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MALAWI
Leadership and
progress in the warm
heart of Africa This and other UPPER REACH reports can be read online
www.upper-reach.com
Napoleon Bonaparte once than Portugal, and has the disadvantage of being land- Dr Bingu Wa
said, “Impossible is a word to locked. It is economically underdeveloped, largely agrar- ‘Malawi has great Mutharika,
be found only in the dictio- ian and densely populated. Until President Mutharika President of the
nary of fools.” This is a state- attained office, the country had repeatedly faced seri- potential to achieve Republic of Malawi,
ment the President of the Re-
public of Malawi, Dr Bingu Wa
ous food shortages caused by bad harvests as recent-
ly as 2002. The establishment of food security became a faster rate of is the first Malawian
to be appointed
Mutharika, would agree with.
In just over six years as head
the President’s most well known policy success.
Through a specially designed subsidy program for
development and Chairman of the
African Union
of state, he has set out and
achieved seemingly impossible goals for his nation. With
farmers, President Mutharika has converted Malawi’s
food deficit into a food surplus – turning the famine-rav-
to get out of the
his impressive background as an economist, the Pres-
ident has brought change to his country that can only
aged country into a food exporter. The trend is set to con-
tinue with the implementation of a national irrigation
poverty trap’
be described as transformational. Food security was plan, the Green Belt Program, which will lessen Malawi’s
rapidly and sustainably achieved, the economy grew in dependence on rain-fed crops.
leaps and bounds, despite the global downturn, and the Malawi has been called “the warm heart of Africa” due ‘The next five years
country has remained peaceful, stable and democratic to the friendly nature of its people. However for 30 years
during this dynamic period. under its first president, Dr Hastings Banda, Malawi was will be exciting for
Over the last five years GDP has grown annually by an isolated one-party state. Since the introduction of
an average of 7.5 per cent, an impressive feat given multi-party politics in the early 90s, there has frequently Malawi as it will
worldwide economic conditions and the fact that Malawi
as a country faces many challenges. During his inau-
been reference to the political instability brought about
by democracy and the idea of reverting to autocracy provide new
guration in May 2009, President Mutharika laid out his
hope for continued growth, “I reiterate that Malawi has
has often been discussed openly by the media and politi-
cians. President Mutharika has consistently reiterated
opportunities for
great potential to achieve a faster rate of development
and to get out of the poverty trap. The next five years
his commitment to democracy: “We have demonstrat-
ed that we, the people of Malawi, are able to embrace
growth, new
will be exciting for Malawi as it will provide new oppor-
tunities for growth, new investments and a new hope
our democracy with zeal and determination. We have
shown the need to work together to ensure that democ-
investments
for the Malawi nation.” racy matures and bears the desired fruits. As we strive and a new
Dwarfed by its neighbours Malawi is one of the small- to nurture our freedom, let us make democracy a bea-
est nations in Southern Africa, being only slightly larger con of hope and a symbol of our country’s survival.” hope for the
In recognition of these and other domestic achieve-
UPPER REACH ments, Dr Mutharika was appointed chairman of the Malawi
African Union on January 31, 2010. This is the first time
68 King William Street, London,
EC4N 7DZ that a Malawian has held this prestigious position. He nation’
Tel. 02079592424 has laid out a bold new vision for Africa with a focus on
UR@UPPER-REACH.COM eliminating famine, fighting poverty, promoting good
governance, economic development and better con-
MAL AWI PRO JECT TE AM: nections, both physical and otherwise within the African
Marko Rankovic, Fabiana Burbano continent. By using Malawi as a model there is hope that
and Alana Kalin Africa can make great strides in solving problems that
have plagued it for so long. ■
Transport infrastructure
revitalises economy
The government of landlocked Malawi is investing billions in improving the country’s transportation infrastructure with massive road rehabilitation initiatives,
railway network upgrades and a landmark waterway project with a new inland port that will reduce shipping costs and spur greater import and export activity
eliable and modern infrastructure and a to international standards and the terminal buildings programme that provides a short to
the hardcore poor until everyone in the rural areas population is rural and this will definitely have an ef-
can be assisted. We think that is the biggest driver of fect on activities of the rural poor. If you look at the fig-
growth in Malawi.” ures and the macroeconomic framework we have built
The governor adds, “In Africa we are the model for food together with the IMF, you can see that for the next three
security. There is no country on the continent that has years our GDP will not be less than 8 per cent,” says
done better than us. Last year we ranked as the sec- Dr Ligoya.
ond highest growing economy in the world after Qatar.” The finance minister says that the financial sector
As the economy grows, demand for hard currency can help investors maximise opportunities in various
increases. The central bank has done a sterling job of other sectors, particularly mining, tourism, energy
effectively controlling money circulation and supply, and agribusiness. He points out that Malawi is a mem-
helping to bring inflation and interest rates down to ber of various regional groupings, such as SADC and
manageable levels. Inflation is now in single figures COMESA. “At the moment, all of the countries in this
and interest rates are around 15 per cent – down from region are moving towards regional integration. Peo-
a high of 45 per cent in 2003. “We are able to do that ple from Europe or America should see Malawi as part
because we have a very strong team, assisted by our of a wider market,” says Mr Kandodo.
colleagues at the International Monetary Fund (IMF),” In July the minister revealed that Malawians would
comments Dr Ligoya. “We successfully completed soon be sharing trade using direct currency from
programmes such as the Poverty Reduction and Growth neighbouring countries as Malawi will soon engage
Facility (PRGF), which we are proud of and received Zambia, Mozambique and Tanzania in a currency repa-
praise from various observers.” He adds that a new triation programme. “This will speed trade of goods and
three-year programme with the IMF Extended Credit services along the borders as the agreement allow
Facility, confirmed earlier this year, totals some $80 the four countries to accept each other’s currencies.
As the economy grows, financial institutions such as Standard Bank are widening access to banking services million (£53 million) and has brought new a lease of The country's foreign exchange reserves will also be
life in economic management here. safeguarded,” he says. ■
An advertisement supplement by UPPER REACH
Thursday August 5, 2010
MALAWI 7
Lake Malawi, the third largest and second deepest lake in Africa, is also called Calendar Lake as it is 365 miles long. Calm turquoise waters beckon snorkellers and boaters to take the plunge
A vision of economic
development for Africa
Dr Bingu Wa Mutharika, President of Malawi and Chairman of the African Union, urged African ministers to promote sustainable growth before macro-economic
stability at this year’s joint annual meeting of finance, planning and economic development ministers, where he outlined his vision for the future
romoting high-level
‘The agenda for Africa is
P sustainable growth
to reduce unem-
ployment in Africa
was the theme of this year’s
joint annual meetings of the
indeed very simple. We
need to launch each and
‘African Union Conference of
African Ministers of Economy
every African country on a
and Finance’ and the ‘Eco- path to sustainable
nomic Commission for Africa
Conference of African Minis- development and on the
ters of Finance, Planning and
Economic Development’. At the road from poverty to
event, held in Lilongwe on
March 29, 2010, President Bin- prosperity’
gu Wa Mutharika laid out his
ambitious vision for Africa’s
economic growth, highlights
of which are featured here:
‘We need rapid and
“The agenda for Africa is in-
deed very simple. We need to
sustainable level of
launch each and every African
country on a path to sustain-
economic growth within a
able development and on the stable political and
road from poverty to prosper-
ity. In order to do this the eco- economic environment’
nomic development pundits
have prescribed various pre-
scriptions in the past. Many
of them have been imple- ‘Five years from now Africa
mented to the letter by the
African governments and yet must be able to feed itself
Africa is still classified as a and no child in Africa
PHOTO: Amos Gumulira