relevant curriculum in the education sector and reduction of gender inequality. The targeted programs under the health sector support program will be complemented by educational efforts to improve nutrition, food production, and general improvements in infrastructure in 48 Malawi Growth and Development Strategy rural areas. The Government will work with partners in the donor community, NGOs, and at the village level to leverage the resources devoted to the improvement in health related goals. Improving health requires a multifaceted or integrated approach with a combination of preventive, educational and clinical measures. By bringing these together, the costs of interventions can be minimized and their effectiveness maximized. The MGDS seeks such integration. Main strategies include the following: • Increasing the retention of qualified health workers through a targeted program for health care workers; • Improving working environment for health personnel; • Increasing the availability and eliminating theft of drug supply; • Improving health facilities through targeted facilities infrastructure (roads, water, health buildings, water, communication and medical equipment); • Improving equipment at health care facilities, especially maternity services; • Improving financial management, monitoring and supervision of health care facilities; and • Providing comprehensive health services package that include treatment of diseases and infections, awareness programmes and education through Government and private hospitals. (B) Population The MGDS recognises that there is a strong linkage between issues of population and health as such efforts from these two fronts compliment each other. However, there are other elements of population that cannot be conclusively addressed by efforts in the health sector alone because of its broad nature. These include population data analysis and dissemination for development planning. This is particularly important for the determination of total demand for goods and services in the economy. Goal The long-term goal is to increase the number of people with good living standards. Medium Term Expected Outcome The medium term expected outcomes include: increased life expectancy from 37 years to 45 years; reduced population growth rate from 2.0 percent to 1.5 percent per annum; reduced total fertility rate from 6.0 to 4.9; and increased contraceptive prevalence rate from 33.0 percent to 40.6 percent. Key Strategies • Lowering fertility in all reproductive age groups through advocacy programmes; • Expanding the range and improving access and quality of health services focused on common health problems to reduce morbidity and mortality; • Providing accessible, affordable and comprehensive reproductive health services through informed choices in order to enable them to attain their reproductive health rights and goals; • Improving the quality of life of those infected and affected by HIV and AIDS; • Enhancing programmes which increase awareness of the population, reproductive health and HIV and AIDS challenges; and 49 Malawi Growth and Development Strategy • Improving methods of collection, analysis and dissemination of demographic and socio-economic data, disaggregated by age, sex, districts, and Traditional Authority through capacity building.

5.3.2 Sub Theme Two: Education Education is the key for attaining prosperity. It is a catalyst for socio-economic development, industrial growth and an instrument for empowering the poor, the weak and the voiceless. Education enhances group solidarity, national consciousness and tolerance of diversity. Government is implementing a number of reforms in order to improve the current situation especially to increase access and retention at all levels; improve the quality and the relevance of education being provided; improve equity, management and supervision; and the training of more teachers for both primary and secondary levels. This will be achieved through construction of additional classrooms, provision of relevant school supplies, training of more teachers and upgrading the existing under qualified ones. Curriculum reviews and reforms are in progress to improve the relevance of education so that the system can produce both white-collar job seekers and blue-collar job providers and the self-employed. Effective policies and systems are being established to enhance equity in education and effective management of the education sector. Improvement and relevance of the education system in Malawi continues to face a number of challenges due to poor policy decisions made over the past few years. These have negatively affected the quality and relevance of education being provided especially at primary and secondary levels. Such policies included the sudden declaration of the Free Primary Education Policy, the conversion of the former Distance Education Centres (DECs) to Community Day Secondary Schools (CDSS) and the use of untrained and under qualified teachers in the system due to inadequate number of professionally qualified teachers. The relevance of education has also been negatively affected by lack of timely reviews and reforms of the school curricula, consistent with the current national needs and aspirations, and also through the unwarranted addition of irrelevant subjects to the old curricula and the removal of relevant subjects such as technical, vocational and entrepreneurship education subjects. Other factors compromising education quality and relevance include: backward cultural altitudes of education for girls, inadequate infrastructure including for people with special needs, internal inefficiencies such as high absenteeism, high repetition and dropout rates, and also lack of school inspection or ineffective supervision and monitoring. These have rendered the system to be inefficient. The completion rates, pass rates and transitional rates from one class to the next and from one level to the next are very low. Goals The education sector has identified three priority goals. These are to equip students, especially at the basic education level with basic knowledge and skills to enable them function as competent and productive citizens; at secondary level, to provide the academic basis for gainful employment in the informal, private and public sectors; 50 Malawi Growth and Development Strategy and at tertiary level, to produce high quality professionals with relevant knowledge and skills in relevant fields. Medium-term Expected Outcomes At pre-school level, the expected medium term outcome is to have an expanded infrastructure and increased access. At primary school level the expected medium term outcome is to substantially reduce absenteeism, repetition and dropout rates. At secondary and tertiary levels the expected medium term outcome is increased access and improved quality and relevant education for both sexes and students with special needs. Key Strategies • Rehabilitating existing schools and building additional school infrastructure including teachers houses at all levels; • Training more teachers; • Improving the teaching-learning environment to reduce absenteeism, repetition and dropout rates for both sexes; • Reviewing and reforming school curricula to address national needs; • Implementing affirmative policies relating to selection of pupils and students to secondary and tertiary levels; • Providing a conducive environment for girls and students with special education needs to enhance equity; and • Equiping managers with managerial skills through targeted training and induction.

5.3.3 Sub Theme Three: Gender Gender issues are an integral part of the overall national development agenda. Gender inequalities in accessing productive resources, development opportunities and decision making affect economic growth and development. The Gender Development Index for Malawi of 0.374 indicates that large disparities between men and women exist. Women who constitute about 51 percent of the population are marginalized in social and economic spheres such that they are unable to effectively contribute to social, economic and political development of Malawi. Education is a key factor for women empowerment. However women tend to have lower education levels than men leading to their lower participation in many areas of development. The main challenges are social/cultural factors, limited access to means of production, and limited participation in social and economic activities. The abuse of human rights or gender-based violence is tilted towards women and children and has accelerated other factors in their disfavour such as spread of HIV and AIDS.. In addition, the coordination and implementation of gender related policies is weak in Malawi. Goal The long-term goal is to mainstream gender in the national development process to enhance equal participation of both sexes for sustainable development. 51 Malawi Growth and Development Strategy Medium-term Expected Outcome The expected medium term outcome is reduced gender inequality. Key Strategies Gender is not a stand-alone subject, as such achievement of Government’s goals and outcomes will very much depend on mainstreaming gender issues in all the other sectors. Main strategies include; • Strengthening the institutional capacity for effective co-ordination of gender policy implementation; • Taking affirmative action to increase women and children decision makers in high levels of the public and private sectors; • Promoting gender equality through advocacy; and • Breaking the cultural/traditional factors which create and perpetuate gender inequalities. 52 Malawi Growth and Development Strategy

5.4 THEME FOUR: INFRASTRUCTURE DEVELOPMENT Infrastructure is one of the prerequisite for economic growth. It is a key component for creating an enabling environment for private sector driven growth and provision of timely and quality social services. Provision of infrastructure in the areas of transport (road, rail, air and water), water supply and sanitation, electricity, telecommunications, and information technologies contribute to enhanced productivity of business establishments in the country. Infrastructure services are complementary in nature and must be provided as a package for maximum benefits of development endeavours set in this Strategy. In general, infrastructure in Malawi is grossly inadequate, characterized by low availability, unreliability and expensive. Overall, the infrastructure limitations in Malawi can be attributed to weak transport infrastructure (network and condition); high cost of transportation resulting in high cost of goods and services; unreliable and expensive utilities (water, electricity, and telecommunication); weak capacity of information technology in both private and public sectors. This is compounded by Malawi’s landlocked status, which is a major disadvantage to businesses as it increases the costs to importers and exporters relative to regional competitors. If the country is to register positive economic growth these limitations need to be addressed. Development of infrastructure will contribute to the achievement of a number of the expected outcomes of the MGDS. Specifically, a well developed infrastructure will contribute to reduced cost of doing business in Malawi as it will improve its attractiveness as an investment destination; increased access to markets, clinics, schools, especially in rural areas and reduced incidence of water-borne diseases and environmental impacts from poor water usage and poor sanitation. However, the provision of infrastructure is not an end in itself but provides an enabling environment for the economic and social activities. In line with the goals of the MGDS, infrastructure development would focus on provision of infrastructure services as a package, which will promote activities in the various sectors of the economy. This theme is made up of five sub themes namely transport; energy; water and sanitation; information, communication technology; and science, technology and research. Government has singled out transport infrastructure particularly roads and marine with respect to the Shire Zambezi Waterway as some of the key priority areas for the MGDS. Similarly, energy, water and sanitation have also been singled out as key priority areas. It is envisaged that the development of these selected infrastructure development initiatives will contribute to the realization of the immediate economic benefits for Malawi. Hence these issues have been taken from this theme and are discussed in Chapter 4 within the context of Government’s key priority areas for the short to medium-term. The remaining other focus areas are outlined below. 53 Malawi Growth and Development Strategy Table 5.4: Summary of Theme 4; Infrastructure Development Sub-theme Long and medium term goals Expected Outcome Other Modes of Ensure the provision of a coordinated • Improved mobility and Transport transport environment that fosters a safe accessibility of the population to and competitive operation of commercially key road corridors within Malawi viable, financially sustainable, and and out of Malawi and facilitate environmentally friendly transport services the continued development of the and enterprises country’s rural areas. • By 2011, 71% of the road network will be in good condition, 18 % in fair condition with only 11 % in poor condition. ICT Telecommunica Ensure universal access, connectivity and • Formation of public/private sector tions affordable information and partnerships in the provision of communications technology telecommunications services. Information • Increased technical skills and Technology Improve use of technology in companies, updated knowledge are used by education, and service delivery public and private sector institutions Broadcasting • Developed its broadcast Empower the nation and accelerate infrastructure using the modern economic growth and development telecommunication technologies through the collection, analysis, processing and develop the sub-sector to be and dissemination of accurate and timely private sector driven and oriented. information. Science & Develop, disseminate and promote • Well-coordinated science and Technology utilization of technology to improve technology generation and productivity and quality of goods and dissemination. services • Effective and efficient operation of science and technology institutions.

5.4.1 Sub-Theme One: Air and Rail Transportation This sub theme focuses on air and rail transportation since road and water transportation have been particularly singled out as some of the key priority areas where Government will concentrate its efforts in the medium-term. These have been discussed under chapter 4 of this document.

5.4.1.1 Air Transport Air transport is the most efficient and effective means of transportation. However, Malawi faces a number of constraints such as airfreight costs which are higher than neighbouring countries, and landing rights restrictions and fees are prohibitive hence uncompetitive. Facilities at major airports are either below international standards or not available. While Malawi is striving to become a productive exporting economy there are no proper storage facilities at the international airport. In light of this problem, the focus in the medium term will be to ensure that the international airports conform to international standards through the provision of the relevant services and facilities. 54 Malawi Growth and Development Strategy Goal The long-term goal is to reduce the cost of air transportation while ensuring international competitiveness. Expected Medium Term Outcome In the medium term it is expected that Malawi will attain and maintain a competitive, self-sufficient and sustainable civil aviation environment that ensures safety in accordance with national and international standards and enables the provision of services in a reliable and efficient manner. Key Strategies The objective of an affordable air transport is to attract tourists and export of agro- processed products. This will call for availability of supportive accommodation facilities at the airports, availability of appropriate storage facilities and provision of appropriate information facilitates and packages to visitors. Strong public-private partnerships will be promoted to facilitate private investment. Main strategies include: • Promoting and facilitating a competitive, sustainable and efficient air transport industry; and • Providing a safe, efficient, reliable aviation infrastructure that complies with international standards.

5.4.1.2 Rail Transport Goal The long-term goal is to have an efficient, affordable and effective rail network that eases pressure from the road network and provides an alternative means of transport both to people and goods. Expected Medium Term Outcome In the medium term, it is expected that the rail sub-sector will be a well-managed, viable and sustainable system that promotes accessibility as well as affordable and reliable movement of goods and people. Key Strategies The development of the rail network will have to be linked to target areas such as ports, industrial sites and national borders. Main strategies include: • Improving operational efficiency and commercial viability of the existing railway infrastructure and levels of service to all users including people with disabilities at an affordable cost; and • Promoting railway safety and environmental protection.

5.4.2 Sub-Theme Two: Information, Communication and Technologies (a) Telecommunications The telecommunication sector plays an important role in economic growth and poverty reduction. Effective information dissemination and communication systems is critical for private sector development and service delivery. It benefits companies and the general public providing direct and fast access to information. MGDS recognises 55 Malawi Growth and Development Strategy the importance of the telecommunication and information sub-sector in the creation of an enabling environment for private sector led growth as well as improving the quality of life. Currently telecommunications services are below regional standards. Statistics show that only about 4.0 percent of the total population is connected to ground telephone lines in the country. Mobile phone networks have of late improved the situation. Goals The long-term goal is to ensure universal access to, connectivity and affordable information and communications technology. Medium Term Expected Outcomes In the medium-term it is expected that Malawi shall have increased access to telecommunications services. Key Strategies The implementation of an effective and efficient telecommunications strategy for Malawi will need to be in line with regional and international standards taking into account the issues of globalisation. Main strategies will include: • Creating a conducive environment to attract investment in telecommunications; • Enhancing the capacity of the regulatory body Malawi Communications Regulatory Authority (MACRA) to act as a competent referee in order to level the playing field; and • Developing monitoring and periodically reviewing regulations. (b) Information Technology (IT) The use of modern techniques of information technology (IT) is important and necessary for the acceleration of economic growth and development. The dynamics and demands of the modern world call for active adoption and use of modern IT. Malawi has made strides in the investment and use of IT. Nevertheless, there are a number of constraints and challenges that need to be addressed to effectively improve service delivery. These include high costs of IT equipment, inadequate trained IT personnel, and poor IT support infrastructure. Goal The long-term goal is to improve service delivery in both public and private sector institutions through the use of IT. Medium Term Expected Outcomes The medium term expected outcome is a well developed IT infrastructure and improved e-governance. In addition, there will be increased IT skills in both public and private sector institutions, and increased tele-density. Key Strategies The implementation of an efficient IT strategy should take into account emerging needs of the industry at large in, particular, the high growth sectors such as tourism and manufacturing. Main strategies include: • Developing a reliable, fast, adaptive and robust national IT infrastructure; 56 Malawi Growth and Development Strategy • Enacting an appropriate legislation that promotes and facilitates the country’s participation in the information age; • Facilitating the establishment of an efficient intra and inter-departmental, inter-sectoral, national and sub-national system of communication, for the necessary feedback in policy formulation, programme implementation, monitoring and review; • Intensifying IT education and training in all sectors; and • Improving IT access by all communities. (c) Broadcasting Information dissemination through radio and television (TV) continues to be the main form of communication in Malawi. Development of these modes of communication will remain vital in the medium-term to ensure that the population both in urban and rural areas is actively involved in the development process. Currently, radio communication is on the increase due to active participation of private radio stations. Television communication is still in its infancy but rapidly growing owing to its high message retention rate estimated at 93.0 percent. TV communication has proved to be the best mode of disseminating information on various topical issues such as education, democracy, good governance, human rights, and health. As such it is an important tool that will contribute significantly to economic growth and development for Malawi. Goal The long-term goal is to improve the dissemination of accurate, unbiased and timely information to the general public for informed decision-making. Medium-term expected outcomes In the medium-term it is expected that the country shall have a developed broadcasting infrastructure using modern telecommunication technologies. Key Strategies • Developing and rehabilitating broadcasting transmitting stations; • Improving broadcasting distribution and coverage; • Developing local capacity to generate reliable and accurate news and programmes; • Improving quality and unbiasedness of local-content programme production; • Promoting the participation of private broadcasting stations; and • Promoting community broadcasting services.

5.4.3 Sub Theme Three: Research, Science, and Technology Development Government recognizes the importance of research, science and technology in national socio-economic development. In this context, it has established national institutional structures that support the development of science and technology such as the National Research Council (NRC), Malawi Industrial Research and Technology Development Centre (MIRTDC) and a fully-fledged Department responsible for science and technology. Technology is generated through continuous research and development hence it calls for investment in research, technology development and 57 Malawi Growth and Development Strategy transfer. However, despite these efforts, Malawi is extremely weak not only in scientific and technological development but also in its utilization. This weakness affects many aspects of the socio-economic development. Integration of science and technology in the national development planning process continues to face a number of constraints. Some of these key constraints are; poor coordination of research, science and technology generation, weak institutional capacity, and inadequate funding to the relevant institutions. Goal The long-term goal is to enhance development through the application of science and technology. Expected medium term outcomes In the medium term, it is expected that the following outcomes will be attained: • Well coordinated science and technology generation and dissemination; • Effective and efficient operation of the science and technology institutions; • Increased uptake on productivity and enhancement of technologies; and • Prioritised and focused research and development. Key Strategies • Establishing a National Science and Technology Commission as the apex body to coordinate all activities relating to research, science and technology; • Strengthening the capacity of research, science and technology institutions; • Generating and disseminating appropriate technology through public-private partnerships; • Developing and commercialising science and technology in areas identified to contribute significantly to socio-economic development; • Promoting the development and utilization of indigenous technology through the re-introduction of the “Malawi Award for Scientific and Technological Achievement (MASTA) and the Most Innovative Technology Stand (MITS)” at the Malawi International Trade Fair; • Establishing research funding mechanisms to promote research by individuals and institutions, including formulation of legislation for private sector investment in local research, science and technology development; and • Designing syllabi that achieve a balance of science and technology, arts and humanities in basic, secondary, higher and technical education levels. 58 Malawi Growth and Development Strategy GOVERNANCE STRUCTURE Fiscal Management Human Rights Fighting Corruption Good Governance Effective Legal Corporate System Governance Peace and Security 59 Malawi Growth and Development Strategy

5.5 THEME FIVE: IMPROVED GOVERNANCE The success of the strategies suggested in the first four themes depends much to the prevalence of good governance. The main tenets of good governance are issues to deal with good public sector management, absence of corruption and fraud, decentralization, justice and rule of law, security, good corporate governance, and respect of human rights. In addition, the need for political will and change of mindset within a democratic political environment is also envisaged to contribute positively towards the attainment of economic prosperity and poverty reduction. Malawi will, therefore, endeavour to address concerns in these areas as they underpin the achievement of all economic growth and social development objectives in the medium term. Table 5.5: Summary of Theme 5; Improved Governance Sub Theme Long-Term Goals Medium-Term Expected Outcomes Macroeconomic Sustain economic growth, reduce A favourable macroeconomic environment Growth dependency on foreign aid and having low inflation rates at 5.0 %, lower generate investor confidence. interest rates, stable exchange rates, reduced Government borrowing and sustainable debts. Public Policy Free flow of information to Public well informed to participate in Formulation consolidate democracy national development. Fiscal Eliminate distortions in Improve budget implementation Management macroeconomic fundamentals Corruption Improve donor confidence Corruption and fraud will be reduced. Public Sector Affordable, highly motivated, results Improve the delivery of quality public Management oriented and productive civil service. goods and services. Decentralization Improve the efficiency and Local assemblies in full control of effectiveness of the public sector in development planning and implementation service delivery to the communities Justice and rule of Increase access to justice and More responsive, efficient and effective law entrenched rule of law judicial authority. Security Safe, secure and crime free nation Reduced crime levels Corporate Increased private sector investment Increased domestic and foreign investment. Governance Human Rights To increase awareness and upholding enhanced awareness and practice of human of human rights among all rights and responsibilities among all Malawians, particularly the most Malawians, particularly the most vulnerable through the promotion vulnerable groups. and protection of human rights. 60 Malawi Growth and Development Strategy The need to address concerns in all these sub themes cannot be over emphasised, as it is evident that the achievement of the long-term national goals is dependent on good governance from all angles within the economy. As such, it is imperative that good governance creates a conducive environment for the implementation of both economic and social activities. However, the deliverance of good governance calls for collaborative efforts from all stakeholders because of the cross cutting nature of the issues at hand. Again, political will and change of mindset within a democratic political environment is also critical if anything is to be achieved. The country will, nevertheless, endeavour to address concerns in these areas through the various strategies put forward and thereby contribute towards the achievement of all economic growth and social development goals.

5.5.1 Sub Theme One: Macroeconomic Growth Macroeconomic growth in a stable political and economic environment is a prerequisite for sustainable economic growth and wealth creation. In the past few years, the country experienced unstable macroeconomic environment mainly due to fiscal indiscipline. The macroeconomic fundamentals such as inflation, interest rates and exchange rates have not been suitable for economic growth and development. Interest rates still remain high to generate real investment. Inflation rates are high and fluctuating, while the Malawi Kwacha exchange rate against major currencies has been unstable and depreciating. Major challenges include the reduction of the unsustainable Government debt, privatisation of parastatals that continue to draw down on public resources, maintaining a sustainable fiscal deficit, unpredictable donor financing and external shocks such as increasing petroleum prices. Goal The long-term goal is the attainment of sustainable macroeconomic growth and development. Medium Term Expected Outcomes In the medium term, it is expected that Malawi shall achieve a favourable macroeconomic environment with low inflation (below 5.0 percent), lower interest rates, non-volatile exchange rates, reduced Government borrowing and sustainable debts. Key Strategies • Improving public finance management by adhering to the budget and good financial management systems as prescribed in the relevant Acts; • Improving Government budget monitoring and evaluation; • Improving the predictability of donor financing and holding donors accountable to their commitments; • Improving the environment for private sector participation by reducing the crowding-out effects for private sector borrowing and the introduction of favourable tax reforms; and 61 Malawi Growth and Development Strategy • Improving donor-aid coordination.

5.5.2 Sub Theme Two: Public Policy Formulation, Fiscal Management, Public Sector Management and Corruption In Malawi, the public sector has been characterized by poor management that has generated inefficiencies in the delivery of public goods and services. Government and its development partners are already addressing these challenges in the sector such as wage policy reform, civil service structure reform, capacity constraints and corruption. Despite these efforts, poor civil service incentive structures, inadequate financial and material resources, poor implementation structures, inadequate capacity, political interference, transparency and accountability, fraud and corruption still remain major obstacles in the medium term. In light of this, the focus in the medium term will be on strengthening public policy formulation, fiscal management and eliminating corruption in addition to the on going reforms in the public sector. This will be premised on strong political will and management.

5.5.2.1 Public Policy Formulation Effective public policy formulation is important for proper decision-making. This requires involvement of all key stakeholders. It is also important that the general public has access to information to enhance effective participation in policy formulation. Goal The long-term goal is to promote free flow of information to allow the public to participate effectively in decision-making processes. Medium-Term Expected Outcomes In the medium term it is expected that the public will be well informed to participate in national development activities. Key Strategies • Improving public access to timely and accurate information by establishing community information centres; • Strengthening information collection, processing, storage, retrieval and publication infrastructure. This will require the procurement of equipment for public news agencies, establish record management systems in the public sector, and introduce wire news subscription to public institutions; • Enacting access to information legislation; • Engaging private sector and other key stakeholders in policy formulation and evaluation; • Engaging Parliament more in constructive discussion on the national development process as outlined in the Malawi constitution.

5.5.2.2 Fiscal Management Good fiscal management is important to ensure that public resources are allocated and spent on priority areas. This will be fundamental to achieve the targets and aspirations outlined in the MGDS. The central tool in fiscal management is the budgeting 62 Malawi Growth and Development Strategy process, which since 1995 has been based on medium term expenditure framework (MTEF). The MTEF entails an output-focused approach based on costing of priority activities and projections of available resources. However, implementation of the MTEF has not been satisfactory. There have been huge variations in terms of planned (approved) expenditures and actual expenditures. Unbudgeted expenditures have exerted unnecessary pressures on the budget undermining the set priorities. Sector policies have remained unaffordable and resources have ended up being spread too thinly across so many activities thereby making little or no impact. This only shows lack of appreciation of resource constraints both at political and technical levels. It is imperative that the situation be corrected to achieve the long-term goal. Goal The long-term goal is to adhere to sound fiscal management practices by spending within the available financial resources. Medium-Term Expected Outcome In the medium term, it is expected that budget implementation will be improved. Key Strategies • Ensuring that resources are spent on priority areas; • Eliminating extra budgetary expenditures; • Adhering to the Public Finance Management Act, Public Audit Act and Public Procurement Act; • Improving Integrated Financial and Management Information System (IFMIS); and • Linking the output-based budget to the Government accounting system.

5.5.2.3 Corruption Corruption retards economic growth and development by diverting resources from socio-economic development activities into coffers of a few. It discourages legitimate business investment, and reduces the public resources available for the delivery of public goods and services especially to the poor. Despite efforts to curb corruption, cases of corruption are still on the rise. The Anti-Corruption Bureau’s effectiveness is hampered by inadequate human and financial capacity in addition to the need for reviewing other related laws. One of the main challenges in the medium term is, therefore, to ensure that corruption and fraud prevention is improved while offenders face the law. Goal The long-term goal is to make Malawi a corruption-free country. Medium-Term Expected Outcomes In the medium term, it is expected that corruption and fraud will be reduced. This will be achieved through improved transparency and accountability of goods and service delivery and zero tolerance to corrupt practices. Key Strategies • Training specialised personnel in the field of corruption and fraud to improve human capacity in such institutions of the Anti Corruption Bureau (ACB), Auditor General and Accountant General; 63 Malawi Growth and Development Strategy • Promoting the accountability of the ACB and the Auditor General to Parliament; • Reducing political interference in the public sector by redefining and separating roles between Cabinet Ministers and Principal Secretaries; • Promoting transparency and accountability in the procurement and delivery of goods and services by enforcing the relevant rules and regulations; and • Deepening the process of devolution of authority and resources to local Governments in order to improve transparency and accountability.

5.5.2.4 Public Sector Management Public sector management is important to ensure effective delivery of public goods and services. However, the public sector in Malawi is characterised by low motivation due to inadequate remuneration, lack of proper incentives, inadequate material resources, and political interference among others. Goal The long-term goal is that Malawi should have a highly motivated, results oriented and productive civil service. Medium-Term Expected Outcome In the medium-term, it is expected that Malawi will have a highly motivated civil service leading to improved performance and services delivery. Key Strategies • Building capacity through appropriate training in the public sector for effective service delivery; • Appointing and promoting staff based on merit and performance; • Continuing with wage policy reforms in order to raise incentives in the civil service; • Rationalising the civil service to ensure cost effectiveness of the delivery of public goods and services; and • Implementing non-salary incentives performance management systems.

5.5.3 Sub Theme Three: Decentralization Malawi recognizes local Governments as key to national development and good governance. The objective is to devolve central Government powers, functions and resources to Malawians through their local authorities known as assemblies. This approach is enshrined in the Decentralisation Policy (1998) and is backed by the Local Government Act (1998). The implementation of the programme since 2001 has met a number of constraints, which have slowed down the progress. These include weak, poor and ineffective linkages between decentralization policy and other public policy reforms, persistent power struggle and conflicts of roles between elected members such as Members of Parliament, Councillors and Traditional Authorities; weak institutional capacity, high turn over of key staff like accountants, economists and other specialists, ineffective participation of the local communities due to lack of information, knowledge and skills, and inadequate financial resources among others. However, with the advent of popular democracy and the fact that over 80.0 percent of the population resides in rural areas, it is still necessary that empowerment of people 64 Malawi Growth and Development Strategy through democracy for effective popular participation and decision making in the development process should continue. Goal The long-term goal is to enhance decision-making and participation of local communities in development planning and implementation. Medium-Term Expected Outcomes In the medium term, it is expected that local assemblies will have full control of the process of development planning. It is also expected that there will be improvement in community participation, efficient accountability, good governance systems, vibrant monitoring and evaluation (M&E) systems, clear and strengthened linkages of various policy reforms, and reduced conflicts of roles among various stakeholders at the district level. Key Strategies • Implementing full and complete sector devolution; • Redefining roles of various local Government players to reduce operational conflicts and promote effective contribution to the development process; • Establishing a vibrant M&E system which will ensure transparency and accountability; and • Building capacity through training of various stakeholders to enhance their participation in development planning.

5.5.4 Sub Theme Four: Developing a Strong Justice System and Rule of Law The creation of a strong legal system that safeguards the interest of the nation and promotes the rule of law is also a fundamental factor for achieving sustainable economic growth and development. This, among others, is envisaged to create an enabling legal and regulatory framework that provides incentives for economic activities. The dynamics of the modern world that brought about multi-party democracy, globalisation, regional integration, and human rights calls for a coordinated approach to delivering justice and respect for the rule of law. It is with this background that all stakeholder institutions in the sector have a role to play if Malawi is to attain its medium term goals. There are a number of constraints that need to be addressed in order to develop and enforce the rule of law in Malawi. These include shortage of legal experts to effectively and timely handle legal cases, lack of local capacity to train legal personnel, and high costs of legal services. In addition, high crime rates, lack of adequate access to justice, commitment to human rights and lack of respect of the rule of law are also critical issues that need to be tackled. However, there are also other cross-cutting constraints that affect delivery of justice and respect for rule of the law like institutional capacity, inadequate systems and procedures, HIV and AIDS pandemic, slow adoption of ICT and poor infrastructure. 65 Malawi Growth and Development Strategy Goal The long-term goal is to increase access to justice and entrenched rule of law. Medium-Term Expected Outcomes In the medium-term, it is expected that Malawi shall have a more responsive and effective judicial authority with sustained administration of justice, increased public confidence in the judicial system and improved ability of the private sector to obtain equitable and fair settlement of disputes in reasonable time and cost. Key Strategies • Improving the local institutional capacities for training legal personnel; • Providing more court centres; with the introduction of traditional courts with appropriate jurisdiction in order to reduce time and cost for handling legal cases; • Improving civil dispute settlement mechanism; • Aligning various relevant laws with the Malawi Constitution and international laws; and • Developing an informal legal system that is accessible, efficient, and equitable.

5.5.5 Sub Theme Five: Security Security is important in the country to safeguard human resources, infrastructure, goods and services. This is critical for creating an enabling environment for economic and social activities. Major challenges include inadequate police officers, equipment, and infrastructure. These need to be addressed in the medium term if crime prevention, detection, and investigation are to contribute effectively towards a safe and secure Malawi. Goal The long-term goal is to make Malawi a safe, secure and crime free nation. Medium Term Expected Outcomes The expected outcomes in the medium term include: reduced crime levels; improved methods of promoting public order; and improved partnership and participation of members of the public on all issues of safety and security. Key Strategies • Improving the responsiveness of police to communities security needs by reducing the police population ratio through recruitment and training of more officers; • Promoting effective prosecution and punishment; • Enhancing effective crime detection, investigation and prevention through the provision of adequate technical and financial support to the police; • Strengthening partnership for risk management between private sector and the police for protection of business property; and • Enhancing community integration and participation in crime prevention, and detection through civic education. 66 Malawi Growth and Development Strategy

5.5.6 Sub Theme Six: Corporate Governance Good corporate governance is an important factor within the creation of an enabling environment for rapid and sustainable private sector development. However, it is a relatively new phenomenon within the private sector context and as such, it requires support in order to ensure greater transparency and accountability of companies in the country. Strengthening good corporate governance will therefore be one of the key tools of addressing the problem of fraud and corruption within the private sector. In the past, the major problem has been lack of the code of good practices that would govern the operations of the private sector. This problem is now being addressed with the development of the code of best practices by the private sector. In addition, the Institute of Directors has been established so that it plays a leading role in championing corporate governance issues in the country. Efforts in the medium term will therefore emphasize on the implementation of the best practices with particular emphasis on transparency and accountability. This is expected to contribute towards reduction of fraud and corruption in the private sector. Goal The long-term goal is to institute good corporate governance practices in the private sector. Medium term expected outcomes In the medium-term, it is expected that there will be reduced corruption and fraud, and improved investor perceptions of Malawi as an attractive investment destination. This is expected to translate into increased levels of domestic and foreign direct investment. Key Strategies • Promoting the adoption of good corporate governance code of best practices; • Popularising the role of the Institute of Directors to facilitate the adoption of good corporate governance code of best practices; and • Mobilizing the support of the private sector to facilitate the sustainable operations of the new institution.

5.5.7 Sub Theme Seven: Human Rights The MGDS recognises the importance of human rights within the context of good governance and democracy. A rights based approach to development is the basis of equality and equity, both in the distribution of development gains and in the level of participation in the development process. Human rights are an integral part of the overall national development agenda. However, awareness of human rights is a concern among many people in Malawi. The key areas of concern in human rights awareness are the rights of vulnerable groups and how to exercise them, and roles of governance institutions in promotion and protection of human rights. Empowering the most vulnerable groups that form the larger part of the population can effectively contribute to social, economic and political development of the country. In this regard the MGDS will therefore also focus on public awareness of human rights and acknowledgement of human rights responsibilities. 67 Malawi Growth and Development Strategy Goal The long-term goal is to increase awareness and upholding of human rights among all Malawians, particularly the most vulnerable through the promotion and protection of human rights. Medium-term Expected Outcomes In the medium-term, the expected outcome is enhanced awareness and practice of human rights and responsibilities among all Malawians, particularly the most vulnerable groups. Key Strategies • Raising awareness among the most vulnerable groups about their rights and how to exercise them, and the roles of the human rights bodies in promoting and protecting people’s rights; • Effective prosecution of human rights violation; • Developing an appropriate legislation and administrative framework for the protection and promotion of human rights; • Instituting human rights regulations in workplaces; • Instituting effective monitoring and evaluation of human rights issues; and • Integrating human rights in school curricula.

5.5.8 Implementation The successful implementation of various strategies suggested under this theme relies mainly on political will among other factors. Government and Parliament will have to demonstrate that policies and legislations being implemented take into account the nation’s priorities. In addition, support from civil societies, donors and the public will be key for the achievement of the long-term goals and medium-term expected outcomes through the strategies suggested in this document. The maintenance of macroeconomic growth will be achieved through pursuance of prudent macroeconomic policies, tight fiscal and monetary policies and adherence to targets as outlined in the MGDS. Implementation of the MGDS will be done in collaboration with donors and private sector to contribute effectively to the overall goal of maintaining a conducive macroeconomic environment. Elimination of corruption and fraud practices within the Government and Private sector circles will largely depend on the effectiveness of the Anti Corruption Bureau. The relevant Acts will have to be revised to ensure the autonomous nature of the institution and reduce political interference. The implementation of public sector reforms will continue in the medium term. Also important is the regular review of the wage policy reform whose implementation will continue. The private sector will play a leading role in entrenching of good corporate governance in Malawi. However, the civil society and public sector are the other stakeholders that will help facilitate successful outcomes of good corporate governance in the medium term. The implementation of the strategies under justice, rule of law and security will require a collaborated approach among the various stakeholders in the sector. These stakeholders include Government, Law Commission, Ombudsman, Anti Corruption Bureau, Civil Society, the public and donors. This is 68 Malawi Growth and Development Strategy especially important because of the cross cutting nature of the issues that need to be addressed. 69 Malawi Growth and Development Strategy Chapter 6 IMPLEMENTATION, MONITORING AND EVALUATION

6.1 Implementation Modalities of the MGDS The MGDS has been comprehensively developed such that it allows all stakeholders to participate in the development of the country. Its implementation will, therefore, involve all stakeholders, that is, the three arms of Government: the Executive, Parliament, Judiciary, civil society organizations, private sector and the general public. Government will take a leading role in the implementation process through its consolidated budget. It is expected that donors and co-operating partners will align their support and activities to the MGDS. The relationship between the MGDS and the budget is central to the successful implementation of this strategic document. The Ministry of Economic Planning and Development and the Ministry of Finance will ensure that all ministries and departments align their activities and prepare their budgets in accordance with the MGDS. Budget submissions that either include activities outside the MGDS or exclude activities inside it will be rejected. The MGDS was developed with active participation of line ministries, private sector, civil society and donors, hence it reflects the sector strategies and priorities to achieve the long-term vision of the country. A summary operational table that is presented in Annex 1 has been developed to guide the implementation of the MGDS. This table represents strategies, actions and expected outcomes of the MGDS. As conditions change during implementation, progress made against the activities, outputs and medium term expected outcomes will be assessed to make necessary adjustments. Such assessment will be made based on information coming from sector ministries as well as other stakeholders. To ensure that the MGDS is implemented in partnership, Government will facilitate thematic teams to review progress. These teams will be inter-ministerial and include members of civil society, private sector and donors. Some of these mechanisms are already established in some sectors such as Health. These approaches will serve as models on how to develop cross sector working groups for monitoring and adjusting implementation. The private sector will be included as an active partner in all of the working groups, and especially in building strong dialogue with Government on obstacles to private sector led growth. A number of specific implementation issues have been mentioned under the five themes. The following have been identified as critical issues that must be pursued to achieve the set targets of the MGDS: • Political-will and change of mindset. Government and Parliament should play their constitutional roles in ensuring that the ultimate objective of MGDS is achieved there by taking the country towards achieving the long-term goals. 70 Malawi Growth and Development Strategy • Government should improve donor coordination through the development and adherence to the Development Assistance Strategy (DAS). • Donors and co-operating partners should align their support and activities to the MGDS. Government will lead the dialogue with donors on this alignment and seek to ensure that aid flows are predictable. On its part, it will seek to ensure that resources are disbursed in a timely manner. • The MGDS highlights important issues such as social protection, economic empowerment and HIV and AIDS. These issues are cross cutting and would therefore require effective coordination to avoid duplications and overlaps. In this regard, the Government will create a National Economic Committee to oversee implementation of such cross cutting issues. • There is need to develop a strong and motivated civil service that will ensure that Government remains committed to its policies, targets and obligations. • There is need to put in place mechanisms and modalities for implementing activities that require heavy financial investments. These include development of public-private partnerships and build, operate and transfer.

6.2 Prioritization and Costing of MGDS activities Prioritization of the MGDS activities was done in two main stages. Firstly, by the sector ministries, departments and other implementing stakeholders. At this stage activities were ranked into three priority categories. Category one comprised priority activities that should be implemented first. Category two comprised second priority activities while category three the last priority activities. At this stage, all activities were costed. These costs represent a realistic estimate of the total input cost required to implement that particular activity. Secondly, activities were prioritised based on key focus areas of the MGDS. This prioritisation isolated particular activities that would contribute to the attainment of immediate economic benefits that would translate into the well being of Malawians in the medium term. In addition, it also prioritised those activities that would accelerate the attainment of the MDGs. Costing of MGDS activities was done in Malawi Kwacha at 2005/06 fiscal year prices. Some of the activities are currently already being implemented and will continue to be implemented as they are not only necessary, but that financial resources were already committed to them. Other activities are totally new and require identification of financial resources to implement them. The total cost of all activities in the MGDS over the five years period is estimated at K633.8 billion. Out of this, the total cost of the key priority areas activities is estimated at K133.7 billion. However, the costs of the Shire-Zambezi waterway project and the prevention and management of HIV and AIDS are quite substantial hence it is assumed that Government will contribute 10 percent to these particular interventions. The overall prioritisation of the MGDS emphasizes Government’s commitments to achieving immediate economic benefits for the well being of Malawians. This is reflected by a substantial allocation of resources towards themes on infrastructure and sustainable economic growth. The combination of these two themes is estimated to 71 Malawi Growth and Development Strategy get 63.9 percent of the MGDS resources over the five years period. This is followed by Social development that is estimated to get 25.0 percent of the resources. This emphasizes Malawi’s commitment to achieving the MDGs. Improving governance and social protection themes are estimated to get 5.8 percent and 5.4 percent of the resources over the five years period, respectively. As regards prioritisation of the key priority areas, transport infrastructure development takes the largest share of resources estimated at 54.1 percent over the five years period. This is mainly a reflection of the high costs of such infrastructure coupled with the development of the Shire Zambezi waterway. This is followed by agriculture and food security at 12.2 percent. The combination of agriculture and food security, and irrigation and water development yields a total allocation of 21.0 percent thus emphasizing the need for increased agricultural output through irrigation development to make Malawi food self sufficient. The prevention and management of nutrition disorders, HIV and AIDS takes 11.2 percent of the resources. Integrated rural development and energy generation and supply are estimated to be allocated 10.1percent and 3.6 percent respectively.

6.3 Roles of key stakeholders in the implementation of the MGDS Government: The main responsibility of Government shall be to provide public goods and services as well as regulatory framework. These include roads, railways, airports, education, health services, and social services among others. It shall also provide the necessary environment and incentives to promote private sector activities. Government shall safeguard the interests of all Malawians by correcting market failures through policy, legal and regulatory framework reviews. Parliament: The role of Parliament shall be to enhance Parliamentary oversight, transparency and accountability in the implementation of the MGDS. This will be done through MPs involvement in the scrutinization, consideration and approval of Government budgets, reviewing and making laws. It shall ensure that the budget is being used to provide resources for the prioritised activities in the MGDS. In this regard, the interests and priorities of Malawians shall be protected. Private Sector: The main role of the private sector is to invest in both economic and social sectors to generate economic growth and create wealth. In this context, the private sector shall be expected to take up opportunities outlined in the MGDS. The scope of the private sector will be widened to involve them in the provision of other public goods and services through public-private sector partnerships. Civil Society: The role of the Civil Society in the implementation of the MGDS is two fold; first, to implement some specific activities particularly within the context of the Governance theme, and second, to provide oversight and accountability functions in order to safeguard the interests of Malawians. Donors and Co-operating Partners: The main role of donors and co- operating partners shall be to assist across the board with financial and technical resources to implement the activities in the MGDS. In doing so, they will be expected to support and align their activities in line with the priorities of the MGDS. 72 Malawi Growth and Development Strategy

6.4 Monitoring and Evaluation The monitoring of MGDS will be in accordance with monitoring and evaluation master plan developed by the Ministry of Economic Planning and Development, the Ministry of Finance, the Ministry of Local Government and Rural Development and the National Statistical Office. The stakeholders will align indicators in accordance with the MGDS themes and sub themes. A set of impact level monitoring indicators has been developed and is presented in Annex 5. The summary operational matrix in Annex 1 provides a summary of objectives that can also be monitored by line ministries and will be used in the budget discussion processes and reviews of the MGDS to track progress toward the impact indicators during implementation. The implementation framework for MGDS has taken into account all players who participate in the decision making for the development of the country. NATIONAL M&E FRAMEWORK Parliament chaired by Speaker Cabinet Chaired by President Committee of Principal Chaired by CS Secretaries Technical Committee chaired by Director (M&E) District Sector M&E M&E System System Committee Committee At the Cabinet level the MGDS will be chaired by the President. The Cabinet will review the annual progress in the implementation of the MGDS. It is expected that various ministers will brief the Cabinet based on reports on the actual outputs and outcomes of the implementation of the strategy. Meanwhile the Minister of Economic Planning and Development will have a detailed report on the progress of the implementation that will act as a back up to sectoral presentations. Prior to the budget session of Parliament, all parliamentarians will comment on the progress of the implementation of the strategy. The Parliament will base their debates from the mid-year development reports as well as annual development reports produced by Ministry of Economic Planning and Development. The development report will articulate all issues outlined in the budget that are in line with the MGDS. The Secretary for Economic Planning will present the progress report of the implementation to the entire meeting of the Principal Secretaries chaired by Chief Secretary. The Principal Secretaries as Controlling Officers are supposed to take necessary measures as regards to issues raised in the mid-year and annual development reports. 73 Malawi Growth and Development Strategy The technical committee will consist of development partners, senior civil servants, Civil Society and private sector. The technical committee will be chaired by Director of Monitoring and Evaluation. The Chairman will prepare documentation for the Principal Secretaries’ meetings. The Secretary for Economic Planning and Development is expected to give an overview of the status of the MGDS during the Principal Secretaries’ meetings. The Monitoring and Evaluation of Ministry of Economic Planning and Development will be secretariat for the implementation of the MGDS. In order to improve the implementation process of the MGDS, the Government is in a process of developing vibrant monitoring and evaluation system. The Government is developing capacity building at district level to monitor all aspects of MGDS and public sector investment plan. The Government will continue to develop capacity at sector level to monitor specific issues of the sector. The Government will also strengthen monitoring and evaluation capacity at the District and Town Assembly levels and enforce regular maintenance of infrastructure. The annual and mid-year developments reports will be the main product of the M and E of the MGDS. Some of the aspects of monitoring will be economic developments, infrastructure and all specific activities outlined in the MGDS. All monitoring of the MGDS will be coordinated by Ministry of Economic Planning and Development. The monitoring reports will be circulated widely for information sharing as well as part of advocacy. Ministry of Information will disseminate some of the information using different methods.

6.5 Needs Assessment Government recognize that the various public institutions have inadequate human and capital resource requirements necessary for the successful implementation of the MGDS activities. As such, Government plans to build this capacity in order to mitigate their impact on the outcomes of the MGDS. A Needs Assessment (NA) exercise for the MGDS was, therefore, undertaken to determine the human and capital resources required to successfully implement the MGDS activities. This was done in consultation with the sector ministries and departments as well as other key stakeholders. The summary of the Needs Assessment is presented in Annex 4A and 4B. It is evident that both human and capital requirements are enormous and cannot be addressed at once. Government is committed to addressing these requirements annually through its budget. Other stakeholders such as donors and co-operating partners are expected to complement Government efforts in this area. The human and capital resource requirements have been derived using the Needs Assessment (NA) approach which is a goal-based planning tool developed with the objective of determining the resource requirements in terms of infrastructure, human and financial in order to realise successful implementation of any goal-based strategy. The resource requirements represent an ideal case scenario that would be pursued to achieve the set goals in the MGDS. The human resource requirements take into consideration the existing; attrition; incremental number of staff to be recruited; and additional staff to be recruited. The number of existing staff is the stock in that year: the baseline is the actual number in 74 Malawi Growth and Development Strategy place while the subsequent year is a sum of the previous year plus the attrition and the incremental staff to be recruited. Attrition is the number of human resources that are lost in the system either through death, dismissal, resignation and retirement. These losses need to be replaced. The incremental number of staff to be recruited is generated in the model based on coverage indicators. Now, the total number of staff to be recruited is a sum of the attrition and the incremental number of staff. This represents additional human resource requirement to the preceding year. The NA approach is a medium-term to long-term and as such it has both strengths and weakness. The major strength of this tool is that it can form the basis of scenario based planning in terms of making the coverage indicators either more ambitious or less ambitious. On the other hand, the weakness of the NA approach is that it is difficult to estimate the future resource requirements with certainty; the unit costs and the exchange rate are bound to change. Secondly, the NA approach is unable to estimate human resource requirements by cadre. 75 Malawi Growth and Development Strategy MGDS COSTING SUMMARY SUMMARY TABLES Table 6.1A: Prioritization and costing summary by key priority area KEY PRIORITY AREA 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Agriculture and Food Security 3,067,093,976 2,886,389,781 1,692,355,865 1,649,865,865 1,604,965,865 10,900,671,350 Irrigation and Water Development 309,183,333 1,147,900,000 2,482,620,833 2,669,279,167 840,666,667 7,449,650,000 Transport Infrastructure Development 8,899,580,000 9,135,580,000 9,326,096,000 9,317,582,600 9,188,004,260 45,866,842,860 Energy Generation and Supply 990,400,000 873,525,000 385,925,000 345,925,000 465,925,000 3,061,700,000 Integrated Rural Development 1,412,750,000 1,630,500,000 2,041,625,000 1,986,916,667 1,521,083,333 8,592,875,000 Prevention and Management of Nutrition Disorders, HIV and AIDS15 2,006,982,544 2,053,817,559 1,852,383,499 1,824,925,059 1,750,136,161 9,488,244,820 TOTAL ALL KEY PRIORITIES 16,685,989,852 17,727,712,339 17,781,006,196 17,794,494,356 15,370,781,285 85,359,984,029 Assumptions: 1. Govt will contribute 10% of the Shire-Zambezi waterway projet total cost.. 2. Govt will contribute 10% of HIV and AIDS resources prevention and management costs. Table 6.1B: Prioritization and costing summary by key priority area (%) KEY PRIORITY AREA 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Agriculture and Food Security 18.48% 16.3% 9.5% 9.3% 10.4% 12.82% Irrigation and Water Development 1.9% 6.5% 14.0% 15.0% 5.5% 8.7% Transport Infrastructure Development 53.7% 51.5% 52.4% 52.4% 59.8% 53.7% Energy Generation and Supply 5.9% 4.9% 2.2% 1.9% 3.0% 3.6% Integrated Rural Development 8.5% 9.2% 11.5% 11.2% 9.9% 10.1% Prevention and Management of Nutrition Disorders, HIV and AIDS 12.0% 11.6% 10.4% 10.3% 11.4% 11.1% TOTAL ALL KEY PRIORITIES 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Table 6.2A: MGDS Overall Prioritization and Costing by themes SUMMARY BY THEME 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL THEME 1: Sustainable Economic Growth 9,340,433,714 9,485,351,381 8,543,655,288 7,895,670,945 8,031,584,801 43,296,696,129 THEME 2: Social Protection 7,059,599,197 6,962,769,897 6,771,610,967 6,683,636,570 6,727,518,330 34,205,134,961 THEME 3: Social Development 31,941,690,371 32,709,271,032 31,499,909,074 31,279,140,931 31,866,712,349 159,296,723,757 THEME 4: Infrastructure 72,325,229,333 72,635,361,000 73,995,102,999 73,901,976,113 71,579,985,134 364,437,654,579 THEME 5: Good Governance 11,575,885,374 6,068,476,858 5,878,635,794 4,445,880,415 4,562,382,949 32,531,261,390 TOTAL ALL THEMES 132,242,837,989 127,861,230,168 126,688,914,122 124,206,304,974 122,768,183,563 633,767,470,816 15 This is 10 percent Government Contribution. 76 Malawi Growth and Development Strategy Table 6.2B: MGDS Overall Prioritization and Costing by themes (%) SUMMARY BY THEME 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL THEME 1: Sustainable Economic Growth 7.1% 7.4% 6.7% 6.4% 6.5% 6.8% THEME 2: Social Protection 5.3% 5.4% 5.3% 5.4% 5.5% 5.4% THEME 3: Social Development 24.2% 25.6% 24.9% 25.2% 26.0% 25.1% THEME 5: Infrastructure 54.7% 56.8% 58.4% 59.5% 58.3% 57.5% THEME 6: Good Governance 8.8% 4.7% 4.6% 3.6% 3.7% 5.1% TOTAL ALL THEMES 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 77 Malawi Growth and Development Strategy ANNEXES 78 Malawi Growth and Development Strategy ANNEX 1: SUMMARY OPERATIONAL MATRIX STRATEGIES, ACTIONS AND EXPECTED OUTCOMES ANNEX 1.1: KEY PRIORITY AREAS SUMMARY OPERATIONAL MATRIX Outcome – Medium Term Expected Corresponds to the strategies to move to outcomes Key Actions Output Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 1: AGRICULTURE AND FOOD SECURITY Agro-Processing -- Expanded agricultural output (and diversification) i. Common constraints to the agro-processing are tackled. -See 2b … with focus on- Promote irrigation for high value export crops -- Increased agricultural exports (and diversification) -- Promote large scale agricultural farming Tea: -- increased varietal selections of tea ii. Increased profitability of smallholders in tea and value --Shift to clonal tea varieties and promote market oriented processing of added tea(cost to private sector) -- Factory refurbishment, replanting and irrigation for estates to handle peak production(cost to private sector) Tobacco: iii. Tobacco; efficient and fair system between farmers and -- Rationalize fees / levies in tobacco for higher farmer incomes -- Increased NDF tobacco production and fill gaps in region auction houses -- Revise taxation policy of tobacco. -- Increased Value added products from tobacco --Strengthen contract farming Sugar: Increased production of sugar from 260,000 tons pa to --Intensify out-grower schemes 320,000 pa by 2009 (23% increase) c. Garments/cotton: i. Higher yields of cotton supplied by smallholders in short -- Establish a cotton council -- Increase production of garments from local cloth term (due to pre-treated seed) -- Explore developments at the global level, implications on the sector ii Reduced costs of importation Agricultural Productivity a -- Smallholder share of GDP increase 23.6% to 34.9% GDP i. Strengthened smallholder linkages to markets (input / output) -- Increase knowledge and skills for agribusiness for farmers and and agricultural production and to agro-processing cooperatives. -- Increased trade volumes of agricultural products- -- number of smallholder cooperatives supplying agro- -- Increase access to markets or to agro-processing firms. -- Improved competitiveness of products in region processing industries -- Target rural roads to increase accessibility and explore relationship of feeder roads and PWP to supply gravel roads -- Develop farmers’ organizations. -- Provide market knowledge to farmers through extension services. b – Increased yields of crops including food staples by i. Reduced losses from weather shocks (all crops) -- Increase land under irrigation (irrigation perimeter) smallholders with enhanced potential for production -- Use of water harvesting -- outputs per hectare disaggregated by major crops -- Maintain irrigation systems -- improved soil fertility ii. Improved use of modern farm practices and inputs -- Reach farmers with extension services -- shift in varietal selection -- Source pesticides and spray equipment for migratory pest control, and -- shift in mechanization -- Monitor / forecast outbreaks of migratory pests -- increased use of pest resistant or tolerant varieties -- Increase in inputs used by farmers: fertilizer, pesticides and seeds (both -- increased area under low cost soil fertility technologies subsidies and access to credit (theme 5.5) 79 Malawi Growth and Development Strategy iii. Reduced pre and post harvest losses -- Promote processing and proper handling and storage of agricultural products via extension services iv. Decreased soil erosion from farming practices, - -- Train farmers on low cost soil fertility management techniques through extension services Land; Improved tenure security and equitable access to land, v. Customary rights of smallholders are recognized, clarified -- Regularize, title and register land. with an optimal and ecologically balanced use of land and and secured by appropriate legislation -- Empower land allocation committees and land tribunals to deal with land based resources -- Curb land encroachments, unapproved developments, and administration and dispute settlement. speculation and racketeering c. Livestock : decreased imports and increased imports to meet i. Increased livestock production -- Put in place strategies to reach potential livestock farmers on markets, domestic demand -- livestock production trends -- Strengthen advisory services in the production and marketing of livestock -- Incidence of disease in livestock and its products; -- Strengthen surveillance in the control of livestock and crop pests and diseases; Food Security i. Improved agricultural productivity, livestock, fisheries and Improve access to domestic, regional and international markets. 1. Food is available in sufficient quantities and qualities, at an increase the variety of food available at the household, -- Improve reliability of maize and fertilizer markets. affordable price, and supplied through domestic production community, and national levels -- Improve predictability of support in maize markets or imports (including food aid). --Increased yields of crops including food staples by -- measure of the food gap and availability of food stocks of smallholders with enhanced potential for production the Malawi Six Food groups. --Increased income for small and large scale fisheries and livestock production -- The volume and stability of the production of foods based on ii. Improved importation of foods -- Establish and enforce phyto-sanitary rules and regulations the Malawi Six Food Groups -- Promote a coordinated approach to commercial import iii. Improved coordination and management of food aid and -- Ensure that food aid conforms to the bio-safety and other related food aid imports. legislations --measures of distribution of food aid to the most vulnerable -- Manage strategic grain reserves (NFRA) -- measures of the responsiveness of the food aid to crises -- Develop reliable agricultural statistics and an effective early warning system -- Determine the ability to use PWP or other programmes during times of need for food security -- Develop Government ability to distribute food aid and target the most vulnerable -- Promote a coordinated approach to planning and management of food aid 2. All Malawians have at all times economic access to sufficient See strategies under Economic Empowerment See focus actions under economic empowerment nutritious food required to lead a healthy life 80 Malawi Growth and Development Strategy Outcome – Medium Term Expected Corresponds to the strategies to move to outcomes Key Actions Output Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 2: IRRIGATION AND WATER DEVELOPMENT Increased yields of crops including food staples by smallholders i. Reduced losses from weather shocks (all crops) -- Increase land under irrigation (irrigation perimeter) with enhanced potential for production -- Use of water harvesting --Maintain irrigation systems -- Construct small and medium scale irrigation schemes Basic water requirements of every Malawian are met while the i. Sustainable and integrated water resource management Water Resource Management country’s natural ecosystem is enhanced -- Empower national authority to improve management using IWRM -- increase access to potable water within 500m distances for approach and establish monitoring systems including the establishment all people (66.3% in 2005) and maintenance of a register of all actors in water and sanitation, conduct -- quality of water research to establish resource potential and guides -- increase household access to sanitation (82.7% 20050 -- Promote water resource conservation, harvesting and protection in an integrated manner including development of small community and large dams (conservation areas defined) -- Proactively advocate management of water resources and incorporate local Governments and communities in planning and management of water supplies and sanitation -- Recognize and implement obligations to international agreements – Create enabling environment for public private partnerships in water supply & sanitation -- Revise water resources act of 1969 and water works act -- Provide incentives for LA to promote community water-shed rehabilitation programs ii. Improved quality of surface and ground water and a system Water quality and pollution control for pollution control -- Establish database on water quality -- Improve skills and technologies techniques in water quality monitoring and pollution control and advance water pollution control (catchment rehabilitation, determining water quality) -- Strengthen institutional arrangements for environmental management -- Develop and disseminate guidelines and standards on water quality and pollution control -- Provide TA to local Government and stakeholders on water quality and pollution control -- Develop national water and sanitation services regulatory framework iii. Improved sustainable access to water supply and sanitation Urban, Peri-Urban and Market Centres in urban, peri-urban and market centres. -- Establish water supply and sanitation systems using demand responsive and driven approaches -- Establish contingency water supply reserves and sanitation backup -- Strengthen and support water utilities by establishing effective institutional setting - Promote management arrangements in urban areas 81 Malawi Growth and Development Strategy – provide incentives for small scale providers iv. Improved sustainable access to water supply and sanitation in Rural Water Services rural areas -- Adopt demand driven and responsive approaches in provision of water and sanitation with O & M. -- Integrate rural water supply and participatory hygiene and sanitation transformation -- Promote diversification of technologies for provision of water and sanitation policy -- Ensure smooth transfer of devolved functions of rural water supply and sanitation services v. Reduced marine pollution from navigation vessels and plans Navigation Services -- Conduct inspections of waste disposal systems, and at point of entry to prevent weeds -- Prevent oil spillages and leakages -- Ensure appropriate environmental safeguards at ports -- manage and develop waterways that do not encourage cross transfer of aquatic life vi. Fishery services do not adversely affect water resources Fisheries Theme One Sub theme 4 -- Harmonize and enforce fisheries and water resources legislation, provide data and information vii. Increased investment in water resources from energy sector Hydro-Power Generation -- Participate in multipurpose investment and water catchment management viii. Improved use of water and adherence to water management Agriculture and Irrigation Services polices for irrigation purposes -- Promote participation of MOA in IWRM and harmonize policies relevant to water management -- Encourage MOA to provide water needs and demand for data collection Outcome – Medium Term Expected Corresponds to the strategies to move to outcomes Key Actions Output Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 3. TRANSPORT INFRASTRUCTURE 1. Improved mobility and accessibility of the population to key i. Road Network: all unpaved roads from fair to good condition -- Strengthen capacity of autonomous Roads Authorities to maintain the road corridors within Malawi and out of Malawi and by the end of the five-year period : road network facilitate the continued development of the country’s rural -- 71 % of the road network in good condition, -- Fuel levy in line maintenance threshold for 5 yrs areas -- 18 % in fair condition, 11 % in poor condition. -- Maintain urban road networks and reduce # of timber deck bridges to zero for rural roads --Include environmental impact assessments (EIAs) in construction and rehabilitation of roads -- Decreased number and severity of road accidents -- Develop an integrated approach to road safety number 1 -- Review the road traffic act and its use for road safety issues -- undertake awareness campaign -- Strengthen the supervisory capacity for road safety on all existing roads and -- Coordinate the various enforcement players in the road safety area 82 Malawi Growth and Development Strategy ii. Border posts -- Create one stop border post on all major transport corridors -- Harmonize country’s highway code, road signs, signals and axle-load regulations within the region; -- Involve private sector in the monitoring and operations of road transport services -- Implement appropriate road user charges; 2. Improved mobility and accessibility of rural communities to i. Improved all weather access to rural areas. -- Improve coordination of rural transport initiatives and local capacity to goods and services in the rural areas Ii. increased use and ownership of non-motorized and motorized construct and maintain means of transport -- Assist DA’s with planning tools, GIS systems to target rural roads -- Supervise rural transport to enforce appropriate standards for it construction and maintenance -- Foster ownership and use of motorized and non-motorized means of transport 3. Inland shipping network is active in local and international i. Efficient and productive maritime transport system that meets -- Provide navigations and hydrographic charts shipping, trade and tourism in a safe manner while national and regional requirements -- Review concession agreements. for inland shipping; protecting the environment -- Port facilities rehabilitated and maintained in line with modern shipping through commercialisation, privatisation and public private partnerships (PPP) ii: Improved marine safety and environmental protection -- Prevent, control or combat pollution and strengthen the marine search and rescue iii: Increased participation by Malawi in international shipping -- Establish international shipping line and negotiate with Mozambique on “White List. ports -- Strengthen the national maritime administration -- Resuscitate the National Shippers Council and maintain selective membership in international organisations Outcome – Medium Term Expected Corresponds to the strategies to move to outcomes Key Actions Output Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 4. ENERGY GENERATION AND SUPPLY 1. Increased access to reliable and and sustainable energy i. Efficient in generation, transmission, distribution and -- Rehabilitate two more stations for power distribution and complete the supply. utilization of energy. ones under construction (e.g. Kapichira power station), and upgrade -- reduction in outages (brown outs, black outs) -- minimum generation capacity increased locally to 1000 existing ones. (Nkula A and B) -- increased access from the current 6% to 10% by 2010 and MW -- Engage in interconnection with Mozambique 30% by 2020 -- power supply is connected to the Southern African Power -- Rehabilitate and expand the transmission and distribution -- biomass-commercial energy mix target of 75% - 25% is Pool (SAPP) --Protect the catchment area along the Lake and Shire River set for 2010 and 50%-50% by 2020 difficult to achieve in -- Reduce the cost of connection by using affordable connection and the medium term metering methods (e.g. use of pre-wired boards and pre-paid meters) -- Prepare a plan and delineate implementation responsibilities for the reduction of siltation in reservoirs and protect catchment area to Lake Shire -- Explore alternative energy sources (gas, coal and solar) -- Implement Pumped Storage Power Plant at Livingstonia (longer term) 83 Malawi Growth and Development Strategy ii. Targeted electrification for mining, irrigation, business, -- Integrate electrification planning with investment planning and planning tourism, and other economic activities that would stimulate for transport, water and ITC. economic growth ii. Improved financial viability of key utilities and reduced -- Accelerate the establishment of the Malawi Energy Regulatory Authority parastatal losses. -- Improved management of ESCOM, fair pricing and affordable rates (Reform electricity tariff structure and levels) -- Implement framework for private sector to operate with the Government (PPP)to finance in the electricity 2. Rural communities use alternative energy supplies for power i. Increased access to sustainable energy systems -- Accelerate the Rural Electrification Programme (increase resources, in under served areas promote development of micro hydro power stations and use of coal energy for off grip power supply, to promote grid and off-grid rural electrification by public and private providers -- Expand network to rural growth centres; -- Create awareness of the use of renewable energy (solar, wind, biomass, and micro hydro) ii. Managed energy related environmental impacts Outcome – Medium Term Expected Corresponds to the strategies to move to outcomes Key Actions Output Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 5: INTEGRATED RURAL DEVELOPMENT Developed rural growth centres -- Enhanced re-distribution of wealth to all citizens. --Provision of utilities and communication network to facilitate --Reduced negative consequences of rural-urban the linkage of production areas to markets; migration. --Implementing rural electrification programme effectively -- Promote and implement economic empowerment programes such as MARDEV and OVOP. Outcome – Medium Term Expected Corresponds to the strategies to move to outcomes Key Actions Output Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 6: PREVENTION AND MANAGEMENT OF NUTRITION DISORDERS, HIV AND AIDS (A) HIV AND AIDS 1. Behaviour change of those at risk. i. Increased knowledge and capacity of vulnerable groups to -- Expand and scale up the scope and depth of HIV and AIDS communication at (targets: migrating laborers, sex workers, youths and women, practice abstinence, faithfulness and safe sex, . local level. mobile population) -- Reduce the vulnerability of Malawians to the HIV infection, especially for girls and women 84 Malawi Growth and Development Strategy -- Increase access to quality STI syndromic management, counseling and information. -- Increase district and community level outreach for changing practices -- Integration of HIV and AIDS into the curriculum and expansion of life skills to all in-school and out-of-school children 2. Expanded access to HIV testing and counselling, prevention i. Improved uptake of and equitable access to testing and -- Promote Voluntary, Counseling and Testing (VCT). of mother to child transmission programme, condoms, STI counseling. -- Expand the scope and coverage of HIV testing and counselling services treatment, blood safety, universal precautions ii. Improved quality services for prevention of mother to child especially in rural areas transmission (PMTCT) of HIV. -- Expand the scope, quality and coverage of PMTCT services throughout the iii. Prevent the risk of HIV transmission through blood products country. or invasive procedures -- Increase access to safe blood, blood products and tissue services throughout the country -- Increase availability of infection prevention materials and procedures -- Support communication interventions to increase awareness of infection prevention 3 Equitable treatment for PLHA and health impact mitigation i. Increased equitable access to ARVs and drugs for management --Expand provision of community home-based care (CHBC) involving all health (including ARVs, OIs, CHBC, palliative care, nutrition of HIV related infections, including children under the age of 15 care providers supplementation) (target at least 10% of those receving ART). --Increase nvolvement of PLHA in planning and implementation of CHBC. . ii. High quality community home based care is used by PLHA --Increase numbers, capacity of volunteers in provision of CHBC and develop a including improved nutrition. mechanism for retention of volunteers 4. Increased access to basic services and psychosocial i. PLHA, OVC, widows, widowers, and the affected elderly -- Strengthen mechanisms to promote sustainable economic and material support protection interventions, such as education, health, social benefit from income generating projects and psychological -- Increase advocacy for micro-finance programs protection and livelihoods, PLHA and OVC support, support. -- Strengthen the capacity of IGP groups in business management ii. Improved protection of legal rights of PLHA, OVC, widows, -- Develop integrated safety net mechanisms to provide a multi-dimensional legal protection, and mainstreaming of AIDS in widowers support package to the most vulnerable (PLHA, orphans, widows, widowers and macroeconomic and public expenditure frameworks iii. Improved OVCs access to quality services (education, health, affected elderly). water, etc.) --Strengthen capacities of communities and districts to provide psychosocial support -- Build and strengthen the technical, institutional and human resource capacity of key OVC service providers 5. Effective and efficient implementation of HIV and AIDS i. Enhanced capacity of the public and private sector to -- Develop a shared and common understanding of mainstreaming HIV and response system across the public and private sectors mainstream, plan and manage HIV and AIDS interventions. AIDS in both public and private sectors including civil society—NGOs, CBOs and FBOs -- Increase the capacity of District Assemblies to oversee HIV and AIDS activities in their districts -- Improve HIV and AIDS data collection, dissemination and utilization at both national and district levels. -- Use the spirit of the three ones -- Implement strategic approach to research and development 85 Malawi Growth and Development Strategy (B) Nutrition Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure progress (includes policy change/statement and key activities derived from focus actions) 1. Effective utilization of quality food and the biological i. Increased adoption of appropriate diet and healthy lifestyles Encourage families to produce and consume locally found nutritious foodstuffs utilization of nutrients in the body. and to store their food to keep the nutritional content over time – influence cropping patterns ii. Improve control, prevention and treatment of micronutrient deficiency disorders particularly those caused by Vitamin A, iodine and iron deficiencies. iii. Control, prevention and treatment of diseases that have direct Train families in utilization of foodstuffs impact on nutrition and health status iv. Increased access and availability of services and information to prevent consumers from health hazards 2. Information is used in decision making on policies and i. Harmonised and improved Food and Nutrition Security Coordinate food policies, interventions and information dissemination. program interventions and policies are well coordinated across Information Systems (FNSIS) for evidence based interventions the various ministries C) Interaction of Nutrition and HIV and AIDS Outcome – Medium Term Output Key Actions High Level Indicators (medium term) Intermediate Indicators (includes policy change/statement and activities derived from focus actions) (lower level indicators ) • Increased knowledge of the interaction between -- Increased provision of HIV and AIDS-related nutrition --Reviewing and including nutrition, HIV and AIDS interaction in education nutrition and HIV and AIDS; interventions curricula of all learning and training institutions. • Improved and diversified dietary practices for -- Increased awareness of the interaction between nutrition and --Compiling and disseminating best approaches to providing nutritional therapy people living with HIV and AIDS;. HIV and AIDS. to PLHA. --Building capacity for nutrition service providers on specialised nutrition care for PLHAs. 86 Malawi Growth and Development Strategy

ANNEX 1.2: SUMMARY OPERATIONAL MATRIX BY THEMES THEME ONE - SUSTAINABLE ECONOMIC GROWTH 1.1 SUB THEME 1.1 Maximizing The Contribution of Economic Growth Through Potential Growth Sectors Outcome – Medium Term Expected Corresponds to the strategies to move to Key Actions Output outcomes Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1.1.1 Potential Growth Sectors a Tourism i. Pricing, service, and quality of industry -- Establish a Monitoring system for tourist trends and services in Malawi. -- Increased number of tourist (domestic, international) competitive with the region -- Rehabilitate targeted national parks, game reserves, and wildlife. -- FDI in tourism areas ii. Measure of the quality of parks whether -- Zone or demarcate all areas with tourism potential along the lake. -- Occupancy rates of hotels managed by the public sector, private sector, or -- Upgrade roads leading to key tourist attractions to all weather. communities -- Enforce regulatory framework for standards / quality of tourism. iii. Reach of tourism products to domestic, regional -- Create clear laws and regulation on land access for tourism development and develop guidelines. and international markets b. Mining i. Functioning institutional setting to promote -- Update geological and mineral data acquisition mapping. Increased production output of mining mining, monitoring and enforce environment -- Establish linkages to legitimate market outlet for small scale miners. --- Large and medium and safety standards -- develop infrastructure for key mining companies (electricity, water, roads) PPP --- Small scale ii. Compliance by small, medium and large scale -- Speed up parliamentary consideration of the mining and minerals policy -- Valued added by small scale miners, miners with environmental and safety standards -- Provide extension services to SSM. -- Reduced environment degradation from mining iii. Increased value added by small scale miners and -- Review taxation applicable to mining to be competitive in the region. -- Domestic sales of minerals and mineral products integration into markets iv. Increased investment by large scale mining c. Manufacturing: i. Skills in vocational training, science -- Integrate science and technology into curriculum. --- Products meet ISO standards andtechnology -- Build capacity of Malawi Bureau of Standards to certify rather than rely on overseas certifiers. -- Increased productivity of labor and machines (total ii. Capacity of Bureau of Standards -- Establish links of improving quality and quantity of raw materials and processors , especially in the factor productivity) iii. Reduced cost of production agricultural sector. -- Strengthen adherence to labor protection -- Rework duty drawbacks and rebates and review taxes -- Redefine the roles and responsibilities of support institutions in the sector -- Encourage processing in rural areas, sub-contracting and use of modern technology 87 Malawi Growth and Development Strategy 1.2 SUB THEME 2: Enabling Environment for Private Sector Led Growth Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress -- Lower time and cost of regulations (time for -- Strategies to be defined in the tax review – summary of key policies business start up) -- % of goods that meet international standards for ii. Improved worker productivity and ability of -- Implement occupational protection for labor market access (ISO) firms to produce quality products -- Expand capacity of existing vocational training institutions, including training more instructors in -- reduced incidence of occupational hazards vocational training areas (TEVET) and occupational diseased -- Update curriculum and equipment for economic needs (vocational centres and secondary schools) -- Improved relevance of skills of work force -- Increase enrolment of general education students in vocational programme. (from vocational training, secondary education, and S&T) iii. Increased participation of Malawian -- Implement programme land titling (see 2b) and introduce reforms in urban land allocation entrepreneurs in private sector ventures and -- Strengthen promotion activities. access markets -- Increase efficiency of one stop shop bringing in outside operations, clarify laws to enable. -- increased number of Malawian firms that -- Revise statement of investment policies. export directly or contribute to exportation -- Provide incentives in a non-discretionary manner. from Malawi -- Reduce unnecessary delays in processing of land applications. -- increased number of Malawian firms -- see sub-theme 5, economic empowerment for more outputs and actions servicing the domestic market supply iv. Increased access to a functioning financial -- Support finance institutions in designing differentiated financial products sector, including microfinance -- Develop/ strengthen the micro-finance sector to serve small scale concerns and as part of the -- Increased level of domestic credit for private broader financial system -- for microfinance see sub-theme 5— sector -- Strengthen NEEF and savings campaign. -- number of SMEs receiving financing for 1st -- Establish an SME Apex institution. time -- Maintain capital base for banks. 2. Increased investment for private sector growth i. Improved quality of information on opportunities -- Produce good promotional materials in Malawi for potential investors -- Review investment policy and -- see above incentives -- Develop employment policy ii. Improved perception of the private sector -- See Strategy Area #5 concerning governance / corruption -- Integrate message of good governance into promotional themes 3. Science and technology is used in provision of service i. Develop an effective capacity in S&T that can -- Strengthen linkages to vocational training delivery or in improving private enterprises meet the needs of Malawi -- Determine the best mechanisms for accessing S&T knowledge and optimum strategy to implement -- Promote S&T oriented to value addition in high growth areas ---- See Strategies under ICT Area #4` 88 Malawi Growth and Development Strategy 1.3 SUB THEME 3 : Export Led Growth Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. Increased businesses which are accessing regional i. Reduced cost of reaching external markets due to Infrastructure in place (see theme 4 with investments and sequencing ) markets with competitive products (quality, cost) infrastructure -- International connections to ports, roads to key regional destinations, improved air linkages -- Increase in trade of goods and services both -- Reduced lead times on export -- Harmonize standards for cross border and transit trade with neighbouring countries in place domestically and internationally (trade balance -- Decreased cost of domestic trucking -- Enforce regional harmonized standards (eg security issues, transit fees, et increase from -48billion in 2005) -- Lowered costs of cross-border and transit -- Reduce impact of domestic trucking cartel and increase access to foreign truckers trade with neighbouring countries -- Modify tax structure for transport equipment/services -- Lowered transport and handling costs -- Leverage public private partnerships for infrastructure ii. Reduced lead times on export and improved -- Efficiency of customs and tax administration- and resolution of grievances in the tax administration efficiency -- Improve the efficiency in customs and tax including drawback program -- Reduced time for cross border processing -- Develop speedy and standardized payment system -- Benchmarked regional initiatives – systems -- Reduce excessive delays in refunds of tax payments especially surtax payments and procedures -- Increase efficiency tax collection -- Reduced time for custom clearance s -- Harmonize border operating hours with neighbours -- Improve compliance with customs regulation iii. Improved marketability of products to -- Strengthen MBS for national certification international markets -- Start comprehensive SQAM capacity building program -- Meeting ISO standards, and packaging standards -- Develop science, industry and technology in framework of international standards -- ISO9001 enterprises established -- Comply with international certification iv. Increased firms that take advantage of export -- Increase information for potential exports for market potentials opportunities -- Re-orient Malawi Export Promotion Council; -- Export Promotion Council activities adequately co-ordinate export promotion activities -- Establish trade finance scheme -- Reform of the financial sector (subtheme2) v. Maximized trade benefits through better -- Upgrade skills of key staff in target institutions (trade related) knowledge -- Coordinate ministries and entities involved in trade for origin regimes and issues -- measure of the ability to negotiate and direct -- Strengthen analytical capacity for trade policy analysis and implementation international trade discussions -- Establish capacity to regulate Liberalization Fair Trade Commission -- Strengthen the ability to negotiate and direct partnerships with other countries to facilitate regional trade -- Liase with Customs Department to accelerate improvement of customs facilitation at ports and border posts in SADC/COMESA -- Export Promotion Council activities adequately co-ordinated. 89 Malawi Growth and Development Strategy 1.4. SUB THEME 4: Conservation of the natural resource base a. Fisheries: Sustained fish availability for food and i. Increased productivity of small and large scale -- Increase use of modern technology by local communities and private sector for deep water fishing nutrition security as well as income generation -- Communities benefiting from fishery -- Provide fish landing facilities and train communities trained in modern fish processing. -- maintenance of the fish species resources -- Train local communities to practice sustainable fishing. -- increase fish farm production -- Develop accreditation facilities for fish export. -- % provision of animal protein -- Establish sanctuary areas to protect endangered fish species. b. Forestry sustainable use and management i. Improved productivity and value added by the -- Undertake review the sustainability of de-linking the commercially productive component of the -- Private sector manages forest resources for the long industrial forestry sector, while balancing it with industrial forest plantations of the forestry department from the protection and extension forestry term profitability of the sector and sustainability of sustainable practices components this natural resource -- increased number and type of value adding -- Introduce appropriate incentives to promote investment in forest industries -- forest coverage as % of total land wood producing and processing -- Registration with international standard bodies -- reversal in deforestation establishments. -- increase private sector involvement in industrial forestry development. ii. Increased reforestation efforts for key areas and Reforestation improve enforcement of regulations for forestry -- South and Central Malawi : Replant and rehabilitate 150, 000 ha softwood and 50, 000 ha of management hardwood timber plantations by private producers. -- increase in planting c. Compliance with natural resource laws i. Improved enforcement of environmental policies -- Develop environmental standards for soil, water, air, noise with corresponding legislation -- areas or national parks protected and legislation ii. Improved cooperation in environmental -- Establish appeals tribunal. management and NRM and development -- Establish coordinating committees for biodiversity climate change, POPs, and waste. -- Harmonize sector-specific strategies for dealing with problems affecting common resources iii. Increased awareness of issues of protecting the -- Incorporate environmental concerns in the school curriculum. environment -- Establish environmental database. -- Undertake information and education campaigns. d Conservation and protection of parks and wild life i Increased wildlife animal species --Enforce protection of national parks and wildlife --Re-introduce threatened and extinct wild animal species. 1.5 SUB THEME 5: Economic Empowerment Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. Increased employment and income from on and off farm i. Improved integration of rural communities into --Targeted linkage for rural integration into markets: Feeder roads, rehabilitation and maintenance activities - the economic market -- Strengthen core function of ADMARC in geographical areas which are underserved by the private -- reduced domestic transport cost for rural areas sector (implement reform of ADMARC) -- See section 2b for specific efforts to improve smallholder productivity 2 Increased productivity of rural communities / businesses i. Developed rural cooperatives to lower transactions -- Identify common community products for production, through one village one product and thus their contribution to economic growth costs of dealing with rural entrepreneurs and -- Develop a programme that will oversee the establishment of cooperatives in rural areas. --- increase in the ownership by Malawians and their collective bargaining -- Provide technical support from private sector programs (related to off farm employment) value-added, -- lower transaction costs (higher margins) -- Organize communities to produce outputs or develop local industry --- increase in SME profitability -- see strategy area 3 – for HIV and AIDS 90 Malawi Growth and Development Strategy ii. Increased access to micro finance for rural -- Align loan conditions to enable good business activities (repayment period, frequency, amount) businesses use in productive enterprises --Develop special programs for women /youth -- increase in business micro-finance loans (by -- Better coordination of donor supported micro-finance programs to decrease market distortions men and women) and number that result in -- Strengthen understanding of micro-finance successful businesses -- Enhance capacity of courts to handle business cases. (see section on judicial reform) -- decrease in default rate -- Encourage financial institutions to design tiered loan packages to provide incentives to borrowers -- decrease client drop out rate for loan repayment -- Credit Reference Bureau established -- Network of practioners in MFI established -- Improved monitoring and supervision of clients iii.. Improved business skills are used by rural --Provide training to all people who borrow for business purposes through the training unit of the community businesses-- includes women’s skills NEEC iv. Provide opportunities for vocational training See strategy area 1 for vocational training 3 Women, youth and the disabled fully participate in the i. Programs for building women entrepreneurial -- Develop a charter to increase the employment opportunities productive economy skills and opportunities to participate in the -- Enhance institutional framework supporting the development of women entrepreneurs -- Increase number of women in private and public economy developed -- Train women in entrepreneurial skills and ability to manage businesses sector organizations -- women owned businesses -- Institutional framework and legislation is supportive of women’s integration to economy -- Increase number of youth employed -- Enforce empowerment act -- Improve capacity of the Malawi Council for the Handicapped and other similar institutions that deliver serves to people with disabilities. -- Vocational training and skills -- Youth who gain skills 4. Urban Poor are productively contributing to the economy 1.6 SUB-THEME 6: Land and Housing Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures of the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress Equitable access to land for various uses including -- Land tax to discourage hoarding of land --Review of land based legislation for legal and constitutional consistency with the National land agricultural production and settlement introduced. Policy --Viable land markets established --Review and reconcile existing laws to ensure compatibility with the land policy --Resettlement and land development --Develop a carefully structured programme on land administration and land records programmes intensified -- Implement public awareness activities regarding property rights of venerable groups --Public awareness on land rights and land --Register individual and family title to customary land with legal and fiduciary provision for policy protecting the direct inheritance of property by remaining spouse and children --Existing land rights, especially customary rights recognized, clarified and secured Enhanced land tenure security --Public awareness on land rights and land --Encourage customary land formalization through titling and registration Improved livelihoods markets --Adjudicate land especially in the peri-urban areas -- Country-wide land formalization exercise --Provide credit to support off farm livelihoods enhancing activities registration and titling --Curbed land encroachments, unapproved developments, and speculation and racketeering Sustainable Land Use --Land Use Policy developed and land use -- Develop a Land Use Policy and -Review land use legislation 91 Malawi Growth and Development Strategy legislation reviewed --Review of the National Physical Development Plan- --Affordable, enforceable planning standards --Review the Town and Country Planning Act, planning standards and regulations and guidelines --Review of planning standards and guidelines for enforcement --Up-to-date land information in order to assist --Sensitise local communities in aspects of land use planning environment and community land mngt proper land management --Preparation of operation manuals for land use --Enhanced coordination with other stakeholders Improved capacity in the land sector for implementing a --Necessary capacity for efficient and effective --Develop structured programme on land administration and land records National Land Reform Programme land reform programme implementation --Procure modern equipment for surveying, planning and valuation --Increased stakeholder participation in the --Review all charges on land services rendered implementation of the land policy. --Lobby for retention of a proportion of user charges --Cost recovery measures and taxes introduced. A conducive framework for improved access to adequate -- Decentralized some functions in housing --Develop the National Housing Policy housing services delivery and management to local authorities -- Lobby Government and stakeholders to appreciate the role of housing in poverty reduction --Viable land markets and delivery systems that --Review the 1999 National Housing Policy to re-align it to Government policies and protocols cater for and protect the interests of the poor --Encourage stakeholders to mobilize resources to meet housing demands, particularly low-income/ and vulnerable groups vulnerable households --Encourage lending institutions to formulate funding schemes for the most vulnerable groups --Review the draft Building Regulations and Standards, and conduct research in building materials --Promote labour intensive construction methods to generate jobs --Promote civic education and social mobilization campaigns --Promote and encourage community participation in infrastructure provision and maintenance --Conduct civic education on housing. available housing programmes and/or housing delivery systems. --Encourage communities to form housing and multi-purpose community development cooperatives, 92 Malawi Growth and Development Strategy SUMMARY TABLE : THEME TWO - SOCIAL PROTECTION 2.1 SUB THEME 1 : Protecting the Vulnerable Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. The most vulnerable with limited factors of production i. Efficient and effective support to the most -- Provide supplementary feeding to malnourished pregnant, lactating mothers, and under five are sufficiently cared as are the vulnerable who can be vulnerable with very limited factors of children; negatively impacted by economic shocks production -- Sustain targeted school feeding programme to the most vulnerable; -- Improved health and nutritional status of under five -- number of the vulnerable who receive support -- Expand small stock and grain mills programme for the most vulnerable; children, school age children, orphans, pregnant and for food and non food items for their upkeep -- Introduce conditional and non conditional cash transfers to infirmed, elderly, disabled, orphans, lactating mothers, destitute families OVCs -- The poor who are provided opportunities, graduate -- Support the most vulnerable with food and non food items for their upkeep from programs ii. Improved planning and integration of knowledge -- Practice better prioritisation, design, delivery, monitoring and evaluation of social protection and on the chronically poor into planning safety net program --Formulate a social protection policy iii. Opportunities for the poor to graduate from -- Provide access to poor farm families to agriculture inputs (see strategy area 1 - 3b above) poverty by asset accumulation, increase their -- Undertake PWP that create high income earning for poor focused on graduating out of poverty ability to be part of agricultural productivity (river diversion for irrigation, afforestation, reservoir/dam construction, dykes, roads ) -- Enhance non-traditional PWP e.g. brick manufacturing, manure making and bush clearing; -- Enable the land constrained poor to have alternative sources of livelihoods -- Provide capital for Income Generating Activities -- Review effectiveness of current public works programs, feeding programs, targeted input programs 2.2 SUB THEME 2: Disaster Risk Management 2. The impact of disasters of the vulnerable is reduced i. Enhanced disaster management planning and -- Promote integration of disaster management into sustainable development programming at all response levels; -- timely emergency relief assistance to affected -- Establish an effective early warning system people by disaster -- Provide timely emergency relief assistance to affected people; -- Implement mitigation measures in disaster prone areas. 93 Malawi Growth and Development Strategy SUMMARY TABLE : THEME THREE - SOCIAL DEVELOPMENT 3.1 SUB THEME 1. Health and Population Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. People have better access and use of qualified care for i. Increased number of qualified health workers in Human resources essential health care issues (TB and Malaria)16 health care centres. -- Increase student intake into medical/health training institutions. (57 trained in MPRS period) -- Decreased cases of preventable diseases -- population/doctor ratio -- Provide ARVs to HIV and AIDS infected health workers. -- Reduced rates of disease incidence (TB, Malaria) -- population/nurse ratio -- Provide incentives to health workers at the local level, proper working hours (salary top ups) -- Improved TB cure rates to over 70% -- attendance of trained health-workers for -- Develop strategy to sustainably maintain qualified health workers for front line births -- Improved use of ORT for diarrhoea control ii. Increased availability of drugs at health facilities Pharmaceutical and medical supplies -- Contraceptive prevalence rate (33% in 2004) and decreased theft of drugs -- Improve pharmaceutical and medical supplies, distribution, timely procurement to reach health -- ARV treatment regime are followed -- bed nets at clinics/communities facilities -- Decreased incidence of Malaria by 50% --vaccines delivered to clinics/communities -- Undertake close monitoring of drug management and utilization. -- increased vaccination rates (under 1 rate 55% 2004) -- Provide bed nets and vaccines at clinics/communities -- INT coverage (42% 2004) -- Strengthen training capacity in college of medicine for pharmaceutical qualifications. iii. Increased access to well equipped health care Infrastructure facilities -- Construct new and rehabilitate existing dilapidated health structures: buildings, medical equipment, -- more than 80% of the population live within 5 telecommunication, electricity and water through the facilities development program km of a health facility -- Improve maternity infrastructure (key priority) including buildings, equipment, -- Enforce minimum health standards, conducts in public and private health facilities -- Target roads in some areas where access is difficult through “integrated infrastructure project” iv. Improved diagnosis and treatment at health care Equipment facilities, especially maternity services -- Strengthen equipment maintenance ability in ministry through training, regional and district maintenance units -- Start system of bulk purchasing of spares for most of the equipment needs v. Improved flow of resources to health facilities Finances -- Improve planning. budgeting at all levels through systems development at the central and district level -- Undertake close monitoring of financial flows and usage vi. Good monitoring, supervision and utilization of Systems health care facilities developed -- Provide community level structures (such as village health communities) for support of meeting, training, transport and equipment) Communities are engaged in health service delivery 2. Central hospitals provide satisfactory level of referral Addressed above Addressed above services and able to financial self-sustain -- Reduce incidence of occupational hazards and Improved working environment --See strategies under Enabling Environment for Private Sector led growth diseases --Develop health / safety standards /guidelines 3. Reduction in incidence of water born disease Enhanced access to safe drinking water (rural, --Introduce VIP latrines and other appropriate rural water sanitation technologies. -- Reduction in deaths due to diarrhoea especially in urban) and access to hygienic sanitation facilities ( --See strategy area #4 water and sanitation children under 5 years of age rural, urban) 16 To achieve the medium term expected outcome the 6 areas in column 4 are necessary. The matrix reflects the Health Sector Support Program (sector wide approach - SWAp) 94 Malawi Growth and Development Strategy 4. Increase in life expectancy at birth. Improved life expectancy at birth to 45 years. --Provide comprehensive health services package that include treatment of diseases and --Reduction in population growth rate. Reduced population growth infections, awareness programmes and education through Government and private hospitals. 6. Effective and efficient implementation of HIV and AIDS i. Capacity of the public and private sector to -- Develop a shared and common understanding of mainstreaming in both public and private sectors response across the public and private sectors mainstream, plan and manage HIV and AIDS including civil society—NGOs, CBOs and FBOs interventions is improved -- Increase the capacity of District Assemblies to oversee HIV and AIDS activities in their districts -- Improve HIV and AIDS data collection, dissemination and utilization at both national and district levels. -- Use the spirit of the three ones -- Implement strategic approach to research and development 3.2 SUB THEME 2. A. Education - Primary Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress -- Reduced absenteeism to 5% by 2012 at primary i. Increased equitable access to quality primary -- Expand and improve existing infrastructure and maximize its use (including overlapping shifts -- Reduced dropout by 50% at primary education -- Reduce primary school cycle to 7 years from 8 years -- Increase private primary school enrolment of children -- Increased net enrolment to 95% by 2012 at -- Undertake social awareness campaigns and whole school development to 2% by 2015 primary from 115 in 2005 -- Introduce school feeding Programme (School health and nutrition) Improved learning outcomes ii. Improved the quality of primary education -- Train teachers, provide attractive terms / conditions, especially to go to rural area, & professional -- Mastery levels (proficient reading and proficient -- reduce pupil to qualified teacher ratio from development writing skills at higher level) 73% in 2004 -- Provide adequate supply of teacher learning materials and a child friendly environment -- Improve overall management and monitoring of inspection, supervision and advisory -- Mobilize community participation in primary school management -- Primary school completion rates for girls (41% in iii. Primary education equitable to girls -- Review policies related to girls and special needs 2004), repetition rate for girls (18.8% in 2004) -- proportion of girls in school (50% in 2005) -- Provide block grants to schools to address equity issues -- Reduce girls absenteeism, repetition and drop out rates in order to improve girls learning outcomes iv. Increased access to quality primary education by -- Review policies related to orphans, other vulnerable children and SN Education special needs students -- Establish a college for special needs teacher education -- Provide direct assistance to schools to address equity issues (relevant textbooks and brail) -- Design and standardized sign language for the deaf and dumb v. Increased relevance of school curriculum -- Continually revise and improve the relevance of the curriculum to include academic and non academic needs of pupils and the effective orientation of teachers – introduce PCAR curriculum vi. Improved management and planning of primary -- Provide in service training and incentives to school managers, inspectors and senior teachers education -- Equip school planners with appropriate knowledge and skills in micro-planning, monitoring and data management 95 Malawi Growth and Development Strategy 3.2 SUB THEME 2. B. Education - Secondary Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress -- Reduced absenteeism by 50% by 2012 in secondary i. Increased access to secondary education -- Identify and rehabilitate all existing dilapidated school facilities, construct new schools -- Increased net enrolment from 30% to 50% by 2012 in -- Introduce double shifting in urban schools – each division identify schools for double shifting. secondary -- Increase access to secondary distance education and open learning at secondary level -- Reduced dropout to 5% in secondary -- Draw and sign a memorandum of understanding with private school association of Malawi to provide high quality education. Improved learning outcomes in secondary ii. Improved quality of secondary education -- Train and supply adequate number of qualified teachers and improve terms and conditions -- Mastery levels (reading and writing skills at higher -- Student-qualified teacher ratio to be at x:1 in all -- Up-grade under-qualified teachers through in service education level) secondary schools and CDSS (from 1:20 in -- Improve effective regulation, inspection and supervision of public and private schools. 2004) -- Upgrade CDSS to conventional secondary schools. -- Reduce girl dropout rate to 5% iii. Improved equity in secondary education -- Provide girls friendly environment in particular, accommodation in all secondary schools. -- Reduce repetition rate by 5% -- Increase bursaries for the needy secondary students -- Reduce girls absenteeism by 50% -- Provide female secondary school teachers as models -- Improved girls learning outcomes vi Increased access to quality secondary education -- Improve and increase Special Needs Education facilities in existing colleges. by special needs students -- Review policies related to orphans, other vulnerable children and SN Education -- Provide block grants to schools relevant to special needs v. Improve relevance of secondary education -- Introduce and implement curriculum responsive to needs of individuals and the nation by including -- Post primary education revisited and academic and non-academic subjects. curriculum revised by 2010 -- Provide trained guidance counsellors to all secondary schools. -- Introduce science and technology into the curriculum vi. Improved management of secondary education -- Train school managers in planning, monitoring and supervision. -- Improve the procurement and distribution of teaching and learning materials. --Improve District Educational Management Information System (DEMIS) -- Improve education planning and equip planners with knowledge and skills in planning, monitoring and data management, including monitor the delivery of supplies in the schools vii. Improved financing mechanism of secondary -- Improve flow of funds and train managers in financial management in public schools. education --Establish School development funds in all schools -- All Schools functioning as cost centres --Consistent flow of funding to public schools --Efficient and transparent financial systems in --Implement cost sharing at schools place --Train school managers in financial management 96 Malawi Growth and Development Strategy 3.2 SUB THEME 2. C. Education - Tertiary Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress Increased undergraduate enrolment by 40% i. Increased undergraduate and postgraduate intake -- Recruit and train more adequate staff (50% at current levels, 70% at Master’s level, 30% at PhD -- Increase post graduate enrolment ration to 10% of the level) undergraduate student population (in take 7,400 in -- Develop new, parallel programmes (e.g. triple shifts), distance/virtual learning, and short courses. 2005) -- Develop a student financing policy including a student loan scheme. -- Promote local production of teaching and learning materials. -- Expand provision of internet services broad band internet access established campus wide. Increased by 5% female enrolment by 2010 (girl ii. Improved equity education for girls -- Create an enabling environment to accommodate female students. participation 31% in 2005) -- 30% bed space on campus for females by -- Implement affirmative action for student selection 2010 -- Encourage girls to complete secondary schools by providing improvement in the secondary -- 40% recruited staff associates are female by -- Develop a strategy for regional approach to supplying tertiary education to special needs students 2008 iii. Improved quality of higher education -- Provide training PhD level to existing staff, provide training to new staff and establish external quality control and accreditation -- Develop comprehensive policies on research and development. -- Provide adequate teaching and learning materials. Improved curriculum to respond to national needs iv. Relevant academic materials -- Provide relevant skills to academic staff through regular training of staff. -- Conduct regular curriculum reviews to match national needs and modulise courses -- Provide labs with adequate modern equipment v. Improved management of higher education -- Provide trained personnel in management. -- education council for higher education -- Decentralize decision making processes developed -- Implement effective staff deployment policy -- Improve procurement and distribution system and monitor delivery of supplies -- Establish planning units and equip planners with appropriate knowledge and skills in planning, monitoring and data management -- Strengthen financial management 97 Malawi Growth and Development Strategy 3.3 SUB THEME 3. Gender Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress -- Enhanced participation of women and men, girls and -- Mainstream gender in national development --Strengthen institutional capacity for effective co-ordination of gender policy implementation. boys decision making and economic activities. process --Undertake affirmative action to increase women decision makers in high levels of the public and -- Reduce gender inequalities (as measured by private sectors. disaggregated access to services included in other --Include gender equality provisions in the Malawi Constitution. parts of the Strategy). --Break the cultural/traditional factors that create and perpetuate gender inequalities -- proportion of seats held by women in Parliament (15% --Specific strategies to increase women’s access to services, and participation in economic activities 2005), in decision making positions (12.9% 2005), are included in the related areas of the matrix (Theme 1 sub-theme 5; Theme 3 sub-theme 4, Theme Gender Development Index (.396 in 2003) 1, sub-theme 2). These include : education, access to finance and business training, women owned businesses) Improved socio-economic indicators for women and girls. Enhenced participation of women and girls Enhence the participation of women and girls in economic development activities SUMMARY TABLE : THEME FOUR - INFRASTRUCTURE DEVELOPMENT 4.1 SUB THEME 1. Air and Rail Transport Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. Obtain smooth carriage of cargo in one transport chain i. Improved coordination of all modes of transport -- Initiate dialogue with neighbouring states to accede to the Multimodal Transport Convention; -- Harmonize all legislation and document on transport and customs with SADC/COMESA -- Publicise Multimodal Transport and INCOTERMS by mounting a series of seminars -- Establish and maintain a national transport forum ii. Updated Inland Waters Shipping Act and -- Review and update all legislation on a regular basis strengthened legal instruments. 2. Attain and maintain a competitive, self sufficient and i. Competitive, sustainable and efficient air transport -- Implement the Yamoussoukro Declaration 2000 on African Air Transport Policy and other sustainable civil aviation environment that ensures industry with a view of stimulating economic conventions that may be deemed of benefit to Malawi; safety in accordance with national and international growth -- Encourage technical and commercial joint ventures and marketing efforts in airline industry standards and enables the provision of services in a -- Ensure local participation in equity and technical partnerships of airlines; and reliable and efficient manner -- Establish where feasible autonomous airport or Civil Aviation authorities. ii. Safe, efficient and reliable aviation -- Construct targeted landing strips for tourism related areas infrastructure -- Institute and monitor maintenance programmes for both aerodromes and aviation equipment; and -- Promote participation of Private Sector in the maintenance/ provision of safe aviation infrastructure iii. Improved infrastructure for security for -- Strengthen safety and security measures at all airports; passengers and cargo. -- Strengthen security enforcement provisions in the Aviation Act. -- Ensure infrastructure and operations do not negatively impact the environment 3. Provide well-managed, viable and sustainable railway i. Improved operational efficiency and commercial -- Identify the bridge that need to replaced on the rail line (private sector) system that promotes accessibility and safe, affordable, viability of railway companies -- Provide reliable locomotives (Government and concessionaire) reliable movement of goods and people including the -- Review the railways act disabled) 98 Malawi Growth and Development Strategy 4.1 SUB THEME 1. Air and Rail Transport Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes ii. Improved levels of service to all users including people with disabilities at an affordable cost; iii. Improved railway safety and environmental -- Prevent adverse environmental effects of rail construction and ensuring that the infrastructure is protection environmentally friendly 4.2 SUB THEME 2: Information, Communication Technology Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1 Increased technical skills and updated knowledge are used i. A reliable, fast adaptive and robust national ICT -- Modernize the operations of the health delivery system (theme three sub theme one) by public and private sector institutions infrastructure. -- Support the provision of up-to-date global and local tourism information (theme one sub theme -- improve access to the nation’s limited health facilities one) and resources. -- Promote the deployment and exploitation of ICTs to support the activities of the agricultural sector -- Equip the Department of Meteorological Services with modern weather monitoring, forecasting equip. -- Equip the Ministry of Water Development with modern water level monitoring equipment. -- Equip DAs with ICT services for collection and dissemination of environmental, disaster warning info -- Establish a wide area network for all organizations involved in disaster management. -- Provide radios to communities to be used for transmitting early warning messages. -- Establish communication link between DA and the Department of Poverty and Disaster Management iii. Developed and enhanced ICT industry. -- Enact appropriate legislation that promotes and participation in the information age and economy. -- Create a working and efficient Government wide area network (GWAN). -- Develop ICT infrastructure in rural communities -- Encourage collaboration between local and international educational institutions to facilitate educational exchange and the promotion of ICT education and training. v. Improved access to ICTs to all communities. -- Promote local and foreign investment, innovative production, R&D and diffusion of ICTs – private sector. -- Promote development of a Competitive Value-Added Services Sector through ICT -- Support the development of an innovative local industry for the manufacture, assembling, repair and maintenance of ICT products for domestic and export markets. -- Achieve universal basic ICT literacy and improve the level of ICT literacy in the country. -- Improve public access to information and services to facilitate business and administrative processes to increase productivity and economic growth. -- Promote active participation of all Malawians including women, youth and persons with disabilities in developing the information society. 99 Malawi Growth and Development Strategy 4.2 SUB THEME 2: Information, Communication Technology Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes 2 Increased access to communications i. Expanded coverage/network --Continue liberalization of telecommunications sector ii. Expanded and distribution of radio and --promote a private sector driven radio and communication sub-sector. TV communication --Expand the coverage and distribution of accurate and timely information and news. -- increased working lines (78,000 in 2005) --Develop radio and TV broadcast infrastructure. 4.3 SUB THEME 3. Research, Science and Technology Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress Enhanced economic growth and development through the --Well coordinated science and technology --Establish a National Science and Technology Commission. application of science and technology. generation and dissemination; --Strengthen the capacity of research, science and technology institutions. --Effective and efficient operation of the science and --Generate and disseminate appropriate technology through public-private partnerships. technology institutions; --Develop and commercialise science and technology --Increased uptake on productivity and enhancement --Promote the development and utilization of indigenous technology. --Establishe research funding of technologies; and mechanisms to promote research by individuals and institutions --Prioritised and focused research and development. SUMMARY TABLE : THEME FIVE - IMPROVED GOVERNANCE 5.1 SUB THEME 1. Macro-economic Growth Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress Stable macroeconomic environment characterized by i. Improved public expenditure management. -- Enforce adherence of line ministries and parastatals to Public and Finance Management Act – no -- lower inflation, -- Status of 25 indicators on Public Expenditure provision of extra budgetary funding for the ministries. -- interest rate, and Financial Management (includes HIPC -- Negotiate multilateral debt write-downs. -- sustainable debt service and indicators) -- Strengthen the capacity of Treasury’s Public Expenditure Monitoring Unit. -- stable real exchange rate -- Improve financial management systems and skills to operate them (MOF, Accountant General) ii. Improved predictability of donor financing. -- Receive better donor aid assistance projections and improve funding flows. -- aid flows -- Strengthen the capacity of Debt and Aid Management Division to better co-ordinate donors and manage aid inflows. -- Negotiate with donors an action plan for harmonization, alignment and better aid coordination (possible mechanism through the Paris Declaration). 100 Malawi Growth and Development Strategy 5.1 SUB THEME 1. Macro-economic Growth Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes iii. Improved economic environment for private -- Undertake tax reforms to improve the incentives for household saving and investment and the sector borrowing and investment. equity of tax administration. -- see Theme One – Sub theme 2 -- Enforce adherence of line ministries and parastatals to Public Finance and management Act – no provision of extra budgetary funding for the ministries. iii. Value-addition and reduced import content in -- See strategies for economic growth, specifically regional integration and enabling environment for existing export products, develop new export private sector led products with high potential for domestic value addition. iv. Reduced risks of shocks on the economy (e.g. -- See theme one – and theme four transport costs, food shortages, increases in import prices). v. Increase private sector investment. 5.2 SUB THEME 2. Public Policy Formulation, Fiscal Management, Public Sector Management and Corruption Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. The performance of the civil service is more transparent i. Capacity of public sector to formulate, implement -- Transparent appointment and promotion of personnel based on merit and performance. -- management decisions based on evidence and monitor the public policy and manage the -- Implement pay reforms, address recruitment and retention problems, implementing performance -- responsive to national aspirations Malawi Growth and Development Strategy management systems, and non-salary incentives. -- facilitates economic growth and pro-poor approach to -- Control size and cost of public sector and focuses them on its priority areas, including donor service delivery -- statistical capacity score funding for the public sector. -- Enforce human resource policies and systems. -- Articulates vision of its priorities for the public sector, including relationship with decentralisation, and implements them through annual budget. -- Implement the Monitoring and Evaluation Roadmap (includes coordination of donors and national statistical plan) 2. Reduced corruption and fraud ii. Transparency and accountability for service -- Increase the number of specialized lawyers (fraud) for corruption cases. delivery -- Improve the ACB’s and Auditor General’s reporting and accountability to Parliament. -- corruption cases prosecuted -- Enforcing greater clarity on separation of roles between Ministers and PSs. -- Develop and implement national anti-corruption strategy addressing root causes of corruption and involving public and private sectors. -- Strengthen the media capacity through training and access to and distribution of public inform. Also see #3 on public awareness iii. Effective and well managed division of -- Implement realistic decentralization plans – see that section responsibility between central and local See strategy theme give subtheme three Government, the private sector and NGOs for the provision of services to the public 101 Malawi Growth and Development Strategy 5.2 SUB THEME 2. Public Policy Formulation, Fiscal Management, Public Sector Management and Corruption Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes 3. Public is well informed to participate in national i. Citizen access to timely and accurate information -- Establish an effective e-Government information system. (see theme four sub-theme four) development and has an enhanced participation in socio- that is easy to understand -- Establish community information centres. economic activities -- Promote professionalism of media that delivers politically impartial news coverage -- Enact access to information legislation to allow media access to public information. -- Enact public service broadcast legislation 4. Parliament constructively engages in the national i. Strengthen parliamentary committees and -- Select legislators with relevant skills and knowledge into Committees. development process, as outlined in the constitution parliament -- Provide adequate financial resources for functioning of the Committees. (public sector is held accountable for how funds are spent) 5. Free and fair elections -- Provide national registration and identification to voting age persons. -- Provide equal access to public media facilities. 5.3 SUB THEME 3. Decentralization Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. More transparent, accountable and effective local i. Devolution of resources and authority to local -- Complete sector devolution to districts. Government and better planning Governments deepened -- Expand local revenue generating capacity -- Build institutional capacity at the districts. -- Strengthen operational links between decentralization policy and national policy frameworks and the role in policy making 2. Improved community participation in local Government ii.Empowerment of local communities -- Train communities for active participation in development activities at the district. -- Define clear roles of all groups of stakeholders at the district. 102 Malawi Growth and Development Strategy 5.4 SUB THEME 4. Justice and Rule of Law Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. More responsive and effective judicial authority which i. Contemporary, applicable and relevant laws -- Undertake periodic review and reform of laws and procedures in light of constitutional provisions enables all people to obtain effective protection and conforming to the Constitution and international and applicable international law; redress, dispenses justices equitably, speedily and applicable law and meeting national needs. -- Acknowledge customary laws and practices that are not in conflict with principles of human rights affordably to all -- Timely drafting and enactment of new and the constitution; -- Reduce the costs of bringing cases to court. Speed up legislation. -- Review and simplify legal language to ensure a comprehensible justice system; procedures in the courts -- Timely enactment of reviewed laws. -- Strengthen and streamline the legislative drafting process. -- Decrease backlog -- Reduce delays in passing court judgments ii. High level of professional conduct across the -- Enact and implement legislation to ensure duty bearers enforce their functions and powers SSAJ sector. professionally. -- Increase the intake and training for various legal professional groups including specialized field; -- Appoint judges based on merit. -- Continue the Civil Service Reform Programme to retain legal professionals in the civil service. -- Increase number of court centres close to police stations and main trading centres. iii. Effective informal justice system equally -- Review primary and informal justice initiatives; accessed and protecting people. -- Design policies and mechanisms for consultation and cooperation between formal and informal justice sector players and to improve enhanced accountability of primary justice agencies to the public; -- Facilitate the development of record-keeping systems -- Provide primary justice and dispute resolution training for traditional leaders iv. Consistent, acceptable and equitable application -- Develop and disseminate clear policies on the judicial role of traditional courts and the status and of customary law in traditional courts. enforcement of their rulings. -- Design a programme for reviving traditional courts including an appropriate training element. v. Mechanisms for settlement of disputes through -- Review forms of alternative dispute resolution and identify the most appropriate forms mediation, conciliation, arbitration, and -- Establish information linkages between the police, courts, prisons. (piloted at one point- penal negotiation. reform was coordinating) to improve case flow -- Promote dialogue through court user committees vi. SSAJ sector’s ability to manage and obtain -- Generate funding support from Government and development partners. resources. -- Develop a harmonized approach to budget formulation, presentation, allocation, distribution and accountability. -- Allocate resources between sector institutions effectively to achieve the sector mission. 3. The sector is supportive of the priorities of Government i. Efficient and business-friendly legal and -- Review, and where appropriate reform, business and commercial-related laws. in MGDS regulatory framework and commercial court -- Create a fully functioning commercial division of the High Court.-- system -- Review rules of procedure as they apply to commercial cases and enhance the role of the Small Claims Courts. -- Design and implement a strategy to address the administration and distribution of deceased estates. 103 Malawi Growth and Development Strategy 5.4 SUB THEME 4. Justice and Rule of Law Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes 5.5 SUB THEME 5. Security Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress 1. All people are safe from violence in their homes and i. Effective and harmonized approach to crime -- Design inter-agency approaches to prevention of crime. communities and their property secure detection, investigation and prevention; -- Recruit and train more police to reduce high police-population ratio. -- Reduced level of crime and fear of crime -- timeliness to scene of crime -- Recruit and train police personnel – both in traditional training and specialized areas including -- Fair, humane, respects human rights, equal access to forensic support. justice, non discriminatory -- Develop partnerships between the police and the local communities and local accountability of the police to the community, including civic education. ii. Physical structures and infrastructure that -- Provide safe, secure and appropriately designed building stock. facilitate safe and accessible service delivery -- Rehabilitate sub-standard structures (including addressing utility provision) to an acceptable and provision throughout the SSAJ sector in standard. accordance with international norms. -- Encourage community ownership of installations and community participation in maintenance. iii. Strategies for the rehabilitation and reintegration -- Modify training programs to direct toward rehabilitation of prisoners of offenders; -- Improve case management (legal) -- Develop linkages with other programs for ex- convicts to be part of the productive sector iv. Low levels of crime. -- Control proliferation of firearms (with NGOs to set up national focal point to deal with issues of illicit trafficking and firearms) -- Conduct drug control programs (awareness raising through faith based organizations) -- Amend the immigration act. -- Introduce national registration and identification system. v. Partnership for risk management between private -- Establish joint programs with companies and communities to tackle issues of anti-vandalism. sector and police for protection of life and -- Integration of police protection into industrial site plans. business assets. -- Educate Malawian establishments on the benefits for risk management for protection of assets. -- Develop Private Security Policy and Act that provides standards for inspection of private security firms. 5.6 SUB THEME 6. Corporate Governance Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress Increased domestic and foreign investment. Adherence to good corporate governance • Promoting the adoption of good corporate governance code of best practices practices; • Popularising the role of the Institute of Directors to facilitate the adoption of good corporate governance code of best practices; and 104 Malawi Growth and Development Strategy 5.4 SUB THEME 4. Justice and Rule of Law Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes • Mobilizing the support of the private sector to facilitate the sustainable operations of the new institution. 5.7 SUB THEME 7. Human Rights Outcome – Medium Term Expected Output Key Actions Corresponds to the strategies to move to outcomes Direct measures o f the medium term expected outcomes Lower level outputs and indicators to measure (includes policy change/statement and key activities derived from focus actions) progress Improved respect of human rights Awareness of human rights • Conduct civic education in places prone to human rights abuses • Ensure human rights are included in national school curriculum and other education providers • Undertake training in advocacy for CSOs working with vulnerable groups 105 Malawi Growth and Development Strategy ANNEX 2: MGDS DETAILED MATRICES ANNEX 2.1: MGDS DETAILED MATRICES BY KEY PRIORITY AREAS Key Priority 1: Agriculture and Food Security Long- Term Goals Medium Term Expected Constraints Strategies Focus actions / Activities Outcomes (a) Agriculture Productivity To increase a. Increased value- Access to markets Access to markets agriculture added to agriculture -- Inadequate linkages of small-scale farmers Strengthening linkages of farmers -- Improved distribution links to small scale farmers productivity by rural farmers and leading to unstable supply of raw materials for to markets by connecting rural through connecting rural communities with orient smallholder agro-processing communities, targeting rural feeder roads sub-sector toward -- Market failures in some rural areas due to few roads and developing farmer -- Target rural roads to increase accessibility for greater private sector operators organizations and market entry of private sector, and explore relationship commercialisation -- High transport costs impacts on farmers access information, of feeder roads and Public Works Programme and international to fertilizer and other inputs, and communication (PWP) to supply gravel roads in rural areas-- competitiveness network is undeveloped Encouraging the expansion and Develop farmers organizations -- Smallholder share of -- Weak and inadequate farmer organizations (few intensification of staple food -- Provide effective extension services to improve GDP increased from cooperatives, associations and trusts) production by smallholders, farmers agribusiness knowledge and skills 23.6% to 34.9% -- Poor quality control mechanisms and inability to --Regional institutions and capacity to strengthen -- Increased trade meet sanitary requirements Providing effective extension capacity of local training institutions volumes of agricultural -- Small land holdings/ services with more decentralized products -- Weak producer groups (except NASFAM, service delivery for agribusiness - Improve competitiveness tobacco groups/club skills of smallholder -- Inadequate access to capital products in the region b.--Increase smallholder --Over dependence on rain-fed farming and low Reduce losses from weather Use and Maintenance of Irrigation productivity. level of irrigation development. related shocks for both food -- Increase land under small scale irrigation (e.g. --Lack of regular maintenance and replacement of and cash crops water harvesting) and use winter cropping/water irrigation equipment. ---- Measures of reduced losses harvesting at the smallholder level --Large public centrally managed irrigation from weather shocks (all -- Develop farmer groups/cooperatives to use schemes not performing crops including cash crops) irrigation systems and maintain irrigation 106 Malawi Growth and Development Strategy -- Weak extension services. system -- High cost of inputs -- Promoting irrigation farming -- Rehabilitate and construct community small --Providing agricultural inputs dams subsidies -- Develop alternative energy supply to reach farmers for irrigation systems -- Develop national irrigation development plan -- Develop coherent inputs policy that does not distort markets Poor Farming Practices: Improving use of modern farm Technology and Knowledge --Poor varietal selection, practices and inputs --Provide effective extension services to improve -- declining soil fertility, -- Shift in varietal selection farmers agribusiness knowledge and skills -- Poor agricultural mechanization. -- Shift in mechanization ---Improve efficiency and effectiveness of --Weak public extension system -- Increased use of pest resistant agricultural service delivery systems, demand --Ineffective and inefficient participatory technology or tolerant varieties driven, market oriented research and testing, farmer coverage and communication to development farmers -- Continue research on adoptable technologies --High incidence of pests and diseases reduce -- Increase access to draught animals and animal yield by approximately 30%. drawn equipment and tractor hire scheme Pest Control -- Promote integrated pest management -- Source pesticides and spray equipment for migratory pest control, and monitor / forecast outbreaks Seeds, fertilizer and other inputs -- Facilitate the formation of credit cooperatives or village banks -- Improve access to credit through economic empowerment programmes -- Continue seed and fertilizer subsidies Post Harvest Losses Reducing post- harvest losses Post Harvest Losses --Poor handling, -- Promote processing, proper handling, and --Lack of storage facilities storage of agricultural products. --High cost of pesticides --Lack of appropriate and timely transportation 107 Malawi Growth and Development Strategy Land degradation : Improving farming practices to Soil fertility -- Due to soil erosion, declining soil fertility, siltation minimize land degradation. -- Train farmers on low cost soil fertility of watercourses, water pollution, land management techniques through extension fragmentation, decreasing land holding size, services. population pressure and deforestation -- Promote soil, land and water conservation techniques, c. Increased livestock -- Minimal processing of livestock and related Increasing investment in production products (hides and skins). livestock production -- Strengthen advisory services in the production -- Livestock theft deters investment particularly in hybrid varieties and marketing of livestock and its products -- Population pressure -- Strengthen surveillance in the control of livestock -- Livestock feed and medication are costly pests and diseases --High incidences of pests and diseases -- Weak and inadequate extension services. -- Promote private sector production of hybrid breeds. Long-Term Goals Medium Term Expected Constraints Strategies Focus actions / Activities Outcomes (b) Agro-Processing To increase the To substantially increase the -- Poor and inadequate infrastructure. Improving infrastructure for agro- -- Promote irrigation for high value export crops contribution of agro- contribution of agro-processing -- Unfavourable macroeconomic processing, -- Decrease duties on imported irrigation equip. processing to to GDP environment. -- Reduce cost of electricity for irrigation system. economic growth, -- Low level of vocational skills. Reviewing the policy and regulatory -- Promote large scale agricultural farming move up the value --Weak marketing and distribution systems frameworks impacting on agro- -- Encourage joint ventures and other strategic chain in key crops, for raw crops. processing marketing arrangements. and increase --Low productivity of smallholders. exportation of agro- --- High import duties on equipment. Building capacity for small scale processed products. enterprises, and 108 Malawi Growth and Development Strategy Improving productivity of smallholder farmers. Tea : Increased production of High operational costs. -- Address specific inefficiencies in tea sub-sector tea especially clonal tea --Poor marketing system • Promoting clonal tea variety to -- Factory refurbishment, replanting and irrigation varieties to compete favourably -- Poor processing capacity and marketing increase productivity, for estates to handle peak production (Private on the world markets strategies of tea • Refurbishing factories, sector cost) -- Lack of factory shells • Promoting market oriented -- Shift to clonal tea varieties and promote market -- Type of tea produced is not as processing of tea and oriented processing of tea (cost to private competitive as it could be • Improving the marketing sector) -- High cost of nursery establishment system. -- High input costs and inadequate infrastructure for tea produced by smallholders where there is great potential for tea development -- disincentives to investment which include high import duties on equipment for irrigation, high tariff electricity, licensing or generation Tobacco : Add value to -- Uncertainty of the future viability and • stablishing cooperatives, --Rationalize fees / levies for higher farmer incomes tobacco and maintain position competitiveness of the industry • Promoting tobacco products -- Create a more efficient and fair system between of market leader in burley. -- Poor pricing and marketing structure -- processing, farmers and auction houses Anti-smoking lobby impacts market • Providing farmers with inputs, -- Strengthen contract farming -- Weak extension services and -- Explore other markets for tobacco especially in • Enhancing extension services. the Eastern and Arab world (China, India, Japan) -- Revise taxation policy of tobacco Sugar -- Expensive capital equipment • Negotiating Economic -- Intensify out-grower schemes Increase production of sugar -- Inadequate linkages to ports. Partnership Agreements (EPAs) from 260,000 tons pa to with European Union to ensure 320,000 pa by 2009 (23% -- Poor infrastructure and transport systems fair trading of sugar, increase) for export • Promoting out-grower schemes -- Lack of financial facilities to develop for smallholders, and smallholder production • Improving inter modal transport for effective linkages to ports. c) Integrated Cotton Industry To develop a vibrant -- Increased production of -- Weak linkages between the cotton sub Producing raw cotton and -- Improve pricing and marketing arrangements 109 Malawi Growth and Development Strategy cotton growing and garments made from locally sector and textile and garment ginning; -- Explore regional and international markets. processing industry woven cotton cloth as production. Garment manufacturing for -- Establish ginneries at rural growth centres opposed to imported -- Low ginnery capacity utilization, and export markets; -- Establish a cotton council synthetic fabrics uncoordinated interventions Reducing out of factory costs such -- Inadequate personnel in cotton extension as transportation; and services Identifying and negotiating trade -- Poor marketing and pricing structure opportunities at the regional, and international levels. (d) Wheat Tto develop a vibrant - increased production of --Poor agronomic practices: Lack of • Promoting appropriate agro- --promote use of high yielding seed variaties wheat growing and wheat from 2000 to 30,000 technical expertise by extension staff economic for practices for --promote use of irrigation to increased yield processing industry. hectares. due to inadequate training, wheat production such as --Improve pricing and marketing arrangements --Poor seed quality: Farmers rely on locally extension, and training; -- Explore regional and international markets. selected seed, • Providing improved seed --Lack of supporting inputs: Low apprication varieties and other farm inputs of fertilizer mainly due to poor access to to promote wheat productivity; credit, • Promoting irrigation --Over reliance on rainfed agriculture: technology for wheat farmers mainly grow wheat under production; rainfed conditions more especially • Promoting small and medium relying on the utilization of residual term wheat processing, and moisture’ • Promoting market oriented --No access to markets: bakers shun locally wheat production produced wheat due to its perceived inferior 110 Malawi Growth and Development Strategy (e) Food Security To make Malawi a Food will be available for all -- Over-dependence on rain fed • Improve agricultural productivity --Improve reliability of maize and fertilizer markets hunger-free nation Malawians in sufficient agriculture • Implementing policies to improve (linked to agro-processing, smallholder farmers) quantities and qualities, at -- Low incomes the functioning of maize and -- Predictability of support in maize markets affordable prices. -- Chronic poverty, other food crop markets; -- Establish and enforce sanitary and phyto-sanitary -- High cost of inputs • Improving the ability to import rules and regulations -- Poor farming mechanization and distribute food through -- Promote a coordinated approach to commercial -- Poor functioning markets better domestic and regional import -- Weak private sector participation connectivity; -- Promote a coordinated approach to planning and -- Inadequate transportation and • Implementing policies that do not management of food aid high transport costs distort the market and which -- Ensure that food aid conforms to the bio-safety and -- Low agricultural productivity, reduce dependency on food aid; other related legislations -- Poor infrastructure, inappropriate • Putting in place an effective early -- Develop a reliable agricultural statistics and an economic policies warning system; early warning system -- Limited arable land • Promoting income generating -- Develop government ability to distribute food aid -- Poor early warning system. activities; and target the most vulnerable • Improving the coordination and -- construct silos in strategic places around the management of food aid and country imports; and. • Constructing steel bin silos to Improve medium to long term food storage capacity 111 Malawi Growth and Development Strategy Key Priority 2: Irrigation and Water Development Long-Term Goal Medium Term Constraints Strategies Focus Actions / Activities Expected Outcomes To ensure that water ---Increased -- Ad hoc monitoring i. Empowering national authorities to Water Resource Management resources are well access to water and evaluation system manage water resources using Empower national authorities to manage water resources using IWRM protected and resources resulted in improper integrated water resource approach and establish monitoring systems managed to meet averaging a documentation of management approaches -- Promote water resource conservation, harvesting and protection in an both domestic and distance of 500m information integrated manner including development of small community and large dams industrial demands. from communities -- lack of a (including defining conservation areas) consolidated database -- Proactively advocate management of water resources (establish water -- Decreased of water point resource centres, demand management instruments and guidelines) manufacturing allocations -- Recognize and implement obligations to international agreements costs and -- Lack of effective Promote local resource mobilization and project financing that supplement and increased ability to MIS, compliment public investment in water enter into different --Lack of capacity in – Create enabling environment for public private partnerships in water supply forms of the water sector and sanitation manufacturing that -- Inadequate resources -- Establish and maintain register of all actors in water and sanitation, conduct require water resulting in poor research to establish resource potential and guides maintenance and -- Appropriately integrate surface and groundwater resources management Decrease in water rehabilitation of -- Revise Water Resources Act and Water Works Act borne diseases facilities. -- Incorporate local governments and communities in planning and -- ineffective community management of water supplies and sanitation based management --Broaden technology choices and provide incentives for Local Assemblies to -- Wide spread promote community water-shed rehabilitation programs 112 Malawi Growth and Development Strategy vandalism and theft of ii. Improving the quality of surface Water quality and pollution control water supply and and ground water and developing a Established database on water quality sanitation facilities. system for pollution control Improve skills, technologies techniques in water quality monitoring and --Lack of coordination pollution control . of water resources Strengthen institutional arrangements for environmental management management -- Advance water pollution control. -- Limited technology -- Prevent importation and use of substances and aquatic plants that can choices for community pollute water resources. programs in the rural -- Facilitate self-monitoring systems for service providers and operators areas. -- Develop and disseminate guidelines and standards on water quality and pollution control. More emphasis is -- Provide technical assistance to local government and stakeholders on water placed on construction quality and pollution control (monitor and regulate private labs, undertake of water points and little research). efforts on rehabilitation -- Develop national water and sanitation services regulatory framework. and sustainability. iii. Improving sustainable access to Urban, Peri-Urban and Market Centres Rural Water Services water supply and sanitation in urban, -- Establish water supply and sanitation systems using demand responsive More emphasis is peri-urban and market centres. and demand driven approaches. placed on construction --Establish contingency water supply reserves and sanitation backup of water points and little -- Promote management arrangements in urban areas. efforts on rehabilitation -– provide economic incentives and opportunities for small scale water and and sustainability. sanitation service providers. -- Strengthen and support water utilities by establishing effective institutional and governance arrangements. v. Preventing water pollution from Navigation Services navigation vessels and plants. -- Conduct inspections of waste disposal systems at point of entry to prevent weeds. -- Ensure appropriate environmental safeguards at ports. -- Manage and develop waterways that do not encourage cross transfer of aquatic life. vii. Increasing investment in water Hydro-Power Generation resources from energy sector. -- Participate in multipurpose investment, water catchment management. viii. Improving use of water and Agriculture and Irrigation Services-- Promote participation of MOA in IWRM coherence with water management -- Encourage MOA to provide water needs and demand for data collection polices for irrigation purposes -- Harmonize policies relevant to water management 113 Malawi Growth and Development Strategy Key Priority 3: Transport Infrastructure Development Long-Term Goal Medium Term Constraints Strategies Focus Actions Activities Expected Outcomes a. Road Transport To reduce cost of . • Providing adequate Adequate network of roads based on appropriate standards road transportation Contribute to; --Inadequate sector planning network of roads based on -- Rehabilitate and upgrade roads to meet regional agreed standards. in order to contribute -- Reduced lead times and no integration in the appropriate standards through --Build the capacity of the local private sector to build roads through the positively to on exports planning process rehabilitation and upgrading of National Construction Industry Council (NCIC) economic growth. -- Decreased cost of --Insufficient funds for “all weather” roads to meet -- Strengthen capacity of Roads Authorities domestic trucking maintenance sub-regional agreed --Replace timber-deck bridges with concrete decks. -- Lower costs of cross- --Poor prioritisation and standards; -- Review the fuel levy to make it in line with the threshold for border and transit planning • Undertaking routine maintenance in the next five years trade with --Inappropriate standards of road maintenance to clear -- Maintain urban road networks neighbouring construction backlog through use of countries --Weak capacity of domestic modified “Performance-Based Environmental Impacts -- Lower cost to reach contractors Term Maintenance Contracts”; -- Include EIAs in roads planning, construction and rehabilitation domestic, regional --Weak capacity of District • Building the capacity of and international Assemblies to plan,/ local private sector to markets (supply and manage development construct quality roads; distribution) and provide access • Replacing timber-deck -- Improved mobility and -- Lack of construction bridges with concrete decks; connectivity of rural policy • Maintaining urban and communities to markets rural road networks; -- Improved access of • Upgrading all unpaved international travel roads from fair to good (tourism) condition; -- Improved access to • Involving the private health related facilities sector in the monitoring and operations of road transport services; • Implementing appropriate road user charges; • Harmonising the country’s highway code, road signs, signals and axle-load regulations within the region; 114 Malawi Growth and Development Strategy • Improving information coordination on the flow of cargo of regional and international carriage by encouraging private sector freight forwarding companies; and • Creating one stop border post on all major transport corridors to allow for the smooth flow of traffic and developing an integrated approach to road safety. . Road Safety on all public roads --Develop an integrated approach to road safety. -- Provide and maintain road signs -- Undertake awareness campaigns for road safety; -- Review the road traffic Act and its use for road safety issues -- Coordinate the various enforcement players in the road safety area -- Strengthen the supervisory capacity for road safety on all existing roads which have poor safety records and as part of all new designs (includes enforcement vehicle weight limits, vehicle dimensions, driver competence, vehicle worthiness) --Earmark 10% of the road fund for enforcement of road safety issues (managed by NRA) Poor planning of cargo ii. Ensure smooth movement Domestic and cross-border trade and travel transport of traffic through the border --Involve private sector in the monitoring and operations of road transport -- Monitor traffic flows posts services -- Implement appropriate road user charges; -- Harmonise the country’s highway code, road signs, signals and axle- load regulations in conformity with the region; -- Develop coordination of information on the flow of international cargeo by regional and international carriage. -- Create one stop border post on all major transport corridors to allow for the smooth flow of traffic. 115 Malawi Growth and Development Strategy Key Priority 4: Energy Generation and Supply Long-Term Goal Medium Term Expected Constraints Strategies Focus Actions / Activities Outcomes To generate Accessible, reliable and -- Non functioning power plants and i. Make energy utilization -- Rehabilitate two stations for power distribution to Salima sufficient amount of sustainable energy supply: inability to generate sufficient efficient in generation, -- Engage in interconnection with Mozambique and rehabilitation energy to meet the -- Reduction in outages amount of energy transmission and of existing power generating (2007) economic and social (blown outs, black outs) -- Siltation due to deforestation and distribution -- Complete Kapichira Power Station demands. -- Increased access from the poor farming practices (close to the -- Minimum local generation -- Installation of Kapichira Phase II and Upgrading of Nkula A and current 6% to 10% by 2010 rivers) capacity increased to 1000 B power stations and 30% by 2020 -- Weeds and water hyacinth on the MW -- Implement Pumped Storage Power Plant at Livingstonia -- biomass-commercial Shire River block hydro-generation -- Power supply is connected to -- Build a dam at Livingstonia and a power station (1,500MW energy mix target of 75% - -- Expensive spare parts inhibit the Southern African Power capacity) which will use pumped water from Lake Malawi and 25% is set for 2010 and maintenance of equipment Pool (SAPP) from the Eastern Power Corridor to Tanzania 50%-50% by 2020 difficult - Obsolete equipment in the -- Rehabilitate and expand the transmission and distribution to achieve in the medium transmission and distribution (power network. term lines) --Complete the remaining part of Kapichira -- Limited resources within the public --Protect the catchment area to Shire River sector to supply energy -- Explore alternative energy sources (gas, coal, solar, etc.) -- Little progress on regional -- Promote the use of pre-wired boards and pre-paid meters integration in power -- Reduce the cost of connection by using affordable connection -- Fuel levy not servicing the energy and metering methods sector -- Use both grid and off grid electrification options -- Prepare a plan and delineate implementation responsibilities for the reduction of siltation in reservoirs --Reform tariff structure and levels (consider life-line tariffs only for low household consumption) --Integrate electrification planning with those for transport, water and ITC. ii. Targeting electrification Integrate electrification planning with investment planning and for mining, irrigation, planning for transport, water and ITC. business, tourism, and other economic activities that would stimulate 116 Malawi Growth and Development Strategy economic growth ii. Improving the financial -- Accelerate the establishment of the Malawi Energy Regulatory viability of key utilities Authority (MERA). and reduce parastatal -- Improve management of ESCOM, fair pricing and affordable losses. rates. -- Develop public-private partnerships (PPPs) in infrastructure. -- Identification of reliable funding mechanisms. -- Proper framework for private sector to operate with the Government to finance in the electricity (institutional framework). -- Reform electricity tariff structure and levels. --Complete study on Electricity Sector Industry. --Consultancy services for preparation of private sector participation (ongoing under PURP). --Complete Power sector development and investment plan and present it to financiers. --Develop Rural Electrification funding mechanism to promote grid and off-grid rural electrification by public and private providers and ensure Fuel Levy is channelled to the Fund. 2. Rural communities use iv. Increasing access to Accelerate the Rural Electrification Programme (increase alternative energy --Low funding levels for the sustainable energy resources, promote development of micro hydro power stations supplies for power in establishment of coal distribution systems. and use of solar energy for off grid power supply) under served areas. centres in rural areas. Using both grid and off-grid options. --Limited progress in developing (see integrated rural development) energy alternatives for rural areas. 117 Malawi Growth and Development Strategy KEY PRIORITY 5: INTEGRATED RURAL DEVELOPMENT Long-Term Goals Medium Term Constraints Strategies Focus actions / Activities Expected Outcomes To develop rural Developed rural growth --Weak, poor and ineffective • Provision of utilities --construct and rehabilitate feader roads that link production areas to growth centers to centers will create linkages between and communications markets. contribute effectively employment that will decentralization policy and network to facilitate the -- Expand telecommunications network to rural areas. to economic growth enhance incomes for other public policy reforms. linkage of production through the creation of rural communities and areas to markets; employment in-turn reduce rural- --Poor and inadequate rural opportunities thereby urban migration trends. infrastructure such as roads. • Implementing rural Accelerate the Rural Electrification Programme (increase resources, enhance redistributing electrification programme promote development of micro hydro power stations and use of solar wealth to all citizens --Lack of connectivity to effectively. energy for off grid power supply) and reduce rural- electricity. Using both grid and off-grid options urban migration. -- Expand network to rural growth centres; --Poor and inadequate utility --Create awareness of the use of renewable energy (solar, wind, infrastructure. biomass, and micro hydro). --operational links between decentralization policy and national policy • Implementing a full frameworks and complete sector --Strengthening the local government’s role in policy making; devolution. -- Adopt demand driven and responsive approaches in provision of water and sanitation encourage further user participation in catchment protection, water • Improving conservation and sanitation activities sustainable access to -- Integrate rural water supply and participatory hygiene and sanitation water supply and transformation sanitation in rural areas -- Promote community based management (develop guidelines) -- Promote use of alternative energy for supplying piped water in rural areas -- Promote diversification of technologies for provision of Water and Sanitation Standardization Policy -- Ensure smooth transfer of devolved functions of rural water supply and sanitation services.-- Advocate cost recovery in O&M 118 Malawi Growth and Development Strategy KEY PRIORITY 6: HIV AND AIDS PREVENTION AND MANAGEMENT Long-Term Goal Medium Term Expected Constraints Strategies Focus Actions / Activities Outcomes To prevent further Spread of HIV in general Develop specific interventions for men, women, girls spread of HIV and population and in high risk Lack of willingness to change risky Scale up effective, mutually and boys on values of mutual faithfulness & AIDS and mitigate its sub groups reduced behaviour reinforcing and culturally abstinence as well as condom use impact on the socio- - % of sexually appropriate modes of economic and active respondents who had sex Inadequate resources to support the communication Develop and support targeted communication psychosocial status of with a non-regular partner within fight against HIV and AIDS interventions that address specific cultural and gender the general the previous 12 months: Producing, enacting and challenges population and high reduced from 26% in 2004 to Deep-rooted cultural values and enforcing HIV and AIDS risk groups. 20% in 2007 and to 18% in 2009 traditions legislation Support and work with traditional, faith leaders and for males and reduced from 8% initiation counsellors to disseminate information that in 2004 to 6.5% in 2007 and to perpetuate the notion of community 5% in 2009 for females Increase coverage and mutual reinforcement of life - % of people reporting the skills education in schools, colleges and community consistent use of a condom: increased from 47% in 2004 to Develop a communication strategy for the HIV/AIDS 55% in 2007 and to 60% in response which includes all communication 2009 for males and increased interventions, positive approaches, defines their role from 30% in 2004 to 35% in and guides the scale up required. 2007 and to 40% in 2009 for females - Median age at first sex among 15-24 year-olds: increased from 18.1 years in 2004 to 18.6 years in 2007 and to 19.0 years in 2009 for males and increase from 17.4 years in 2004 to 17.7 years in 2007 and 18.0 years in 2009 for females Knowledge of HIV and AIDS Lack of willingness to change risky Scale up communication Develop specific interventions for men, women, girls 119 Malawi Growth and Development Strategy prevention increased behaviours interventions that are evidence- and boys on values of mutual faithfulness & based multidimensional, abstinence as well as condom use - % of young Deep-rooted cultural values and coordinated and based on the people aged 15-24 who both traditions HIV and AIDS communication Develop and support targeted communication correctly identify ways of strategy interventions that address specific cultural and gender preventing the sexual challenges transmission of HIV and who Improving knowledge and reject major misconceptions capacity of young people, Support and work with traditional, faith leaders and about HIV transmission: orphans, the elderly and initiation counsellors to disseminate information that improved from 37% in 2004 to physically challenged and other perpetuate the notion of community 40% in 2007 and to 42% in vulnerable groups to practice 2009 for males and improved safer sexual intercourse and Increase coverage and mutual reinforcement of life from 25% in 2004 to 28% in increase their access to HIV skills education in schools, colleges and community 2007 and 30% in 2009 for testing and counselling; and females behaviour change. Develop a communication strategy for the HIV and AIDS response which includes all communication - % of people Building and strengthening the interventions, positive approaches, defines their role in general population exposed to capacity of public and private and guides the scale up required HIV and AIDS media campaign: organizations to mainstream HIV expanded from 80% in 2004 to and AIDS into their core . 90% in 2007 and 95% in 2009 businesses; for males and from 66% in 2004 to 70% in 2007 and 75% in 2009 for females Decreased stigma and Deep-rooted cultural values and Transform gender dynamics that Identify and document cultural practices and values discrimination among general traditions predispose various population that affect the national response population towards PLWAs categories to HIV and AIDS in the broader socio-cultural and Support communication programmes that reach many - % of population economic environment people in communities e.g. Stepping Stones, “Mzake expressing accepting attitudes - - Promote positive cultural ndi Mzake”, Rights of the child and HIV and AIDS, towards PLWH/As: increased values and practices and and Rights approaches to HIV and AIDS from 29.7% in 2004 to 31% in discourage harmful cultural Intensify community mobilization based on meeting 2007 and to 32% in 2009 for practices that predispose people their perceived and actual needs and rights males and increased from to infection with HIV 30.8% in 2004 to 32% in 2007 and 34% in 2009 for females 120 Malawi Growth and Development Strategy Safer sex practices among Lack of common understanding of safe Intensify BCC interventions for In the advent of treatment availability, conduct high-risk groups and in high- sex behaviour change research among high risk groups and settings to risk settings promoted examine implications for both risky and protective Lack of knowledge of proper condom Increase appropriate access to behaviour - % of schools with teachers use and use of male and female who have been trained in life- condoms as directed by the Ensure findings are incorporated into communication skills-based HIV/AIDS strategy policy and interventions education and taught it during the last curriculum year: Promote mechanisms for Develop programmes addressing risk reduction for increased from .......in 2004 to targeting high risk groups high risk groups 90% in 2007 and to 100% in 2009 Increase access for high risk groups to information, condoms and medical services - Number of young people aged 15 – 24 exposed to life- skills-based HIV/AIDS education: increased from 133,946 in 2004 to 600,000 in 2007 and to 900,000 in 2009 - Number of condoms distributed by social marketing agencies to retail outlets (i.e. for selling) or to clinics (for free distribution by clinics): increased from 29,272,493 in 2004 to 40,000,000 in 2007 to 60,000,000 in 2009 Lack of willingness of people to go for Expand the scope and coverage Strengthen systems and capacity to support Access by all Malawians to testing of HIV testing and counselling expansion of quality HIV testing and counseling HIV testing and counselling services throughout the country services services is equitable Availability of funds to establish especially in rural areas enough testing centers Increase access to HIV testing and counseling - % of sites VCT sites Improve the quality of testing and services e.g. through outreach, mobile services and (integrated or stand alone) counselling service provision, workplace programs increased from 146 sites in including referral to support 2004 to 215 sites in 2007 and services Integrate HIV testing and counseling in all health to 230 sites in 2009 facilities to increase uptake 121 Malawi Growth and Development Strategy Promoting HIV testing and - Number of clients tested for counselling Increase the availability and referral to appropriate HIV at VCT sites and receiving post test treatment and support services their serostatus results: increased from 177,726 tested Support programs to address testing and counselling and 66,182 (37%) receive needs of special groups, for example, health service results in 2004 to 793,000 providers, youth and couples tested and 475,800 (60%) receive results in 2007 and to 993,000 tested and 794,400 (80%) receive results in 2009 - % of clients who have been tested for HIV, who are HIV positive: reduced from 22% in 2004 to 18% in 2007 and to 15% in 2009 - # of HIV positive VCT clients who are referred to care and support services in the past 12 months: increased from 16,055 in 2004 to 215,000 in 2007 and to 477,000 in 2009 Quality services for prevention Non availability of sustained conducive Expand the scope, quality and Develop and strengthen systems and capacity to of mother to child transmission environment for PMTCT coverage of PMTCT services support the expansion of PMTCT services (PMTCT) of HIV expanded Lack of acceptability and affordability Develop a conducive environment Integrate quality PMTCT services into routine MCH % of HIV+ pregnant women of mothers to appropriate alternative and support structure for PMTCT services to better meet the needs of clients and receiving a complete course of food to infants implementation increase uptake ARV prophylaxis to reduce the risk of MTCT (by type of Lack of willingness by men to Ensure PMTCT service are of high quality through provider): improved from 2.3% participate in the PMTCT program supportive supervision, operational research and in 2004 to 73% in 2007 and to client feedback 80% in 2009 Support HIV positive women and their partners to % of health facilities providing access ART and other HIV/AIDS -related services at least the minimum package 122 Malawi Growth and Development Strategy of PMTCT services (by Strengthen follow -up and referral of infants born to location and district) increased HIV positive mothers for care and support services from 7% to 13.6% in 2007 and 17.9% in 2009 % of pregnant women who have been counseled in PMTCT, tested and received their serostatus results (by age group (15 – 24, 25 – 49), type of institution (private/public) and district) increased from 43,345 in 2004 to 230,000 in 2007 and 230,000 in 2009 % of pregnant women that have been tested, who are HIV positive (by age group (15 – 24, 25 – 49) and district) improved from 6,069 (14%) in 2004 to 46,000 (20%) in 2007 and to 46,000 (20%) in 2009 - % of HIV positive pregnant women offered PMTCT who are referred for care and support services in the past 12 months (by district) from 418 in 2004 to 27,600 in 2007 and 36,800 in 2009 Risk of HIV transmission Increasing access to safe blood, Ensure all blood banks in all districts adhere to safe through blood, blood blood products and tissues blood provision standards products or invasive services throughout the country procedures prevented Ensure that provision of safe tissue services adhere Increasing availability of adequate to standards that comply with the provision of safe - % of health facilities that infection prevention materials and blood apply national guidelines for procedures blood screening, storage, Develop capacity of health service providers to 123 Malawi Growth and Development Strategy distribution & transfusions: Support communication ensure effective handling of blood products and tissue increased to 80% in 2007 and interventions to increase in health care system 100% in 2009 awareness of infection prevention Ensure infection prevention products and materials - % of health care facilities that are universally available and universal precautions apply national standards for and control followed infection prevention and health care waste storage and Support initiatives for post exposure prophylaxis disposal: increased from 8% in (PEP) services to professional groups and others at 2004 to 57% in 2007 and 100% in 2009 - % transfused blood units that have been screened for HIV according to national guidelines (by district): maintained at 100% from 2004 to 2009 Access to quality STI Un availability of sustainable resources Strengthening evidence-based Strengthen human capacity to support expansion of syndromic management, STI communication interventions quality STI services counselling and information increased Strengthening STI surveillance Ensure adequate STI equipment supply and supplies system - % of patients with STIs at Promote integration of STI prevention and treatment health facilities who have been Improving the clinical diagnosis, in reproductive health services and HIV/AIDS clinics diagnosed, treated, and treatment and management of to better meet client needs and increase uptake counseled according to STI patients national management Ensure STI services meet the needs of specific guidelines: vulnerable groups - % of health facilities with STI Ensure the quality of STI management and service drugs in stock and no STI drug delivery stock outs of >1 week: increased from 35% in 2004 to Strengthen the STI drug procurement and delivery 70% in 2007 and to 90% in system throughout the country 2009 Strengthen a national STI surveillance system for 124 Malawi Growth and Development Strategy - # of STI cases seen at health prevalence, incidence and distribution of STIs facilities (new case or referred partner) increased from Develop routine referral mechanism between STI 157,371 in 2004 to 300,000 in management and HIV testing and counseling 2007 and to 350,000 in 2009 Develop linkages with traditional healers to improve uptake of formal STI services Capacity for the health Inadequate financial and human Strengthen an integrated ART Strengthen laboratories of health units with ART and delivery system to provide resources infrastructure and logistic systems HIV-related infections program equitable access to ARVs and a national quality assurance and drugs for management Unwillingness of patients to adhere to program for ART Procure adequate ARVs and other drugs to treat HIV of HIV-related infections ART related diseases improved Increase and sustain the human resource capacity for delivery of Procure and equip health service systems with testing - # of persons with advanced high quality ART and kits and reagents HIV infection receiving ARV management of HIV-related therapy: increased from 13,183 infections to both adults and Annually maintain infrastructure for ART and VCT (6.6%) in 2004 to 50,000 in children 2007 and to 80,000 in 2009 Develop and implement mechanisms for tracking Increase equitable access to stock levels of drugs and other supplies - % of AIDS cases managed ARVs for Ois: increased from 4,649 Develop and implement a systematic pre-service and in 2004 to 102,000 in 2007 and in-service training program for health care personnel reduced to 76,500 in 2009 in ART and management of HIV- related diseases - % of health facilities with Support provision of pediatric, OIs and ARV drug drugs for OIs in stock and no formulations stock outs of > 1 week: increased from 35%in 2004 to 70% in 2007 and to 90% in 2009 - % of health facilities where ARV services are being offered with no ARV drug stock outs of > 1 week: maintained at 100% in 2007 and 2009 125 Malawi Growth and Development Strategy - % of detected TB cases who have successfully completed the treatment: increased from 73% in 2004 to 80% in 2007 and to 90% in 2009 Access to high quality CHBC Lack of common understanding of Expand provision of CHBC Standardise provision of CHBC including palliative increased CHBC including palliative care and care and psychosocial support psychosocial support - # of households receiving Unavailability of sustainable resources Standardise CHBC kit external assistance to care for Develop an integrated CHBC adults who have been Lack of common understanding of package that involves all health Build the capacity of CBOs, FBOs and NGOs chronically ill for 3 or more Palliative care care providers including involved in CHBC months: increased from 56,782 traditional healers, traditional birth in 2004 to 80,000 in 2007 and attendants, social workers and Support CBOs, NGOs and FBOs to provide CHBC to 90,000 in 2009 civil society service providers Support referral mechanisms between CHBC - Number of persons enrolled Increase greater involvement of providers and facility-based care at PLWA organisations per PLHA in CHBC year: increased from 1,770 in Promote greater involvement of PLHA and OVC in 2004 to 5,000 in 2007 and Increase nos. & capacity of planning and implementation of CHBC 10,000 in 2009 volunteers in provision of CHBC - Number of community home Develop a mechanism for based care visits (by retention of volunteers residence, district and by type of visit (health care worker / Ensure that CHBC link up at volunteer)): increased from peripheral level with the provision 123,702 in 2004 to 250,000 of ARV therapy from health (255,000) in 2007 and to facilities 500,000 visits in 2009 Expanded programs and Inadequate resources to deliver Establish and increase Establish nutritional needs of PLHA interventions for nutritional nutrition programs mechanisms to deliver nutritional support and education for support to vulnerable PLHAs Identify & document local options & sources of vulnerable PLHA within their meeting nutritional needs of vulnerable PLHAs communities Promoting adequate nutrition, including provision of nutrition Integrate nutrition support of PLHA in the therapy that cover assessment, comprehensive care package 126 Malawi Growth and Development Strategy counselling, education and demonstration, supplementary Provide nutrition education & counseling to PLHA feeding, therapeutic feeding, referral to health facility and Provide nutritional education to caregivers of PLHA & production of high nutritive value affected families foods for a nutritious diet to HIV and AIDS individuals Provide nutritional supplements to hard hit households of PLHA Economic and psychosocial Uncertainty of availability of financial Strengthen mechanisms to Develop a conceptual framework and strategy for effects of HIV/AIDS mitigated resources promote sustainable economic & impact mitigation and the quality of life of material support. PLHA, OVC, widows, Lack of consensus on what constitutes Determine the nature & skills of PLHA, OVC, widows, widowers and the elderly psychosocial support Increase advocacy for micro- widowers and the elderly affected by HIV/AIDS to affected by the epidemic finance programs plan and manage simple IGPs improved Strengthen capacities of Train beneficiaries on how to develop and manage Number of orphans and other communities and districts to IGPs vulnerable children receiving provide psychosocial support to care/support (by type of PLHA, OVC and affected families Advocate for micro-finance programs to support IGPs support (psychosocial, for PLHA, OVC, carer of carers, widows and nutrition, financial), district and Increase capacity of PLHA widowers gender): increased from associations and post test support 59,996 in 2004 to 200,000 in groups to provide psychosocial Train counselors and counselor aides and other 2007 and to 300,000 in 2009 support to other PLHA & affected volunteers at the community and district levels families Number of community Promote formation and capacity building of PLHA initiatives or community Advocate for enforcement of groups organizations receiving support policies and laws that promote to care for orphans (by district): and protect rights of PHLA, OVC Promote formation and capacity building of OVC peer increased from 250 in 2004 to and widows counseling groups 500 in 2007 and to 800 in 2009 Increase community awareness Review existing laws and advocate for their on legal, ethical & social rights of amendments in order to reflect PLHA, OVC, widows PLHA, OVC, widows & widowers and widower issues Enhance access for OVC to Develop new laws, where necessary, to enhance essential quality services such as the protection of OVC, PLHA, widows and education, health, good nutrition, widowers 127 Malawi Growth and Development Strategy water and sanitation and birth registration with increased Train and support community-based paralegals to support from social protection carry out community education campaigns on human rights, legal and ethical needs of affected groups Strengthen the capacity of families and communities to care Provide victims of abuse, violence, exploitation or for OVC by providing support to trafficking with appropriate services enhance their economic security, social and emotional well-being Advocate for the integration of OVC in the national social safety net programs Increase school bursaries and school feeding programs Increase access of OVC to essential health package Mobilise support for the implementation of integrated care, protection and OVC support package Provide in school life skills training Provide alternative education & vocational skills training for out of school OVC 128 Malawi Growth and Development Strategy

ANNEX 2.1: MGDS DETAILED MATRICES BY THEMES THEME ONE: SUSTAINABLE ECONOMIC GROWTH Sub Theme Long-Term Goal Medium-Term Outcome • Increasing productivity, diversify the economy and achieve • High growth is realised in tourism, mining, and 1. Potential growth export led growth. manufacturing.; sectors • Increasing the contribution of tourism to GDP from 1.8 • Increased productivity and protection of natural resources percent to 8.0 percent by 2011. (fisheries, forestry, mining, environment). • Increasing the contribution of the mining sector to GDP by at • To establish Malawi as a principal and leading eco-tourism least 10 percent annually. destination in Africa. • Increasing manufacturing output with growing value addition, • To increase production output and value added by small, export development and employment creation. medium and large-scale miners 2. An enabling • Increase private sector foreign and domestic investment • Increased business enterprises that contribute positively to environment for economic growth and increase domestic market supply; private sector led • Increased foreign direct investment; growth • Improved private sector competitiveness. 3. Export led growth • Malawi becomes a net exporter • Increased number of businesses accessing the international markets with products 4. Conservation of the • Reduced environmental degradation. • To ensure sustained fish availability for food and nutrition natural resource base • to maintain fish species and bio-diversity. security as well as income generation. • To ensure sustainable use and management of forestry resources. • To ensure sustainable use and management of forestry resources. 5. Economic • Reduce income disparity, • Increased employment and income of the poor from on and Empowerment • Increase in employment, and income off farm activities; • Increased productivity of rural communities / businesses and their contribution to economic growth; • Women, youth and the disabled fully participate in economic activities. 129 Malawi Growth and Development Strategy 6. Land and Housing • Ensure tenure security and equitable access to land • efficient use of land and land based resources and equitable • Improved housing delivery systems, processes, procedures, access to land by all productive Malawians and other and services with particular focus on vulnerable and low- investors. income groups • Provision of adequate and conducive framework for improved access 1.1 Potential Growth Sectors Long-Term Goals Medium Term Expected Constraints Strategies Focus actions / Activities Outcomes a. Tourism: Increase the 1. To establish Malawi Products and Services Develop quality and Product Development and Services contribution of tourism as a principal and leading • Poor and uncoordinated promotion activities, diversified products and --Create a Malawi Tourism Development Investment to GDP from 1.8 eco-tourism destination in • Threats to flora and fauna, services based on the Fund percent to 8.0 percent Africa. • High cost of hotel accommodation that does not natural and cultural --Develop Eco-tourism facilities (lodges) in four sites by 2011. --Increased number of match with value. resources heritage to attract as identified in the Strategic Tourism Development high spending tourists • Lack of diversified tourism products and tourists. Plan for Malawi to Malawi. services --Invest in eco-tourism --Develop cultural facilities in a form of cultural --Increased income to the • Lack of new, trendy, innovative and sustainable facilities to compete with villages in the identified four varied cultures in sector from domestic tourism investments in the sector those in the region. Malawi and international --Invest in cultural tourism --Develop tourist facilities on mountains, like cable tourists. facilities to economically car, accommodation, camping and visitor centres --Increased revenue to benefit from diversified to make economic use of available natural government from the cultural heritage. resources tourism industry. --Invest in other forms of --Develop multi-purpose conference centre with --Increased job creation tourism facilities on other accommodation and catering facilities by the sector. natural resources like --Develop a tourism database system for Malawi --Increased foreign mountains, islands. -- Zone all areas with tourism potential along the exchange earnings. --Invest in conference facilities lakeshore. to service the passive --Encourage more investment in the sector to reduce demand of MICE tourism. monopolistic pricing. --Implement more effective --Empower indigenous Malawians and build their 130 Malawi Growth and Development Strategy broad based economic capacity in tourism development investments. empowerment strategies for --Review tax and incentive regime for the benefit of indigenous Malawians. the sector. Rural areas with potential for tourism development to be accorded preferential tax and incentive policy. Bio-diversity 2. Create an enabling, --Lack of incentives to the private sector to invest --Provide the tourism sector --Construct and maintain all roads to tourism Environment of lake favourable and --Slow and difficult bureaucratic procedures. with tax incentives. attraction areas (such as Mangochi and Nyika). and sustainable environment --Capital financing in the tourism difficult to come by, --Streamline bureaucratic --Upgrade to bitumen standard access roads leading Forestry for the private sector to seen as risky by lending institutions. procedures to major tourism establishments (Mangochi, conduct tourism business --Lack of capacity in the tourism industry. --Deliberately pay attention to Salima, Nkhata Bay) . -- Very few qualified managers, and chefs, private training needs of the tourism --Construct the new Mangochi airport and upgrade sector not willing to invest in long term training. sector. Introduce curricula in the Likoma Aerodrome and maintain other colleges, provide scholarships aerodromes in tourism areas. Infrastructure, Access --Prioritise construction, --Cooperate with utility firms to provide reliable --Poor road infrastructure leading to tourism maintenance and upgrade of utilities. attraction areas. main roads and access roads --Poor access roads to tourism facilities. to attraction areas. --Lack of supply of clean water, electricity, ICT, and waste management. 3. Tourism Regulation and Standards establishments to meet --Weak enforcement of the available tourism --Use the available law to Regulation and Standards acceptable standards to regulations. enforce regulations. --Tourism and Hotels Board to be financially compete regionally and --Lack of knowledge by tourism operators on the new --Sensitise the tourism industry empowered and detached from the Ministry to internationally gazetted tourism regulations. on the new regulations. regulate and enforce laws and regulations. --Uncoordinated approach by various regulatory --Create synergy in regulation --Conduct sensitisation campaigns. bodies on the tourism establishments. and standardization. --Tourism and Hotels Board, local assemblies, CAMA, --Lack of direction by operators on standard of MBS to work in harmony to ensure standards and facilities which may lead to distorted subjective avoid duplications. pricing of products. --In line with new regulations, classify accommodation units and restaurants into grades. --Undertake a comprehensive review of tourism laws. 4. Malawi as a tourism Tourism Promotion Tourism Promotion destination to achieve -- Lack of dedicated funding to undertake destination --Develop a more reliable and --Urgently make provisions for the setting up of a growth in high marketing. Marketing levy, usual practice of sustainable way of financing dedicated and sustainable fund for destination 131 Malawi Growth and Development Strategy spending tourists raising funds for destination marketing globally, destination marketing. marketing. was withdrawn with no solutions. --In medium to longer term, --Continue to undertake destination marketing in -- Perception of health risks, bilharzia, malaria along delink marketing activities to selected source markets using the most cost the beaches of Lake Malawi, HIV and AIDS, a separate authority. effective methods. negative publicity about famine --Meanwhile, improve the reach --Formulate clusters for tourism promotion and -- Insufficient destination marketing efforts and of tourism products to development and allow for stronger linkages. strategy. domestic, regional and --Encourage destination-based networks and -- Uncoordinated approach to tourism promotion by international markets. strengthen private/public sector cooperation. the industry --Undertake strategic marketing and promotion to . target markets that have high propensity to spend on other emerging markets of the Far East (Japan, China). --Create statutory tourism authority with effective private sector representation for destination marketing. --Increase number of representation in major source markets (Far East). b. Mining: To increase the Increased production Institutional Setting and Regulation of the Mining i. Strengthening the Institutional Setting contribution of the output and value added Sector institutional capacity of -- Accelerate geological and mineral data acquisition mining sector to GDP by small, medium and -- Institutional setting does not promote the sector or Geological Surveys to (private sector sees this as an urgent priority) by at least 10 percent large-scale miners, to spearhead its development. effectively promote mining, -- Speed up Parliamentary consideration of the mining annually. supply industrial raw -- Insufficiently trained personnel to support the sector monitoring and enforcement and minerals policy (urgent priority) materials in the country and poor collaboration with training and research of environmental safety -- Enhance capacity to compile, generate and (import substitution) and institutions (may not be necessary to undertake standards interpret geological surveys and disseminate to to begin exporting training separate from the large mining houses potential investors and the public and to minerals. which will make this demand driven). encourage private sector to invest in detailed -- Geological data and information about mineral phases of mineral exploration resources is outdated and insufficient. -- Include mineral sector in international -- Inadequate and unreliable electric power supply. protocols/agreements -- Minerals sector is not included in international -- Make linkages with miners of industrial protocols and agreements. minerals to the market through local private 132 Malawi Growth and Development Strategy -- Lack of harmonization of policies in areas toward companies, thereby facilitating import tourism. substitution -- Promote opportunities through bulletins, websites and investor events/conferences -- Create another body like MIDCOR and use as a conduit for public-private partnerships Environment/ Compliance ii. Ensuring compliance by Environment/ Compliance -- Risk of irreversible environmental damage small, medium and large -- Decrease smuggling of gemstones -- Lack of supervision, monitoring and enforcement scale miners with -- Provide extension services to SSM -- Small scale miners smuggle gemstones environmental and safety standards Medium Scale Mining iv. Increasing investment by Medium Scale Mining -- Insufficient value adding capacity in mining private sector companies -- Review taxation applicable to mining as Malawi is -- Outdated Minerals and Mining Act to give investors in medium and large scale generally not competitive compared to other the necessary protection and certainty required mining countries in the region when making large investments - -- Provide attractive fiscal incentives to investors. -- Lack of enacted fiscal and investment incentives -- Re-examine how mining could benefit from EPZ that can be granted automatically and are sufficient to -- Improve infrastructure (electricity, water, roads) attract large-scale investment -- Increase and maintain an effective skilled work force for the private sector (by private sector) C. Manufacturing Increase Increase the contribution --Low capacity utilization due to poor management Skills manufacturing output of the manufacturing and high cost of doing business -- Improving the quality of -- Develop skills and work with Science and with growing value sector to economic -- Incentives to investors are discretionary products and productivity of Technology to help improve manufacturing addition, export growth --Lengthy procedures of establishing investment. both labour and capital; -- Strengthen adherence to labor protection development and High cost of imported raw materials Standards employment creation -- Highly risky environment (reliability of infrastructure, -- Enhancing skills through -- Improve capacity of Malawi Bureau of Standards to tax regime, responsiveness of supporting better integration of science certify rather than rely on overseas certifying institutions) and technology into vocational agencies) -- Large number of institutions to support businesses training; -- Improve capacity of MBS to provide ISO certificates but overlapping, unclear mandates and - Ensure that quality and standards are met by inadequate funding -- Enhancing the capabilities of industry and provide mechanisms to strengthen -- Inadequate skills in the sector Malawi Bureau of Standards value. -- Obsolete technology which is used within the sector and other related bodies to Materials and Linkages --Low quality and quantity of raw-materials from the perform their functions; -- Establish links with improving quality and quantity agriculture sector of raw materials, especially in the agricultural 133 Malawi Growth and Development Strategy -- Low quality products -- Developing additional sector. --Lack of linkages both intra- and inter industry incentives for investment Incentives for investment and costs including redefining the roles -- Rework duty drawbacks and rebates, review taxes - and responsibilities of support - Redefine the roles and responsibilities of support institutions, and working to institutions in the sector. target infrastructure phasing to -- Improve access to water, electricity, the benefit of the telecommunications and reduce cost (see manufacturing sector; and infrastructure). -- Encourage processing in rural areas, sub- -- Reducing the cost of doing contracting,and use of modern technology. business by reviewing licences and taxes. 134 Malawi Growth and Development Strategy 1.2 Sub Theme Two: Enabling environment for private sector development Long-Term Goals Medium Term Expected Constraints Strategies Focus actions / Activities Outcomes To create an 1. Increased number of Improving infrastructure Infrastructure enabling local firms producing especially access to reliable -- Priority for roads and linkages to major market environment for goods that are and seasonally priced connections. private sector competitive at regional electricity, water and -- Strengthen the distribution system and logistic participation to and international improved inter-modal chains. increase domestic markets. transport to regional and -- Pursue public private partnerships in and foreign domestic markets through infrastructure. investment. direct investment, privatisation, build, operate and transfer arrangements and public-private partnerships Tax -- Tax evasion and non-compliance Undertake tax review to identify causes. -- Cumbersome investment procedures Regulatory and Policy Environment -- Policy reversals damage investment -- Strengthen public private partnerships -- Lack of trust between public and private -- Ensure statutory corporation, bodies and sector governmental agencies are appointed on the grounds of competence and relevant experience ii. Improve worker Skills – Vocational training and industry needs Inadequately skilled workforce with productivity and ability -- Review and update curriculum to be dynamic insufficient technical and vocational of firms to produce and oriented to economic needs (at vocational training opportunities quality products. centres and in secondary schools) – develop -- Labour skills do not meet needs of private -- Reduce the incidence of competency based curriculum for formal and sector and the educational system is not occupational hazards and informal training. producing enough graduates to meet occupational diseases. -- Update training equipment at vocational training future economic needs. -- Increase enrolment of schools to meet certification standards. -- Poor supply of training with inappropriate / general education --Expand capacity of existing vocational training irrelevant curricula, poor quality of trainers students into vocational institutions, including training more instructors in and poor management of training. training programs. vocational training areas. -- Lack of science and technology training to -- Encourage colleges to offer entrepreneurial and support new skills for growth and lack of a training in special. trades suited to self plan to expand existing colleges into employment. 135 Malawi Growth and Development Strategy science and technology centers. -- Conduct career guidance and counselling in -- Insufficient number of vocational graduates general education. with sufficient skills for businesses. -- Create new infrastructure in existing colleges and -- Vocational training facilities have obsolete upgrade existing public technical colleges with equipment and insufficient training infrastructure that meets standards. programs with a high cost of machinery. --Improve the TEVET system to be more -- Lack of community, village polytechnics to favourable to the private sector. equip rural people with vocational skills -- Few linkages between informal and formal sector training programs in vocational areas. -- No institutional mandate to oversee technical programs previously offered by Polytechnics. Productivity losses from health related Health and Labour Safety issues -- Implement occupational protection for labor on -- Potential for losing trained staff to the job. HIV/AIDS discourages investment in key -- Develop occupational programs, including staff or requiring investment in more inspection for diseases such as TB. duplicative staffing. -- Lost productivity from malaria, TB and other respiratory illnesses. --Absence of partnership between occupational safety, health, and MOH. Access to land Enable Malawian Land issues in urban areas and in enforcing --Increased number of -- Records for the physical planning of use of entrepreneurs to demarcation Malawian firms that lands are not reliable and inconsistent participate in private -- Implement a programme of land titling. export directly or across ministries. Little physical planning sector ventures and -- Introduce reforms in the way land is allocated in contribute to of lands and misallocation of demarcated access markets. cities. exportation from areas. -- Reduce unnecessary delays in the processing of Malawi -- Cost of land on the market is high, and land applications. access to land is acute in cities where -- Increase number of demand for land is very high, and takes Malawian firms long time to process applications for land servicing the domestic -- Malawians who own land do not have title market supply deeds to them. Poor and inadequate information on Information on opportunities 136 Malawi Growth and Development Strategy business opportunities -- Strengthen promotion activities. -- Information regarding business -- Implement economic empowerment policy. opportunities, tax and other incentives, and other key business information. (MIPA, MEPC and other Government institutions) Inadequate promotion of products primarily in regional and international market Incentives Incentives -- Incentives not applied consistently to -- Set special incentives for high growth economic investors. sectors. -- Lack of properly zoned land for specific -- Increase efficiency of one stop shop bringing in development activities. outside operations, clarify laws to enable one -- Town planning that constrains investors. stop shop. -- Revise statement of investment policies. Access to Credit Improving micro-finance Micro-finance -- Difficulties in accessing credit (for micro- schemes and programmes Develop/ strengthen the micro-finance sector to finance see enabling environment) serve small scale concerns and as part of the -- Supply of micro-finance unable to meet broader financial system demand. -- Not a credible mass of MFI operating at a sustainable level Financial System -- Volatility of real interest rates and domestic -- Support finance institutions in designing debt differentiated financial products -- Lack of a savings culture amongst Malawians -- Establish an apex institution -- Low uptake of science and technology -- Strengthen linkages to vocational training -- Insufficient infrastructure for research and -- Determine the best mechanisms for accessing development scientific and technical knowledge and the optimum strategy for implementation -- Promote S&T oriented to value addition in high growth areas --Develop an effective capacity in S&T that can meet the needs of Malawi 137 Malawi Growth and Development Strategy 2. Increase foreign Disincentives for foreign investment Improving the quality of -- Produce good promotional materials investment – Inadequate information available information on -- Review investment policy -- Incentives favour certain sectors but not opportunities in Malawi for -- Develop employment policy other important ones potential investors. -- Incentives once granted are not guaranteed -- Lack of employment policy Perception of corruption Improving the perception -- High levels of corruption and bribery of the private sector -- Integrate message of good governance into increasing the cost of doing business concerning governance / promotional themes corruption. 1.3 Sub Theme Three: Export-led Growth Long-Term Goals Medium Term Constraints Strategies Focus Actions / Activities Expected Outcomes To turn Malawi from Increased number of Infrastructure and Access to Markets i. Reducing cost of reaching Infrastructure being a net importer to firms that are -- Long lead times and high transport costs, external markets due to -- Strengthen economic infrastructure specific a net exporter and producing products attributed to landlocked status; infrastructure by focusing to international trade effectively integrate it that are -- High costs magnified by policy and institutional on linkages through --Shire Zambezi waterway, Lake transport into regional and competitive on constraints in road, rail, water and air Mozambique, the Shire Mtwara corridor international markets. regional and -- Domestic trucking industry is uncompetitive and Zambezi waterway, and --Improve access to ports, Port security and international have high investment costs reduced restrictions on air capacity markets. - Poor economic infrastructure including roads, rail, transport --Improve rail lines : Repair Nacala rail to the airports, ports, utilities and telecommunications, coast which undermines domestic and international --Reduce restrictions - air transport landing trade; rights/fees -- Poor management --Telecommunications -- Unfavourable terms of trade -- Enforce regional harmonized standards (especially in terms of security issues, transit fees, etc.) -- Reduce impact of domestic trucking cartel and increase access to foreign truckers -- Modify tax structure for transport equipment/services -- Leverage public private partnerships for infrastructure 138 Malawi Growth and Development Strategy Economic Infrastructure ii. Reducing lead times on Economic Infrastructure specific to -- High customs tariffs on manufactured imports; export and improved international trade: -- Inconsistency and slowness in customs efficiency by improving the -- Efficiency of customs and tax administration. Narrow focus EPZ registration efficiency of customs, -- Harmonize border operating hours with -- Unfavourable macroeconomic environment harmonizing border neighbouring countries. -- Corruption crossing with neighbouring -- Resolve grievances in the tax administration and -- High cost of exporting/complex documents. countries. increased tax collection (from informal sector) and reduce excessive delays in refunds of tax payments especially surtax payments. --Improve the efficiency in customs and tax drawback program. -- Develop speedy and standardized payment system. International Standards for Products iii. Improving marketability of International Standards for Products -- Missed business opportunities due to weak products to international -- Strengthen MBS for national certification SQAM infrastructure, high cost of using foreign markets by improving -- Improved compliance with international certifying bodies certification (coupled with certification -- Limited access of firms to conformity assessment efforts under the enabling -- Start comprehensive SQAM capacity building services environment) and program developing science and -- Establish ISO 9001 enterprises technology -- Develop science, industry and technology in framework of international standards Export Services iv Improving trade network Increase information for potential exports for and information for firms market potentials -- Poor supply response to opportunities created by for export -- Reorient Malawi Export Promotion Council trade agreements (supply side constraints) activities to ensure greater co-ordination of export -- Inadequate trade support services promotion activities; -- Limited access to trade and investment finance -- Establish trade finance scheme procedures -- Reform of the financial sector Trade Negotiation v Maximizing the benefits of Upgraded skills of key staff in target institutions -- Lack of capacity to effectively negotiate trade through better (trade related) participate in trade negotiations of WTO, EPA, knowledge -- Coordinate ministries and entities involved in EU trade better understand origin regimes and issues -- Volatility of trade agreements -- Strengthen analytical capacity for trade policy 139 Malawi Growth and Development Strategy -- Inadequate trade missions; analysis and implementation -- Lack of a clear trade strategy and supporting -- Establish capacity to regulate liberalization Fair policies Trade Commission -- Weak analytical capacity for trade policy analysis -- Strengthen the ability to negotiate and direct and implementation partnerships with international neighbours -- Overlapping regional trade integration efforts important to facilitate regional trade -- Lack of coordination between institutions and (efficiencies, security, completion of railways, stakeholders creating duplication of effort etc.) -- High level of informal cross-border trade. -- Liase with Customs Department to accelerate improvement of customs facilitation at ports and border posts in SADC/COMESA 1.4: Sub Theme Four: Conservation of the Natural Resource Base Long- Term Goal Medium Term Expected Constraints Strategies Focus actions / Activities Outcomes To improve a. Fisheries Productivity of Fishing Increase the productivity of Productivity of Fishing management of fish Ensure sustained fish -- Lack of appropriate fishing technology. small and large scale fisheries -- Promote the use of modern technology by both species, forestry, availability for food and -- Significant decline in fisheries levels in Lake Malawi in a manner that enables local communities as well as private sector for wildlife biodiversity nutrition security as well due to overexploitation. exportation of products and deep water fishing. and reduce as income generation. -- High post-harvest losses due to poor handling by does so in a sustainable -- Provide fish landing facilities as well as train environmental communities. manner. communities in modern fish processing methods degradation and -- Lack of knowledge on sanitary and phytosanitary -- Promote small scale profit oriented fish farming conserve the issues that later impinge on fish exports. as well as largescale or industrial aquaculture. natural resource -- Ineffective enforcement of fishing laws. Competitiveness for Export base, while -- Inadequate institutional capacity and high staff Facilitate the accreditation of competent authority contributing to attrition. by providing training and laboratory facilities in economic growth. -- Inadequate monitoring and evaluation (M&E). order to export fish. Conservation of Water and Fish Resources -- Enforce legislation. -- Develop sustainable management of the fish supply. -- Train fishing communities in sustainable fishing practices. -- Establish sanctuary areas to protect endangered fish species. 140 Malawi Growth and Development Strategy -- Promote deep water fishing, moving fishermen from shallow shore fishing. --Adopt closed season fishing rules on Lake Malawi; control fishing gear to allow collapsing stock to recover; introduce fishing licensing. b. Forestry -- Low and declining investment in industrial forest Improving productivity and -- Review the concession arrangements for Sustainable use and plantations. value added by the industrial Forestry reserves. management of forestry -- Small and poorly structured forest products/industry forestry sector, while balancing -- Introduce appropriate incentives to promote resources. Share of sector with high costs it with sustainable practices private sector investment in forest industries forestry in GDP improved -- High costs and low efficiency of managing and -- Registration with to at least 4% by 2008. processing industrial wood international standard -- Initiate reforestation and environmental -- Weak organization and investment promotion in the bodies rehabilitation programmes in priority areas. -- An estimated 200,000 forest products sector. -- Increased number and types Develop / integrate reforestation into public hectares of forest-land is -- Poor security (with respect to fires, theft, vandalism, of value adding wood works programs focused on reforestation expected to be replanted encroachments, tenure) for industrial forestry producing and processing perhaps through MASAF or local assemblies by year 2011 in order to plantations establishments. -- Identify training needs and develop training reverse the negative programmes. impacts of deforestation. -- Increase private sector --Improve human resource capacity in the sector --High rate of deforestation involvement in industrial -- Insufficient policy coherence impact on forestry forestry development. resources in different ways (leasing national parks, coal exploration at cost of forestry, environmental -- Increase reforestation efforts protection /deforestation). for key areas -- High dependence on wood as a source of household energy. -- Improving enforcement of -- Low manpower levels and training opportunities for regulations for forestry skills development. management -- South and Central Malawi : Replant and rehabilitate 150, 000 ha of softwood and 50, 000 ha of hardwood timber plantations by private producers. -- Introducing incentives for private sector participation in forestry. 141 Malawi Growth and Development Strategy C: Environmental -- Weak enforcement of regulations and standards. i. Improving enforcement of Regulations, Standards and Enforcement Protection. -- Poorly coordinated management of natural environmental policies Review polices and legislation for waste, Improved compliance with resources conflicting service delivery. and legislation sanitation and POPs environment and natural -- Inadequate environmental information systems. -- Recruit environmental lawyers and develop resource management -- Low level of awareness of the importance of capacity to enforce standards laws environment. -- Provide legal mandate for coordination --Access and benefit sharing schemes not in place for -- Develop environmental standards for soil, water, biological resources. air, and noise. -- Develop environmental legislation ii. Improving cooperation in Coordination environmental -- Establish coordinating committees for management, NRM and biodiversity, climate change, POPs and waste development disposal. -- Harmonize sector-specific strategies for dealing with problems affecting common resources. -- Develop policies and strategies for coordination of common programmes and activities undertaken by the various stakeholders. -- Define institutional position of EDO and operationalise a decentralization strategy. --Establish an appeals tribunal. ii. Raising awareness of Environmental Education and Awareness issues of environmental -- Incorporate environmental issues in school protection. curricula -- Undertake public awareness campaign -- Develop environmental management information system -- Develop environmental data base on legal, state of environment indicators, policies and environmental impact assessment D. Wildlife --Poaching of wildlife making the protected areas -Enforcing wildlife law Motivate and adequately equip staff 142 Malawi Growth and Development Strategy unattractive due to low numbers of animals --Re-introducing threatened --Provide logistical support for law enforcement To conserve, manage and --Understaffing and under development of protected and extinct wild animal (e.g. vehicles and base radios). develop wildlife resources areas species --Develop tool boxes for enforcing wildlife to effectively contribute --Tsetse fly infestation causes visitors and staff not to --Increasing law enforcement regulation including trans-boundary agreements towards sustainable visit or live in some areas due to trypanosomiasis staff --Construct a sanctuary in Kasungu National Park. development of --Improving protected area --Recruit additional staff and improve development biodiversity and the infrastructure resources. tourism industry in Malawi. --Eradicating Tsetse fly in --Develop new and rehabilitate existing protected areas infrastructure (staff houses, roads, bridges, bore holes and electricity). - Procure materials and drugs for Tsetse fly control. Strengthened --Lack of awareness on values of wildlife --Improve capacity and ---Develop legal community institutions for collaborative management --Poor community institutional set up. institutional building for CM collaborative management (CM) --Develop guidelines, sensitise staff and communities on benefit and revenue sharing --Provide training on CBNRM to communities and staff --Provide diploma and certificate level training in wildlife conservation Establish wildlife based enterprises (ranching, farming, bee-keeping) Reduced human/animal --Inadequate training on better wildlife control --Improve capacity for problem --Develop a PAC strategy and guidelines conflict techniques animal control (PAC) --Construct new and rehabilitate existing perimeter --Inadequate awareness on fencing importance electric fences for all protected areas --Lack of community wildlife control institutions --Translocate dangerous animals to PAs --Raise public awareness and train communities on approaches on problem animal control Trade and marketing of --Poor infrastructure in most protected areas --Improve eco-tourism in --Develop concession and improve marketing wildlife and wildlife --Low value attached to wildlife assets protected areas strategies for wildlife resources products strengthened Research and monitoring --Inadequate research and monitoring capacity --Improve wildlife research and --Inventorise, develop and or improve all eco- strengthened --Lack of proper research equipment monitoring capacity tourism related resources and products in National Parks, Wildlife Reserves and Nature Sanctuaries(historical , cultural, natural, spiritual and archaeological sites) 143 Malawi Growth and Development Strategy --Train additional research staff in active conservation management and monitoring to Masters & Ph.D. level --Conduct monitoring of key wildlife species --Develop research plan and guidelines --Procure high tech research and monitoring equipment 1.5 Sub Theme Five: Economic Empowerment Long-Term Goals Medium-Term Expected Constraints Strategies Focus Actions / Activities Outcomes To create wealth for 1. Increased employment Linkages of smallholders and rural areas into i. Targeting infrastructure Linkages of smallholders and rural areas into the all people and income from on and the economy development to ensure economy off farm activities - -- Inadequate transportation and that rural roads link rural --Targeted linkage for rural integration into markets: communication communities to markets feeder roads, rehabilitation and maintenance -- Weak linkages to markets -- Strengthen the core function of ADMARC in -- Lack of utilities geographical areas which are underserved by the private sector 2 Increased productivity of Incentives and conditions do not foster ii. Developing rural Communities are organized to produce outputs or rural communities and productivity and investment cooperatives to lower develop local industry urban poor businesses --The culture of hand-outs and political transaction costs of --Identify common community products for and thus their patronage is wasteful and unsustainable dealing with rural production, through One Village One Product contribution to economic --Negative impact of HIV and AIDS on entrepreneurs and concept growth productivity. collective bargaining --Develop a programme that will oversee the --- Increase in the ownership -- Rural poor are increasingly migrating to establishment of cooperatives in rural areas. by Malawians and their urban areas. -- Provide technical support from private sector value-added programs (related to off farm employment) --- Increase in SME profitability --- Urban Poor are productively contributing to the economic development -- Limited availability of funds iii. Strengthening the policy Micro-finance available to rural areas -- Low recovery rates, erosion of the capital environment for micro- -- Harmonise loan conditions to enhance good 144 Malawi Growth and Development Strategy base, and poor design of credit schemes, finance, including business activities (repayment period, frequency, -- Need for better knowledge of actors in the improved coordination of amount) sector on MFI donor programs to --Develop special programs for women and youth -- Little creativity in developing new financial decrease market -- Develop network of practioners in MFI products and services to meet the needs distortions. -- Develop innovative financing mechanisms such as of the lower end of the market. community development venture funds, -- Inability to use land as collateral to access community loan funds, supporting the traditional loans micro-loan funds granted by institutions such as -- Some loan conditions do not create a MRFC, NABW and MARDEF conducive environment for profitable -- Maintenance of capital base for banks (see entrepreneurship. financial sector in enabling environment section) --Enhance capacity of MFI to monitor and supervise --Low levels of capacity of micro-finance credit clients providers.. -- Ensure access to loans and credits and training for women (HBI) -- Better coordination of donor supported micro- finance programs to decrease market distortions -- Strengthen policy understanding of micro-finance Defaults hinder credit establishment --Establish a Credit Reference Bureau; --High defaults rates Legislation for punishment of those who deliberately --Lack of credit-referencing bureau allows default on loans borrowers move from one institution to -- Enhance capacity of courts to handle business another; cases. -- Encourage financial institutions to design tiered loan packages to provide incentives to borrowers who are faithful in loan repayment -- Lack of business advisory services once iv. Improving business skills --Provide training to all people who borrow for businesses are operational. used by rural community business purposes through the training unit of the businesses NEEC -- includes women’s skills 3 Women, youth and the Women i. Developing targeted Women disabled fully participate in --Women are likely to have less access to programs for building --Target training to women’s entrepreneurial skills and the productive economy education, credit, land, and property than women, youth and people ability to effectively manage their businesses 145 Malawi Growth and Development Strategy -- Increase number of women men. with disabilities -- Develop a charter to increase the employment in private and public sector -- Fewer employment opportunities than men entrepreneurial skills and opportunities organizations -- Unequal access to technology and other key opportunities to participate -- Review legislation to ensure supportive of women -- Increase number of youth market information to support business in the economy. -- Enhance institutional framework supporting the employed activities -- Provide opportunities for development of women entrepreneurs vocational training People with disabilities People with disabilities -- Most affected by lack of access to assets -- Enforce empowerment act and other facilities required to -- Improve capacity of the Malawi Council for the economically get empowered. . Handicapped and other similar institutions that -- Poor infrastructure such as roads, deliver serves to people with disabilities communication, and buildings not designed to accommodate or meet their special needs. Youth Youth -- Little prospect of securing a job, or engaging --Vocational training and skills in entrepreneurial activities. -- Very few employers are willing to recruit and train them on the job. --Financial institutions are reluctant to extend credit to the youth --The curriculum of most education institutions has not changed much to allow for the development of an entrepreneurial cadre, -- Limited institutional framework specifically dedicated to youth 146 Malawi Growth and Development Strategy 1.6 Sub Theme Six: Land and Housing Long- Term Goal Medium Term Constraints Strategies Focus Actions / Activities Expected Outcomes Ensure tenure Efficient use of land and Land Rights promoting and facilitating opportunities Land Rights security and land based resources -- Lack of awareness of land rights, content for lowering land transaction costs and -- Customary land tenure regularization, titling, and equitable access and equitable access to and objectives of National Land Policy enhance the operation of effective land registration to land for the land by all productive -- Inheritance patterns encourage land markets. --Intensify resettlement and land development attainment of Malawians and other fragmentation and discourage long-term programmes broad-based social investors. investment in land improvement; supporting the privatisation of some -Promote public awareness on land rights and land and economic -- Some cultural practices impose land services in an effort to encourage policy in general development unnecessary restrictions in accessing the development of private sector -Ensure existing land rights, especially through optimum land participation in land sector activities. customary rights are recognized, clarified and and ecologically --Population pressures on Land secured by appropriate legislation balanced use of land and land- based resources. Land Markets Land Markets --Poor formal land markets--Physical --promoting community participation --Customary land reform program to address tenure planning of land has not been done and and public awareness at all levels, insecurity and access to land on customary the allocation of land to its proper use -- ensuring the adoption of estates – Land demarcated areas are not enforced environmentally sustainable land use -- Establish viable land markets practices. Land Administration Land Administration -- Antiquated legislation resulted in -- Legislating land with provisions that -- Development of a carefully structured programme centralized land administration enshrine tenure security not only to on land administration and land records --Non transparent land administration at the enhance tenure security, but also build --Registration of individual and family title to village level confidence and encourage investment customary land with legal and fiduciary provision --Poor implementation of land policies and on land. for protecting the direct inheritance of property by laws due to weak institutional structures. remaining spouse and children --Acute shortage of land in the Southern -- Legislation of land that discourages --Devolve land administration by development of new Region of the country because of discrimination on grounds of status, legislation or amendment of existing one population pressure. gender or vulnerability. -Create land allocation committees and land tribunals to deal with administration and dispute settlement. -- Implementing transparent and accountable land allocation systems. -- Undertake customary land tenure regularization, titling and registration Increasing tax on land to realistic - Accelerate the passing and enforcement of land act levels that will discourage underutilization and speculation. 147 Malawi Growth and Development Strategy Uncertainty deters integration to -- Develop micro-finance opportunities that could help markets decrease the risk averse behaviour -- Unfavourable macroeconomic environment -- Differential access to resources particularly for female-headed households -- Little pro-active identification and development of markets for Malawi's products -- Inordinate focus on production, assuming markets will develop on their own. -Inadequate funding to the housing sector -Lobbying with Government and Lobbying with Government and stakeholders. due to its low priority status by Government stakeholders to appreciate the role of housing in poverty reduction and -Lack of a comprehensive Housing Policy national development -Inadequate access to land for housing -Reviewing the 1999 National Housing Develop the National Housing Policy to create an development Policy in order to re-align it to the new enabling environment for housing development and National Land Policy and other management Government policies and protocols -Devolving some functions in housing -Poor access to land for the urban poor delivery and management to local Facilitation of the decentralization functions to local and low-income groups authorities assemblies. -Encouraging stakeholders to mobilize resources to meet varying housing demands, particularly rental housing -Lack of housing finance, particularly for the for low-income and vulnerable groups poor and low-income groups -Harnessing the potential of non- Mobilisation of financial institutions to support special traditional financing sources by housing schemes for the disadvantaged groups. encouraging communities to form housing and multi-purpose community development cooperatives, especially for providing low-income housing. 148 Malawi Growth and Development Strategy Reviewing of the building regulations and standards. -Encouraging banks/lending High building standards and high costs of institutions to formulate special building materials funding schemes for groups in poverty and the most vulnerable groups -Reviewing the draft Building Regulations and Standards, and conduct research in building materials that would result in housing development being affordable by the majority of Malawians. 149 Malawi Growth and Development Strategy THEME TWO: SOCIAL PROTECTION Summary of Theme 2: Social Protection Sub Theme Long Term Goals Medium Term Expected Outcomes Protecting the Most Improvements in the socio- The most vulnerable with limited factors of Vulnerable economic indicators of the most production are sufficiently cared for as are vulnerable the vulnerable who can be negatively impacted by economic shocks Disaster Risk Management Reduction in the socio-economic The impact of disasters on the vulnerable is impact of disasters. reduced 150 Malawi Growth and Development Strategy 2.1 Sub Theme One: Protecting the Vulnerable Long- Term Goals Medium Term Expected Constraints Strategies Focus Actions / Activities Outcomes To improve lives of Increased assets of the poor Malnourishment of children, i. Providing efficient and -- Formulate a Social Protection Policy the most vulnerable to enable them to orphans, lactating mothers, effective support to the -- Formulate a monitoring and evaluation system of meaningfully engage in destitute families most vulnerable with very social protection/social protection programmes sustainable growth and -- Lack of focus on implementing cost- limited factors of -- Practice better prioritisation, design, delivery, contribute to poverty effective interventions that would production monitoring and evaluation of social protection reduction. prevent and reduce high programmes prevalence of stunting and wasting -- Provide supplementary feeding to malnourished -- Improved health and in young children under two years pregnant, lactating mothers and under five nutritional status of under of age. children five children, school age -- Provide therapeutic feeding to severely children, orphans, pregnant malnourished under five children and lactating mothers, -- Sustain targeted School Feeding Programme to the destitute families most vulnerable -- Expand small stock and grain mills programme for the most vulnerable -- Introduce conditional and unconditional cash transfers to the infirm, the elderly, the disabled, Orphans and Other Vulnerable Children (OVCs) -- Support the most vulnerable with welfare transfers (food, blankets and clothes) for their upkeep -- Provide nutritious food and Home Based Care Kits to those infected by HIV and AIDS -- Provide low cost housing to the poor and vulnerable (elderly, infirm, households keeping Orphans and other Vulnerable Children) ii. Improving planning and -- Practice better prioritisation, design, delivery, -- Insufficient data regarding the integration of knowledge monitoring and evaluation of social protection characteristics, location, challenges on the chronically poor program and needs of the very poor; into planning -- Inadequate knowledge regarding existing processes, resource transfer mechanisms, power dynamics, and incentive structures of target communities; 151 Malawi Growth and Development Strategy --Insufficient understanding of existing processes and modes of operation at the national and local government level; and, poor donor and stakeholder coordination in the design and delivery of programs --Lack of coordination of social protection programmes and projects --Increased income for the poor Empower Farmers and Transitional ii. Provide opportunities for -- Provide access to poor farm families to agriculture Poor the poor to graduate from inputs through conditional and unconditional --Poor targeting of programmes poverty by asset transfers (e.g. revolving mechanisms) --High input costs of crop production accumulation and -- Undertake Public Works Programmes that create increased agricultural high income earning for poor focused on --large number of uncoordinated productivity. graduating out of poverty (river diversion for programs irrigation, afforestation, reservoir/dam --Effectiveness of programs in asset construction, dykes, roads including non opportunities and growth traditional PWP e.g. brick manufacturing, manure opportunities are uncertain making, bush clearing) -- The poor have limited resources to -- Promote savings culture in PWP purchase agricultural inputs -- Enable the land constrained poor to have -- The culture of handouts and political alternative sources of livelihoods to supplement patronage is wasteful and their income from the land through providing unsustainable capital for income generating activities (IGAs) -- Impart entrepreneurial skills to the poor -- Review effectiveness of current PWP, feeding programmes, targeted inputs programme 152 Malawi Growth and Development Strategy 2.2 Sub Theme Two: Disaster Risk Management Long-Term Goal Medium-Term Expected Constraints Strategies Focus Action / Activities Outcomes Reduction in the Reduced impact of disasters -- Lack of capacity to effectively respond to Enhancing disaster --Promote the integration of disaster risk management socio-economic by improved disaster risk disasters management planning and into sustainable development planning and impact of disasters management. -- Lack of an early warning system response programming at all levels; as well as building a Inadequate response and coping Developing and strengthening --Establish an effective early warning system. strong disaster mechanisms. institutions responsible for --Develop and strengthen institutions, mechanisms management -- Inadequate funding and resources. disaster risk management, and capacities at all levels, that contribute to mechanism.. Instituting necessary disaster building resilience to hazards through the and risk management incorporation of risk reduction approaches in the mechanisms design and implementation of disaster risk Implementing mitigation management programmes measures in disaster prone --Provide timely emergency relief assistance to areas. affected people; Establishing an effective early --Implement mitigation measures in disaster prone warning system. areas. 153 Malawi Growth and Development Strategy THEME THREE: SOCIAL DEVELOPMENT Summary of Theme Three: Social Development Theme: Social Development Sub-theme Goals Medium Term Expected Outcomes Health To improve health status of people at all levels in a • People have better access and use of qualified care for essential health care issues (TB and & sustainable manner Malaria)17 Population • Increase life expectancy. -- Decreased cases of preventable diseases ( e.g. malaria and TB) • Decrease maternal mortality rates from 894 -- Improved use of ORT for diarrhoea control deaths per 100,000 by 50 %. f. -- Use of modern contraceptives • Decrease child morbidity and mortality including -- ARV treatment regime are followed . deaths due to diarrhoea especially in children -- Increased vaccination rates under 5 years of age --Increase life expectancy at birth from 40 to 45 years. • Reduce malaria cases by 50 %. Improve TB cure to 70 %. Education • Primary: To equip students with basic • Reduced absenteeism, increased net enrolment, reduced dropout among girls and boys knowledge and skills to enable them to function • Improved learning outcomes as competent and productive citizens in a free • Retain girls to complete the primary cycle society • Reduced absenteeism to 5% by 2012 • Increased net enrolment to 95% by 2012 • Reduced dropout by 50% • Secondary: To provide the academic basis for • Reduced absenteeism by 50% by 2012 gainful employment in the informal, private and • Increased net enrolment from 30% to 50% by 2012 public sectors • Reduced dropout to 5% • Retain girls to complete the primary cycle • Tertiary: Provide high quality professional • Increase undergraduate enrolment by 40% training in all fields • Increase post graduate enrolment ration to 10% of the undergraduate student population • 35% female enrolment by 2010 • Improve curriculum to respond to national needs Gender • Contribution to socio-economic indicators and • Enhance participation of women and men, girls and boys 154 Malawi Growth and Development Strategy Theme: Social Development Sub-theme Goals Medium Term Expected Outcomes economic growth • Reduce gender inequalities. A. Health and Population Longer Term Goals Medium Term Expected Constraints to achieving the Strategies that need to be in place Focus actions / Activities Outcomes medium to move toward those medium term Term outcomes expected outcomes A: Health To improve health -- Decreased cases of Shortage of human resources - Population/doctor ratio reduced i. Human Resources status of people at all preventable diseases -- Inadequate training capacity - Population / nurse ratio reduced -- Increase student intake into medical training levels in a -- Failing to retain workers due -- Improved referral time institutions (requires investment of equipment sustainable manner -- Improved TB cure rates to to low incentives – (pay, -- Attendance of trained health and infrastructure at the medical schools) over 70% long working hours, non- workers for births -- Develop strategy to sustainably maintain -- Improved use of ORT for conducive environment, qualified health works after the six year period diarrhoea control huge workloads) of salary top ups for the six year period for front- -- Modern contraceptive use -- High attrition of health line health workers -- ARV treatment regimes are personnel. -- Encourage local service providers to provide followed -- Non availability of modern incentives for front line health workers such as equipment. food service, promotion, opportunities for training. -- Recruit external health care workers funded (as currently funded by donors) and volunteers (under the frontiers program) -- Ensure ARVs available to health workers -- Ensure working hours for medical personnel conform to the recommended standards -- Decrease incidence of Shortages of drugs, bed-nets ii. Increasing the availability of ii. Pharmacy, medical supplies malaria by 50% and key medical supplies drugs at health facilities and -- improve drug management system from central -- Inadequate finances to eliminating theft of drugs issues of timely procurement and reach health -- Increase vaccination rates purchase the drugs to meet -- Bed nets at clinics/ communities centres (e.g. bed-nets, and ARVs) supply -- Vaccines delivered to -- Undertake CMS reforms -- Weak drug management and clinics/communities -- Undertake close monitoring of drug utilization distribution systems. trends and patterns -- Leakage of drugs from the -- Improve effective stock management including system. tracking systems, capacity to project drug 155 Malawi Growth and Development Strategy -- Lack of access to prenatal needs care -- Improve distribution system and transport network -- Promote and strengthen community monitoring of use of drugs -- Strengthen training capacity in college of medicine for pharmacy qualifications -- -- Insufficient number of health iii. Increasing access to well iii. Infrastructure facilities mostly in the rural equipped facilities -- Implement facilities development program for areas -- more than 80% of the population live 420 facilities (mostly rural areas) by 2011 -- Lack of maintenance of within 5 km of a health facility (includes rehabilitation of existing facilities, equipment at health provision of telecommunications (cellular facilities phones and two way radios) electricity on grid, -- Lack of basic utilities, and construction of new facilities where they do electricity/water not exist) -- Most facilities are unable to -- Improve maternity infrastructure including provide maternity services buildings, equipment, - Most clinics do not have -- Strengthen partnerships with other providers means of communication through service agreements (i.e. mission (two way radio or other facilities) telecommunications -- Develop facilities in district and central hospitals facilities) based on the needs of those hospitals with the -- Bicycle ambulances not ideal of every district having a hospital accepted in some areas. -- Support services (training institutions and -- Inadequate equipment. laboratories) -- Enforce minimum health standards, conducts in public and private health facilities -- Provide motorcycle ambulances as a medium term measure, specifically in rural areas with an idea of phasing out in the long term -- Limited availability of water Water supply for rural health -- Work with Ministry of Water Development in facilities areas connected to pipe/water board system and develop backup for solving water shortages -- For health facilities not connected to running water systems, develop boreholes as part of the facility development program of the 420 156 Malawi Growth and Development Strategy facilities Roads --Target roads in some areas where access is difficult through “integrated infrastructure project” (districts identified and assessments made) Electricity -- Provide electricity to facilities which are on grid but do not have electricity as part of the facilities development program -- Shortage of equipment iv. Improving diagnosis and treatment iv. Equipment largely due to financial at health care facilities, especially -- Implement facilities development program for constraints (e.g. diagnostic, maternity services 420 facilities (mostly rural areas) by 2010 labs, x-ray, theatre) (includes equipment purchases) -- Insufficient maintenance of -- Strengthen equipment maintenance ability in the equipment due to lack of Ministry through training through regional and skills, lack of spare parts, district maintenance units inadequate financial -- Start system of bulk purchasing of spares for resources most of the equipment needs -- Current equipment is old and -- Start public private partnership arrangements these models do not have with a legitimate companies engaged in spare parts available due to management of MoH equipment stoppage of manufacturing -- Link to qualified health care workers -- 90% of equipment is imported so spare parts are constrained by forex issues and time to import -- Complications of budgeting v. Improving the flow of resources to v. Finances and provision of equipment health facilities -- Improve planning and budgeting at all levels maintenance due to through systems development at the central decentralization and unclear and district level relationships from central to -- Undertake close monitoring of financial flows and district level usage -- Money does not flow in timely fashion to the districts for various reasons 157 Malawi Growth and Development Strategy (weak planning systems, problems at treasury, financial management systems are weak) --Weak support system to vi. Developing good monitoring, vi. Systems monitoring and supervise supervision and utilization of health -- Recruitment and training of health personnel. services delivery (FM, care facilities -- Operations at district and central hospital level procurement, M&E) -- Provide community level structures (such as --Weak surveillance and village health committees) for support of response system meeting, training, transport, equipment, etc.) -- Fragmented health care -- Support and strengthen range of community level delivery system. structures for health services delivery - Oversight is weak -- Inadequate integration of district health systems with MOH --Little focus on preventative care, mainly on curative -- need to bring information into the educational curriculum, on prevention -- Shortage of bed nets and declining effectiveness of the treatment regime for malaria 2. Central hospitals are able to -- Limited resources and staff provide satisfactory level of shortages impact the referral services and able to central hospital delivery of financial self-sustain services -- In absence of district hospital in the urban areas, the central hospitals play the role of a district hospital and takes much of their time – Reduce incidence of Absence of partnership Improve working environment 158 Malawi Growth and Development Strategy occupational hazards and between occupational --Regular inspection of work places; Policy diseases safety and health and MOH formulation lack of governing body lack --Health and safety standards and guidelines of governing body Reduction in incidence of --Low level of access to clean ii. Access to safe drinking water (both Introduction of VIP latrines and other appropriate water borne diseases water results in diseases rural and urban areas) rural water sanitation technologies. -- Reduction in deaths due to --Poor access to sanitary Access to hygienic sanitation diarrhoea especially in facilities facilities ( both rural and urban children under 5 years of areas) age B: Population Long-Term Goals Medium Term expected Constraints Strategies Focus Actions / Activities outcomes Increase the number Reduced annual population --Low literacy levels. --Institute sustainable measures on the of people with good growth rate. --Negative cultural practices provision of quality social services of -- Provide comprehensive health services package living conditions. --Poor access to family education and health. that include treatment of diseases and infections, • Lower fertility in planning services. awareness programmes and education through all reproductive Increased life expectancy at -- Increase capacity to provide family Government and private hospitals. age groups. birth from 40 to 45 years. planning services across the country. -Disseminate revised National Population Policy • Reverse the -Develop action plan for the implementation of the declining trend Increased number of facilities National Population Policy in life providing family planning -Train sectoral and district assembly planners in expectancy. services across the country. the integration of population variables in development planning • Increase -Train sectoral and district planners in the awareness on collection, analysis and utilization of data for the benefits of development planning family planning -Develop research based advocacy strategies and and smaller materials family sizes. -- Incorporate issues of population in school ccuriculla. 159 Malawi Growth and Development Strategy 3.2 Sub Theme Two: Education Primary Education Long-Term Medium Term Constraints Strategies Focus Actions / Activities Goals expected outcomes To equip -- Reduced --Inadequate school i. Increasing Expand and improve existing infrastructure and maximize its use students, absenteeism to 5% by infrastructure equitable --Provide adequate school infrastructure especially at 2012 -- internal inefficiencies access to -- Reduce primary school cycle to 7 years from 8 years the basic -- Hunger and poverty quality primary -- Provide conducive learning environment (overlapping shifts) education -- Increased net -- Distance to schools education --Introduce School health and nutrition programmes level with enrolment to 95% by -- Cost of schooling basic 2012 -- Cultural attitude knowledge -- Overlapping shifts and skills to -- Reduced dropout by --Poor learning environment enable them 50% function as Improved learning -- Inadequate qualified ii. Improving the Increase the supply of qualified teachers and maintain them in the system competent outcomes teachers quality of -- Train more teachers and -- Mastery levels --Inadequate teaching and primary -- Provide teachers with attractive terms and conditions of service, especially to go to productive (proficient reading and learning materials education rural areas citizens writing skills at higher Ineffective deployment of -- Provide continued professional development level) teachers (more teachers in -- Adequate supply of teacher learning materials urban areas than in rural -- Provide child-centred and human-rights friendly environment areas). -- Improve overall management and monitoring of inspection, supervision and advisory -- Inadequate monitoring, services supervision, inspection and -- Provide effective school inspection, supervisory, and advisory team advisory services -- Provide continuous assessment of educational achievement -- Curricula overload and -- Provide effective monitoring through action research ineffective implementation Social mobilization and community participation in primary school management --Lack of appropriate -- Implement national strategy on community participation in primary school incentives for teachers management 160 Malawi Growth and Development Strategy Retain girls to complete --Cultural factors to girls iii. Make primary -- Review policies related to girls the primary cycle education; Gender education more -- Block grants to schools to address equity issues Reduce girls insensitive school accessible to -- Strengthen implementation of national strategy for community participation in the absenteeism, repetition environment girls management of primary education to get girls to go to school and drop out rates. --Gender-based violence --Disparity between male and female teachers in rural areas --Ineffective implementation of gender-based policies --Inadequate collaboration with health personnel --Inadequate SNE teachers Increasing access to -- Review policies related to orphans, other vulnerable children and special needs and staff teaching and quality primary education learning materials and education for -- Provide block grants to schools relevant to special needs. devices special needs -- Direct assistance to schools to address equity issues (relevant textbooks and brail) -- Inadequate special needs students -- Strengthen the implementation of national strategy for community participation in the schools management of primary education to get special needs students go to school -- Lack of appropriate -- Establish a college for special needs teacher education. infrastructure -- Design standardized sign language for the deaf and jard of hearing. -- Unresponsive curriculum to iv. Increase the Continuous revision of curriculum and effective orientation of teachers. individual and national relevance of -- Introduce PCAR curriculum and effective orientation of teachers. needs school -- Improve the relevance of the curriculum to include academic and non academic curriculum needs of pupils. -- Curriculum does not prepare students for the world of work --Inadequate teacher capacity v. Improve the --Provide effective personnel in terms of numbers and management and -- Provide in service training to school managers, inspectors and senior teachers skills planning of --Improve education planning --Low teacher morale due to primary --Equip school planners with appropriate knowledge and skills in micro-planning, lack of incentives and education monitoring and data management promotion prospects 161 Malawi Growth and Development Strategy Education – Secondary Education Long-Term Medium Term Constraints Strategies Focus Actions / Activities Goal expected outcomes To provide Reduced absenteeism -- Inadequate infrastructure i. Increasing Rehabilitate all existing school facilities the by 50% by 2012 -- Internal inefficiencies- access to --Identify and rehabilitate dilapidated schools (five year maintenance cycle for all academic -- Inadequate qualified secondary schools). basis for Increased net teachers education -- Construction of new secondary scholls. gainful enrolment from 30% to -- Increase private sector participation employment 50% by 2012 -- Encourage private school association of Malawi to establish more and higher quality in the schools via MOU. informal, Reduced dropout to 5% -- Introduce double shifting in urban schools – each division to identify schools for private and double shifting. public -- Increase access to secondary distance education and open learning at secondary level. sectors Improved learning -- Inadequate teaching and ii. Improving Adequate supply of qualified teachers (CDSS and conventional schools) outcomes learning materials quality of -- Student-qualified teacher ratio to be at 40:1 in all secondary schools and CDSS. -- Mastery levels -- Lack of sufficient number of secondary -- Improve terms and conditions of service for teachers, (reading and writing qualified teachers education -- Continually revise policies on teacher education and development. skills at higher level) -- Inadequate instructional Up-grade under-qualified teachers materials including ICT -- Provide in-service education and training to under-qualified teachers. -- Inadequate school Ensure effective inspection and supervision – (public and private) inspection and supervision -- Undertake at least one inspection visit per schools per year. -- Inadequate control of the -- provide frequent advisory visits to schools. establishment of CDSS -- hold seminars with teachers at cluster level. and private schools Reduce girl dropout rate -- Inadequate user-friendly iii. Improving Upgrade CDSS to conventional secondary schools to 5% facilities available for girl- equity in -- Provide user-friendly facilities in all secondary schools Reduce repetition rate students secondary -- Increase bursaries for the needy secondary students by 5% -- Long distances to schools education -- Provide girls accommodation in all secondary schools Reduce girls Poverty and culture -- Provide more female secondary school teachers as role models absenteeism by 50% -- Teenage pregnancies -- Early marriages -- Little choice for girls on attending school due to family pressures 162 Malawi Growth and Development Strategy Improve girls learning --Inadequate SNE teachers iv. Increase access -- Improve and increase Special Needs Education facilities in secondary schools outcomes and staff teaching and to quality -- Improve use of sign languages learning materials and secondary -- Review policies related to orphans, other vulnerable children and SN Education devices education by -- Provide block grants to schools relevant to special needs education -- Inadequate special needs special needs schools students -- Lack of appropriate infrastructure -- Irrelevant curriculum for v. Improve -- Post primary education revisited and curriculum revised by 2010 national and individual relevance of -- All secondary schools to have a Guidance Counsellor trained and functioning needs secondary -- Implement counselling programs -- Irresponsive curriculum education -- introduce and implement curriculum responsive to needs of individuals and the nation especially to blue collar by including academic and non-academic subjects jobs / non academic -- Introduce science and technology into the curriculum curriculum -- Inadequate capacity in vi. Improve Training of school managers in planning, monitoring and supervision terms of numbers and management of --Hire effective personnel skills of managers secondary -- Provide in-service training for school managers, inspectors and senior teachers -- Low morale due to lack of education --Strengthen divisional management incentives and promotion --Improve District Educational Management Information System (DEMIS) prospects --Improve education planning -- Poor deployment policy of -- Equip planners with knowledge and skills in planning, monitoring and data teachers management -- Inefficient procurement Improve the procurement and distribution of teaching and learning materials system --monitor the delivery of supplies in the schools -- Inadequate finances to viii. Improve --Establish School development funds in all schools sustain a sound education financing --Consistent flow of funding to public schools system mechanism of --All schools functioning as cost centres -- Poor financial management secondary --Implement cost sharing at schools -- Lack of diversified funding education --Train school managers in financial management sources at the school level --Efficient and transparent financial systems in place 163 Malawi Growth and Development Strategy Tertiary Education Tertiary and Vocational Education Long-Term Medium-Term Constraints Strategies Focus Actions / Activities Goals expected outcomes to produce Increased -- Inadequate academic staff i. Increase Recruit and train more adequate staff high quality access and -- Under-utilization of existing undergraduate -- Recruit 50% more staff professional improved quality infrastructure and --70% of all academic staff trained at Masters level s with and relevant -- Lack of program postgraduate --30% of all academic staff trained at PhD level relevant education for diversification/lack of intake Increase intake through new, parallel programmes, distance and virtual learning, and short knowledge both sexes and innovativeness courses and skills in students with -- inadequate teaching and Increase access and --Utilize existing infrastructure through triple shifts relevant special needs. learning materials flexibility to double -- Introduce non-residential parallel programmes fields intake by 2010 --Introduce new programmes --Increase -- Promote graduate programmes undergraduate Develop a student financing policy including a student loan scheme enrolment by --Government to institute sustainable student loan scheme (including girls) 40% Promote local production of teaching and learning materials -- Establish a publishing and printing facility --Increase post --Expand provision of internet services broadband internet access established campus wide graduate enrolment ration to 10% of the undergraduate student population -- 35% female —Lack of affirmative action in ii. Improving Equity Create an enabling environment to accommodate female students enrolment by student selection for female Ensure equity in -- Implement affirmative action in student selection 2010 students student enrolment -- Encourage girls to complete secondary schools by providing girls hostels and other -- Inadequate financial support environment improvement in the secondary schools for female students in -- 30% of bed space on campus to be for females by 2010 vocational training. Identify and recruit promising young female graduates as staff associates -- Inadequate facilities for -- 40% of staff associates to be recruited by 2008 should be female female students -- Develop a strategy for regional approach to supplying tertiary education to special needs students 164 Malawi Growth and Development Strategy --Inadequate numbers of senior iii. Improving Recruit more qualified and experienced staff and experienced academic Quality -- Provide training at PhD level to existing staff, staff --Improving quality of -- provide training to new staff and --Lack of comprehensive policy higher education -- establish external quality control and accreditation on research and --Enhancing quality in Develop comprehensive policies on research and development development teaching and -- Develop policies to guide research work in the university --Lack of external quality learning to -- Train many research oriented staff control and accreditation produce quality -- Improve research equipment and materials --Inadequate capacity at middle and efficient --Establish links with reputable universities in the area of Research and Development management level graduates --Inadequate teaching and --Influencing the Provide adequate teaching and learning materials learning materials and improvement of --Establish capacity for producing teaching and learning materials equipment quality of -- Encourage use of internet for academic referencing and provide locally made materials education in -- Establish printing and publishing services primary and secondary schools Improved --Lack of competence in iv. Providing Provide relevant skills to academic staff – train staff curriculum to curriculum development relevant -- Build capacity in program development review and evaluation address national and review processes academic -- Provide knowledge and skills in curriculum review and assessment needs -- lack of dialogue between materials -- Provide skills in teaching and learning material development tertiary education and the job market Conduct frequent curriculum reviews --Inadequate information on -- Conduct needs assessment studies country’s actual needs by -- Match national needs to curriculum development the tertiary institutions -- M&E curriculum development process --Lack of innovativeness -- Modulise courses -- Produce appropriate teaching and learning materials – increase and update instructional technology -- provide labs with adequate modern equipment 165 Malawi Growth and Development Strategy -- Inadequate capacity in terms v. Improve -- Provide trained personnel in management of numbers and skills management of -- Decentralise decision making processes -- Low morale due to lack of higher education -- Education council for higher education incentives / promotion -- Implement effective staff deployment policy prospects -- Improve procurement and distribution system -- Absence of planning unit in -- Monitor delivery of supplies higher education institution -- Establish planning units --Lack of human resources in -- Equip planners with appropriate knowledge and skills in planning, monitoring and data planning management --Over-dependence of -- Constant reviews of tertiary education programmes government subvention -- Strengthen financial management --Centralized university -- Establish higher education loan administration 3.3 Sub Theme Three: Gender Long-Term Medium Term Constraints Strategies Focus Actions / Activities Goal expected outcomes To Reduced gender --Women are marginalized in Strengthening the --Strengthen institutional capacity for effective co-ordination of gender policy mainstream inequalities (as social and economic institutional capacity implementation gender in the measured by spheres for effective co- --Undertake affirmative action to increase women decision makers in high levels national disaggregated --Women are unable to ordination of gender of the public and private sectors development access to services effectively contribute to policy -- Promote gender equality through advocacy programmes process to included in other social, economic, and implementation; --Break the cultural/traditional factors that create and perpetuate gender enhance parts of the strategy) political development inequalities equal --Low literacy levels in Women Taking affirmative --Establish– gender-based violence support units. participation --Limited access to means of action to increase of both sexes production for women women and children for --Limited control of productive decision makers in sustainable resources or opportunities high levels of the development. for participation in public and private development sectors; and --Increasing gender based violence Promoting gender --Weak coordination of gender equality through related policies advocacy. 166 Malawi Growth and Development Strategy THEME FOUR: INFRASTRUCTURE DEVELOPMENT Summary of Theme Four: Infrastructure Development Sub-theme Long and medium term goals Expected Outcome Transport Ensure the provision of a coordinated transport environment that • Improved mobility and accessibility of the population to fosters a safe and competitive operation of commercially viable, key road corridors within Malawi and out of Malawi and financially sustainable, and environmentally friendly transport services facilitate the continued development of the country’s rural and enterprises areas. • By 2011, 71% of the road network will be in good condition, 18 % in fair condition with only 11 % in poor condition. ICT Telecommun Ensure universal access, connectivity and affordable information and Formation of public/private sector partnerships in the provision of ications communications technology telecommunications services. Increased technical skills and updated knowledge are used by public Information Improve use of technology in companies, education, and service and private sector institutions Technology delivery Developed broadcast infrastructure using the modern telecommunication technologies and develop the sub-sector to be private sector driven and oriented. Broadcasting Empower the nation and accelerate economic growth and development through the collection, analysis, processing and dissemination of accurate and timely information. Research, Develop, disseminate and promote utilization of technology to improve Well-coordinated science and technology generation and Science & productivity and quality of goods and services dissemination. Technology Effective and efficient operation of science and technology institutions. 167 Malawi Growth and Development Strategy 4.1 Sub Theme One: Air and Rail Transport: Long-Term Goal Medium Term Expected Constraints Strategies Focus Actions / Activities Outcomes (a) Air Transport To reduce the cost Attain and maintain a -- High air freight cost-- landing i. Promoting and facilitating a -- Implement the Yamoussoukro Declaration of 2000 on of air competitive, self sufficient and rights restrictions and -- landing competitive, sustainable and African Air Transport Policy and other conventions that may transportation sustainable civil aviation fees are prohibitive hence efficient air transport industry be deemed of benefit to Malawi; while ensuring environment that ensures safety uncompetitive -- Establish where feasible autonomous Airport or Civil international in accordance with national and --Poor airport facilities Aviation authorities to operate and manage airports, and competitiveness. international standards and aviation equipment on commercial principles; enables the provision of Encourage technical and commercial joint ventures and services in a reliable and marketing efforts in airline industry; efficient manner -- Ensure local participation in equity and technical partnerships of airlines. ii. Providing a safe, efficient, -- Construct targeted landing strips for tourism related areas reliable aviation infrastructure -- Institute and monitor maintenance programmes for both that complies with aerodromes and aviation equipment; international standards -- Promote the participation of the Private Sector in the maintenance and provision of safe and reliable aviation infrastructure. iii. Attaining and maintaining a -- Strengthen safety and security measures at all airports civil aviation environment that (equipment and security personnel) ensures safety and security of -- Strengthen security enforcement provisions in the Aviation passengers, cargo and Act. infrastructure in accordance -- Prevent adverse effects of the construction of aviation with international standards Infrastructure and ensure that the infrastructure and operations on the environment are safe (b). Rail Transport An efficient, A well-managed, viable and -- Poor condition of railway i. Improving operational efficiency Undertake hydrographic studies to identify bridges that need affordable and sustainable system that infrastructure and commercial viability of to replaced on the rail lines effective rail network promotes accessibility as -- Inability of the concessionaire to railway companies Provide reliable locomotives that eases pressure well as affordable and maintain the railways because of -- Review the Railways Act from the road reliable movement of goods the bottlenecks in Mozambique. network and and people -- Rivers are changing their course 168 Malawi Growth and Development Strategy provides an so this impacts the bridges for alternative means of the rail line transport both to people and transportation of goods. ii. Improve levels of service to all users including people with disabilities at an affordable cost; iii. Promote railway safety and Prevent adverse environmental effects of rail construction environmental protection and ensuring that the infrastructure is environmentally friendly c) Multi Modal Transport Obtain smooth carriage of cargo I: Improve the coordination of all -- Initiate dialogue with the country’s neighbouring states so in one transport chain modes of transport . that they accede to the Multi-modal Transport Convention; -- Encourage corridor service providers to increase reliability of rail, port and road transport services; -- Harmonize all legislation and document on transport and customs with SADC/COMESA -- Publicise Multi-modal Transport and INCOTERMS by mounting a series of seminars targeted at the business and public sectors; -- Establish and maintain a national transport forum ii. Ensure that the Inland Waters -- Review and update all legislation on a regular basis to Shipping Act and other legal consider the operational needs of people with disabilities. instruments are updated periodically and strengthened 169 Malawi Growth and Development Strategy 4.2: Sub Theme Two: Information, Communication and Technology (ICT) Long-term goal Medium Term Expected Constraints Strategies Focus Actions / Activities Outcomes (a) Telecommunications To ensure universal Increased access to --Lack of ICT knowledge --Creating a conducive --Provide telecommunications fund for rural telecommunications access to, telecommunications --Underdeveloped regulatory environment to attract development. connectivity and services framework investment in --Provision of model telecentres. affordable --High tariff rates telecommunication. --Procurement and installation of modern telecommunications information and --Poor and under developed equipment. communications infrastructure --Enhancing the capacity of --Strengthen the regulatory body (MACRA). technology. --Inadequate distribution of ICT the regulatory body --Sensitise the public and service providers on the role of the services and infrastructure (MACRA) to act as a regulatory body (MACRA). --Slow adaptation to global regulatory competent referee in --Facilitate research on issues of self regulation. changes. order to level the playing --Lack of competition field. --Developing, monitoring and periodically reviewing regulations. (b) Information Technology (IT) To improve service Well developed IT --High costs of IT equipment i. Developing a reliable, fast -- Enact appropriate legislation that promotes and facilitates the delivery in both infrastructure and improved --Inadequate trained IT personnel adaptive and robust country’s participation in the information age. public and private e-governance. -- Poor IT support infrastructure national IT infrastructure. -- Create a working and efficient government wide area network sector institutions (GWAN). through the use of -- Develop IT infrastructure in rural communities IT. -- Encourage collaboration between local and international educational institutions to facilitate educational exchange and the promotion of IT education and training. --Increased IT skills in both ii. Improving e-government -- Facilitate the establishment of an efficient intra-and inter- public and private sector systems departmental, inter-sectoral, national and sub-national system institutions • of communication, for the necessary feed-back in policy formulation and programme implementation, monitoring and --Increased tele-density review -- Modernize the operations of the Public Services through the -- Reduced cost of deployment and utilization of ITs communication and increased -- Develop an e-government interoperability framework to 170 Malawi Growth and Development Strategy access facilitate cross-departmental operations of ICT systems/services -- Introduce electronic electoral processes. -- Establish an ICT network for corruption-prevention institutions. -- Develop inter-linked ICT-based National Identity systems -- Modernize the operations of the health delivery system -- Support the provision of up-to-date global and local tourism information -- Promote the deployment and exploitation of ITs to support the activities of the agricultural sector -- Equip the Department of Meteorological Services with modern weather monitoring and forecasting equipment (weather radars, high speed computers and radio-sounding equipment). -- Equip the Ministry of Irrigation and Water Development with modern water level monitoring equipment. -- Equip District Assemblies with IT services for collection and dissemination of environmental and disaster warning information. -- Establish a wide area network for all organizations involved in disaster management. -- Provide radios to communities to be used for transmitting early warning messages. -- Establish communication link between District Assemblies and the Department of Poverty and Disaster Management Affairs (DoPDMA). iii. Developing and -- Promote local and foreign investment, innovative production, enhancing the IT R&D and diffusion of ITs by the private sector. industry. -- Promote development of a Competitive Value-Added Services Sector through the exploitation and utilization of ITs. --Support the development of an innovative local industry for the manufacture, assembling, repair and maintenance of IT products for domestic and export markets. iv. Improved access to ITs -- Achieve universal basic IT literacy and improve the level of IT by all communities. literacy in the country. -- Improve public access to information and services to facilitate 171 Malawi Growth and Development Strategy business and administrative processes to increase productivity and economic growth. -- Ensure the active participation of all Malawians including women, youth and persons with disabilities in developing the information society. ( C) Broadcasting To improve the Developed broadcasting --High cost of broadcasting • Developing and --Acquisition of broadcasting equipment. dissemination of infrastructure using equipment. rehabilitating broadcast --Building of purpose built stations. accurate, unbiased modern telecommunication --Lack of rural electrification. transmitting stations. -- Capacity building through training. and timely technologies --Inadequate and inappropriate --Promotion of private sector participation in broadcasting. information to the infrastructure. • Improving broadcast --Rehabilitate and computerize the existing TV and radio general public for --Inadequate technical human distribution, and stations. informed decision capacity. coverage making. --Inadequate financial resources. • . • Developing local capacity to generate reliable and accurate news and programmes. • Improving quality and unbiasedness of local- content programme production. • Promoting the participation of private broadcast stations. • Promoting community broadcasting services. 172 Malawi Growth and Development Strategy 4.3 Sub Theme Three: Research, Science and Technology Development Long-Term Goal Medium-Term Expected Constraints Strategies Focus Actions / Activities Outcomes To enhance • Well-coordinated • Lack of integration • Capacity building -- Establish the National Science and Technology Commission to development science and technology of science and of technology research coordinate technology research, development, dissemination and through the generation and technology in the and development evaluation of utilization. application of dissemination. national institutions --Train staff in specialized technology generation. science and development • Promoting the -Establishment of the University of Science and Technology. technology. • Effective and plans. development and --Lobby for establishment of S&T Committee at Parliamentary level. efficient operation of utilization of indigenous --Establishment of a Technology Park and Incubation Centre. science and technology • Poor coordination technologies. --Support STI Programs in the local communities. institutions. of research, • Establishing -- Integration of S&T into School curriculum. science and sustainable funding -- Lobby for minimum allocation of 1% of GDP for S&T programs. • Increased uptake of technology mechanism for --Design STI capacity building programs to produce S& T expertise. productivity and quality generation. technology research, --Promote recruitment and retention of qualified S&T experts. enhancing technologies. development and --Review policy and regulatory framework Science and Technology. • Weak capacity of dissemination -- Review S& T Act. • Prioritised and research, science mechanism. - -Promote innovative schemes and culture. focused research and and technology • Initiating promotion -- identify and transfer competitive technologies. development generation and and management of -- Establish financing mechanism that supports commercialization of dissemination regulatory framework of technologies. institutions. science, Technology and -- Support commercialization of technologies in key areas including innovation cotton, tobacco, sugar, cassava and mining. • Inadequate Developing and --Strengthen public/private partnership in usage of science, technology funding to relevant commercializing of S&T and innovation. institutions. -Promote utilization and development of beneficial indigenous technology. -- Re-introduction of the “Malawi Award for Scientific and Technological Achievement (MASTA) and the Most Innovative Technology Stand (MITS)” at the Malawi International Trade Fair. 173 Malawi Growth and Development Strategy THEME FIVE: IMPROVING GOVERNANCE Summary of Theme Five: Improving Governance Sub Theme Long-Term Goals Medium-Term Expected Outcomes Macroeconomic Sustain economic growth, reduce dependency A favourable macroeconomic environment having Growth on foreign aid and generate investor low inflation rates at 5.0 %, lower interest rates, confidence. stable exchange rates, reduced Government borrowing and sustainable debts. Public Policy Free flow of information to consolidate Public well informed to participate in national Formulation democracy development. Fiscal Management Eliminate distortions in macroeconomic Improve budget implementation fundamentals Corruption Improve donor confidence Corruption and fraud will be reduced. Public Sector Affordable, highly motivated, results oriented Improve the delivery of quality public goods and Management and productive civil service. services. Decentralization Improve the efficiency and effectiveness of the Local assemblies in full control of development public sector in service delivery to the planning and implementation communities Justice and rule of Increase access to justice and entrenched More responsive, efficient and effective judicial law rule of law authority. Security Safe, secure and crime free nation Reduced crime levels Corporate Increased private sector investment Increased domestic and foreign investment. Governance 174 Malawi Growth and Development Strategy 5.1 Sub-Theme One: Macroeconomic Growth Long-Term Goal Medium Term Expected Constraints Strategies Focus Actions/Activities Outcomes To attain sustainable Favourable macroeconomic -- High level of government domestic i. Improving public finance -- Enforce adherence of line ministries and parastals to macroeconomic environment debt and cost of debt servicing management the provisions of Public Finance Management Act-- growth and -- lower inflation (below 5%), -- Considerable debt servicing on Improve financial management systems and skills development. -- lower interest rate, international loans through implementation of IFMIS -- sustainable debt service -- Poor management of parastatals -- Reduce public sector domestic borrowing and -- Negotiate multilateral debt write-downs -- stable real exchange rate -- Unpredictable donor financing -- Include all aid flows for public sector activities on the -- reduced government -- Weak fiscal discipline budget borrowing. -- Strengthen the capacity of Treasury’s Public Expenditure Monitoring Unit (Ministry of Finance) -- Uncoordinated donor initiatives and ii. Increasing predictability of -- Receive better indication from donors of commitments examples of independent negotiations donor financing and in forward years between donors and line ministries holding donors -- Study the impact of aid flows on macro-economics without involvement of central ministries accountable to their and the provision of public services -- Unpredictable donor financing commitments -- Strengthen the capacity of Debt and Aid Management Division to better co-ordinate donors and manage aid inflows --Negotiate with donors an action plan for harmonisation, alignment and better aid coordination (possible mechanism through the Paris Declaration) -- Develop better understanding with donors on the predictability of aid disbursements in a year, especially budget support donors iii. Improving the -- Tax reforms to improve the incentives for household -- Mismatch between issues and maturities environment for private saving and investment and the equity of tax of OMO instruments results in sector participation by administration expansionary monetary stance reducing the crowding- -- Enforce adherence of line ministries and parastals to -- High interest rate spread between out effects for private Public Finance Management Act. borrowing and saving rates in the sector borrowing and the banking sector. introduction of favourable tax reforms -- Insufficient import cover iii. Improving value-addition 175 Malawi Growth and Development Strategy and reducing import -- develop new export products with high content in existing export potential for domestic value addition products -- High prices of food, petroleum products iv. Reducing risks of shocks (Addressed under Sustainable Economic and farm inputs, on the economy (e.g. Growth and Infrastructure) transport costs, food shortages, increases in import prices) 5.2 Sub Theme Two: Public Policy Formulation, Fiscal Management, Public Sector Management and Corruption Long-Term Goal Medium Term Expected Constraints Strategies Focus Actions/Activities Outcomes A. Public Policy Formulation To promote free flow A well informed public to Media i. Improving public access to Establish an effective e-government information of information to allow participate in national -- High cost of computers, televisions sets, timely and accurate system the public to development activities radios, telephone rates information that is easy to -- Establish community information centres participate effectively -- Inadequate number of public libraries, understand -- Enact rural development communication in decision-making -- High costs of newspapers, legislation processes -- Inadequate information centres, --Promote professionalism of media that delivers -- Lack of media policy and related media politically impartial news coverage (e.g. MBC, TVM( legislations (access to information bill) -- Develop mechanisms to ensure the public has -- Weak institutional capacity of Malawi News access to information on public policy, plans, and Agency and publications section of ministry of implementation -- Strengthen operation of Central information and tourism Office of Information – public information system --Weak institutional capacity of radio and -- Establish community multimedia information television broadcast companies centres -- High levels of illiteracy -- Produce and screen development documentary to rural audiences regularly --Enact public service broadcast legislation --- Lack of libraries in schools and ii. Strengthening information -- Procure equipment for public news agencies constituencies collection, processing, -- Introduce wire news subscription to Government -- No custom made national archive or record storage and retrieval and ministries and departments 176 Malawi Growth and Development Strategy management centres publication infrastructure -- Establish record management system in public -- Poor record management practices sector -- Absence of access to information legislation -- Enact access to information legislation 4. Parliament constructively -- Debate on issues and bills is not on iii. Strengthening engages in the national substance, but rather on party lines Parliamentary Committees development process, as -- At times Parliamentarians do not and Parliament outlined in the adequately understand what is being put constitution (public sector forward (e.g. bills and budget) is held accountable for how funds are spent) 5. Free and fair elections --The party in power monopolizes media so the opposing party does not have equal use for campaign purposes --Those in opposition feel that those in governing political party abuse campaign resources b. Fiscal Management Adhere to sound Improved Government budget -- Poor implementation of the MTEF Ensuring that resources are --Capacity building in planning and budget fiscal management implementation -- Non predictability of donor flows spent on priority areas; formulation practices by --Too many sector policies that lack focus and -- Roll out IFMIS to the remaining ministries and spending within the coherence Eliminating extra budgetary department available financial -- Inadequate resources expenditures; -- Build capacity for parliament to perform their resources. oversight role diligently. Adhering to the Public Finance -- Enforce PFM Act, Public Audit Act and Public Management Act, Public Audit Procurement Act Act and Public Procurement Act; Improving Integrated Financial and Management Information System (IFMIS); and Linking the output-based budget to the Government accounting system. 177 Malawi Growth and Development Strategy C. Corruption To make Malawi a Reduced corruption and fraud -- Inadequate enforcement of existing rules Improving transparency and -- Recruitment more specialists corruption-free country and regulations accountability for service -- Improve the ACB’s and Auditor General’s reporting -- Mistrust among different arms of delivery and accountability to Parliament Government -- Take appropriate disciplinary action against public -- Statutory framework insufficient for Reducing political interference officials found guilty of corruption, using transparent independent scrutiny in the public sector by processes -- Bureaucratic delays redefining and separating -- Reduce inappropriate political interference in public -- Inadequate number of investigators and roles between Cabinet sector lawyers to handle cases Ministers and Principal -- Develop and implement national anti-corruption -- Inadequate resources and systemic Secretaries strategy weakness for prevention and detection of -- Strengthen the media capacity through training, fraud and corruption Promoting transparency and removal of taxes for broadcast equipment -- Public cynicism about honesty and accountability in the -- Strengthen access and distribution of information efficiency of financial management procurement and delivery of system goods and services by --Implement M&E Master plan enforcing the relevant rules and regulations -- Development of the NSS Master Plan. D. Public Sector Management To have a highly A highly motivated civil service -- Poor civil service conditions which are not Building capacity through --Standardize training across public service motivated, results leading to improved conducive for performance (e.g. pay in the appropriate training in the -- Appoint and promote staff based on merit and oriented and performance and services civil service is not competitive with market public sector for effective performance productive civil service delivery rates) service delivery --Implement pay reforms -- Evidence-based -- Poor management -- Address recruitment and retention problems management decisions -- Distorted incentive structures for civil service Continuing with wage policy -- Implementing performance management systems -- responsive to national employees reforms in order to raise and non-salary incentives aspirations -- Retention and recruitment problems incentives in the civil service -- Control size and cost of public sector and focuses --Rigid and bureaucratic government them on its priority areas, including donor funding for structures the public sector 178 Malawi Growth and Development Strategy --Political interference --Enforce human resource policies and systems --Non-compliance to existing systems and -- Articulate Government’s priorities for the public regulations by the public sector sector Capacity and Coordination Capacity building through -- Implement the Monitoring and Evaluation Roadmap -- Inadequate numbers of personnel and training of M&E officers (includes coordination of donors, national statistical quality of personnel to conduct monitoring and plan) evaluation -- Unqualified M&E staff at Ministries and District levels -- Lack of up-to-date information -- Stand alone project M&E systems are not part of Government system, and donors do not use Government formats and systems for M&E -- Lack of coordination of M&E activities 5.3 Sub Theme Three: Decentralization Long- Term Medium Term Constraints Strategies Focus Actions / Activities Goal Expected Outcomes To enhance 1. Improved --Weak, poor and ineffective linkages Implementing full and complete sector decision-making community between decentralization policy and devolution; -- implement sector devolution and participation participation, efficient other public policy reforms. of local accountability, good Redefining roles of various local -- develop appropriate legal frameworks communities in governance systems, --Persistent power struggle and Government players to reduce development vibrant monitoring and conflicts of roles between elected operational conflicts and promote --institutional capacity building planning and evaluation (M&E) members such as Members of effective contribution to the implementation. systems, clear and Parliament, Councillors and Traditional development process; -- develop operational links between decentralization policy and strengthened linkages Authorities. national policy frameworks of various policy Establishing a vibrant M&E system reforms, and reduced --Weak institutional capacity which will ensure transparency and --Strengthening the local government’s role in policy making; conflicts of roles accountability. among various --High turn over of key staff like stakeholders at the accountants, economists and other Building capacity through training of 179 Malawi Growth and Development Strategy district level. specialists. various stakeholders to enhance their participation in development planning. --Lack of information, knowledge and skills. --Inadequate financial resources among others. -- Small size of the local revenue base -- no mechanism for monitoring fees Deepen the process of devolution of -- Fiscal devolution and financial management : Expansion of collected at the local level. resources and authority to local local revenue generating capacity -- slow pace of decentralization due to governments capacity constraints and fear by the center to have no direct control over resources. -- poor operational linkages between the national strategies and development plans and the local level (conceptual link, but not operational) 2. Local assemblies Low effective participation of local Empower local communities -- Local governance and democratic culture will have full communities in district planning -- local development planning control of the -- communities are not Strengthen mechanisms between communities and their local process of knowledgeable of issues to governments for planning and implementation of local initiative development meaningfully participate in -- cross cutting issues planning. planning. --inadequate local level institutional structures for collaboration 5.4 Sub Theme Four: Developing a Strong Justice System and Rule of Law Long- Term Goal Medium Term Expected Constraints Strategies Focus Actions / Activities Outcomes To increase 1. A more responsive and --Shortage of legal experts to effectively and i. Improving and sustaining Professionalization of the judiciary access to justice effective judicial authority timely handle legal cases and shortage of capacity of the Government to -- Enact and implement legislation to ensure duty and entrenched with sustained support staff provide legal services equitably bearers enforce their functions and powers rule of law. administration of justice. -- Lack of capacity by Staff Development professionally -- Increased public Institute and University of Malawi to train more -- Increase the intake for various legal professional confidence in the legal legal experts groups; systems -- Political interference in legal system -- Train magistrates, judges and paralegals 180 Malawi Growth and Development Strategy -- Improved ability of the -- Expensive legal system -- Establishing court centres close to police stations private sector to obtain and main trading centres; equitable and fair -- Ensure judicial appointments are entirely based on settlement of disputes in merit and performance; reasonable time and at -- Continue the Civil Service Reform Programme reasonable cost. aimed at retaining the legal professionals in the civil service; -- Increase the number of court centres. Implement contemporary, applicable and relevant laws which conform to the constitution and international laws ii. Improve civil dispute -- Reintroduce traditional courts mechanism -- Develop an appropriate legal framework for traditional courts with appropriate jurisdiction -- Inadequate formal system that results in -- Develop Informal justice system that is accessible, informal justice systems where efficient and dispenses justice equitably standards will vary as well as dispensing -- Create awareness where the traditional leaders justice understand the end point of what can be handled in this system (code of conduct) Slow and costly dispute resolution iii. Reduce the costs and time Addressing the costs and speed of dispute resolution -- court system is not easily accessible to required to bring cases to -- Strengthen alternative dispute resolution people, as a result they get frustrated – court. mechanisms that include records of cases and most of cases do not get to the courts decisions -- inadequate coordination across related -- Establish information linkages between the police, government agencies involved courts and prisons to improve case flow -- poor case and record management -- Promote dialogue through court user committee -- delays in passing judgements meetings 181 Malawi Growth and Development Strategy 5.5 Sub Theme Five: Security Long- Medium Term Constraints Strategies Focus Actions / Activities Term Expected Goals Outcomes To make Reduced crime -- Inadequate specialised police officers i. Improving the Malawi a levels; improved -- Absence of comprehensive crime responsiveness of police -- Recruit and train police personnel (Reduce the police / population ratio from safe, methods of prevention strategy officers to communities the current 1 / 1600 to 1 / 1000) secure and promoting public -- Reluctance of the public to report security needs (timely -- Improve distribution of police officers across the country crime free order; and crimes to the police detecting, deterring crime -- Establish round the clock police coverage nation improved -- Inadequate number of properly staffed and apprehending partnership and police units, especially in rural areas, criminals ) participation of due to community responsibility for -- Rapid response to members of the their provision crime scenes public on all -- Inadequate equipment and skills for issues of safety using forensic science -- Improving public and security perception of population to police force -- Proliferation of illegal firearms ii. Reducing the possibility of -- Implement programs to control proliferation of firearms in collaboration with -- Increased use of illicit drugs and drug crime NGOs to set up national focal point to deal with issues of illicit trafficking trafficking -- reducing illegal and firearms --Lack of equipment for detection of drugs firearms -- Implement drug control programs -- Porous borders -- reducing illegal drug -- Amend the Immigration Act -- Weak immigration Act which does not trafficking -- Establish a national registration and identification system include issues of illegal immigrants -- Reducing the number -- Lack of national registration of illegal immigrants -- Lack of coordination between iii. Improving the integrated -- Develop and implement a crime prevention strategy (multi-sector approach) communities and the police approach to crime -- Civic education through community policing and other programs (working -- Lack of integrated development planning prevention at the with youth, chiefs, communities of interest) community level, and -- Develop partnerships between the police and the local communities. increase community participation in the detection and reporting of crime 182 Malawi Growth and Development Strategy -- Poor rehabilitation programs in prisons -- iv. Rehabilitation of repeat -- Develop rehabilitation programmes of prisoners untrained prison wardens offenders -- Rehabilitate infrastructure to reduce overcrowding of prisons -- Few skill training programs for prisoners -- Improve case management Inhumane conditions in prisons -- Develop linkages with other programs for ex- convicts to enable them to be Poor and inadequate prison facilities part of the productive sector, including changing mindset of employers to -- Facilities do not have good security prisoners systems leading to escapes -- delays in judgements -- Reduced -- Inadequate public private partnerships v. Strengthening partnership -- Undertake joint programs with agencies and private sector companies (eg. costs of crime between private sector and police (to for risk management ESCOM) to tackle issues of anti-vandalism and security increase security of assets) between private sector -- Improve integration of police protection into industrial site plans measures on -- No proper regulation or standards for and police for protection -- Educate Malawian establishments on the benefits for risk management for private sector running security firms of people and assets protection of assets, promote asset insurance businesses -- Develop Private Security Policy and Act that provides standards and issues of inspection of private security firms -- Build capacity of Ministry of Home Affairs and Security to play its rightful role of providing civilian oversight for prisons and immigration (advocacy, information) vi. Implementing Anti money -- Enforce the money laundering Act laundering Act 5.6 Sub Theme Six: Corporate Governance Long-Term goal Medium Term Constraint Strategies Focus Actions / Activities Expected Outcomes To institute good Reduced corruption and -- Lack of a code of good • Promoting the adoption of good -- Develop and Implement the good governance and corporate governance fraud and improved practices. corporate governance code of best code of best practices. practices in the private investor perceptions of practices; sector Malawi as an attractive • Popularising the role of the Institute -- Conduct awareness programmes for the code of investment destination. of Directors to facilitate the adoption of good governance and best practices. good corporate governance code of best practices; and -- Mobilisation of private sector to recognise and • Mobilizing the support of the private implement the code of best practices. sector to facilitate the sustainable operations of the new institution. 183 Malawi Growth and Development Strategy 5.7 Sub Theme Seven: Human Rights Long-Term goal Medium Term Constraints Strategies focus Actions / Activities Expected Outcomes To increase awareness Enhanced awareness - Lack of public awareness on • Raising awareness among • Advocate women and children rights and upholding of human and practice of human human rights issues. vulnerable groups about their rights and as provided in the CEDAW and CRC rights among all rights and how to exercise them, and the roles of • Conduct civic education in places Malawians, particularly the responsibilities among - Poor coordination of the human rights bodies in promoting prone to human rights abuses most vulnerable through all Malawians, governance institutions and protecting people’s rights the promotion and particularly the most • Using the outcomes of litigation, • Incorporate human rights into the protection of human rights. vulnerable groups. - Inadequate experts in human research and complaints received by school curriculum. rights the Human Rights Commission and • Undertake training in advocacy for other bodies to raise general awareness CSOs working with vulnerable groups - Inadequate funds to about topical human rights issues • Develop and produce materials to implement programmes • Ensuring that economic, social and raise awareness of the human rights cultural rights, and the rights of bodies. - Low literacy rate vulnerable groups, receive adequate • Conduct public hearings and come attention up with recommendations on the rights of - Lack of income generating the vulnerable groups activities for vulnerable groups • Ensuring investigations, conciliation, monitoring, enquiries, research etc to • Investigate and take appropriate resolve human rights grievances actions on human rights violation especially on the most vulnerable groups • Ensuring effective treaty-body • Provide litigation services on reporting system as a mechanism for matters of human rights including social, improving human rights compliance and economic and cultural rights a ensuring a rights-based approach to development • Develop an appropriate legislative and administrative framework for the protection and promotion of human rights. • Provide mediation, conciliation and alternative dispute resolution to complainants 184 Malawi Growth and Development Strategy ANNEX 3 MGDS ACTIVITY COSTING AND PRIORITIZATION Annex 3.1: Detailed Prioritization And Costing By Key Priority Area FISCAL YEAR 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority KEY PRIORITY AREAS OF THE MGDS 1. Agriculture and Food Security Promote large scale agricultural farming P1 Strengthen agricultural research to improve agricultural productivity 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2 Promote new farming technologies including farm mechanization and 194,728,394 194,728,394 194,728,394 194,728,394 194,728,394 973,641,968 P1 oxanization programmes Shift to clonal tea varieties and promote market oriented processing of tea 150,000,000 100,000,000 80,000,000 50,000,000 20,000,000 400,000,000 P2F Factory refurbishment, replanting and irrigation of estates to handle peak 75,000,000 25,000,000 0 0 0 100,000,000 P2F production Rationalize fees/levies in tobacco for higher farmer incomes 4,090,100 865,000 0 0 0 4,955,100 P2F Revise tobacco taxation policy 3,190,000 1,650,000 0 0 0 4,840,000 P2 Strengthen contract farming 5,234,000 2,190,000 1,090,000 8,514,000 P2 Intensify out-grower schemes 150,000,000 50,000,000 0 0 0 200,000,000 P2 Facilitate the provision of business support services to agro-processors in 15,000,000 15,000,000 15,000,000 15,000,000 10,000,000 70,000,000 P1 Malawi Research and develop appropriate technologies for use in agro-processing 20,000,000 40,000,000 10,000,000 10,000,000 10,000,000 90,000,000 P2 Enhance capacity building for entrepreneurs in agro-processing 4,500,000 4,500,000 5,000,000 5,000,000 5,000,000 24,000,000 P1 Promote processing of goods and provision of services 41,600,000 41,600,000 41,600,000 36,600,000 36,600,000 198,000,000 P2 185 Malawi Growth and Development Strategy Increase knowledge of and skills for agribusiness for farmers and 2,075,620 2,075,620 2,075,620 2,075,620 2,075,620 10,378,100 P2F cooperatives Increase access to markets or to agro-processing firms 5,921,200 5,921,200 5,921,200 5,921,200 5,921,200 29,606,000 P2 Develop farmers’ organizations 8,648,400 8,648,400 86,484 86,484 86,484 17,556,252 P3 Provide market knowledge to farmers through extension services 5,189,050 5,189,050 5,189,050 5,189,050 5,189,050 25,945,250 P2F Increase land under irrigation (irrigation perimeter) Construction of irrigation structures such as earth dams, schemes etc 646,529,000 646,529,000 646,529,000 646,529,000 646,529,000 3,232,645,000 P1 Rehabilitation of existing irrigation structures 78,080,000 78,080,000 78,080,000 78,080,000 78,080,000 390,400,000 P1 Promote modern irrigation technologies such as motorised and treadle 817,600,000 817,600,000 100,000,000 100,000,000 100,000,000 1,935,200,000 P1 pumps Development and use of water harvesting 315,000,000 315,000,000 0 0 0 630,000,000 P2 Reach farmers with extension services 8,718,931 8,718,931 8,718,931 8,718,931 8,718,931 43,594,655 P1F Source pesticides and spray equipment for migratory pest control 41,000,000 28,000,000 28,000,000 28,000,000 28,000,000 153,000,000 P2 Monitor/forecast outbreaks of migratory pests 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 27,500,000 P2F Promote processing and proper handling and storage of agricultural products 358,886 358,886 358,886 358,886 358,886 1,794,430 P2F via extension services Train farmers on low cost soil fertility management techniques through 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P3F extension services Establish cooperatives/associations 18,000,000 18,000,000 20,000,000 20,000,000 20,000,000 96,000,000 P1 Facilitate access to credit, equipment and technology to assist in value 3,500,000 9,000,000 6,000,000 2,400,000 1,500,000 22,400,000 P2 addition Establish small scale cottage industry units in selected areas 0 25,000,000 10,000,000 5,000,000 0 40,000,000 P1 Undertake skills upgrading 10,000,000 5,000,000 5,000,000 4,000,000 24,000,000 P3 Put in place strategies to help livestock farmers reach markets 2,650,000 2,650,000 2,650,000 2,650,000 2,650,000 13,250,000 P1F 186 Malawi Growth and Development Strategy Strengthen advisory services in the production and marketing of livestock 12,116,100 12,116,100 12,116,100 12,116,100 12,116,100 60,580,500 P1F and its products Expand small stock (poultry, goats, sheep) populations through procurement 16,845,095 9,450,000 6,320,000 4,520,000 4,520,000 41,655,095 P1 and distribution of start-up stocks Strengthen surveillance in the control of livestock and crop pests and 24,232,200 24,232,200 24,232,200 24,232,200 24,232,200 121,161,000 P2F diseases Garments/cotton Establish a Cotton Council in order to promote cotton 68,090,000 68,090,000 68,090,000 68,090,000 68,090,000 340,450,000 P2 Undertake value chain analysis of the garment/cotton sector 3,000,000 0 0 0 0 3,000,000 P1 Increase market access for apparel in international markets (AGOA) 5,000,000 10,000,000 10,000,000 15,000,000 15,000,000 55,000,000 P1 SUB THEME 3 Food Security Improve reliability of fertilizer markets 3,467,000 3,467,000 3,467,000 3,467,000 3,467,000 17,335,000 P1 Establish and enforce phyto-sanitary rules and regulations 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 16,000,000 P2 Manage strategic grain reserve effectively (NFRA) 72,000,000 72,000,000 72,000,000 72,000,000 72,000,000 360,000,000 P1 Develop a reliable agricultural statistics and an early warning system 8,377,000 8,377,000 2,750,000 2,750,000 2,750,000 25,004,000 P1 Promote a coordinated approach to planning and management of food aid 3,653,000 3,653,000 3,653,000 3,653,000 3,653,000 18,265,000 P1 Construct steel bin silos 110,000,000 110,000,000 110,000,000 110,000,000 110,000,000 110,000,000 P1 Priority 1 Sub Total 2,957,093,976 2,776,389,781 1,582,355,865 1,539,865,865 1,494,965,865 10,350,671,350 Key Priority 2: Irrigation and Water Development 187 Malawi Growth and Development Strategy Empower national authority to manage water resources using IWRM approach and establish monitoring systems including the establishment and 3,250,000 16,250,000 21,666,667 16,250,000 7,583,333 65,000,000 P1 maintenance of a register of all actors in water and sanitation, conduct research to establish resource potential and guides Promote water resource conservation, harvesting and protection in an integrated manner including development of small community and large 4,333,333 9,316,667 17,604,167 38,404,167 32,175,000 101,833,333 P1 dams (conservation areas defined), and the development of lake-level regulatory structures at Liwonde and Mangochi Proactively implement management of water resources and incorporate local governments and communities in planning and management of water and 2,166,667 16,250,000 9,100,000 9,100,000 9,100,000 45,716,667 P1 sanitation including catchment protection and rehabilitation Develop Management Information System (MIS) for the water and sanitation 43,333,333 65,000,000 45,500,000 10,833,333 10,833,333 175,500,000 P2 Recognize and implement obligations to international agreements 2,166,667 3,250,000 4,333,333 4,333,333 4,333,333 18,416,667 P3 Revise Water Resources Act of 1969 and Water Works Act 21,666,667 13,000,000 34,666,667 P1 Provide incentives for LA to promote community water-shed rehabilitation 10,833,333 16,250,000 21,666,667 21,666,667 21,666,667 92,083,333 P1 programs Build capacity in IWRM 10,833,333 10,833,333 10,833,333 10,833,333 10,833,333 54,166,667 P1 Develop integrated water resources management master plans and 21,666,667 13,000,000 34,666,667 P1 investment strategies Water quality and pollution control Rehabilitate, construct and equip water laboratories 54,166,667 54,166,667 108,333,333 P1 Establish database on water quality 3,250,000 5,416,667 5,416,667 2,166,667 2,166,667 18,416,667 P2 Improve skills, technologies, techniques in water quality monitoring and 2,166,667 2,166,667 3,250,000 3,250,000 2,166,667 13,000,000 P2 pollution control (catchment rehabilitation, determining water quality) 188 Malawi Growth and Development Strategy Strengthen institutional arrangements for environmental management 3,250,000 2,166,667 2,166,667 2,166,667 2,166,667 11,916,667 P3 Develop and disseminate guidelines and standards on water quality and 10,833,333 10,833,333 10,833,333 10,833,333 10,833,333 54,166,667 P2 pollution control Provide TA to local government and stakeholders on water quality and 2,708,333 3,250,000 3,250,000 2,708,333 2,166,667 14,083,333 P3 pollution control Urban, Peri-Urban and Market Centres Develop national water and sanitation services regulatory framework 10,833,333 21,666,667 32,500,000 P1 Rehabilitate existing water supply systems 66,516,667 399,750,000 399,750,000 333,233,333 66,516,667 1,265,766,667 P1 Extend existing urban water supply systems 13,000,000 270,833,333 1,083,333,333 813,583,333 270,833,333 2,451,583,333 P1 Construct new water supply systems 3,250,000 189,583,333 812,500,000 1,354,166,667 352,083,333 2,711,583,333 P1 Establish contingency water supply reserves and sanitation backup 16,250,000 21,666,667 27,083,333 32,500,000 32,500,000 130,000,000 P3 Promote management arrangements in urban areas – provide incentives for 2,708,333 3,250,000 4,333,333 3,250,000 2,708,333 16,250,000 P2 small scale providers Priority 2 TOTAL 309,183,333 1,147,900,000 2,482,620,833 2,669,279,167 840,666,667 7,449,650,000 Priority 3: Transport Infrastructure Development Roads Routine maintenance, periodic maintenance, rehabilitation and upgrading of 1,387,880,000 1,489,020,000 1,523,730,000 1,587,170,000 1,625,910,000 7,613,710,000 P1 the road network, replacement of timber decked bridges Develop an integrated approach to road safety 6,500,000 4,000,000 4,200,000 5,800,000 5,900,000 26,400,000 P1 Modernisation and maintenance of Malawi Traffic Information System 50,000,000 30,000,000 20,000,000 30,000,000 30,000,000 160,000,000 P2 (MALTIS) Infrastructure development 20,000,000 20,000,000 2,000,000 2,000,000 2,000,000 46,000,000 P1 Harmonize country’s highway code, road signs, signals and axle-load 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 P2 regulations within the region 189 Malawi Growth and Development Strategy Involve private sector in the monitoring and operations of road transport 3,200,000 3,800,000 3,200,000 3,800,000 4,000,000 18,000,000 P2 services Improved mobility and accessibility of rural communities to goods and 540,000,000 594,060,000 653,466,000 718,812,600 790,694,260 3,297,032,860 P1 services in the rural areas Shipping Provide navigations and hydrographic charts 195,000,000 65,000,000 0 0 0 260,000,000 P1 Review concession agreements for inland shipping 0 5,200,000 0 0 0 5,200,000 P2 Develop, rehabilitate and maintenance of port facilities 195,000,000 390,000,000 455,000,000 390,000,000 227,500,000 1,657,500,000 P2 Strengthen the marine search and rescue 0 26,000,000 26,000,000 13,000,000 0 65,000,000 P2 Establish international shipping line and negotiate with Mozambique on ports P3 Strengthen the national maritime administration 6,500,000 6,500,000 13,000,000 P1 Resuscitate the National Shippers Council and maintain selective 0 130,000,000 65,000,000 0 195,000,000 P2 membership in international organisations Shire Zambezi waterway (10% Govt Contribution) 6,500,000,000 6,500,000,000 6,500,000,000 6,500,000,000 6,500,000,000 6,500,000,000 P1 Key Priority 3 Sub Total 8,899,580,000 9,135,580,000 9,326,096,000 9,317,582,600 9,188,004,260 19,866,842,860 Priority 4: Energy Generation and Supply Rehabilitate two more stations for power distribution and complete the ones under construction (e.g. Kapichira power station) and upgrade existing ones 431,300,000 431,300,000 862,600,000 P1F (Nkula A and B) Engage in interconnection with Mozambique and rehabilitation of existing 210,000,000 210,000,000 210,000,000 210,000,000 210,000,000 1,050,000,000 P2F power generation (2007) Rehabilitate and expand the transmission and distribution 30,000,000 30,000,000 30,000,000 90,000,000 P2 Protect the catchment area along the lake and Shire river 50,000,000 30,000,000 30,000,000 20,000,000 20,000,000 150,000,000 P3 190 Malawi Growth and Development Strategy Reduce the cost of connection by using affordable connection and metering 100,000,000 68,750,000 68,750,000 68,750,000 68,750,000 375,000,000 P3 methods (e.g. use of pre-wired boards and pre-paid meters) Prepare a plan and delineate implementation responsibilities for the reduction 20,000,000 20,000,000 40,000,000 P2 of siltation in reservoirs and protect catchment area to lake Shire Explore alternative energy sources (gas, coal, solar, etc.) 70,000,000 29,375,000 29,375,000 29,375,000 29,375,000 187,500,000 P2 Implement pumped storage power plant at Livingstonia 120,000,000 120,000,000 P3 Integrate planning of electrification, investment and transport, water and ITC 6,300,000 6,300,000 6,300,000 6,300,000 6,300,000 31,500,000 P3F Accelerate the establishment of the Malawi Energy Regulatory Authority 25,000,000 25,000,000 P1 Improved management of ESCOM (including reform electricity tariff structure) 36,300,000 36,300,000 72,600,000 P3 and improve the financial and operational performance of ESCOM Implement framework for private sector to operate with the Government 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 P1 (PPP) to participate in the electricity sector (institutional framework, etc.) Rural communities use alternative energy supplies for power in under served areas Create awareness of the use of renewable energy (solar, wind, biomass, and 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000 P2F micro hydro) Key Priority 4 Total 990,400,000 873,525,000 385,925,000 345,925,000 465,925,000 3,061,700,000 Priority 5: Integrated Rural Development Ensure smooth transfer of devolved functions of rural water supply and 1,083,333 2,166,667 3,791,667 5,416,667 1,083,333 13,541,667 P3 sanitation services 191 Malawi Growth and Development Strategy Construct and rehabilitate and extend rural piped water systems 130,000,000 270,833,333 452,833,333 396,500,000 227,500,000 1,477,666,667 P1 Construct and rehabilitate boreholes and shallow wells 86,666,667 162,500,000 390,000,000 390,000,000 97,500,000 1,126,666,667 P1 Accelerate the rural electrification programme (promote grid and off-grid rural 125,000,000 125,000,000 125,000,000 125,000,000 125,000,000 625,000,000 P2 electrification by public and private providers) Expand network to rural growth centres 70,000,000 70,000,000 70,000,000 70,000,000 70,000,000 350,000,000 P1 Expand telecommunications to rural areas. 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 5,000,000,000 P1 Key Priority 5 Sub Total 1,412,750,000 1,630,500,000 2,041,625,000 1,986,916,667 1,521,083,333 8,592,875,000 Key Priority 6: Prevention and Management of Nutrition Disorders, HIV and AIDS. Prevention and Behaviour change Expand and scale up the scope and depth of HIV and AIDS communication 3,275,609,350 3,950,670,750 2,353,423,150 1,189,598,150 1,189,598,150 11,958,899,550 P1 at local level Promote and support HIV protective interventions especially designed for 165,945,000 147,745,000 147,745,000 148,232,500 148,232,500 757,900,000 P1 young people Reduce the vulnerability of Malawians to HIV infection, especially girls and 282,029,735 119,042,235 282,029,735 119,042,235 119,042,235 921,186,175 P1 women Strengthen socio-cultural values and practices that prevent the spread of HIV 6,630,000 14,430,000 10,725,000 14,917,500 14,917,500 61,620,000 P1 Promote safer sex practices among the high-risk groups and in high-risk 264,030,000 253,539,000 318,916,000 357,266,000 357,266,000 1,551,017,000 P1 settings Increase district and community level outreach for changing practices 256,061,000 330,161,000 263,373,500 232,661,000 232,661,000 1,314,917,500 P1 Increase access to quality STI syndromic management, counselling and 410,579,000 383,037,200 387,353,200 379,462,200 379,358,200 1,939,789,800 P1 information Expand the scope, coverage and equal access by all Malawians to HIV 990,748,200 1,193,203,700 1,338,498,200 1,512,178,200 1,512,178,200 6,546,806,500 P1 testing and counselling services especially in rural areas Expand the scope, quality and coverage of PMTCT services throughout the 316,782,050 242,093,800 238,583,800 139,965,800 139,965,800 1,077,391,250 P1 country 192 Malawi Growth and Development Strategy Increase access to safe blood, blood products and tissue services throughout the country including availability of adequate infection prevention materials 168,018,500 169,318,500 132,106,000 51,018,500 51,018,500 571,480,000 P1 and procedures Equitable treatment for PLHA and mitigate the health impacts of HIV/AIDS Increase equitable access to ARVs and OI drugs 2,786,875,000 3,656,250,000 4,525,625,000 5,395,000,000 5,395,000,000 21,758,750,000 P1 Strengthen an integrated ART infrastructure and logistic systems and a 95,048,200 119,384,200 29,918,200 25,888,200 25,888,200 296,127,000 P2 national quality assurance program for ART Expand provision and access to high quality and integrated community 193,505,000 708,500,000 129,376,000 94,276,000 94,276,000 1,219,933,000 P2 home-based care (CHBC) services Establish mechanisms and Expand delivery of nutritional support/ therapy to 949,053,300 1,467,772,800 1,468,097,800 1,457,372,800 1,457,372,800 6,799,669,500 P2 PLHA Mitigation of socio-economic and psychosocial impacts of HIV/AIDS P2 Promote sustainable income generation and advocacy for micro-finance 377,858,000 454,675,000 253,500,000 245,180,000 245,180,000 1,576,393,000 P2 programs for the infected and affected Promote and protect the rights of those infected and affected 85,930,000 91,780,000 66,430,000 52,780,000 52,780,000 349,700,000 P2 Strengthen capacities of communities, districts, PLHA Associations and 406,608,800 342,076,800 332,846,800 224,965,000 224,965,000 1,531,462,400 P2 FBOs to provide psychosocial support and counselling Improve OVC access to essential social and community based services 1,914,218,800 1,821,138,800 1,843,628,800 1,704,788,800 1,704,788,800 8,988,564,000 P1 Promote food security and nutrition among HIV affected households 8,242,000 8,242,000 6,292,000 6,292,000 6,292,000 35,360,000 P2 Effective and efficient implementation of HIV/AIDS response across the public and private sectors 193 Malawi Growth and Development Strategy Develop capacity and partnerships for a shared and common understanding of mainstreaming in both public and private sectors including civil society, 927,392,700 145,293,200 89,048,700 80,650,700 80,650,700 1,323,036,000 P2 NGOs, CBOs and FBOs Increase the capacity of District Assemblies to oversee HIV/AIDS activities in 93,394,600 62,324,600 64,326,600 15,849,600 15,849,600 251,745,000 P2 their districts Improve HIV/AIDS data collection, dissemination and utilization at both 288,611,700 705,424,200 396,492,200 137,532,200 137,532,200 1,665,592,500 P2 national and district levels Improve planning, coordination and resource mobilisation in the spirit of the 541,937,500 433,420,000 340,080,000 333,190,000 333,190,000 1,981,817,500 P2 three ones Implement strategic approach to research and development 534,472,900 566,668,700 585,707,200 613,072,200 613,072,200 2,912,993,200 P2 SUB TOTAL 15,339,581,335 17,386,191,485 15,604,122,885 14,531,179,585 14,531,075,585 77,392,150,875 10% Govt Contr 1,533,958,134 1,738,619,149 1,560,412,289 1,453,117,959 1,453,107,559 7,739,215,088 Nutrition Promotion of adoption of appropriate diet and healthy lifestyles through 47,790,210 47,790,210 47,790,210 47,790,210 47,790,210 238,951,050 P1 education and counselling Promotion of control, prevention and treatment of micronutrient deficiency 27,690,000 27,690,000 14,690,000 14,690,000 13,000,000 97,760,000 P1 disorders particularly those caused by Vitamin A, Iodine and iron deficiencies Promotion of control, prevention and treatment of diseases that have direct 44,980,000 44,980,000 35,984,000 28,787,200 23,029,760 177,760,960 P1 impact on nutrition and health status Policy coordination, implementation and monitoring of nutrition programmes 39,000,000 39,000,000 39,000,000 39,000,000 39,000,000 195,000,000 P1 Build capacity of nutritionists, dieticians and community nutrition workers 19,500,000 13,000,000 13,000,000 100,000,130 13,000,000 158,500,130 P1 Nutrition surveillance 5,850,000 6,500,000 6,500,000 6,500,000 6,500,000 31,850,000 P1 194 Malawi Growth and Development Strategy Establishment of nutrition resource centres at all levels (i.e. central, districts 45,500,000 39,000,000 39,000,000 39,000,000 39,000,000 201,500,000 P1 and community levels) Enhance data collection, analysis and dissemination on nutrition 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 39,000,000 P1 Increase access and availability of services and information to prevent 18,200,000 18,200,000 18,200,000 18,200,000 18,200,000 91,000,000 P2 consumers from health hazards Review and include nutrition in the curricula of all learning and training 78,000,000 6,500,000 5,200,000 3,900,000 13,000,000 106,600,000 P2 institutions Policy design, dissemination, legislation and enforcement 45,500,000 2,600,000 2,600,000 3,250,000 13,000,000 66,950,000 P2 Advocacy and lobbying 32,500,000 15,600,000 15,600,000 15,600,000 15,600,000 94,900,000 P2 Initiate research on socio-economic impact of Nutrition 11,700,000 11,700,000 11,700,000 11,700,000 11,700,000 58,500,000 P2 Harmonize and improve and nutrition security information system for 16,250,000 2,600,000 2,600,000 2,600,000 2,600,000 26,650,000 P3 evidence based intervention Conduct Nutrition fairs at all levels 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 32,500,000 P3 Observe international Nutrition days 3,900,000 3,900,000 3,900,000 3,900,000 3,900,000 19,500,000 P3 SUB TOTAL 450,660,210 293,360,210 270,064,210 349,217,540 273,619,970 1,636,922,140 SUB THEME 3 Interaction of Nutrition, HIV and AIDS 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority Nutrition for positive living 4,050,000 4,050,000 4,050,000 4,050,000 4,050,000 20,250,000P1 Nutrition management of HIV-related illnesses 6,500,000 7,800,000 9,360,000 11,232,000 13,478,400 48,370,400P1 Management of ARV interactions with food and nutrition 10,700,000 10,700,000 10,700,000 10,700,000 10,700,000 53,500,000P2 Therapeutic feeding for moderately and severely malnourishedHIV-positive 17,200,000 20,640,000 24,768,000 29,721,600 35,665,920 127,995,520P1 children and adults Infant and young child nutrition for HIV exposed children 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000P1 195 Malawi Growth and Development Strategy Palliative care and community coping mechanisms 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 175,000,000P2 Nutrition Education for the infected and affected households 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000P1 Nutrition Demonstration 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 50,000,000P2 Nutrition Assessment Equipment for HIV & AIDS patients 10,192,000 10,192,000 10,192,000 10,192,000 10,192,000 50,960,000P2 Production of Nutrition, HIV and AIDS training materials and eating 20,000,000 10,000,000 5,000,000 5,000,000 5,000,000 45,000,000P3 guidelines for PLWHAs Development of monitoring and evaluation tools 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000P3 SUB TOTAL 223,642,000 218,382,000 219,070,000 225,895,600 234,086,320 1,121,075,920 10% Govt Contribution 22,364,200 21,838,200 21,907,000 22,589,560 23,408,632 112,107,592 Priority 6 Total 2,006,982,544 2,053,817,559 1,852,383,499 1,824,925,059 1,750,136,161 9,488,244,820 ALL PRIORITIES GRAND TOTAL 16,575,989,852 17,617,712,339 17,671,006,196 17,684,494,356 15,260,781,285 58,809,984,029 196 Malawi Growth and Development Strategy

Annex 3.2: Prioritization And Costing By Theme FISCAL YEAR 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority THEME 1 SUSTAINABLE ECONOMIC GROWTH SUB THEME 1 Contribution to Economic Growth Tourism Development of ecotourism facilities in five priority sites 214,370,000 190,580,000 397,150,000 83,720,000 115,180,000 1,001,000,000 P2 Develop cultural villages for the Yao, Chewa, Lomwe and Ngoni cultures in Malawi 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 150,000,000 P1 Upgrade to bitumen standard access roads leading to major tourism areas and establishments 31,616,000 65,988,000 88,920,000 0 0 186,524,000 P1 (e.g. Mangochi, Salim, Nkhata Bay) In line with current tourism regulations, inspect and classify accommodation units and 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 122,500,000 P1 restaurants into grades Tourism and Hotels Board to be financially empowered and detached from the Ministry to 124,000,000 0 0 0 0 124,000,000 P3 regulate and enforce tourism regulations and standards Conduct sensitisation campaigns on tourism regulations 4,000,000 3,000,000 0 0 0 7,000,000 P3 Undertake destination marketing in selected source markets using the most cost-effective 105,000,000 105,000,000 105,000,000 105,000,000 105,000,000 525,000,000 P1 methods Development of website for destination marketing 130,000 130,000 130,000 130,000 130,000 650,000 P2 Dollars 4,104,738 3,224,600 4,966,923 1,871,923 2,113,923 16,282,108 Mining 197 Malawi Growth and Development Strategy Update geological and mineral data acquisition (remapping the geology of Malawi) 50,000,000 25,000,000 25,000,000 25,000,000 25,000,000 150,000,000 P1F Revision of Mines and Minerals Act 18,000,000 10,000,000 0 0 0 28,000,000 P1 Provide infrastructure for key mining companies (e.g. electricity, water, roads) 150,000,000 150,000,000 150,000,000 150,000,000 150,000,000 750,000,000 P1 Enhance capacity to compile and interpret geological information and disseminate to potential investors and the public and to encourage private sector to invest in detailed phases of mineral 37,500,000 31,250,000 31,250,000 25,000,000 25,000,000 150,000,000 P1 exploration Promotion of Mineral Sector 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 22,500,000 P2 Promotion of Small Scale Miners 86,400,000 90,720,000 95,256,000 100,018,800 105,019,740 477,414,540 P1 Enforce regulatory framework for standards in Mineral Sector, including occupation healthy and 25,500,000 26,775,000 28,113,750 29,519,438 30,995,409 140,903,597 P2 safety and environment Enhance Geohazard Mitigation through seismology and disaster preparedness including for 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 100,000,000 P3 landslides and earthquakes Creation of a Mining, Investment and Development Body to use as a conduit for public- private 200,000,000 210,000,000 220,500,000 231,525,000 243,101,250 1,105,126,250 P2 partnerships Garments/cotton Establish a Cotton Council in order to promote cotton 68,090,000 68,090,000 68,090,000 68,090,000 68,090,000 340,450,000 P2 Undertake value chain analysis of the garment/cotton sector 3,000,000 0 0 0 0 3,000,000 P1 Increase market access for apparel in international markets (AGOA) 5,000,000 10,000,000 10,000,000 15,000,000 15,000,000 55,000,000 P1 Manufacturing Create a conducive policy and regulatory environment for the operations of the manufacturing 3,500,000 3,500,000 7,500,000 1,500,000 1,500,000 17,500,000 P1 sector 198 Malawi Growth and Development Strategy Promote and coordinate products/services research, innovations and development to support 7,000,000 10,000,000 10,000,000 10,000,000 10,000,000 47,000,000 P2 production in Malawi Establish links for improving quality and quantity of raw materials and processors, especially 4,500,000 4,500,000 5,000,000 5,000,000 5,000,000 24,000,000 P2 agricultural sector Identify, source and transfer manufacturing technologies, machinery and plants to improve 50,000,000 25,000,000 25,000,000 25,000,000 25,000,000 150,000,000 P2 production Strengthen adherence to labour protection and labour services 105,600,000 105,600,000 105,600,000 105,600,000 105,600,000 528,000,000 P1 Establish and operationalise a National Productivity Centre 10,000,000 70,000,000 20,000,000 10,000,000 10,000,000 120,000,000 P2 Build capacity of Malawi Bureau of Standards to certify rather than rely on overseas certifiers 100,000,000 50,000,000 40,000,000 0 0 190,000,000 P1 Encourage processing in rural areas, sub-contracting and use of modern technology 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P3 Facilitate and implement Export Processing Zones (EPZs) 3,000,000 3,000,000 4,000,000 4,000,000 4,000,000 18,000,000 P2 Promote production of goods and services (OVOP) 4,500,000 4,500,000 4,500,000 3,000,000 3,000,000 19,500,000 P1F Agriculture Promote large scale agricultural farming 0 P1 Strengthen agricultural research to improve agricultural productivity 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2 Promote new farming technologies including farm mechanization and oxanization programmes 194,728,394 194,728,394 194,728,394 194,728,394 194,728,394 973,641,968 P1 Shift to clonal tea varieties and promote market oriented processing of tea 150,000,000 100,000,000 80,000,000 50,000,000 20,000,000 400,000,000 P2F Factory refurbishment, replanting and irrigation of estates to handle peak production 75,000,000 25,000,000 0 0 0 100,000,000 P2F Rationalize fees/levies in tobacco for higher farmer incomes 4,090,100 865,000 0 0 0 4,955,100 P2F 199 Malawi Growth and Development Strategy Revise tobacco taxation policy 3,190,000 1,650,000 0 0 0 4,840,000 P2 Strengthen contract farming 5,234,000 2,190,000 1,090,000 8,514,000 P2 Intensify out-grower schemes 150,000,000 50,000,000 0 0 0 200,000,000 P2 Facilitate the provision of business support services to agro-processors in Malawi 15,000,000 15,000,000 15,000,000 15,000,000 10,000,000 70,000,000 P1 Research and develop appropriate technologies for use in agro-processing 20,000,000 40,000,000 10,000,000 10,000,000 10,000,000 90,000,000 P2 Enhance capacity building for entrepreneurs in agro-processing 4,500,000 4,500,000 5,000,000 5,000,000 5,000,000 24,000,000 P1 Promote processing of goods and provision of services 41,600,000 41,600,000 41,600,000 36,600,000 36,600,000 198,000,000 P2 Increase knowledge of and skills for agribusiness for farmers and cooperatives 2,075,620 2,075,620 2,075,620 2,075,620 2,075,620 10,378,100 P2F Increase access to markets or to agro-processing firms 5,921,200 5,921,200 5,921,200 5,921,200 5,921,200 29,606,000 P2 Develop farmers’ organizations 8,648,400 8,648,400 86,484 86,484 86,484 17,556,252 P3 Provide market knowledge to farmers through extension services 5,189,050 5,189,050 5,189,050 5,189,050 5,189,050 25,945,250 P2F Increase land under irrigation (irrigation perimeter) Construction of irrigation structures such as earth dams, schemes etc 646,529,000 646,529,000 646,529,000 646,529,000 646,529,000 3,232,645,000 P1 Rehabilitation of existing irrigation structures 78,080,000 78,080,000 78,080,000 78,080,000 78,080,000 390,400,000 P1 Promote modern irrigation technologies such as motorised and treadle pumps 817,600,000 817,600,000 100,000,000 100,000,000 100,000,000 1,935,200,000 P1 Development and use of water harvesting 315,000,000 315,000,000 0 0 0 630,000,000 P2 Reach farmers with extension services 8,718,931 8,718,931 8,718,931 8,718,931 8,718,931 43,594,655 P1F Source pesticides and spray equipment for migratory pest control 41,000,000 28,000,000 28,000,000 28,000,000 28,000,000 153,000,000 P2 Monitor/forecast outbreaks of migratory pests 5,500,000 5,500,000 5,500,000 5,500,000 5,500,000 27,500,000 P2F Promote processing and proper handling and storage of agricultural products via extension 358,886 358,886 358,886 358,886 358,886 1,794,430 P2F services 200 Malawi Growth and Development Strategy Train farmers on low cost soil fertility management techniques through extension services 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P3F Establish cooperatives/associations 18,000,000 18,000,000 20,000,000 20,000,000 20,000,000 96,000,000 P1 Facilitate access to credit, equipment and technology to assist in value addition 3,500,000 9,000,000 6,000,000 2,400,000 1,500,000 22,400,000 P2 Establish small scale cottage industry units in selected areas 0 25,000,000 10,000,000 5,000,000 0 40,000,000 P1 Undertake skills upgrading 10,000,000 5,000,000 5,000,000 4,000,000 24,000,000 P3 Put in place strategies to help livestock farmers reach markets 2,650,000 2,650,000 2,650,000 2,650,000 2,650,000 13,250,000 P1F Strengthen advisory services in the production and marketing of livestock and its products 12,116,100 12,116,100 12,116,100 12,116,100 12,116,100 60,580,500 P1F Expand small stock (poultry, goats, sheep) populations through procurement and distribution of 16,845,095 9,450,000 6,320,000 4,520,000 4,520,000 41,655,095 P1 start-up stocks Strengthen surveillance in the control of livestock and crop pests and diseases 24,232,200 24,232,200 24,232,200 24,232,200 24,232,200 121,161,000 P2F Natural Resources Increase use of modern technology by local communities and private sector for deep water 14,020,000 12,920,000 0 0 0 26,940,000 P1 fishing Provide fish landing facilities and train communities trained in modern fish processing 13,940,000 3,400,000 2,200,000 2,530,000 2,909,500 24,979,500 P3 Promote fish production from fish farming 83,700,000 98,200,000 42,500,000 48,875,000 56,206,250 329,481,250 P1 Carry out capture fisheries programmes 7,450,000 9,450,000 14,600,000 16,790,000 19,308,500 67,598,500 P3 Develop accreditation facilities for fish export 65,960,000 45,400,000 27,200,000 31,280,000 35,972,000 205,812,000 P2 Promote regional and international trade 20,900,000 46,600,000 30,900,000 35,535,000 40,865,250 174,800,250 P1F Forestry 201 Malawi Growth and Development Strategy Review the sustainability of de-linking the commercially productive component of the industrial forest plantations of the forestry department from the protection and extension forestry 2,000,000 2,000,000 3,000,000 2,000,000 0 9,000,000 P3F components Introduce appropriate incentives to promote investment in forest industries 2,000,000 2,000,000 3,000,000 0 0 7,000,000 P3 Registration with international standard bodies 4,000,000 3,000,000 2,000,000 1,000,000 1,000,000 11,000,000 P3 Undertake national surveys and documentation of forestry industry statistics 2,000,000 2,000,000 1,000,000 0 0 5,000,000 P3 Improve forest products marketing and develop standards and value added in the forestry 15,000,000 18,000,000 12,000,000 12,500,000 10,000,000 67,500,000 P3 industry Reforestation programme 955,900,000 1,044,600,000 1,007,100,000 955,900,000 1,204,300,000 5,167,800,000 P1 Identify training needs and develop training programmes 2,000,000 2,000,000 1,000,000 1,000,000 0 6,000,000 P2 Improve human resources capacity in the forestry sector 55,000,000 57,500,000 59,000,000 60,000,000 56,000,000 287,500,000 P2 Enforce forestry law 6,050,000 6,300,000 6,410,000 6,420,000 6,550,000 31,730,000 P2 Regulations, Standards, Enforcement Review polices and legislation for waste, sanitation and POPs 3,500,000 4,025,000 4,628,750 0 0 12,153,750 P1 Recruit and retain environmental lawyers and develop capacity to enforce standards 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 P2 Design and implement economic instruments to promote sound environmental management 13,000,000 13,000,000 5,000,000 0 0 31,000,000 P1F Development environmental standards 8,000,000 8,000,000 8,000,000 0 0 24,000,000 P2 Strengthen legal framework 30,000,000 26,200,000 22,496,000 22,895,680 20,407,334 121,999,014 P2 Establish and implement coordinating mechanism for implementing international environmental conventions: biodiversity, climate change, POPs, waste management, Montreal, desertification 7,500,000 8,100,000 8,748,000 9,447,840 10,203,667 43,999,507 P2F etc. 202 Malawi Growth and Development Strategy Coordinate implementation of Clean Development Mechanism 12,500,000 13,500,000 14,580,000 15,746,400 17,006,112 73,332,512 P2 Harmonize sector-specific strategies for dealing with problems affecting common resources 0 0 10,000,000 10,000,000 10,000,000 30,000,000 P2F Develop policies and strategies for coordination of common programme and activities 0 0 15,000,000 15,000,000 P1 undertaken by the various stakeholders Define institutional position of EDO and operationalise the environmental decentralization 30,000,000 30,000,000 30,000,000 30,000,000 30,000,000 150,000,000 P1 strategy Environmental Education and Awareness Incorporate environmental concerns in school curricula 0 8,000,000 4,000,000 0 0 12,000,000 P1 Undertake public awareness campaign 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 Develop Environmental Information Management System (EIMS) 20,000,000 10,000,000 5,000,000 5,000,000 5,000,000 45,000,000 P2F Develop environmental databases such as for state of environment indicators policies, EIAs and 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 P1 legal aspects Conservation and Wildlife Provide logistical support for law enforcement (e.g. vehicles, base radios) 20,000,000 20,000,000 20,000,000 20,000,000 20,000,000 100,000,000 P1 Construct a sanctuary in Kasungu National Park in order to repopulate the park 10,000,000 7,500,000 5,000,000 2,500,000 25,000,000 P1 Develop new and rehabilitate existing infrastructure (including staff houses, roads, bridges, bore 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 200,000,000 P1 holes, electricity supply) Procure materials and drugs for tsetse control 11,250,000 10,000,000 10,000,000 31,250,000 P3 Support communities to establish wildlife based enterprises (e.g. ranching, farming, bee 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P2 keeping) Develop a PAC strategy and guidelines 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P2 Construct new and rehabilitate existing perimeter electric fences for all protected areas 36,000,000 27,000,000 1,800,000 5,000,000 4,000,000 73,800,000 P1 203 Malawi Growth and Development Strategy Translocate dangerous animals to Protected Areas (Pas) 15,000,000 20,000,000 25,000,000 10,000,000 5,000,000 75,000,000 P3 Conduct monitoring of key wildlife species 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P2 Develop research plan and guidelines 3,250,000 3,000,000 6,250,000 P2 Procure high tech research and monitoring equipment 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000 P3 SUB THEME 1 TOTAL 5,868,037,714 5,628,155,381 4,459,335,288 3,868,100,945 4,123,264,801 23,946,894,128 SUB THEME 2 Enabling Environment for Private Sector Led Growth Competitiveness Implement occupational safety and health for labour 5,000,000 20,000,000 20,000,000 20,000,000 15,000,000 80,000,000 P1 Expand capacity of existing vocational training institutions, including training more instructors in 225,000,000 225,000,000 500,000,000 500,000,000 500,000,000 1,950,000,000 P1 vocational training areas (TEVET) Update curriculum and equipment for economic needs (vocational centres) 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 60,000,000 P3 Increase enrolment of general education students in vocational programme 20,000,000 20,000,000 20,000,000 30,000,000 30,000,000 120,000,000 P3 Increase efficiency of one-stop-shop for attracting outside investors and clarify laws to enable 2,000,000 2,500,000 2,500,000 3,000,000 10,000,000 P1 this Develop and implement the National Export Strategy 20,000,000 20,000,000 P1 Design, develop and implement Private Sector Development Strategy and action matrix 7,000,000 60,000,000 80,000,000 100,000,000 100,000,000 347,000,000 P1 Enhance coordination amongst micro finance institutions 2,000,000 2,000,000 2,500,000 0 0 6,500,000 P2 Increase loanable funds for SMEs 200,000,000 300,000,000 400,000,000 500,000,000 500,000,000 1,900,000,000 P2 Improve infrastructure for SMEs 15,000,000 100,000,000 150,000,000 0 0 265,000,000 P2 Increased Investment 0 Review of policies and laws affecting domestic trade 10,000,000 8,000,000 1,000,000 1,000,000 0 20,000,000 P1 204 Malawi Growth and Development Strategy Develop employment and labour policy 30,000,000 15,000,000 45,000,000 P1 Integrate message of good governance into promotional themes 15,000,000 25,000,000 25,000,000 15,000,000 5,000,000 85,000,000 P1 SUB THEME 2 TOTAL 563,000,000 789,500,000 1,213,000,000 1,181,000,000 1,162,000,000 4,908,500,000 SUB THEME 3 Food Security Improve reliability of fertilizer markets 3,467,000 3,467,000 3,467,000 3,467,000 3,467,000 17,335,000 P1 Establish and enforce phyto-sanitary rules and regulations 3,200,000 3,200,000 3,200,000 3,200,000 3,200,000 16,000,000 P2 Manage strategic grain reserve effectively (NFRA) 72,000,000 72,000,000 72,000,000 72,000,000 72,000,000 360,000,000 P1 Develop a reliable agricultural statistics and an early warning system 8,377,000 8,377,000 2,750,000 2,750,000 2,750,000 25,004,000 P1 Promote a coordinated approach to planning and management of food aid 3,653,000 3,653,000 3,653,000 3,653,000 3,653,000 18,265,000 P1 SUB THEME 3 TOTAL 90,697,000 90,697,000 85,070,000 85,070,000 85,070,000 436,604,000 SUB THEME 4 Export Led Growth Harmonise standards for cross border and transit trade with neighbouring countries 2,000,000 1,500,000 500,000 500,000 500,000 5,000,000 P2 Increase trade information and access to market 75,000,000 50,000,000 20,000,000 15,000,000 15,000,000 175,000,000 P1 Reorient Malawi Export Promotion Council 5,000,000 4,000,000 4,000,000 4,000,000 4,000,000 21,000,000 P2 Establish trade finance scheme 50,000,000 100,000,000 100,000,000 150,000,000 200,000,000 600,000,000 P2 Upgrade trade related skills of key staff in target institutions 2,000,000 3,000,000 4,000,000 5,000,000 5,000,000 19,000,000 P2 Enhance capacity building for producers and exporters 5,000,000 7,000,000 7,000,000 7,000,000 7,000,000 33,000,000 P2 Strengthen analytical capacity for trade policy analysis and implementation 37,500,000 0 0 0 37,500,000 P2 Establish Fair Trade Commission 112,480,000 112,480,000 50,000,000 50,000,000 50,000,000 374,960,000 P1 Export Promotion Council enabled to coordinate adequately export promotion activities in 90,000,000 90,000,000 70,000,000 70,000,000 70,000,000 390,000,000 P1 Malawi/Re orient MEPC 205 Malawi Growth and Development Strategy SUB THEME 4 TOTAL 378,980,000 367,980,000 255,500,000 301,500,000 351,500,000 1,655,460,000 SUB THEME 5 Economic Empowerment Strengthen the policy environment for micro finance 8,000,000 1,000,000 1,000,000 0 0 10,000,000 P1 Strengthen core function of ADMARC in geographical areas which are underserved by the 540,000,000 540,000,000 540,000,000 540,000,000 540,000,000 2,700,000,000 P1 private sector including through reform of ADMARC Promote the deployment and exploitation of ICTs to support the activities of the agricultural 12,000,000 12,000,000 12,000,000 12,000,000 12,000,000 60,000,000 P2 sector Develop a programme that will oversee the establishment of cooperatives in rural areas 6,919,000 6,919,000 0 0 0 13,838,000 P2 Strengthen policy environment for SMEs and Cooperatives 2,000,000 3,000,000 500,000 0 5,500,000 P2 Develop a national economic empowerment act 15,000,000 20,000,000 20,000,000 10,000,000 10,000,000 75,000,000 P1 Establish National Economic Empowerment Council 20,000,000 45,000,000 45,000,000 25,000,000 25,000,000 160,000,000 P2 Provide technical support from private sector programs (related to off farm employment) 50,000,000 50,000,000 60,000,000 40,000,000 50,000,000 250,000,000 P1 Establish programmes for increasing opportunities to participate in economic activities including 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2 through creation of a Product Development Fund Introduce tax incentives for private sector institutions participating in rural industries 35,000,000 35,000,000 5,000,000 5,000,000 5,000,000 85,000,000 P2 Review the possibility of providing grants to match private sector funding for empowerment 14,000,000 14,000,000 14,000,000 0 0 42,000,000 P2 related projects Review the role played by public institutions such as SEDOM, DEMAT in the Empowerment 12,000,000 15,000,000 0 0 0 27,000,000 P1 Programme Strengthen institutions providing entrepreneurial and business training 45,000,000 50,000,000 5,000,000 0 0 100,000,000 P1 206 Malawi Growth and Development Strategy Improve infrastructure for SMEs 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2 Establish an SME Apex institution 12,300,000 9,000,000 4,500,000 2,500,000 0 28,300,000 P3 Formulate and execute an improved training programme on small scale business management 66,600,000 66,600,000 66,600,000 39,100,000 39,100,000 278,000,000 P1 (OVOP) - capacity building Promote marketing of goods and services (OVOP) 51,900,000 51,900,000 51,900,000 26,400,000 26,400,000 208,500,000 P1 Develop a programme that will oversee the establishment of cooperatives in rural areas 2,000,000 750,000 750,000 750,000 750,000 5,000,000 P1 Provide technical support from private sector programmes related to off farm employment 5,000,000 5,600,000 7,000,000 10,000,000 10,000,000 37,600,000 P2 Organise communities to produce outputs or develop local industry 0 Strengthen understanding of micro-finance 2,000,000 2,000,000 2,000,000 4,000,000 4,000,000 14,000,000 P2 Enhance capacity of courts to handle business cases 0 0 P3 Encourage financial institutions to design tiered loan packages to provide incentives to 500,000 500,000 500,000 500,000 500,000 2,500,000 P2 borrowers for loan repayment Establish Credit Reference Bureau 50,000,000 10,000,000 10,000,000 10,000,000 10,000,000 90,000,000 P1 Establish network of practitioners in MFI 2,000,000 3,000,000 3,000,000 3,000,000 3,000,000 14,000,000 P1 Provide training to all people who borrow for business purposes through the training unit of the 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P2 NEEC Support finance institutions in designing differentiated financial products 2,000,000 5,500,000 8,000,000 4,000,000 19,500,000 P2 Develop and strengthen the micro-finance sector to serve small scale concerns and as part of 2,000,000 3,000,000 3,000,000 4,000,000 4,000,000 16,000,000 P2 the broader financial system Develop a charter to increase the employment opportunities 6,000,000 6,000,000 4,000,000 4,000,000 3,000,000 23,000,000 P2 Enhance institutional framework supporting the development of women entrepreneurs 12,500,000 15,000,000 12,500,000 5,000,000 45,000,000 P3 207 Malawi Growth and Development Strategy Train women in entrepreneurial skills and ability to manage businesses 20,000,000 30,000,000 3,750,000 50,000,000 103,750,000 P2 Improve capacity of the Malawi Council for the Handicapped and other similar institutions that 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 deliver services to people with disabilities Vocational training and skills 210,000,000 210,000,000 150,000,000 150,000,000 150,000,000 870,000,000 P1 SUB THEME 5 TOTAL 1,402,219,000 1,428,269,000 1,288,750,000 1,136,500,000 1,177,750,000 6,433,488,000 SUB THEME 6 Land and Housing Review and reconcile existing laws to ensure compatibility with the land policy 10,000,000 20,000,000 10,000,000 0 0 40,000,000 P1F Develop a carefully structured programme on land administration and land records 0 50,000,000 0 50,000,000 P2 Implement public awareness activities regarding property rights of vulnerable groups 30,000,000 25,000,000 13,000,000 0 0 68,000,000 P1 Intensify resettlement and land development programmes 300,000,000 400,000,000 600,000,000 1,000,000,000 1,000,000,000 3,300,000,000 P1 Establish viable land markets 15,000,000 20,000,000 0 0 0 35,000,000 P2 Customary land regularisation, titling and registration 280,000,000 282,250,000 400,000,000 162,500,000 0 1,124,750,000 P1 Provide credit to support off farm livelihoods enhancing activities 30,000,000 50,000,000 35,000,000 10,000,000 0 125,000,000 P2 Promote public awareness on land rights and land policy in general 15,000,000 20,000,000 20,000,000 5,000,000 5,000,000 65,000,000 P1 Finalise and enact the Land Bill 15,000,000 5,000,000 0 0 0 20,000,000 P1 Develop a Land Use Policy 15,000,000 10,000,000 0 0 0 25,000,000 P1 Review Land Use Legislation 10,000,000 30,000,000 0 0 0 40,000,000 P2 Review of the National Physical Development Plan 10,000,000 0 0 0 10,000,000 P2 Review the Town and Country Planning Act, planning standards and regulations 45,000,000 30,000,000 0 0 0 75,000,000 P3 208 Malawi Growth and Development Strategy Sensitise local communities in aspects of land use planning environment and community land 8,000,000 7,000,000 5,000,000 6,000,000 6,000,000 32,000,000 P3 resource management Improve capacity in the land sector for implementing a National Land Reform Programme 20,000,000 15,000,000 15,000,000 10,000,000 10,000,000 70,000,000 P1 Procurement of modern equipment for surveying, planning and valuation 50,000,000 20,000,000 0 0 0 70,000,000 P3 Review all charges on land services rendered 10,000,000 20,000,000 5,000,000 0 0 35,000,000 P1 Review the 1999 National Housing Policy in order to re-align it to the new National Land Policy 10,000,000 15,000,000 0 0 0 25,000,000 P1 and other Government policies and protocols Mobilize resources to meet varying housing demands, particularly rental housing for low-income 7,500,000 27,500,000 20,000,000 20,000,000 0 75,000,000 P2 and vulnerable groups Facilitate formulation of special funding schemes for groups in poverty and the most vulnerable 5,000,000 2,000,000 0 0 1,000,000 8,000,000 P2 groups Review the draft Building Regulations and Standards 15,000,000 5,000,000 0 0 0 20,000,000 P1 Promote and encourage community participation in infrastructure provision and maintenance 5,000,000 1,000,000 0 0 0 6,000,000 P3 Conduct civic education/public awareness on the importance of housing and available housing 20,000,000 15,000,000 5,000,000 0 0 40,000,000 P3 programmes and/or housing delivery systems. Facilitate the formulation of housing and multi-purpose community development cooperatives, 2,000,000 1,000,000 4,000,000 0 0 7,000,000 P3 especially for providing low-income housing SUB THEME 6 TOTAL 927,500,000 1,070,750,000 1,132,000,000 1,213,500,000 1,022,000,000 5,365,750,000 THEME 1 GRAND TOTAL 9,230,433,714 9,375,351,381 8,433,655,288 7,785,670,945 7,921,584,801 42,746,696,128 209 Malawi Growth and Development Strategy THEME 2 SOCIAL PROTECTION SUB THEME 1 Protecting the Vulnerable Create an enabling environment for child protection 71,000,000 71,000,000 71,000,000 71,000,000 71,000,000 355,000,000 P1 Provide nutritious food and home based care kits to those infected by HIV and AIDS 64,562,500 64,562,500 64,562,500 64,562,500 64,562,500 322,812,500 P3 Provide supplementary feeding to malnourished pregnant, lactating mothers, and under five 154,015,000 154,015,000 154,015,000 154,015,000 154,015,000 770,075,000 P3 children Promote targeted school feeding programme to the most vulnerable 624,000,000 624,000,000 624,000,000 624,000,000 624,000,000 3,120,000,000 P3F Promote therapeutic feeding to severely malnourished under five children 147,812,000 147,812,000 147,812,000 147,812,000 147,812,000 739,060,000 Expand small stock (e.g. goats, chickens etc) and grain mills programme for the most vulnerable 450,000,000 450,000,000 450,000,000 450,000,000 450,000,000 2,250,000,000 P3 Introduce conditional and non conditional cash transfers to infirmed, elderly, disabled, orphans, 375,000,000 375,000,000 375,000,000 375,000,000 375,000,000 1,875,000,000 P3F OVCs Support the most vulnerable with food and non food items for their upkeep 32,000,000 32,000,000 32,000,000 32,000,000 32,000,000 160,000,000 P3 Practice better prioritisation, design, delivery, and review of safety nets/social protection 12,000,000 6,000,000 3,000,000 1,500,000 1,500,000 24,000,000 P1 programmes framework to be consistent with MGDS Promote and provide access to poor farm families to agriculture inputs (subsidies, free inputs) 1,400,000 1,400,000 1,400,000 1,400,000 1,400,000 7,000,000 P2F Implement productivity enhancing interventions (e.g. public works programmes: river diversion 3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000 3,500,000,000 17,500,000,000 P1F for irrigation, afforestation, reservoir/dam construction, dykes, roads) 210 Malawi Growth and Development Strategy Enhance non-traditional PWP (e.g. manure making, bush clearing) 750,000,000 750,000,000 750,000,000 750,000,000 750,000,000 3,750,000,000 P1F Promote small scale productive activities 250,000,000 250,000,000 250,000,000 250,000,000 250,000,000 1,250,000,000 P2 Review effectiveness of current public works programs, feeding programs, targeted input 7,000,000 7,000,000 P1 programs Provide low cost housing to the poor and vulnerable 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 175,000,000 P3F Increased access to rehabilitation services by persons with disabilities 53,750,000 53,750,000 53,750,000 53,750,000 53,750,000 268,750,000 P1 Develop braille literacy programmes 25,000,000 25,000,000 P1 Improving access to and quality of adult education programme for illiterate adults in Malawi 65,381,030 16,551,730 16,374,800 16,567,070 60,448,830 175,323,460 P1 Fight against child labour 86,666,667 86,666,667 86,666,667 0 0 260,000,000 P1 Activities of Child Labour Control Unit 20,000,000 20,000,000 25,000,000 25,000,000 25,000,000 115,000,000 P2 SUB THEME 1 TOTAL 6,724,587,197 6,637,757,897 6,639,580,967 6,551,606,570 6,595,488,330 33,149,020,960 SUB THEME 2 Disaster Management Promote integration of disaster management into sustainable development programming at all 21,200,000 11,200,000 3,200,000 3,200,000 3,200,000 42,000,000 P1F levels Establish an effective early warning system 205,812,000 205,812,000 20,830,000 20,830,000 20,830,000 474,114,000 P1 Provide timely emergency relief assistance to affected people 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P3 Improve mitigation and rehabilitation of areas affected by disaster 8,000,000 8,000,000 8,000,000 8,000,000 8,000,000 40,000,000 P3 SUB THEME 2 TOTAL 335,012,000 325,012,000 132,030,000 132,030,000 132,030,000 1,056,114,000 THEME 2 GRAND TOTAL 7,059,599,197 6,962,769,897 6,771,610,967 6,683,636,570 6,727,518,330 34,205,134,960 THEME 3 SOCIAL DEVELOPMENT 211 Malawi Growth and Development Strategy SUB THEME 1 Health Increase student intake into medical/health training institutions 1,196,000,000 1,196,000,000 1,196,000,000 1,196,000,000 1,196,000,000 5,980,000,000 P1F Provide ARVs to HIV and AIDS infected health workers 81,900,000 171,600,000 302,250,000 468,000,000 668,850,000 1,692,600,000 P1F Provide incentives to health workers at the local level (proper working hours, etc.) 3,861,000,000 3,861,000,000 3,861,000,000 3,861,000,000 3,861,000,000 19,305,000,000 P2F Develop strategy to sustainably maintain qualified health workers for the front line 11,908,000 9,776,000 9,776,000 9,776,000 0 41,236,000 P2F Improve pharmaceutical and medical supplies and distribution for timely procurement to reach 2,581,800,000 2,891,200,000 3,239,600,000 3,627,000,000 4,062,500,000 16,402,100,000 P1F health facilities Undertake close monitoring of drug management and utilization 8,775,000 8,775,000 8,775,000 8,775,000 8,775,000 43,875,000 P3F Provide vaccines at clinics/communities 904,234,370 904,234,370 904,234,370 904,234,370 904,234,370 4,521,171,850 P1F Provide bed nets at clinics/communities 78,000,000 78,000,000 78,000,000 78,000,000 78,000,000 390,000,000 P1F Strengthen training capacity in college of medicine for pharm qualifications 171,600,000 171,600,000 171,600,000 171,600,000 171,600,000 858,000,000 P3F Rehabilitate, construct and maintain health structures: buildings, medical equipment, 1,173,900,000 1,300,000,000 1,361,100,000 1,436,500,000 1,436,500,000 6,708,000,000 P1F telecommunication, electricity and water through the facilities development program Improve planning and budgeting at all levels through systems development at the central and 260,000 260,000 260,000 260,000 260,000 1,300,000 P1F district level Undertake close monitoring of financial flows and usage 0 3,887,000 0 3,887,000 0 7,774,000 P1F Modernize the operations of the health delivery system 21,000,000 20,909,091 19,834,711 24,000,000 24,000,000 109,743,802 P2 Introduce VIP latrines and other appropriate rural water sanitation technologies 0 0 0 0 0 0 SUB THEME 1 TOTAL 10,090,377,370 10,617,241,461 11,152,430,081 11,789,032,370 12,411,719,370 56,060,800,652 212 Malawi Growth and Development Strategy SUB THEME 2 Education Primary Expand and improve existing infrastructure and maximize its use 845,000,000 845,000,000 845,000,000 845,000,000 845,000,000 4,225,000,000 P2 Reduce primary school cycle to 7 years from 8 years 117,000,000 117,000,000 117,000,000 117,000,000 117,000,000 585,000,000 P1 Undertake social awareness campaigns and whole school development 24,375,000 24,375,000 24,375,000 24,375,000 24,375,000 121,875,000 P3 Train new and current teachers, provide attractive terms / conditions, especially to go to rural 357,825,000 328,110,714 627,110,714 692,110,714 714,396,429 2,719,553,571 P1 area, & professional development Provide adequate supply of teacher learning materials and a child friendly environment 436,888,179 233,423,113 238,091,575 242,853,407 247,710,475 1,398,966,748 P2 Improve overall management and monitoring of inspection, supervision and advisory 15,759,366 15,759,366 15,759,366 15,759,366 15,759,366 78,796,830 P1 Mobilize community participation in primary school management 33,533,500 16,766,750 16,766,750 16,766,750 16,766,750 100,600,500 P3 Review policies related to girls 1,392,857 1,392,857 1,392,857 1,392,857 1,392,857 6,964,286 P2 Provide block grants to schools to address equity issues 73,567,000 85,174,143 73,567,000 73,567,000 73,567,000 379,442,143 P2 Review policies related to SN Education 1,392,857 1,392,857 1,392,857 1,392,857 1,392,857 6,964,286 P2 Establish a college for special needs teacher education 975,000,000 0 0 0 0 975,000,000 P1 Provide direct assistance to schools to address equity issues (relevant textbooks, brail, etc.) 14,760,000 14,760,000 14,760,000 14,760,000 14,760,000 73,800,000 P2 Design and standardized sign language for the deaf and dumb 6,500,000 0 0 0 0 6,500,000 P3 Continually revise and improve the relevance of the curriculum to include academic and non 35,687,282 36,164,465 36,894,371 37,632,765 38,379,817 184,758,700 P1 academic needs of pupils and the effective orientation of teachers – introduce PCAR curriculum 213 Malawi Growth and Development Strategy Provide in service training and incentives to school managers, inspectors and senior teachers 3,182,400 3,182,400 3,182,400 3,182,400 3,182,400 15,912,000 P1 Equip school planners with appropriate knowledge and skills in micro-planning, monitoring and 10,011,105 10,011,105 10,011,105 2,956,005 2,956,005 35,945,325 P3 data management Secondary Identify and rehabilitate all existing dilapidated school facilities, construct new schools 306,881,250 306,881,250 306,881,250 306,881,250 306,881,250 1,534,406,250 P1 Introduce double shift in urban school 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 32,500,000 P3 Increase access to secondary distance education 32,500,000 32,500,000 32,500,000 32,500,000 32,500,000 162,500,000 P3 Train and supply adequate number of qualified teachers and improve terms and conditions 622,050,000 635,050,000 645,450,000 660,400,000 678,600,000 3,241,550,000 P1 Up-grade under qualified teachers through in service education 58,500,000 58,500,000 58,500,000 58,500,000 58,500,000 292,500,000 P1 Provide girl-friendly environment, in particular accommodation in 90 secondary schools 557,142,857 557,142,857 557,142,857 557,142,857 557,142,857 2,785,714,286 P1F Increase bursaries for the needy secondary students 88,400,000 93,600,000 97,500,000 101,400,000 105,300,000 486,200,000 P1F Provide female secondary school teachers as models - recruitment, deployment and training 289,286 300,000 310,714 321,429 332,143 1,553,571 P2 Improve and increase special needs education facilities in existing colleges 32,500,000 32,500,000 32,500,000 32,500,000 32,500,000 162,500,000 P2 Review policies related to orphans, other vulnerable children and SN education 1,392,857 1,392,857 1,392,857 1,392,857 1,392,857 6,964,286 P1 Provide block grants to schools relevant to special needs 27,300,000 27,300,000 27,300,000 27,300,000 27,300,000 136,500,000 P3 Introduce and implement curriculum responsive to needs of individuals and the nation by 6,500,000 6,500,000 6,500,000 71,500,000 46,428,571 137,428,571 P1 including academic and non-academic subjects Provide trained guidance counsellors to all secondary schools 19,071,000 19,071,000 19,071,000 19,071,000 19,071,000 95,355,000 P3 Train school managers in planning, monitoring and supervision 8,125,000 8,125,000 8,125,000 8,125,000 8,125,000 40,625,000 P3 214 Malawi Growth and Development Strategy Increase the procurement and distribution of teaching and learning materials 150,000,000 19,937,161 20,075,904 20,217,422 20,361,770 230,592,257 P2 Improve District Educational Management Information System (DEMIS) 12,714,000 12,714,000 12,714,000 12,714,000 12,714,000 63,570,000 P1 Improve education planning and equip planners with knowledge and skills in planning, 127,140,000 0 0 0 0 127,140,000 P2 monitoring and data management, including monitoring the delivery of supplies in the schools Improve flow of funds and train managers in financial management in public schools 0 0 0 0 0 0 P1 Train school managers in financial management 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 6,500,000 P1 Tertiary Recruit and train more academic staff (50% at current levels, 70% at Master’s level, 30% at PhD 68,410,000 73,570,000 78,730,000 83,630,000 89,050,000 393,390,000 P2 level) Rehabilitate and expand physical infrastructure 45,230,000 214,000,000 259,230,000 P1 Develop new, parallel programmes, distance/virtual learning, and short courses 100,000,000 39,200,000 39,200,000 39,200,000 39,200,000 256,800,000 P3 Develop a student financing policy including a student loan scheme 6,678,000 8,468,000 140,000 140,000 140,000 15,566,000 P1 Promote local production of teaching and learning materials 48,812,000 22,204,000 36,190,000 7,700,000 7,700,000 122,606,000 P2 Expand provision of internet services, broad band internet access established campus wide 590,940 4,768,400 6,378,400 3,806,400 6,518,400 22,062,540 P2 Expand teacher training education programs for primary and secondary education 369,920 4,862,180 6,420,620 8,503,300 11,303,500 31,459,520 P2 Create an enabling environment to accommodate female students and people with disabilities 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000 P2 Develop comprehensive policies on research and development 25,000,000 25,000,000 50,000,000 P1 Provide adequate teaching and learning materials 9,385,800 13,836,400 12,756,300 13,076,200 13,370,800 62,425,500 P1 Provide relevant skills to academic staff through regular training 10,303,000 6,243,000 3,380,000 1,400,000 21,326,000 P3 215 Malawi Growth and Development Strategy Conduct regular curriculum reviews to match national needs and modularise courses 0 7,000,000 3,703,000 8,230,000 2,010,000 20,943,000 P3 Provide labs with adequate modern equipment 0 0 0 0 0 0 Decentralize decision making processes 812,000 672,000 588,000 420,000 420,000 2,912,000 P2 Improve procurement and distribution system and monitor delivery of supplies 1,120,000 2,100,000 1,260,000 1,120,000 1,190,000 6,790,000 P1 Establish planning units and equip planners with appropriate knowledge and skills in planning, 70,000 3,640,000 3,710,000 P2 monitoring and data management Strengthen financial management 300,000,000 300,000,000 P1 SUB THEME 2 TOTAL 5,716,659,456 4,081,450,876 4,150,676,898 4,275,720,836 4,303,891,104 22,528,399,170 SUB THEME 3 Gender Strengthen institutional capacity for effective co-ordination of gender policy implementation 64,220,000 64,220,000 64,220,000 64,220,000 64,220,000 321,100,000 P1 Undertake affirmative action to increase women decision makers in high levels of the public and 16,250,000 7,800,000 8,450,000 10,400,000 13,000,000 55,900,000 P2 private sectors Include gender equality provisions in the Laws of Malawi 11,700,000 11,700,000 23,400,000 P2 Break the cultural/traditional factors that create and perpetuate gender inequalities 28,600,000 28,925,000 30,875,000 33,475,000 35,100,000 156,975,000 P1 SUB THEME 3 TOTAL 120,770,000 112,645,000 103,545,000 108,095,000 112,320,000 557,375,000 SUB THEME 4 HIV/AIDs Prevention and Behaviour change Expand and scale up the scope and depth of HIV and AIDS communication at local level 3,275,609,350 3,950,670,750 2,353,423,150 1,189,598,150 1,189,598,150 11,958,899,550 P1 Promote and support HIV protective interventions especially designed for young people 165,945,000 147,745,000 147,745,000 148,232,500 148,232,500 757,900,000 P1 Reduce the vulnerability of Malawians to HIV infection, especially girls and women 282,029,735 119,042,235 282,029,735 119,042,235 119,042,235 921,186,175 P1 216 Malawi Growth and Development Strategy Strengthen socio-cultural values and practices that prevent the spread of HIV 6,630,000 14,430,000 10,725,000 14,917,500 14,917,500 61,620,000 P1 Promote safer sex practices among the high-risk groups and in high-risk settings 264,030,000 253,539,000 318,916,000 357,266,000 357,266,000 1,551,017,000 P1 Increase district and community level outreach for changing practices 256,061,000 330,161,000 263,373,500 232,661,000 232,661,000 1,314,917,500 P1 Increase access to quality STI syndromic management, counselling and information 410,579,000 383,037,200 387,353,200 379,462,200 379,358,200 1,939,789,800 P1 Expand the scope, coverage and equal access by all Malawians to HIV testing and counselling 990,748,200 1,193,203,700 1,338,498,200 1,512,178,200 1,512,178,200 6,546,806,500 P1 services especially in rural areas Expand the scope, quality and coverage of PMTCT services throughout the country 316,782,050 242,093,800 238,583,800 139,965,800 139,965,800 1,077,391,250 P1 Increase access to safe blood, blood products and tissue services throughout the country 168,018,500 169,318,500 132,106,000 51,018,500 51,018,500 571,480,000 P1 including availability of adequate infection prevention materials and procedures Equitable treatment for PLHA and mitigate the health impacts of HIV/AIDS Increase equitable access to ARVs and OI drugs 2,786,875,000 3,656,250,000 4,525,625,000 5,395,000,000 5,395,000,000 21,758,750,000 P1 Strengthen an integrated ART infrastructure and logistic systems and a national quality 95,048,200 119,384,200 29,918,200 25,888,200 25,888,200 296,127,000 P2 assurance program for ART Expand provision and access to high quality and integrated community home-based care 193,505,000 708,500,000 129,376,000 94,276,000 94,276,000 1,219,933,000 P2 (CHBC) services Establish mechanisms and Expand delivery of nutritional support/ therapy to PLHA 949,053,300 1,467,772,800 1,468,097,800 1,457,372,800 1,457,372,800 6,799,669,500 P2 Mitigation of socio-economic and psychosocial impacts of HIV/AIDS P2 Promote sustainable income generation and advocacy for micro-finance programs for the 377,858,000 454,675,000 253,500,000 245,180,000 245,180,000 1,576,393,000 P2 infected and affected 217 Malawi Growth and Development Strategy Promote and protect the rights of those infected and affected 85,930,000 91,780,000 66,430,000 52,780,000 52,780,000 349,700,000 P2 Strengthen capacities of communities, districts, PLHA Associations and FBOs to provide 406,608,800 342,076,800 332,846,800 224,965,000 224,965,000 1,531,462,400 P2 psychosocial support and counselling Improve OVC access to essential social and community based services 1,914,218,800 1,821,138,800 1,843,628,800 1,704,788,800 1,704,788,800 8,988,564,000 P1 Promote food security and nutrition among HIV affected households 8,242,000 8,242,000 6,292,000 6,292,000 6,292,000 35,360,000 P2 Effective and efficient implementation of HIV/AIDS response across the public and private sectors Develop capacity and partnerships for a shared and common understanding of mainstreaming in 927,392,700 145,293,200 89,048,700 80,650,700 80,650,700 1,323,036,000 P2 both public and private sectors including civil society, NGOs, CBOs and FBOs Increase the capacity of District Assemblies to oversee HIV/AIDS activities in their districts 93,394,600 62,324,600 64,326,600 15,849,600 15,849,600 251,745,000 P2 Improve HIV/AIDS data collection, dissemination and utilization at both national and district 288,611,700 705,424,200 396,492,200 137,532,200 137,532,200 1,665,592,500 P2 levels Improve planning, coordination and resource mobilisation in the spirit of the three ones 541,937,500 433,420,000 340,080,000 333,190,000 333,190,000 1,981,817,500 P2 Implement strategic approach to research and development 534,472,900 566,668,700 585,707,200 613,072,200 613,072,200 2,912,993,200 P2 SUB THEME 4 TOTAL 15,339,581,335 17,386,191,485 15,604,122,885 14,531,179,585 14,531,075,585 77,392,150,875 SUB THEME 5 Nutrition Promotion of adoption of appropriate diet and healthy lifestyles through education and 47,790,210 47,790,210 47,790,210 47,790,210 47,790,210 238,951,050 P1 counselling 218 Malawi Growth and Development Strategy Promotion of control, prevention and treatment of micronutrient deficiency disorders particularly 27,690,000 27,690,000 14,690,000 14,690,000 13,000,000 97,760,000 P1 those caused by Vitamin A, Iodine and iron deficiencies Promotion of control, prevention and treatment of diseases that have direct impact on nutrition 44,980,000 44,980,000 35,984,000 28,787,200 23,029,760 177,760,960 P1 and health status Policy coordination, implementation and monitoring of nutrition programmes 39,000,000 39,000,000 39,000,000 39,000,000 39,000,000 195,000,000 P1 Build capacity of nutritionists, dieticians and community nutrition workers 19,500,000 13,000,000 13,000,000 100,000,130 13,000,000 158,500,130 P1 Nutrition surveillance 5,850,000 6,500,000 6,500,000 6,500,000 6,500,000 31,850,000 P1 Establishment of nutrition resource centres at all levels (i.e. central, districts and community 45,500,000 39,000,000 39,000,000 39,000,000 39,000,000 201,500,000 P1 levels) Enhance data collection, analysis and dissemination on nutrition 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 39,000,000 P1 Increase access and availability of services and information to prevent consumers from health 18,200,000 18,200,000 18,200,000 18,200,000 18,200,000 91,000,000 P2 hazards Review and include nutrition in the curricula of all learning and training institutions 78,000,000 6,500,000 5,200,000 3,900,000 13,000,000 106,600,000 P2 Policy design, dissemination, legislation and enforcement 45,500,000 2,600,000 2,600,000 3,250,000 13,000,000 66,950,000 P2 Advocacy and lobbying 32,500,000 15,600,000 15,600,000 15,600,000 15,600,000 94,900,000 P2 Initiate research on socio-economic impact of Nutrition 11,700,000 11,700,000 11,700,000 11,700,000 11,700,000 58,500,000 P2 Harmonize and improve and nutrition security information system for evidence based 16,250,000 2,600,000 2,600,000 2,600,000 2,600,000 26,650,000 P3 intervention Conduct Nutrition fairs at all levels 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 32,500,000 P3 Observe international Nutrition days 3,900,000 3,900,000 3,900,000 3,900,000 3,900,000 19,500,000 P3 SUB THEME 1 TOTAL 450,660,210 293,360,210 270,064,210 349,217,540 273,619,970 1,636,922,140 219 Malawi Growth and Development Strategy SUB THEME 3 Interaction of Nutrition, HIV and AIDS 2006/07 2007/08 2008/09 2009/10 2010/11 TOTAL Priority Nutrition for positive living 4,050,000 4,050,000 4,050,000 4,050,000 4,050,000 20,250,000P1 Nutrition management of HIV-related illnesses 6,500,000 7,800,000 9,360,000 11,232,000 13,478,400 48,370,400P1 Management of ARV interactions with food and nutrition 10,700,000 10,700,000 10,700,000 10,700,000 10,700,000 53,500,000P2 Therapeutic feeding for moderately and severely malnourishedHIV-positive children and adults 17,200,000 20,640,000 24,768,000 29,721,600 35,665,920 127,995,520P1 Infant and young child nutrition for HIV exposed children 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000P1 Palliative care and community coping mechanisms 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 175,000,000P2 Nutrition Education for the infected and affected households 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 500,000,000P1 Nutrition Demonstration 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 50,000,000P2 Nutrition Assessment Equipment for HIV & AIDS patients 10,192,000 10,192,000 10,192,000 10,192,000 10,192,000 50,960,000P2 Production of Nutrition, HIV and AIDS training materials and eating guidelines for PLWHAs 20,000,000 10,000,000 5,000,000 5,000,000 5,000,000 45,000,000P3 Development of monitoring and evaluation tools 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000P3 SUB THEME 3 TOTAL 223,642,000 218,382,000 219,070,000 225,895,600 234,086,320 1,121,075,920 THEME 3 GRAND TOTAL 31,941,690,371 32,709,271,032 31,499,909,074 31,279,140,931 31,866,712,349 159,296,723,757 THEME 4 INFRASTRUCTURE SUB THEME 1 Transport Roads Routine maintenance, periodic maintenance, rehabilitation and upgrading of the road network, 1,387,880,000 1,489,020,000 1,523,730,000 1,587,170,000 1,625,910,000 7,613,710,000 P1 replacement of timber decked bridges Develop an integrated approach to road safety 6,500,000 4,000,000 4,200,000 5,800,000 5,900,000 26,400,000 P1 220 Malawi Growth and Development Strategy Modernisation and maintenance of Malawi Traffic Information System (MALTIS) 50,000,000 30,000,000 20,000,000 30,000,000 30,000,000 160,000,000 P2 Infrastructure development 20,000,000 20,000,000 2,000,000 2,000,000 2,000,000 46,000,000 P1 Harmonize country’s highway code, road signs, signals and axle-load regulations within the 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 P2 region Involve private sector in the monitoring and operations of road transport services 3,200,000 3,800,000 3,200,000 3,800,000 4,000,000 18,000,000 P2 Improved mobility and accessibility of rural communities to goods and services in the rural areas 540,000,000 594,060,000 653,466,000 718,812,600 790,694,260 3,297,032,860 P1 Shipping Provide navigations and hydrographic charts 195,000,000 65,000,000 0 0 0 260,000,000 P1 Review concession agreements for inland shipping 0 5,200,000 0 0 0 5,200,000 P2 Develop, rehabilitate and maintenance of port facilities 195,000,000 390,000,000 455,000,000 390,000,000 227,500,000 1,657,500,000 P2 Strengthen the marine search and rescue 0 26,000,000 26,000,000 13,000,000 0 65,000,000 P2 Establish international shipping line and negotiate with Mozambique on ports 0 0 0 0 0 0 P3 Strengthen the national maritime administration 6,500,000 6,500,000 0 0 13,000,000 P1 Resuscitate the National Shippers Council and maintain selective membership in international 0 130,000,000 65,000,000 0 195,000,000 P2 organisations Shire Zambezi waterway 65,000,000,000 65,000,000,000 65,000,000,000 65,000,000,000 65,000,000,000 325,000,000,000 P1 Civil Aviation Implement conventions to benefit Malawi and to fulfil obligations to international organisations 32,500,000 500,000 500,000 500,000 500,000 34,500,000 P1 Establish where feasible autonomous airport or Civil Aviation authorities 260,000,000 130,000,000 130,000,000 0 0 520,000,000 P2 Construct targeted landing strips for tourism related areas 10,000,000 10,000,000 10,000,000 5,000,000 5,000,000 40,000,000 P1 221 Malawi Growth and Development Strategy Institute and monitor maintenance programmes for both aerodromes and aviation equipment 1,000,000,000 500,000,000 500,000,000 500,000,000 500,000,000 3,000,000,000 P1 Strengthen safety and security measures at all airports 50,000,000 10,000,000 10,000,000 10,000,000 10,000,000 90,000,000 P2 Strengthen safety oversight provision in the aviation sector 3,000,000 2,000,000 1,000,000 500,000 500,000 7,000,000 P2 Railways Review the railways act 0 1,000,000 1,000,000 0 0 2,000,000 P2 SUB THEME 1 TOTAL 68,755,080,000 68,289,080,000 68,478,596,000 68,333,582,600 68,204,004,260 342,060,342,860 SUB THEME 2 Energy Rehabilitate two more stations for power distribution and complete the ones under construction 431,300,000 431,300,000 0 0 0 862,600,000 P1F (e.g. Kapichira power station) and upgrade existing ones (Nkula A and B) Engage in interconnection with Mozambique and rehabilitation of existing power generation 210,000,000 210,000,000 210,000,000 210,000,000 210,000,000 1,050,000,000 P2F (2007) Rehabilitate and expand the transmission and distribution 30,000,000 30,000,000 30,000,000 0 0 90,000,000 P2 Protect the catchment area along the lake and Shire river 50,000,000 30,000,000 30,000,000 20,000,000 20,000,000 150,000,000 P3 Reduce the cost of connection by using affordable connection and metering methods (e.g. use 100,000,000 68,750,000 68,750,000 68,750,000 68,750,000 375,000,000 P3 of pre-wired boards and pre-paid meters) Prepare a plan and delineate implementation responsibilities for the reduction of siltation in 20,000,000 20,000,000 40,000,000 P2 reservoirs and protect catchment area to lake Shire Explore alternative energy sources (gas, coal, solar, etc.) 70,000,000 29,375,000 29,375,000 29,375,000 29,375,000 187,500,000 P2 Implement pumped storage power plant at Livingstonia 0 0 0 0 120,000,000 120,000,000 P3 222 Malawi Growth and Development Strategy Integrate planning of electrification, investment and transport, water and ITC 6,300,000 6,300,000 6,300,000 6,300,000 6,300,000 31,500,000 P3F Accelerate the establishment of the Malawi Energy Regulatory Authority 25,000,000 0 0 0 0 25,000,000 P1 Improved management of ESCOM (including reform electricity tariff structure) and improve the 36,300,000 36,300,000 0 0 0 72,600,000 P3 financial and operational performance of ESCOM Implement framework for private sector to operate with the Government (PPP) to participate in 7,500,000 7,500,000 7,500,000 7,500,000 7,500,000 37,500,000 P1 the electricity sector (institutional framework, etc.) Rural communities use alternative energy supplies for power in under served areas 0 0 0 0 0 0 Accelerate the rural electrification programme (promote grid and off-grid rural electrification by 125,000,000 125,000,000 125,000,000 125,000,000 125,000,000 625,000,000 P2 public and private providers) Expand network to rural growth centres 70,000,000 70,000,000 70,000,000 70,000,000 70,000,000 350,000,000 P1 Create awareness of the use of renewable energy (solar, wind, biomass, and micro hydro) 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000 P2F SUB THEME 2 TOTAL 1,185,400,000 1,068,525,000 580,925,000 540,925,000 660,925,000 4,036,700,000 SUB THEME 3 Water Supply and Sanitation Empower national authority to manage water resources using IWRM approach and establish monitoring systems including the establishment and maintenance of a register of all actors in 3,250,000 16,250,000 21,666,667 16,250,000 7,583,333 65,000,000 P1 water and sanitation, conduct research to establish resource potential and guides Promote water resource conservation, harvesting and protection in an integrated manner including development of small community and large dams (conservation areas defined), and 4,333,333 9,316,667 17,604,167 38,404,167 32,175,000 101,833,333 P1 the development of lake-level regulatory structures at Liwonde and Mangochi 223 Malawi Growth and Development Strategy Proactively implement management of water resources and incorporate local governments and communities in planning and management of water and sanitation including catchment 2,166,667 16,250,000 9,100,000 9,100,000 9,100,000 45,716,667 P1 protection and rehabilitation Develop Management Information System (MIS) for the water and sanitation 43,333,333 65,000,000 45,500,000 10,833,333 10,833,333 175,500,000 P2 Recognize and implement obligations to international agreements 2,166,667 3,250,000 4,333,333 4,333,333 4,333,333 18,416,667 P3 Revise Water Resources Act of 1969 and Water Works Act 21,666,667 13,000,000 34,666,667 P1 Provide incentives for LA to promote community water-shed rehabilitation programs 10,833,333 16,250,000 21,666,667 21,666,667 21,666,667 92,083,333 P1 Build capacity in IWRM 10,833,333 10,833,333 10,833,333 10,833,333 10,833,333 54,166,667 P1 Develop integrated water resources management master plans and investment strategies 21,666,667 13,000,000 34,666,667 P1 Water quality and pollution control 0 0 0 0 0 0 Rehabilitate, construct and equip water laboratories 54,166,667 54,166,667 108,333,333 P1 Establish database on water quality 3,250,000 5,416,667 5,416,667 2,166,667 2,166,667 18,416,667 P2 Improve skills, technologies, techniques in water quality monitoring and pollution control 2,166,667 2,166,667 3,250,000 3,250,000 2,166,667 13,000,000 P2 (catchment rehabilitation, determining water quality) Strengthen institutional arrangements for environmental management 3,250,000 2,166,667 2,166,667 2,166,667 2,166,667 11,916,667 P3 Develop and disseminate guidelines and standards on water quality and pollution control 10,833,333 10,833,333 10,833,333 10,833,333 10,833,333 54,166,667 P2 Provide TA to local government and stakeholders on water quality and pollution control 2,708,333 3,250,000 3,250,000 2,708,333 2,166,667 14,083,333 P3 Urban, Peri-Urban and Market Centres 0 0 0 0 0 0 Develop national water and sanitation services regulatory framework 10,833,333 21,666,667 32,500,000 P1 Rehabilitate existing water supply systems 66,516,667 399,750,000 399,750,000 333,233,333 66,516,667 1,265,766,667 P1 224 Malawi Growth and Development Strategy Extend existing urban water supply systems 13,000,000 270,833,333 1,083,333,333 813,583,333 270,833,333 2,451,583,333 P1 Construct new water supply systems 3,250,000 189,583,333 812,500,000 1,354,166,667 352,083,333 2,711,583,333 P1 Establish contingency water supply reserves and sanitation backup 16,250,000 21,666,667 27,083,333 32,500,000 32,500,000 130,000,000 P3 Promote management arrangements in urban areas – provide incentives for small scale 2,708,333 3,250,000 4,333,333 3,250,000 2,708,333 16,250,000 P2 providers Rural Water Services Ensure smooth transfer of devolved functions of rural water supply and sanitation services 1,083,333 2,166,667 3,791,667 5,416,667 1,083,333 13,541,667 P3 Construct and rehabilitate and extend rural piped water systems 130,000,000 270,833,333 452,833,333 396,500,000 227,500,000 1,477,666,667 P1 Construct and rehabilitate boreholes and shallow wells 86,666,667 162,500,000 390,000,000 390,000,000 97,500,000 1,126,666,667 P1 SUB THEME 3 TOTAL 526,933,333 1,583,400,000 3,329,245,833 3,461,195,833 1,166,750,000 10,067,525,000 SUB THEME 4 Information, Communication and Technology Equip the Department of Meteorological Services with modern weather monitoring and 13,000,000 1,181,818 1,181,818 1,181,818 1,181,818 17,727,273 P2 forecasting equipment Equip DAs with ICT services for collection and dissemination of environmental, disaster warning 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 65,000,000 P2 info Establish a wide area network for all organizations involved in disaster management 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P3 Provide radios to communities to be used for transmitting early warning messages 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 P3 Establish communication link between DA and the Department of Poverty and Disaster 196,560,000 79,418,182 72,198,347 65,634,861 59,668,055 473,479,445 P2 Management 225 Malawi Growth and Development Strategy Enact appropriate legislation that promotes and participation in the information age and 26,000,000 0 0 0 0 26,000,000 P1 economy Create a working and efficient government wide area network (GWAN) 208,000,000 208,000,000 208,000,000 208,000,000 208,000,000 1,040,000,000 P1 Encourage collaboration between local and international educational institutions to facilitate 26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P3 educational exchange and the promotion of ICT education and training Promote local and foreign investment, innovative production, R&D and diffusion of ICTs – 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 65,000,000 P1 private sector Promote development of a competitive value-added services sector through ICT 7,800,000 7,800,000 7,800,000 7,800,000 7,800,000 39,000,000 P2 Support the development of an innovative local industry for the manufacture, assembling, repair 2,600,000 2,600,000 2,600,000 2,600,000 2,600,000 13,000,000 P2 and maintenance of ICT products for domestic and export markets Achieve universal basic ICT literacy and improve the level of ICT literacy in the country 39,000,000 39,000,000 39,000,000 39,000,000 39,000,000 195,000,000 P2 Improve public access to information and services to facilitate business and administrative 65,000,000 65,000,000 65,000,000 65,000,000 65,000,000 325,000,000 P1 processes to increase productivity and economic growth Promote active participation of all Malawians including women, youth and persons with 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 65,000,000 P2 disabilities in developing the information society Promote the deployment and exploitation of ICTs in the public and private sector (improve E- 9,650,000 9,650,000 9,650,000 9,650,000 9,650,000 48,250,000 P1 governance) Telecommunications Continue liberalization of telecommunications sector 6,500,000 6,500,000 6,500,000 6,500,000 6,500,000 32,500,000 P2 Telecommunications fund provided for rural telecommunications 330,000 330,000 330,000 330,000 330,000 1,650,000 P1 226 Malawi Growth and Development Strategy Provision of model telecentres 26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P2 Procurement and installation of modern telecommunications equipment 330,000 330,000 330,000 330,000 330,000 1,650,000 P1 Strengthen the regulatory body (MACRA) 1,846,000 1,846,000 1,846,000 1,846,000 1,846,000 9,230,000 P2F Facilitate research on issues of self regulation 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 6,000,000 P2 Broadcasting Acquisition of broadcasting equipment 13,000,000 13,000,000 13,000,000 13,000,000 13,000,000 65,000,000 P1 Building of purpose built stations 26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P1 Human capacity building through training 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 50,000,000 P2 Promotion of private sector participation in broadcasting 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 6,500,000 P3 Rehabilitate and computerise the existing TV and radio stations 26,000,000 26,000,000 26,000,000 26,000,000 26,000,000 130,000,000 P3 752,116,000 597,156,000 589,936,165 583,372,679 577,405,873 3,099,986,718 SUB THEME 4 TOTAL SUB THEME 5 Science, Technology, Research and Development Establish the Lilongwe University of Science and Technology 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 1,000,000,000 5,000,000,000 P1 Establish the National Science and Technology Commission to coordinate technology research, 0 10,000,000 0 0 0 10,000,000 P3 development, dissemination, evaluation and utilization Train staff in specialized science and technology fields 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000 P1 Establishment of a technology park and incubation centre 8,000,000 6,000,000 200,000 200,000 200,000 14,600,000 P1 Support STI programs in the local communities 15,000,000 15,000,000 15,000,000 15,000,000 10,000,000 70,000,000 P1 Design and implement STI capacity building programs to produce S&T expertise 15,000,000 15,000,000 15,000,000 2,000,000 2,000,000 49,000,000 P2 Promote recruitment and retention of qualified S&T experts 15,000,000 10,000,000 5,000,000 0 0 30,000,000 P2 227 Malawi Growth and Development Strategy Review policy and regulatory framework science and technology 0 3,000,000 0 0 0 3,000,000 P1 Review S&T Act 0 2,000,000 0 0 0 2,000,000 P1 Promote innovative schemes and culture 5,000,000 5,000,000 5,000,000 5,000,000 0 20,000,000 P2 Identify and transfer competitive technologies 10,000,000 10,000,000 10,000,000 0 0 30,000,000 P2 Establish financing mechanism that supports commercialisation of technologies 1,000,000 0 0 0 0 1,000,000 P2 Strengthen public/private partnership in usage of science, technology and innovation 5,000,000 0 0 0 0 5,000,000 P1 Promote utilization and development of beneficial indigenous technology 5,000,000 10,000,000 10,000,000 5,000,000 5,000,000 35,000,000 P2 Development of an intellectual property policy 5,000,000 0 0 0 0 5,000,000 P1 Mainstreaming of S&T in Government and private sector operations 3,000,000 2,500,000 2,500,000 2,000,000 0 10,000,000 P2 Establish and update a data bank on STI 5,000,000 0 0 0 0 5,000,000 P3 Support multidisciplinary research and development 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000 P1 Promote gender equity in STI activities 5,000,000 0 0 0 0 5,000,000 P2 Strengthen technology information services 35,000,000 35,000,000 0 0 0 70,000,000 P2 Strengthening of Malawi industrial research and technology development centre 20,000,000 20,000,000 40,000,000 P1 SUB THEME 5 TOTAL 1,182,000,000 1,173,500,000 1,092,700,000 1,059,200,000 1,047,200,000 5,554,600,000 THEME 4 GRAND TOTAL 72,325,229,333 72,635,361,000 73,995,102,999 73,901,976,113 71,579,985,134 364,437,654,578 THEME 5 IMPROVED GOVERNANCE SUB THEME 1 Macroeconomic Stability Improve financial management systems and skills to operate them, MoF and AGD 130,000,000 195,000,000 130,000,000 65,000,000 97,500,000 617,500,000 P1F Enforce adherence of line ministries and parastatals to Public and Finance Management Act 650,000 650,000 650,000 650,000 650,000 3,250,000 P1F Negotiate multilateral debt write-downs 650,000 650,000 650,000 1,950,000 P2F 228 Malawi Growth and Development Strategy Strengthen the capacity of Treasury’s Public Expenditure Monitoring Unit 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 6,500,000 P1 Receive better donor aid assistance projections and improve funding flows 6,500,000 6,500,000 3,250,000 1,625,000 1,625,000 19,500,000 P2F Strengthen the capacity of Debt and Aid Management Division to better co-ordinate donors and 13,000,000 13,000,000 13,000,000 6,500,000 6,500,000 52,000,000 P3F manage aid inflows Negotiate with donors an action plan for harmonization, alignment and better aid coordination 3,250,000 65,000,000 48,750,000 36,562,500 27,421,875 180,984,375 P3F Undertake tax reforms to improve the incentives for household saving and investment and the 9,750,000 9,750,000 9,750,000 9,750,000 9,750,000 48,750,000 P1 equity of tax administration SUB THEME 1 TOTAL 165,100,000 291,850,000 207,350,000 121,387,500 144,746,875 930,434,375 SUB THEME 2 Public Sector Management -- Implementing performance management systems, and transparent appointment and promotion of personnel based on merit and performance. 632,043,696 632,043,696 568,839,326 511,955,393 460,759,854 2,805,641,965 P1 -- Articulates vision of its priorities for the public sector, including relationship with decentralisation, and implements them through annual budget. 6,281,625 6,281,625 6,909,788 7,600,767 8,360,844 35,434,649 P1 -- Enforcing greater clarity on separation of roles between Ministers and PSs. 15,000,000 13,750,000 3,750,000 3,750,000 3,750,000 40,000,000 P1 Building capacity of OPC for management and coordination of public sector reforms 18,750,000 121,875,000 62,500,000 43,750,000 18,750,000 265,625,000 P1 Develop institutional capacity for oversight and review of perfomance of the public service 46,250,000 6,250,000 30,000,000 31,250,000 17,500,000 131,250,000 P1 Develop and implement institutional capacity at sectoral level to improve delivery of services 10,937,500 37,500,000 37,500,000 37,500,000 37,500,000 160,937,500 P1 229 Malawi Growth and Development Strategy Provide national registration and identification to voting age persons 2,000,000,000 1,000,000,000 1,000,000,000 500,000,000 500,000,000 5,000,000,000 P1 -- Implement pay reforms, address recruitment and retention problems, non-salary incentives. 16,133,358 16,133,358 14,520,022 13,068,020 11,761,218 71,615,976 P2 -- Control size and cost of public sector and focuses them on its priority areas, including donor funding for the public sector. 10,000,000 10,000,000 11,000,000 12,100,000 13,310,000 56,410,000 P2 Develop and implement communication strategy for advocacy and information sharing on public sector reforms 6,250,000 22,500,000 17,500,000 62,500,000 30,000,000 138,750,000 P2 Develop capacity for evidence based policy making and review 22,500,000 15,000,000 40,000,000 22,500,000 13,750,000 113,750,000 P2 Develop and implement leadership development program to bring about progressive and transformative leadership throughout public sector 7,500,000 6,250,000 6,250,000 5,000,000 5,000,000 30,000,000 P2 Develop and implement capacity for central coordination and management of the capacity development program in the public service 2,062,500 6,250,000 6,250,000 6,250,000 6,250,000 27,062,500 P2 Develop and implement a succession planning framework and guidelines to meet demands for skills in different sectors 1,375,000 5,000,000 2,500,000 2,500,000 2,500,000 13,875,000 P2 Develop and implement national anti-corruption strategy addressing root causes of corruption 15,000,000 15,750,000 16,537,500 17,364,375 18,232,594 82,884,469 P2 and involving public and private sectors -- Enforce human resource policies and systems. 650,000 650,000 650,000 650,000 650,000 3,250,000 P3 -- Implement the Monitoring and Evaluation Roadmap (includes coordination of donors, national statistical plan, etc.) 3,768,975 3,768,975 4,145,873 4,560,460 5,016,506 21,260,789 P3 -- Enforce human resource policies 650,000 650,000 650,000 650,000 650,000 3,250,000 P3 -- HIV/AIDS mainstreaming n the public service 252,000,000 252,000,000 226,800,000 204,120,000 183,768,000 1,118,688,000 P3 Provide training and development to sustain professional and technical capacity in the public sector to deliver services 6,250,000 6,562,500 6,250,000 6,250,000 6,250,000 31,562,500 P3 230 Malawi Growth and Development Strategy Enforce greater clarity on separation of roles between Ministers and PSs Strengthen the media capacity through training and access to and distribution of public inform 5,000,000 15,000,000 10,000,000 5,000,000 5,000,000 40,000,000 Establish community information centres 21,000,000 21,000,000 21,000,000 21,000,000 21,000,000 61,620,000 Promote professionalism of media that delivers politically impartial news coverage 5,000,000 5,000,000 5,000,000 5,000,000 4,000,000 1,551,017,000 Enact access to information legislation to allow media access to public information 15,000,000 10,000,000 12,000,000 12,000,000 5,000,000 1,314,917,500 Enact public service broadcast legislation 5,000,000 15,000,000 3,000,000 1,939,789,800 Select legislators with relevant skills and knowledge into committees Provide adequate financial resources for functioning of the committees SUB THEME 2 TOTAL 3,124,402,654 2,244,215,154 2,113,552,509 1,536,319,015 1,378,759,016 15,058,592,648 SUB THEME 3 Decentralisation Complete sector devolution to districts. 171,626,000 59,248,540 24,914,500 17,062,500 17,062,500 289,914,040 P1 Expand local revenue generating capacity 87,750,000 87,750,000 58,500,000 58,500,000 58,500,000 351,000,000 P1 Build institutional capacity at the districts. 32,760,000 143,039,000 23,400,000 31,200,000 31,200,000 261,599,000 P2 Strengthen operational links between decentralization policy and national policy frameworks and the role in policy making Train communities for active participation in development activities at the district. MOL Define clear roles of all groups of stakeholders at the district. SUB THEME 3 TOTAL 292,136,000 290,037,540 106,814,500 106,762,500 106,762,500 902,513,040 SUB THEME 4 Justice, Security and Rule of Law 231 Malawi Growth and Development Strategy -- Undertake periodic review and reform of laws and procedures in light of constitutional provisions and applicable international law; 13,906,000 10,300,000 9,700,000 3,000,000 4,000,000 40,906,000 P1 -- Strengthen and streamline the legislative drafting process. 5,700,000 5,000,000 5,500,000 5,500,000 5,500,000 27,200,000 P1 -- Enact and implement legislation to ensure duty bearers enforce their functions and powers professionally. 58,741,000 61,047,824 69,367,764 81,179,119 11,094,701 281,430,408 P1 -- Increase the intake and training for varoius legal professional groups including specialised field 302,576,790 246,264,600 258,684,600 284,924,600 306,289,601 1,398,740,191 P1 -- Facilitate the development of record-keeping systems 32,587,800 37,674,930 206,525,618 26,809,795 45,772,186 349,370,329 P1 -- Provide primary justice and dispute resolution training for traditional leaders 4,760,000 3,128,200 1,580,450 800,000 600,500 10,869,150 P1 -- Establish information linkages between the police, courts, prisons. (piloted at one point- penal reform was coordinating) to improve case flow 11,020,000 11,080,000 11,152,000 11,238,400 11,342,080 55,832,480 P1 -- Promote dialogue through court user committees 0 0 0 0 0 0 P1 -- Provide safe, secure and appropriately designed building stock. 318,800,000 359,000,000 412,000,000 286,000,000 566,212,000 1,942,012,000 P1 -- Rehabilitate sub-standard structures (including addressing utility provision) to an acceptable standard. 135,000,000 120,000,000 120,000,000 120,000,000 120,000,000 615,000,000 P1 -- Improve case management (legal) 23,300,000 21,240,000 22,358,000 22,165,600 21,098,724 110,162,324 P1 -- Create a fully functioning commercial division of the High Court.-- 1,500,000,000 0 0 0 0 1,500,000,000 P1 -- Review rules of procedure as they apply to commercial cases and enhance the role of the Small Claims Courts. 4,374,000 4,424,000 4,534,000 4,574,000 4,874,000 22,780,000 P1 -- Design and implement a strategy to address the administration and distribution of deceased estates. 32,000,000 33,000,000 40,000,000 48,000,000 53,500,000 206,500,000 P1 232 Malawi Growth and Development Strategy Sensitisation of Ministers, controlling officers & Public Servants on The PFMA, PAA & PCA 4,000,000 0 5,000,000 0 6,000,000 15,000,000 P1 Sensitisation of urban and rural communities of the relevant criminal law prevalent in the areas 20,000,000 24,000,000 28,000,000 32,000,000 36,000,000 140,000,000 P1 To reduce the number of persons detained in prison awaiting trial 8,000,000 7,500,000 7,000,000 6,500,000 6,000,000 35,000,000 P1 To clear the Homicide Backlog cases 75,000,000 35,000,000 18,000,000 15,000,000 12,000,000 155,000,000 P1 To develop guidelines to match complexity of cases to qualification & experience of prosecutors 1,500,000 0 0 0 0 1,500,000 P1 To develop a witness protection programme & Victim support 6,000,000 7,200,000 8,640,000 10,368,000 12,441,600 44,649,600 P1 To develop internal training capacity by way of Continous Legal Education 12,000,000 14,400,000 17,280,000 20,736,000 24,883,200 89,299,200 P1 Clearance of Homicide Backlog 75,000,000 35,000,000 18,000,000 15,000,000 12,000,000 155,000,000 P1 Fomulate a complehensive national Intellectual property policy and strategy 2,000,000 1,000,000 0 0 0 3,000,000 P1 Diseminate Information on Legal & Regulatory Flamework for Business and commercial Activities 3,367,000 3,367,000 3,367,000 3,367,000 3,367,000 16,835,000 P1 Clearance of Dormant Deceased Estates 15,000,000 8,000,000 4,000,000 1,000,000 1,000,000 29,000,000 P1 -- Acknowledge customary laws and practices that are not in conflict with principles of human rights and the constitution; 11,274,000 8,674,000 8,074,000 7,470,113 6,473,200 41,965,313 P2 -- Review and simplify legal language to ensure a comprehensible justice system; 8,480,000 5,819,048 5,619,048 5,619,048 5,619,048 31,156,190 P2 -- Increase number of court centres close to police stations and main trading centres. 352,800,000 207,428,571 205,396,825 204,187,453 203,035,669 1,172,848,519 P2 -- Develop and disseminate clear policies on the judicial role of traditional courts and the status and enforcement of their rulings. 0 0 0 0 0 0 P2 -- Design a programme for reviving traditional courts including an appropriate training element. 120,000,000 28,571,429 18,140,590 17,276,752 16,454,049 200,442,820 P2 -- Generate funding support from Government and development partners. 5,634,100 5,517,082 7,363,026 7,274,162 7,185,520 32,973,890 P2 -- Develop a harmonized approach to budget formulation, presentation, allocation, distribution and accountability. 12,074,600 11,177,000 9,365,000 854,000 7,845,000 41,315,600 P2 -- Allocate resources between sector institutions effectively to achieve the sector mission. 250,000 200,000 200,000 150,000 100,000 900,000 P2 233 Malawi Growth and Development Strategy -- Review, and where appropriate reform, business and commercial-related laws. 500,000 600,000 2,150,000 1,800,000 2,000,000 7,050,000 P2 To create specialised prosecution units todeal with priority area - sexual offences, finacial crimes 1,000,000 1,200,000 1,440,000 1,728,000 2,073,600 7,441,600 P2 To train Prosecutors in specialised areas - Money Laundering, forfeiture, Consumer protection 9,800,000 11,760,000 12,936,000 14,229,600 15,652,560 64,378,160 P2 To identify weaknesses in criminal law & Procedure and propose reform or review 1,850,000 2,000,000 2,200,000 2,450,000 2,800,000 11,300,000 P2 To improve accontability of prosecutors through the establishment of a complaint centre 3,000,000 3,600,000 4,300,000 5,184,000 0 16,084,000 P2 -- Appoint judges based on merit. 0 0 0 0 0 0 P3 -- Continue the Civil Service Reform Programme to retain legal professionals in the civil service. 0 0 0 0 0 P3 -- Review primary and informal justice initiatives; 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 10,000,000 P3 -- Review forms of alternative dispute resolution and identify the most appropriate forms 14,721,150 5,216,500 4,282,000 17,207,564 2,000,000 43,427,214 P3 To improve public relations through the esblishment of the public relations office 500,000 750,000 1,000,000 1,500,000 2,000,000 5,750,000 P3 -- Design inter-agency approaches to prevention of crime. 15,000,000 12,000,000 9,000,000 9,000,000 9,000,000 54,000,000P2 -- Recruit and train more police to reduce high police-population ratio. 262,056,280 262,056,280 262,056,280 262,056,280 262,056,280 1,310,281,400P1**** -- Recruit and train police personnel – both in traditional training and specialized areas including forensic support. 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 125,000,000P1 -- Develop partnerships between the police and the local communities and local accountability of the police to the community, including civic education. 40,000,000 40,000,000 40,000,000 40,000,000 40,000,000 160,000,000P1 -- Provide safe, secure and appropriately designed building stock. 377,000,000 77,000,000 77,000,000 77,000,000 77,000,000 685,000,000P1**** -- Encourage community ownership of installations and community participation in maintenance. 60,000,000 60,000,000 60,000,000 60,000,000 60,000,000 30,000,000P2 -- Modify training programs to direct toward rehabilitation of prisoners 27,000,000 27,000,000 27,000,000 27,000,000 27,000,000 135,000,000P1*** -- Develop linkages with other programs for ex- convicts to be part of the productive sector 6,000,000 6,300,000 6,615,000 6,945,750 7,293,040 33,153,790P1****** 234 Malawi Growth and Development Strategy -- Control proliferation of firearms (with NGOs to set up national focal point to deal with issues of illicit trafficking and firearms) 75,000,000 30,000,000 28,000,000 26,000,000 24,000,000 183,000,000P2 Conduct drug control programs (awareness raising through faith based organizations) 317,600,000 317,600,000 317,600,000 317,600,000 317,600,000 1,588,000,000P2 -- Amend the immigration act. 30,000,000 10,000,000 10,000,000 10,000,000 10,000,000 70,000,000 -- Introduce national registration and identification system. 2,000,000,000 1,000,000,000 1,000,000,000 500,000,000 500,000,000 5,000,000,000 -- Establish joint programs with companies and communities to tackle issues of anti-vandalism. 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 45,000,000P3 -- Integration of police protection into industrial site plans. 11,000,000 5,000,000 5,000,000 5,000,000 5,000,000 31,000,000P3 -- Educate Malawian establishments on the benefits for risk management for protection of assets. 22,000,000 10,000,000 10,000,000 10,000,000 10,000,000 62,000,000P3** -- Develop Private Security Policy and Act that provides standards for inspection of private security firms. 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000P2 -- Create a fully functioning commercial division of the High Court.-- 1,500,000,000 1,500,000,000P1** -- Review rules of procedure as they apply to commercial cases and enhance the role of the Small Claims Courts. 4,074,000 4,277,700 4,491,585 4,716,165 4,951,000 22,510,450P1 SUB THEME 4 TOTAL 7,994,246,720 3,242,374,164 3,450,918,785 2,681,411,400 2,932,114,558 19,991,065,628 THEME 5 GRAND TOTAL 11,575,885,374 6,068,476,858 5,878,635,794 4,445,880,415 4,562,382,949 36,882,605,691 TOTAL A: ALL THEMES 132,132,837,989 127,751,230,167 126,578,914,121 124,096,304,974 122,658,183,562 637,568,815,113 235 Malawi Growth and Development Strategy ANNEX 4: MGDS NEEDS ASSESSMENT SUMMARY ANNEX 4.1: KEY PRIORITY AREAS HUMAN RESOURCE REQUIREMENTS INSTITUTION 2005 2006 2007 2008 2009 2010 2011 1: AGRICULTURE AND FOOD SECURITY Extension Staff Number of existing staff 2,322 2,322 2,799 3,376 4,080 4,957 6,073 Attrition (53) (53) (64) (78) (94) (114) (140) Incremental Number of staff to be recruited - 424 512 627 783 1,002 1,326 Total Number of Staff to be recruited 53 477 576 705 877 1,116 1,466 Non-Extension Staff Number of existing staff 6,376 6,376 6,935 7,382 7,754 8,073 8,358 Attrition (147) (147) (159) (170) (178) (186) (192) Incremental Number of staff to be recruited - 412 288 202 141 99 69 Total Number of Staff to be recruited 147 559 447 372 319 285 261 TOTAL 8,698 8,698 9,734 10,758 11,834 13,031 14,431 2: IRRIGATION AND WATER DEVELOPMENT Ministry of Irrigation and Water Developmentr Number of existing staff 776 776 874 977 1,082 1,191 1,303 Attrition (18) (18) (20) (22) (25) (27) (30) Number of staff to be recruited - 80 83 83 84 84 85 Total Number of Staff to be recruited 18 98 103 105 109 111 115 1.2 Irrigation and Water Development Number of existing staff 369 369 495 579 671 772 881 Attrition (8) (8) (11) (13) (15) (18) (20) 236 Malawi Growth and Development Strategy Incremental Number of staff to be recruited - 118 72 79 85 92 98 Total Number of Staff to be recruited 8 126 83 92 100 110 118 3: INFRASTRUCTURE DEVELOPMENT 2.1 Transport 5.1.1 Roads and Buildings Number of existing staff 664 664 740 818 898 980 1,063 Attrition (15) (15) (17) (19) (21) (23) (24) Incremental Number of staff to be recruited - 61 61 61 61 61 61 Total Number of Staff to be recruited 15 76 78 80 82 84 85 2.2 Marine Services Number of existing staff 177 177 201 228 261 301 348 Attrition (4) (4) (5) (5) (6) (7) (8) Incremental Number of staff to be recruited - 20 22 28 34 40 46 Total Number of Staff to be recruited 4 24 27 33 40 47 54 2.3 Transport Number of existing staff 438 438 497 558 619 683 747 Attrition (10) (10) (11) (13) (14) (16) (17) Incremental Number of staff to be recruited - 49 49 49 49 49 49 Total Number of Staff to be recruited 10 59 60 62 63 65 66 4: ENERGY GENERATION AND SUPPLY Number of existing staff 47 47 53 59 66 72 79 Attrition (1) (1) (1) (1) (2) (2) (2) Incremental Number of staff to be recruited - 5 5 5 5 5 5 Total Number of Staff to be recruited 1 6 6 6 7 7 7 237 Malawi Growth and Development Strategy 5.0 INTEGRATED RURAL DEVELOPMENT Rural Development Number of existing staff 15 15 19 24 28 33 38 Attrition (0) (0) (0) (1) (1) (1) (1) Incremental Number of staff to be recruited - 4 4 4 4 4 4 Total Number of Staff to be recruited 0 4 4 5 5 5 5 6: PREVENTION AND MANAGEMENT OF NUTRITION DISORDERS, HIV AND AIDS Department of HIV/AIDS and Nutrition Number of existing staff 30 30 32 33 35 37 39 Attrition (1) (1) (1) (1) (1) (1) (1) Incremental Number of staff to be recruited - 1 1 1 1 1 1 Total Number of Staff to be recruited 1 2 2 2 2 2 2 ANNEX 4.2: KEY PRIORITY AREAS CAPITAL REQUIREMENTS 1: AGRICULTURE AND FOOS SECURITY Infrastructure Crop seed production units 7,930 6,928 6,341 5,999 5,809 5,724 Vegetative propagation units 14 18 23 31 42 60 Tree nurseries units 5 6 8 10 14 20 Chemical fertilisers 25,111 28,946 33,156 37,766 42,800 48,299 Agroforestry trees 2,641,750 4,047,430 5,650,304 7,466,757 9,513,735 11,811,109 Compost/farmyard manure 889,798 1,168,096 1,482,033 1,834,442 2,228,223 2,667,001 Crop residue 119,941 140,194 162,569 187,217 214,287 244,015 238 Malawi Growth and Development Strategy Land &water management works 70 60 40 20 10 10 Rainwater harvesting &storage structures 59 39 31 28 26 25 2: IRRIGATION AND WATER DEVELOPMENT Infrastructure New irrigation schemes (Ha) 6,000 8,000 12,000 16,000 16,000 16,000 Procurement of plant and equipment 2 2 4 4 6 6 Motorized pump utilization 253 509 419 674 584 840 Treadle pump utilization 30,037 22,607 44,636 37,206 59,235 51,806 Rehabilitation of irrigation schemes 64,000 72,000 78,000 89,000 104,000 104,000 Maintenance of office buildings 2 2 2 2 2 2 Water Supply and Sanitation Water Supply Needs (Rural and Urban) New Boreholes 1,339 1,407 1,476 1,549 1,623 1,701 Rehab BHs 289 289 289 289 289 289 New communal taps 1381 1458 1538 1620 1706 1794 Rehabilitated taps 412 412 412 412 412 412 New HH connections 22293 23540 24811 26105 27422 28769 Rehab of HH connect 5484 5484 5484 5484 5484 5484 Rainwater collection 4,086 4,341 4,607 4,885 5,176 5,481 Sanitation New Conventional sewerage 4 4 4 5 6 6 Rehabilitation of Conventional sewerage 1 1 0 0 0 0 New VIP latrines 12494 12305 14149 25028 15941 16893 Rehab VIP 123 123 123 123 123 123 239 Malawi Growth and Development Strategy New improved pit latrines 23978 25522 27120 28773 30478 32243 Rehab pit latrines 600 600 600 600 600 600 3: TRANSPORT INFRASTRUCTURE Roads (i) Infrastructure Routine Maintenance (Kms) 0 26,963 26,636 26,142 25,450 24,455 Periodic Maintenance (Kms) 0 281 298 316 336 356 Rehabilitation (Kms) 0 204 216 230 244 259 Upgrading of earth to paved (Kms) 0 337 344 377 403 431 Widening of community roads (Kms) 0 615 906 1,335 1,967 2,898 4: ENERGY GENERATION AND SUPPLY (i) Rural Length of transmission line rehabilitated (Km) 260 260 260 260 260 260 Length of distribution line extended (Km) 900 810 729 656 590 531 Number of transformers purchased 50 50 50 50 50 50 Additional Power Required (kw) 4000 8000 12000 16000 20000 24000 (ii) Urban Length of transmission line rehabilitated (Km) 450 450 450 450 450 450 New connections 24,979 26,992 29,114 31,348 33,695 34,732 Additional power required (Kw) 10,402 21,642 33,766 46,821 60,853 75,317 Number of transformers installed 131 142 153 165 177 183 5 PREVENTION AND MANAGEMENT OF NUTRITION DISORDERS, HIV AND AIDS 240 Malawi Growth and Development Strategy Infrastructure Computers 10 10 10 10 10 10 Office Spaces 12 12 12 12 12 12 ANNEX 4.3: OTHER FOCUS AREAS HUMAN RESOURCE REQUIREMENTS MGDS HUMAN RESOURCE REQUIREMENTS CHAPTER ONE: MAXIMIZING THE CONTRIBUTION OF ECONOMIC GROWTH THROUGH SOURCES OF GROWTH 2005 2006 2007 2008 2009 2010 2011 1.1 Tourism No. of existing staff 85 85 97 119 152 195 250 Attrition (2) (2) (2) (3) (3) (4) (6) Incremental number of staff recruited - 10 20 30 40 50 60 Total Number to be recruited 2 12 22 33 43 54 66 1.2 Mining Number of existing staff 60 60 62 65 67 70 72 Attrition (1) (1) (1) (1) (2) (2) (2) Number of staff to be recruited - 1 1 1 1 1 1 Total Number of Staff to be recruited 1 2 2 2 3 3 3 1.3 Geological Survey Number of existing staff 262 262 369 473 575 675 773 Attrition (8) (10) (11) (12) (13) (13) (13) Incremental Number of staff to be recruited - 97 93 90 87 85 83 Total Number of Staff to be recruited 8 107 104 102 100 98 96 241 Malawi Growth and Development Strategy 1.4 Manufacturing 1.4.1 Establishment of Malawi Competition Commision Number of existing staff - - - 13 28 38 42 Attrition - - - (0) (1) (1) (1) Incremental Number of staff to be recruited - - 13 15 9 3 1 Total Number of Staff to be recruited - - 13 15 10 4 2 1.4.2 Malawi Bureau of Standards Number of existing staff 8 8 9 18 27 36 45 Attrition (1) (1) (1) (1) (1) (1) (1) Incremental Number of staff to be recruited - - 8 8 8 8 8 Total Number of Staff to be recruited 1 1 9 9 9 9 9 1.4.3 Construction Of Factory Shells Number of existing staff - - - 5 8 10 12 Attrition - - - (0) (0) (0) (0) Incremental Number of staff to be recruited - - 5 3 2 1 1 Total Number of Staff to be recruited - - 5 3 2 1 1 1.4.4 Establishment of cooperatives Number of existing staff - - - 13 24 32 40 Attrition - - - (0) (1) (1) (1) Incremental Number of staff to be recruited - - 13 11 7 7 4 Total Number of Staff to be recruited - - 13 11 8 8 5 1.4.5 Promotion of SMEs Number of existing staff - - - 10 28 33 38 Attrition - - - (0) (1) (1) (1) Incremental Number of staff to be recruited - - 10 18 4 4 2 Total Number of Staff to be recruited - - 10 18 5 5 3 1.4.6 Malawi Investment and Trade Centre 242 Malawi Growth and Development Strategy (MIPA/MEPC) Number of existing staff - - - 48 52 56 61 Attrition - - - (1) (1) (1) (1) Incremental Number of staff to be recruited - - 48 3 3 3 3 Total Number of Staff to be recruited - - 48 4 4 4 4 1.5.7 Trade Promotion and Regional Integration Number of existing staff - - - 18 28 37 44 Attrition - - - (0) (1) (1) (1) Incremental Number of staff to be recruited - - 18 10 8 6 6 Total Number of Staff to be recruited - - 18 10 9 7 7 1.5.8 Ministry of Trade and Private Sector Development Number of existing staff - - - 20 30 39 46 Attrition - - - (0) (1) (1) (1) Incremental Number of staff to be recruited - - 20 10 8 6 6 Total Number of Staff to be recruited - - 20 10 9 7 7 1.5.9 National Economic Empowerment Number of existing staff - - - 28 41 52 58 Attrition - - - (1) (1) (1) (1) Incremental Number of staff to be recruited - - 28 12 10 5 5 Total Number of Staff to be recruited - - 28 13 11 6 6 1.6 Forestry Number of existing staff 7,967 7,967 8,666 9,423 10,237 11,113 12,052 Attrition (183) (183) (199) (217) (235) (256) (277) Incremental Number of staff to be recruited - 516 557 598 640 684 727 Total Number of Staff to be recruited 183 699 756 815 875 940 1,004 1.7 Fisheries 243 Malawi Growth and Development Strategy Number of existing staff 463 463 724 1,038 1,403 1,817 2,280 Attrition (11) (11) (17) (24) (32) (42) (52) Incremental Number of staff to be recruited - 250 298 341 382 421 460 Total Number of Staff to be recruited 11 261 315 365 414 463 512 1.7 Environmental Protection Number of existing staff 61 61 69 78 87 96 105 Attrition (1) (1) (2) (2) (2) (2) (2) Incremental Number of staff to be recruited - 7 7 7 7 7 7 Total Number of Staff to be recruited 1 8 9 9 9 9 9 1.8 Parks and Wildlife Number of existing staff 110 110 143 176 210 245 280 Attrition (3) (3) (3) (4) (5) (6) (6) Incremental Number of staff to be recruited - 30 30 30 30 30 30 Total Number of Staff to be recruited 3 33 33 34 35 36 36 CHAPTER TWO: SOCIAL PROTECTION AND DISASTER MANAGEMENT 2.1 Ministry of Poverty, Disaster and Risk Management Number of existing staff 25 25 52 80 110 141 174 Attrition (1) (1) (1) (2) (3) (3) (4) Incremental Number of staff to be recruited - 26 27 28 29 30 31 Total Number of Staff to be recruited 1 27 28 30 32 33 35 CHAPTER THREE: SOCIAL DEVELOPMENT 3.1 Ministry of Health Number of existing staff 16,647 16,647 23,530 47,993 97,490 197,632 400,229 Attrition (383) (383) (541) (1,104) (2,242) (4,546) (9,205) Incremental Number of staff to be recruited - 6,500 23,922 48,393 97,900 198,051 400,657 244 Malawi Growth and Development Strategy Total Number of Staff to be recruited 383 6,883 24,463 49,497 100,142 202,597 409,862 3.2 Ministry of Education and Vocational Training Number of existing staff 54,050 54,050 63,065 72,249 83,448 95,632 108,914 Attrition (1,243) (1,243) (1,450) (1,662) (1,919) (2,200) (2,505) Incremental Number of staff to be recruited - 7,772 7,733 9,538 10,264 11,083 12,044 Total Number to be recruited 1,243 9,015 9,183 11,200 12,183 13,283 14,549 3.3 Ministry of Gender Number of existing staff 639 639 901 1,168 1,442 1,722 2,009 Attrition (15) (15) (21) (27) (33) (40) (46) Incremantal Number of staff to be recruited - 247 247 247 247 247 247 Total Number of staff to be recruited 15 262 268 274 280 287 293 4 INFRASTRUCTURE DEVELOPMENT .4.1Civil Aviation Number of existing staff 509 509 572 636 701 769 837 Attrition (12) (12) (13) (15) (16) (18) (19) Incremental Number of staff to be recruited - 51 51 51 51 51 51 Total Number of Staff to be recruited 12 63 64 66 67 69 70 4.2 Transport Number of existing staff 438 438 497 558 619 683 747 Attrition (10) (10) (11) (13) (14) (16) (17) Incremental Number of staff to be recruited - 49 49 49 49 49 49 Total Number of Staff to be recruited 10 59 60 62 63 65 66 CHAPTER SIX: INFORMATION AND COMMUNICATION TECHNOLOGIES 245 Malawi Growth and Development Strategy 6.1 Telecommunication Number of existing staff 3,200 3,200 3,449 3,710 3,984 4,271 4,571 Attrition (74) (74) (79) (85) (92) (98) (105) Incremental Number of staff to be recruited - 175 182 189 195 202 208 Total Number of Staff to be recruited 74 249 261 274 287 300 313 6.2 Information Technology Number of existing staff - - - 97 306 497 803 Attrition - - - (2) (7) (11) (18) Incremental Number of staff to be recruited - - 97 207 184 294 272 Total Number of Staff to be recruited - - 97 209 191 305 290 6.3 Broadcasting 6.3.1 Television Number of existing staff 105 105 111 118 125 132 139 Attrition (2) (2) (3) (3) (3) (3) (3) Incremental Number of staff to be recruited - 4 4 4 4 4 4 Total Number of Staff to be recruited 2 6 7 7 7 7 7 4.3 Radio Number of existing staff 525 525 567 615 668 728 794 Attrition (12) (12) (13) (14) (15) (17) (18) Incremental Number of staff to be recruited - 30 35 39 44 50 55 Total Number of Staff to be recruited 12 42 48 53 59 67 73 5: GOOD GOVERNANCE 5.1 Justice and Rule of Law Number of existing staff 2,490 2,490 2,674 2,865 3,062 3,265 3,476 Attrition (57) (57) (62) (66) (70) (75) (80) Incremental Number of staff to be recruited - 127 129 131 133 136 139 Total Number of Staff to be recruited 57 184 191 197 203 211 219 246 Malawi Growth and Development Strategy 5.2 Anti- Corruption Bureau Number of existing staff 113 113 117 121 125 129 133 Attrition (3) (3) (3) (3) (3) (3) (3) Incremental Number of staff to be recruited - 1 1 1 1 1 1 Total Number of Staff to be recruited 3 4 4 4 4 4 4 7.3 Human Rights Number of existing staff 58 58 86 102 117 132 146 Attrition (1) (1) (2) (2) (3) (3) (3) Incremental Number of staff to be recruited - 27 14 12 13 11 11 Total Number of Staff to be recruited 1 28 16 14 16 14 14 7.4 Police Service Number of existing staff 13,591 13,591 13,932 14,281 14,639 15,008 15,387 Attrition (313) (313) (320) (328) (337) (345) (354) Incremental Number of staff to be recruited - 28 29 30 32 34 36 Total Number of Staff to be recruited 313 341 349 358 369 379 390 7.5 Prison Services Number of existing staff 1,468 1,502 1,640 1,792 1,960 2,149 2,364 Attrition (34) (35) (38) (41) (45) (49) (54) Number of staff to be recruited - 104 114 127 144 165 195 Total Number to be Recruited 34 138 152 168 189 215 249 5.3 Decentralisation Number of existing staff 9,137 9,137 9,815 10,518 11,249 12,008 12,797 Attrition (210) (210) (226) (242) (259) (276) (294) Incremental Number of staff to be recruited - 467 478 489 500 512 524 Total Number of Staff to be recruited 210 678 704 731 759 788 818 247 Malawi Growth and Development Strategy

ANNEX 4.4: OTHER FOCUS AREAS CAPITAL REQUIREMENTS 2006 2007 2008 2009 2010 2011 1: SUSTAINABLE ECONOMIC GROWTH 1.1 Tourism 1.1.1 Infrastructure Office buildings - 1 2 3 - - Ecotourism Center 1 2 3 4 5 6 Establishing cultural villages 1 2 3 4 5 6 Access Roads (Km) - 25 50 50 - - 1.2 Mining 1.2.1 Infrastructure Office space 96 95 95 94 94 94 Desks 79 80 82 94 96 98 Chairs 79 80 82 94 96 98 Vehicles 1 2 2 2 2 2 Mining Equipment 29 35 32 30 29 29 Exhibition Centres 3 5 7 9 12 15 Laboratory 3 3 3 3 3 3 Small-scale mining 2 2 2 3 3 3 Mine rehabilitation 2 2 2 2 2 2 1.3 Geological Survey 1.3.1 Infrastructure Office Construction 15 15 15 15 15 15 Desks 4 6 8 11 14 17 248 Malawi Growth and Development Strategy Chairs 4 6 8 11 14 17 Survey equipment 1 1 1 1 1 1 Laboratories 4 5 6 7 8 10 Geo-museum 1 1 2 2 2 3 Vehicles 15 20 23 25 28 30 Geological data base 4 5 6 7 8 10 1.4 Manufacturing 1.4.1 Infrastructure Construction of Factory shells 2 4 2 2 2 2 Office Buildings 0 1 2 1 0 0 Laboratories 1 1 1 1 1 0 Cottage Industries 4 4 4 4 4 0 1.5 Fisheries 1.5.1 Infrastructure Office space (research) 7 8 8 8 9 9 Office space (Extension) 18 22 27 33 42 54 Motorised fishing boats 7 11 15 20 28 37 Fish landing facilities 3 6 10 15 22 31 Vehicles 62 66 70 74 79 84 Fish recording equipment 36 42 47 53 60 66 Survey equipment 14 17 21 26 34 46 Fish mills 1 1 2 2 3 3 Fish cages 12 13 15 16 18 19 1.6 Forestry 249 Malawi Growth and Development Strategy 1.6.1 Infrastructure Tree seed centres 7 7 8 8 9 9 Office space 3 3 3 4 4 4 Communication equipment 608 649 691 735 782 831 Firebreak 1,177 1,776 2,375 2,974 3,573 4,171 Plantation roads 1,203 1,578 1,952 2,326 2,701 3,075 Vehicles 10 11 12 13 14 16 Lecture rooms 6 6 6 6 6 6 Motor cycles 32 38 44 50 56 63 Forestry Extension Aids Equipment 46 47 49 51 52 54 Fire Equipment 375 637 899 1,161 1,423 1,685 1.7 Environmental Protection 1.7.1 Infrastructure Office space 36 40 45 49 55 60 Vehicles 8 9 10 12 14 17 Desks 36 39 43 48 51 56 Chairs 34 39 43 48 53 56 Environmental Monitoring Equipment 13 17 20 24 28 33 Environmental Centres 4 6 7 10 12 15 Laboratory 1 7 10 13 16 19 Database Equipment 4 6 7 10 12 15 1.8 Parks and Wildlife 1.8.1 Infrastructure Base radios 11 3 3 2 1 1 Field equipment 132 132 132 132 132 132 250 Malawi Growth and Development Strategy Staff houses 22 22 22 22 22 22 Water points 20 8 4 4 2 2 Vehicles 10 10 10 10 10 10 House electrification 22 22 22 22 22 22 Electric fencing (Kms) 100 100 100 100 100 100 Ammunition 10,000 10,000 10,000 10 10,000 10,000 Access Roads (Kms) 250 250 250 250 250 250 Fire Arms 0 240 120 120 60 60 Ranches 1 1 1 1 1 1 Animal translocation 100 100 100 100 100 100 Community conservation areas 2 1 1 1 1 1 Computers 20 15 15 15 15 15 Office Space 0 20 20 0 0 0 2: SOCIAL PROTECTION AND DISASTER MANAGEMENT 2.1 Infrastructure Construction of low cost housing 50 50 50 50 50 50 Establishing effective early warning system 1 2 0 0 0 0 Procurement of machine for early warning 1 3 0 0 0 0 Message Switch System 0 1 0 0 0 0 3: SOCIAL DEVELOPMENT 3.1 Health 3.1.1 Infrastructure Construction of District Hospital - - 1 1 1 - 251 Malawi Growth and Development Strategy Construction of Health Centers - 3 5 5 5 5 Upgrading of Health Centre - 20 20 20 20 14 Upgrading of Hospital - 5 5 5 5 5 Upgrading of Central Hospital - 1 1 1 - - Construction of Health Post - 2 2 2 2 2 Construction og Rural Hospitals - 1 1 1 1 1 Upgrading of Rural Hospital - 3 4 4 3 3 Upgrading of Health Units - 6 6 6 6 6 3.2 Nutrition Office Spaces Computers 6 5 5 0 0 0 Vehicles 0 2 2 2 2 2 3.3 Education 3.3.1 pre-primary education (i) Infrastructure New Classrooms 211,080 3,120 3,777 4,279 4,859 5,551 Reconstructed Classrooms 756 756 756 756 756 756 Blackboards 211,080 3,120 3,777 4,279 4,859 5,551 Desks 287,356 319,534 357,832 392,019 428,143 466,932 Chairs 287,356 319,534 357,832 392,019 428,143 466,932 Latrines 126,498 3,424 4,145 4,826 5,629 6,596 Transportation facilities 3,525,388 4,052,137 4,604,827 5,003,980 5,420,893 5,869,426 Textbooks 112,341 151,796 183,638 192,877 201,650 211,246 School Supplies 112,341 151,796 183,638 192,877 201,650 211,246 Uniforms 112,341 151, 796 183,638 192,877 201,650 211,246 252 Malawi Growth and Development Strategy 3.3.2 Primary Education (i) Infrastructure New Classrooms 211,080 3,120 3,777 4,279 4,859 5,551 Reconstructed Classrooms 756 756 756 756 756 756 Blackboards 211,080 3,120 3,777 4,279 4,859 5,551 Desks 287,356 319,534 357,832 392,019 428,143 466,932 Chairs 287,356 319,534 357,832 392,019 428,143 466,932 Latrines 126,498 3,424 4,145 4,826 5,629 6,596 Transportation facilities 3,525,388 4,052,137 4,604,827 5,003,980 5,420,893 5,869,426 3.3.3 Secondary Education (i) Infrastructure Teacher housing 80 80 80 80 80 80 Sports facilities 35 35 35 35 35 35 Special rooms 15 15 15 15 15 15 Libraries 38 72 103 168 268 424 Laboratories 35 67 97 159 256 409 Games and sports facilities 163 251 286 390 521 687 New Classrooms 759 1,094 1,143 1,463 1,830 2,250 Blackboards 759 1,094 1,143 1,463 1,830 2,250 Desks 27,645 40,516 43,280 56,222 71,343 88,996 Chairs 27,645 40,516 43,280 56,222 71,343 88,996 Latrines 304 555 737 1,083 1,529 2,091 Transportation facilities 3 7 11 21 37 67 3.3.5 Vocational Training 253 Malawi Growth and Development Strategy (i) Infrastructure Libraries 7 7 9 12 15 19 Laboratories 19 17 22 27 33 41 Boarding Facilities 7 6 8 10 13 16 Games and sports facilities 7 6 8 10 13 16 Workshops 30 27 34 43 54 67 New Lecture rooms 82 74 97 124 157 197 Reconstruction of lecture rooms 14 13 11 9 8 6 Desks/chairs 311 330 349 369 390 411 Toilets/Latrines 12 18 29 44 64 91 Transportation facilities 17 15 20 25 32 40 Protective Clothing 1,784 2,493 3,356 4,387 5,600 7,004 3.3.6 University Education (i) Infrastructure Libraries 1 1 1 2 2 3 Laboratories 10 9 11 15 19 24 Workshops 2 2 2 3 5 8 Games and sports facilities 1 1 1 1 2 2 Boarding Facilities 1 1 1 1 1 1 New Lecture rooms 35 31 40 50 63 79 Reconstruction of lecture rooms 36 32 28 24 20 16 Desks/chairs 839 944 1,055 1,172 1,295 1,424 Toilets/Latrines 5 8 12 18 26 37 Transportation facilities 3 3 4 6 8 11 Protective Clothing 92 126 168 217 275 342 254 Malawi Growth and Development Strategy 3.4 Gender (i) Infrastructure Emergency shelters 43 3 3 2 2 2 Shelters to be maintained 43 46 49 51 54 56 4 INFRASTRUCTURE DEVELOPMENT 4.1 Transport 4.1.1 Civil Aviation (i) Infrastructure Rehabilitation of strategic Airports 0 0 1 1 1 0 Procurement of security equipment 0 6 4 6 2 2 Navigation Aids 0 8 8 8 8 0 4.1.2 Maritime Transport (i) Infrastructure Development of Ports 0 4 3 2 1 0 Rehabilitation of Ports 0 2 5 4 3 2 Provision of Navigational Aids 0 20 20 20 20 20 Search and Rescue 0 8 8 8 0 0 4.2 Information And Communication Technologies 4.21 Telecommunications (i) Infrastructure Number of Telecommunications Offices 1,753 1,915 2,085 2,264 2,453 2,651 Rural Telecentres 2,764 5,701 8,817 12,122 15,623 19,331 255 Malawi Growth and Development Strategy Desks 453,990 684,186 940,767 1,224,700 1,536,953 1,878,496 Telephone Exchanges 179 487 935 1,534 2,299 3,242 Frequency Spectrum 843 2,052 3,659 5,697 8,202 11,212 Vehicles 1,009 1,231 1,467 1,717 1,981 2,261 4.2.2 Information Technology 4.2.2.1 Policy Development No. office space built - 44 50 56 63 70 Incremental number of office space built - 6 6 7 7 7 Number of new offices net work built - 56 85 113 141 169 Number of offices connected to GWAN - 74 103 131 159 187 No. of District Assemblies net worked - 8 12 16 20 24 No. of schools with developed information systems 12 16 21 26 31 - No of information systems integrated - 10 15 20 25 30 No. of Ministries connected to IFMIS - 13 14 15 17 18 No of Ministries connected to HRMIS - 13 14 15 17 18 No. of District Assemblies connected to the National ID 8 12 16 20 24 System - 4.3 Broadcasting 4.3.1 Television Infrastructure # of new office space built 5 6 6 6 7 7 # of new production equipment constructed 4 4 4 4 4 4 # of new transmission equipment constructed 2 3 4 5 6 7 # of new it equipment constructed 3 3 4 4 5 6 256 Malawi Growth and Development Strategy # of vehicles units required 5 5 4 4 4 4 # Incremental transmitter 4 5 5 6 6 Editing Suites - 1 1 1 - - Production facilities 1 1 1 1 2 Outside Broadcasting - - 1 - - Video Tapes 1,020 930 840 750 660 570 Implied # of office supplies 60 60 60 60 60 60 5: GOOD GOVERNANCE 5.1 Justice and Rule of Law New courts built 1 25 50 75 100 125 Incremental No. of reconstructed courts - 40 40 40 40 40 Chairs 9 9 9 9 9 9 Desks 20 23 26 30 35 41 Database 4 6 8 11 16 23 Computers 4 6 8 11 15 23 5.2 Corruption (I) Infrustructure Construction of Offices 0 0 0 0 0 0 Reconstruction of Offices 1 1 1 1 1 1 Desks 6 6 6 6 7 7 Chairs 6 6 6 6 7 7 Database 8 9 9 9 10 10 Computers 6 6 6 6 6 6 Vehicles 3 3 3 3 3 3 257 Malawi Growth and Development Strategy 5.3 Human Rights Office Space construction 5 5 5 4 3 1 Reconstruction of Offices Spaces 15 15 15 15 15 15 Computers 6 6 6 6 6 6 Vehicles 4 4 4 4 4 4 5.4 Police (i) Infrastructure Construction of new police posts 55 61 67 72 78 84 Incremental number of police posts built 6 6 6 6 6 6 Number of desks and chairs 208 324 448 580 721 871 Incremental 108 116 124 132 141 150 Construction of maintenance workshops 14 19 25 32 39 47 Incremental 5 5 6 7 7 8 Number of beds 1,541 1,685 1,836 1,996 2,164 2,340 Incremental 136 144 152 160 168 176 Rehabilitation of police stations 7 10 13 16 19 22 Incremental 3 3 3 3 3 3 Telecommunication equipment access 9,803 11,591 13,525 15,612 17,859 20,273 Incremental 1,648 1,788 1,934 2,087 2,247 2,414 Breathalysers 1,265 2,898 4,918 7,347 10,205 13,516 Incremental 1,265 1,633 2,020 2,429 2,858 3,310 Speed cameras 34 34 34 34 34 34 5.5 Prisons (i) Infrastructure 258 Malawi Growth and Development Strategy No of Prisons with Vehicular transport 11 13 16 19 22 26 Incremental No. of Prisons with Vehicular transport 2 3 3 3 4 5 No. of Existing Prisons 27 29 31 33 35 38 Incremental No. of Prisons 2 2 2 2 3 3 No of rehabilitated Prison Cells 24 41 61 85 114 150 Incremental No. of Rehabilitated Prison Cells 17 20 24 29 36 45 No. of cultivated hectares 207 253 299 345 391 437 Incremental No. of hectares 46 46 46 46 46 46 5.8 Public Sector Reform (i) Infrastructure Construction of Office Spaces 4,411 4,910 5,498 6,196 7,034 8,051 Construction of classrooms 18 20 22 25 27 30 Desks 384 392 399 407 415 423 Chairs 384 392 399 407 415 423 Vehicles 2,526 2,582 2,639 2,696 2,755 2,815 Construction of Hostels 127 128 130 131 133 134 Chalkboards 22 25 27 31 34 38 Computers 160 198 223 235 235 219 Audio-visio equipment sessions 21 23 26 31 40 54 Sports facilities 5 7 8 10 11 11 5.9 Decentralisation 5..9.1 Local Government Planning and Financing Construction of Office Spaces - - - - - - 259 Malawi Growth and Development Strategy Rehabilitation of Offices 11 11 10 10 10 10 5.9.2 Sector Revolution Incremental # of office spaces reconstructed 6 6 6 6 6 6 Desks 1 1 1 1 1 1 Chairs 2 1 1 1 1 1 Information Technolgy 0 1 1 1 1 1 Database 2 2 2 2 2 2 Vehicles 2 1 1 1 1 1 5.9.3 Fiscal Devolution and Financial Management Office Spaces 18 6 0 0 0 0 Computers 8 3 0 0 0 0 Desks 3 2 1 0 0 0 Chairs 3 2 1 0 0 0 Market Structures 5 3 1 0 0 0 Vehicles 7 6 4 1 0 0 260 Malawi Growth and Development Strategy

ANNEX 5 SELECTED OUTPUT, OUTCOME AND IMPACT INDICATORS MGDS THEMES KEY INDICATORS Baseline – Target for Main Frequency of and SUB THEMES 2005 2011 Responsible party data collection Poverty Impact 1 Poverty Headcount measured by consumption based on poverty line 52.4% 30-35% MEPD/NSO 5 Years 2 Extreme Poverty headcount measured by consumption based on poverty line 22.4% 12-18% MEPD/NSO 5 Years Theme I: Sustainable Economic Growth Sources of Growth 3 GDP growth rates 3.5% 6.0% NSO/MEPD Annual 4 Income per capita US$170 US$450 NSO Annual Private Sector 5 Private investment as a % of GDP 3.0% MEPD Annual 6 % of food secure households 67% 100% MOAFS Annual Food Security 7 Per capita cereal availability 170 kg 270 kg MOAFS Annual 8 Average maize yields per hectare 809 Kg 3000 Kg MOAFS Annual 9 Per capita meat availability 6 Kg 12 Kg MoAFS Annual 10 Agriculture Cooperatives formed and operating 211 281 MoAFS Annual 11 Forest Area as % of total land 27.2% 30% Forest Dept 5 Years Natural Resource/ 12 Aquaculture: total fish reared 950 MT 5,000 MT Fisheries Dept Monthly Environmental 13 Total fish landing 55,000 MT 60,000MT Fisheries Dept Monthly Protection 14 No. of fishermen using motorized plank boats 500 650 Fisheries Dept Annual 15 Reduction in the use of ozone depleting substances (ODS) 32.72 ODP 5 ODP Environmental Affairs 5 years Tones Tones 16 Percentage increase in key wildlife species in protected areas - 50% 80% DNPW 3 years 17 Increase in income generating capacity from protected areas through MK5 MK50 DNPW Annual concession from ecotourism management million million 261 Malawi Growth and Development Strategy ` MGDS THEME KEY INDICATORS Baseline – Target for Main Frequency of and SUB THEME 2005 2011 Responsible party data collection Theme II: Social Protection 18 Proportion of disadvantaged receiving conditional & unconditional transfers 4% 10% DoPDMA Annual Protect Vulnerable 19 Number of hhs reached per programme (a) PWP DoPDMA Annual ( b) TIP ( c) TNP (d ) DTP 20 Percentage of beneficiaries graduated out per programme (a) PWP DoPDMA Annual (b) TIP (c ) TNP ( d) DTP MGDS THEME KEY INDICATORS Baseline – Target for Main Frequency of and SUB THEME 2005 2011 Responsible party data collection Theme III: Social Development 21 Life Expectancy 40 years 45 years NSO Ten Years Health 22 Maternal Mortality Ratio (MMR) 984/100,000 560/100000 NSO Five years 23 Infant Mortality Rate (IMR) 76/1000 48/1000 NSO Five Years 24 Under 5 mortality rate 133/1000 76/1000 NSO Five Years 25 Percentage of pregnant women who slept under insect site treated net the 14.7% 60% MOH Two years previous night 26 Percentage of children slept under insect site treated net the previous night 14.8% 60% MOH Annual 27 TB Cure rate 74% 80% MOH Annual 28 Total Fertility Rate 6.0 5.7% NSO Four Years 29 Proportion of 1 year-old children immunized against measles 59% 85% MOH Annual 30 Proportion of births attended by skilled personnel 38 % 75 % MOH Annual 262 Malawi Growth and Development Strategy 31 OPD service utilization per 1000 population 800/1000 >1000/ MOH Annual population 1000 population 32 Nurse/population ratio 1:4,000 1:1,700 MOH Annual 33 Doctor/population ratio 1:62,000 1:31,000 MOH Annual 34 Government’s contribution to the health sector as a proportion of total 11.1% 15% MoF Annual discretionary expenditure 35 EHP coverage 9% 40% MOH 3 years Gender 49 Women in Decision Making Positions 15 % MOGWC Annual 50 Gender Development index 0.374 MOGWC Annual Education 51 Literacy rate 63.9% 85% NSO Annual 52 Female literacy rate 50.5% 85% NSO Annual 53 Youth literacy rate (Age 15 to 24) 74.9% 95% NSO Annual 54 Completion rates in primary school 28% 48% MoE Annual Primary education 55 Primary School Net enrolment rate (by gender) Total 108% 95% MoE Annual Girls 108% Boys 108% 56 Primary School Gross enrolment rate (by gender) Total 132% 90% MoE/NSO Annual Girls 124 % Boys 128% 57 Primary School Dropout rate (by gender) Total 22% 12% MoE/NSO Annual Girls 23% Boys 21% 58 Primary school Classroom/pupil ratio 1:85 1:70 MoE Annual 59 Primary school Repetition rates Total 17% 8% MoE Annual Girls 16% Boys 17% 60 Progression rate into secondary school 35% 70% MoE Annual Secondary education 61 Qualified Teacher/ Pupil ratio 1:73 1:50 MoE Annual 62 Secondary school Net Enrolment Rate Total 11% 50% MoE Annual Girls 10% Boys 11% 63 Secondary School Gross Enrolment Rate Total 17% 60% MoE Annual Girls 15% Boys 20% Nutrition 36 Prevalence of under 5 Child Malnutrition - Stunted 48% 34% NSO Four years - Wasted 5% 4% - Underweight 22% 15% 37 Micronutrient deficiency (Iron, Vitamin A and Iodine) OPC Annual 38 Body Mass Index (BMI) OPC Annual 263 Malawi Growth and Development Strategy 39 Dietary related non communicable diseases (BP, diabetes, arthritis, gout etc) OPC Annual 40 HIV prevalence among pregnant women aged 15-24 year s” 14.3% 12% NAC Two years HIV & AIDS 41 HIV/AIDS Prevalence among 15-49 age group 14% 14.7% NAC Two years 42 % of people with advanced HIV and on ART who are still alive 12 months 85% 85% MOH Annual after start of ART” 43 % of infants born to HIV positive mothers who are infected 21% 18% NAC Two years 44 Prevalence of orphans 14.7% 13% NSO Four Years 45 % of sexually active persons who have voluntary tested for HIV - Women 15% 50% NAC Annual - Men 13% 50% 46 “% of health facilities providing ANC and/or maternity services with at least MOH Annual the minimum package of PMTCT services in the past 12 months” 47 % of HIV+ pregnant women receiving a complete course of ARV prophylaxis 6.9% 80% MOH Annual to reduce the risk of MTCT 48 # of people who are alive and on ART at the end of each year” 30,000 208,000 MOH Annual MGDS THEME KEY INDICATORS Baseline Target for Main Frequency of and SUB THEME – 2005 2011 Responsible party data collection Theme IV : Infrastructure Energy 64 Number of new trading centers connected to electricity (cumulative) 45 148 Energy Depart Annual 65 Access to electricity 7.1 % 10% Energy Depart Annual 66 Proportion of population using solid fuels 94.2 % 84.5 % Energy Depart Annual Water and 67 Percentage of population with access to safe potable water 66% 80% MoIWD Annual Sanitation 68 Percentage of population with access to improved sanitation 83% 95% MoIWD Annual 69 Number of dams constructed 75 750 MoIWD Annual 70 Percentage of road network in good condition 29% 71% MOT Annual Transport 71 Transport cost as a percentage of export/import cost 56% 12% MOT Annual 72 Lead time on exports due to transport 3 1 MOT Annual 73 Rural Population living within 2 Km from all weather road Telecommunication 74 Number of phones per 100 people 78000 MoI/MTL/MACRA Annual s ICT 75 Utilization, deployment of ICTs in growth sectors (Agriculture , Trade, Tourism) Qualitati MoI Annual 264 Malawi Growth and Development Strategy ve 76 E-Government status 100% MIT Annual MGDS THEME KEY INDICATORS Baseline Target for Main Frequency of and SUB THEME – 2005 2011 Responsible party data collection Theme V: Improving Governance 77 Inflation 16.9% 5.0 % NSO/MEPD Monthly Macro-economic 78 Domestic debt stock as % of GDP 19.8 % 10% MoF Quarterly Stability 79 Fiscal deficit as a percent of GDP 3.5% 1.0% MoF Annual 80 Bank Lending rate 27% < 10% MoF/RBM Monthly 81 Equalization of the funding gap for Priority 1 activities between MGDS themes MoF/DAD Quarterly by 2011 82 Percentage of donor funds disbursed through the budget MoF/DAD Annual Public Sector Mngt 83 Law enforcement (perception) Qualitati MHRC Annual ve 84 Political Will and Mindset (fulfillment of plans/policies in place) Qualitati OPC Annual ve 85 Effective implementation of Government’s Medium Term Pay Policy DHRMD Annual 86 No of Ministries with working M&E systems - 100% MEPD Annual Corruption 87 Reported corruption cases effectively prosecuted 38% ACB Annual 88 Improved investor confidence OPC Annual Decentralization 89 Sectoral devolution (number of sectors fully devolved) 3 are 100% MoLGRD Annual leading 90 Community participation in decision making (perception) Qualitati MoLGRD Annual ve Justice /Rule of Law 91 Prosecution rates MoJ Annual 92 Reported human rights violation cases effectively resolved MHRC Annual 93 Access to justice for citizens Qualitati MoJ Annual ve 94 Crime Detection rates 24% MoHA Annual Security 95 Police/population ratio 1:1,672 1:1000 MoHA Annual 96 Warden/prisoners ratio 1:16 1:5 MoHA Annual 97 Number of prisoner deaths per month for every 10,000 prisoners < 10/month MoHA Annual 265