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  • 8/16/2019 State of the Nation Address by President Peter Mutharika During Opening of the 2015-17 Budget Meeting_May 20…

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    STATE O

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    very and Sustainable

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    THE NATION ADDRE

    BY

    NCY PROF. ARTHUR

    KA, PRESIDENT OF T

    UBLIC OF MALAWI

    he occasion of the

    NING OF THE 2016/

    EETING OF PARLIAM

    LILONGWE

    ay, 20th May, 2016 

    1

    Socio- 

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    •  YOUR EXCELLENCY MADAME DR. GERTRUDE MUTHARIKA, FIRST

    LADY OF THE REPUBLIC OF MALAWI;

    •  RIGHT HONOURABLE DR. SAULOS KLAUS CHILIMA, VICE

    PRESIDENT OF THE REPUBLIC OF MALAWI;

    •  RIGHT HONOURABLE RICHARD MSOWOYA, M.P., SPEAKER OF THE

    NATIONAL ASSEMBLY;

    •  YOUR LORDSHIP HONOURABLE ANDREW NYIRENDA, SC, CHIEF

    JUSTICE;

    •  HONOURABLE DEPUTY SPEAKERS;

    •  HONOURABLE LEADER OF THE HOUSE;

    • 

    HONOURABLE CABINET MINISTERS AND DEPUTY MINISTERS;

    •  HONOURABLE JUSTICES OF APPEAL AND JUDGES OF THE HIGH

    COURT;

    •  HONOURABLE LEADER OF THE OPPOSITION;

    •  LEADERS OF POLITICAL PARTIES REPRESENTED IN PARLIAMENT;

    •  HONOURABLE MEMBERS OF PARLIAMENT;

    •  YOUR EXCELLENCY MADAM THANDIWE DUMBUTCHENA, DEAN OF

    THE DIPLOMATIC CORPS AND HEADS OF DIPLOMATIC MISSIONS;

    •  MR. GEORGE MKONDIWA, CHIEF SECRETARY TO THE

    GOVERNMENT;

    •  DISTINGUISHED INVITED GUESTS;

    •  LADIES AND GENTLEMEN.

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    INTRODUCTION

    Mr. Speaker, Sir, I am pleased to deliver this morning the State of the Nation

    Address to this august House, and to officially open the 2016/2017 Budget

    Meeting.

    Before I proceed, allow me, Mr. Speaker, Sir, to convey my deepest condolences

    to the entire Honourable House and the bereaved family on the sudden death

    of Honourable Billy Kanjira Banda who, until his death, was a Member of

    Parliament for Mchinji West Constituency. May his soul rest in eternal peace.

    Mr. Speaker, Sir, let me proceed by outlining the gains we have made so far as

    a nation and then outline some of the plans for the 2016/2017 financial year.

    Mr. Speaker, Sir, the title of my Address today is: Towards Recovery and

    Sustainable Socio-economic Development .

     This country knows well that we have faced challenges for the past two years.

    But we cannot keep bemoaning our challenges. The question is: how are we

    redefining ourselves as a nation and emerging out of the challenges.

    I am pleased to report that the economy is slowly stabilizing. We took tough

    measures to contain our situation, and it was not easy. The resumption of the

    Extended Credit Facility with International Monetary Fund (IMF) is testimony

    that our austerity measures and fiscal discipline are bearing fruits.

    More than ever, we are optimistic that Malawi can do better. We now believe we

    can gradually wean ourselves from donor dependency. We have illustrated that

    with our own resources well managed, we can make Malawi a country where

    our potentials and dreams are realized.

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    MACRO-ECONOMIC ENVIRONMENT AND REFORMS

    Mr. Speaker, Sir, let me speak on macro-economic environment and reforms.

    Our 2015/2016 performance has been influenced by shocks caused by

    pressures from the rising food prices, exacerbated by low production of maize

    in the 2015 growing season due to floods, dry spells and early cessation of rain

    in most parts of the country.

    I want us to note that the economy grew by only 3.1 percent in 2015 despite an

    earlier projection of 5.4 percent growth rate. The rate of inflation remained high

    at 21.8 percent in 2015 as compared to the projected rate of 16.4 percent.

    Domestic debt stock increased to K526.4 billion in 2015 as compared to

    K487.0 billion at the end of 2014. However, domestic debt as a ratio of GDP

    dropped from 15.6 percent in 2014 to 8.9 percent in 2015.

    Mr. Speaker, Sir, while recognizing that the macroeconomic developments in

    the 2015/2016 financial year were mainly due to the effects of climate change,

    Government fought hard to achieve macroeconomic stability by implementing

    tight fiscal and monetary policies. Government has now regained firm fiscal

    management by exercising strict control on spending and enhancing domesticresource mobilization.

    On expenditure control measures, Government has made it mandatory for all

    Ministries, Departments and Agencies to submit financial transaction reports,

    which include revenue, expenditure, commitment and payroll returns and

    bank reconciliation reports as a condition for accessing subsequent funding.

    Now Treasury can analyse expenditure lines with closer scrutiny. We can

    compare expenditures in the Integrated Financial Management Information

    System (IFMIS) with those reflected at the Reserve Bank of Malawi. We can now

    detect any irregularities quickly.

    Mr. Speaker, Sir, while Government is committed to reduce donor dependency,

    domestic resource mobilization performance was below the set targets. From an

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    approved Mk 666.6billion in June 2015, this was revised to MK 654 billion

    during the midterm budget review. Mr. Speaker Sir, in order to enhance

    domestic resource mobilization, Government is committed to implementing a

    broad based tax reform starting from the 2016/2017 fiscal year with a view to

    aligning our tax system with the nation’s development goals, thus making it

    more efficient, effective, simple, transparent and predictable.

    Further, I would like to report that Government remains committed to

    implementing the Zero Net Domestic Borrowing policy in the medium term. The

    annual target of domestic debt repayment will remain at 1.5 percent of GDP.

    On how we manage external debt, Government will ensure that foreign loans

    are obtained primarily to finance development projects that are thoroughly

    appraised and are of strategic importance to the country. In fact, the projects

    must be justified to be of high rate of return.

    Mr. Speaker, Sir, we will continue with public debt management reforms to

    improve and align our public debt laws, procedures and processes to

    international best practice. We need to make our legal framework on public

    debt management more comprehensive and robust. This entails reviewingrelevant provisions in the Public Finance Management Act (2003).

    Mr. Speaker, Sir, this year, we expect to improve the macroeconomic

    indicators for our economy as a result of these measures.

    Let me also report that the economy is expected to register a real GDP growth

    rate of 5.1 percent in 2016, and 7.0 percent in 2017. The annual average rate

    of inflation is expected to fall from 21 percent in 2015 to 19.8 percent in 2016,

    with further improvements in 2017 and beyond.

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    PROGRAMME BASED BUDGETING REFORMS

    Mr. Speaker, Sir, in the 2016/2017 financial year, Government will roll out

    Program Based Budgeting (PBB) reforms. These have already been piloted in

    selected Ministries. All Ministries, Departments and Agencies will now prepare

    their budgets in line with the PBB framework.

    Mr. Speaker, Sir, the PBB approach will complement Government’s initiative

    on institutional performance assessment. Let us note that PBB framework

    provides an effective linkage between resources utilized and results achieved.

    FINANCIAL SECTOR REFORMS

    Mr. Speaker, Sir, in order to improve the stability of the financial sector,

    Government implemented a number of initiatives in the 2015/2016 financial

     year. We focused on strengthening the regulatory environment and improving

    the financial infrastructure for the sector. I am pleased to report that the

    following Bills have been developed for tabling in this house in order to

    strengthen the regulatory environment:

    ▪   The Credit Reference Bureau (Amendment) Bill, 2015;

    ▪   The Payment Systems Bill, 2016;

    ▪   The Financial Services Amendment Bill, 2016l;

    ▪   The Banking Amendment Bill, 2016;

    ▪   The Malawi Deposit Insurance Corporation Bill; and

    ▪   The Anti-Money Laundering Bill, 2016.

    Our aim is to make the regulatory framework tough and conducive .

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    Mr. Speaker, Sir, I have some good news on infrastructure for the financial

    sector. The National Switch was implemented in the 2015/2016 financial year.

    Government also commenced work on installation of Micro Finance Institution

     Transaction Processing Hub. Once installed, the hub will serve as a common

    Management Information System for Micro Finance Institutions.

    MEDIUM AND LONG TERM DEVELOPMENT PLANNING

    Mr. Speaker, Sir, we all recall that MGDS II ends June this year. As a result,

    Government has conducted a comprehensive review of the implementation of

    the MGDS II. We now have drawn lessons to inform the formulation of its

    successor.

    Mr. Speaker, Sir, we also recall that we promised to establish the National

    Planning Commission. We have made progress and we are now at the stage of

    developing a proper legal framework for the establishment of the Commission.

     This will ensure continuity of development programmes.

    SUSTAINABLE ECONOMIC GROWTH

    Agriculture

    Mr. Speaker, Sir, agriculture remains one of the key priorities for Government

    because of its significance to our economy. Government will, therefore,

    continue to place highest priority on the sector to ensure both national and

    household food security as well as support agro industries.

    Overview of the 2015/16 Season

    Mr. Speaker, Sir, the 2015/16 growing season has been badly affected by

    adverse weather conditions caused by the El Nino phenomenon. This has

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    negatively affected crop production including maize the staple food. Maize

    production has declined by 12.4% in the 2015/16 growing season. Thus, maize

    production declined from about 2.8 million metric tons in 2014/15 growing

    season to about 2.4 million metric tons in 2015/16. The country will, therefore,

    experience a deficit over another deficit registered in the previous season.

    Over three million Malawians are expected to be food insecure.

    Mr. Speaker, Sir, this august house must note we have already declared

    Malawi a State of Disaster and appealed for humanitarian relief assistance.

    Mr. Speaker, Sir, let me put it on record that Government distributed in the

    past year relief maize to about 2.8 million food insecure people in 25 districts.

     This maize was drawn from the Strategic Grain Reserve. We used Government

    resources and funds from the World Bank through the Malawi Floods

    Emergency Recovery Project. Through ADMARC, a total of 110,000 metric tons

    of maize was procured from Zambia and locally and sold to the general public

    at a subsidized price. And as the Government pronounced, no single person

    died from hunger.

    Mr. Speaker, Sir, in addition, a consortium of International Non-GovernmentalOrganizations also contributed towards the relief program in form of cash

    transfers that benefited about 430,000 Malawians. Vulnerable households in

    all the 28 districts were also provided with sweet potato vines and cassava

    cuttings to mitigate food shortage.

    Mr. Speaker, Sir, besides mitigating the food shortages;

    •  We implemented the Farm Input Subsidy Programme benefiting 1.5

    million resource poor farmers. This year farmers’ contribution was

    increased from MK1, 500 to MK9, 000.

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    •  We implemented the Legume Production and Marketing Programme. We

    are diversifying to more crops like soya beans, pigeon peas and

    groundnuts seed. This is one area where the future of our forex lies.

    • 

    We inaugurated a third Cotton Ginnery for ADMARC in Balaka; 

    •  We supported cotton growers with about 670 metric tons of certified

    cotton seed on cash as well as a loan basis; 

    •  We launched the US$2.4 billion Irrigation Master Plan and Investment

    Framework to guide the expansion of the irrigation sub-sector by

    116,000 hectares. Some of the major projects under this framework

    include Shire Valley Irrigation, Bwanje Scheme expansion, Songwe River

    and Greenbelt Initiative Schemes;

    •  We completed construction of seven solar pump irrigation schemes

    covering an area of about 780 hectares under the Agriculture

    Infrastructure Support Project, and 150 hectares under the Climate

    Adaptation for Rural Livelihoods and Agriculture Project in Karonga,

    Neno, Chikhwawa and Nsanje; 

    •  We completed maintenance of old government irrigation schemes in

    Karonga, Nkhotakota and Machinga and over 400 hectares was

    developed for gravity fed irrigation in Blantyre, Thyolo and Phalombe

    districts;

    •  We procured over 4000 treadle pumps through the Malawi Flood

    Emergency Recovery Project funded by the World Bank and also

    undertook surveys and designs of the 30 damaged irrigation schemes;

    and 

    •  We implemented the Karonga and Malombe Rice Production and value

    addition project. This will irrigate 1,500 hectares for the production of

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    rice to be processed, graded, branded and packaged for both local and

    export markets.

    Mr. Speaker, Sir, to address food shortages in the 2016/2017 financial year,

    Government has provided ADMARC with financial resources to procure maize

    soon after harvest to ensure that markets are fully stocked with commercial

    maize.

    Government has also invited interested private sector investors to undertake

    commercial irrigation farming in order to boost maize production beginning

    this year. The programme will also involve medium-scale farmers and

    smallholder farmers to either utilize their existing irrigation facilities or rent

    unutilized irrigable land. Government will guarantee to buy the maize produced

    through the National Food Reserve Agency. We will also prioritize the

    development of dams and boreholes to reduce dependence on rain-fed

    agriculture. I have also directed that FISP should undergo further reforms to

    ensure that the programme is efficiently and effectively implemented. In the

    end, FISP must be run like in the private sector.

    Mr. Speaker, Sir, in addition, Government will revamp extension farmerlinkages by deploying more Field Assistants across the country and improving

    on their mobility through the procurement of motorcycles and vehicles

    including mobile vans.

    Tobacco Production and Marketing

    Mr. Speaker, Sir, we are all aware that the tobacco industry has been facing a

    number of challenges. These include over-production, high rejection rates and

    low prices. We are therefore taking appropriate measures which include

    reviewing the Tobacco Act in order to address the structural challenges.

    Mr. Speaker, Sir, Government will this year adopt the National Agriculture

    Policy, the National Irrigation Policy, National Fisheries and Aquaculture Policy,

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    and the National Seed Policy and Bill. We need appropriate agricultural policies

    to guide the sector.

    Greenbelt Initiative

    Government continues to prioritize investment in the Greenbelt Initiative in

    order to increase productivity of selected high value crops. I am, therefore,

    pleased to report that construction of the irrigation infrastructure and the

    sugarcane factory in Salima were completed. Sugarcane nursery development

    is underway and planting on the 439 hectares will commence later this year.

    Under the GBI, Government has an ongoing Land Management Contract with

    Malawi Mangoes limited where land has been provided to Malawi Mangoes for

    the production of bananas and mangoes.

    Mining Development

    Mr. Speaker, Sir, Malawi’s unique mineral potential continues to attract

    interest from both local and foreign investors. We are now focusing on creating

    an appropriate investment environment by reviewing of mining legislation and

    establishment of mining cadaster, among other things. I am pleased to reportthat Government finally launched the countrywide airborne geophysical data in

    August, 2015.

    Mr. Speaker, Sir, Government will continue to collect, assess and disseminate

    geo-scientific data related to geology and mineral resources of Malawi. Clients

    can now access the data for use in mineral exploration, infrastructure

    development and general research.

    Natural Resources and Environment Management

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    Mr. Speaker, Sir, we have taken some measures to safeguard the country’s

    environment and natural resources. Government has initiated the process of

    placing Viphya Plantation and Thuma and Dzalanyama Forest Reserves under

    private sector management. We have also developed a National Charcoal

    Strategy in order to promote sustainable production of charcoal and

    alternative sources of energy for domestic use.

    In the 2016/2017 fiscal year, Government will strengthen the legal policy and

    regulatory framework for the effective management of its natural resources and

    environment. We will enact the Environment Management Bill (2016) and also

    adopt the National Climate Change Management Policy. Further, we will

    approve the revised National Forestry Policy and also enact the EnvironmentManagement Bill (2016).

    Industry, Trade and Private Sector Development

    Mr. Speaker, Sir, Government continues to implement the National Export

    Strategy in order to build the economy’s productive base. In the ending

    financial year, Government implemented a number of policy, administrative,

    regulatory and institutional reforms to enhance Malawi’s attractiveness as adestination for private investment. In this regard:

    •  Government launched the Malawi Business Registration System 

    which allows for online registration of businesses and companies;

    •  Government developed a collateral registry at the Department of

    Registrar General to improve business registration and ensure

    investors access to capital from the Banks;

    •  Government operationalized the Companies Act (2015) through the

    passing of the Insolvency Bill;

    •  Government commenced the establishment of the Malawi Trade Portal

    to facilitate the Ease of Doing Business in the country; and

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    •  Government formulated and approved the National Trade Policy and

    the National Industrial Policy

    Mr. Speaker, Sir, these reforms will improve Malawi’s competitiveness in Doing

    Business with the world. The reforms will also attract private investment,

    which is necessary for economic growth, job creation and poverty reduction.

    Mr. Speaker, Sir, Government also facilitated bilateral discussions with

    potential investors through the first ever Malawi Investment Forum. This forum

    attracted a lot of high profile foreign investors. Government also conducted

    bilateral meetings with the Chinese Government on priority projects for Malawi.

    I am pleased to report that the discussions with potential investors have

    already started bearing fruits. As I speak, we have already granted investment

    certificates worth $124 million.

    Furthermore, Mr. Speaker, Sir, the Chinese Government approved the

    immediate implementation of three priority projects. These are the Chileka

    International Airport Project, the 300 Megawatt Kam’mwamba Coal Fired Power

    Plant project and the E-Government (National Identity) Project. The Chinese

    Government also agreed to bring investors to support value addition in anumber of products particularly those featured in the National Export Strategy

    such as oil seed products; sugarcane products; cotton, textile and apparel;

    hides and skins, among others. This is part of the seven major projects

    approved by the Chinese Government.

    I would also like to report that Government continued to facilitate the

    accreditation of the Malawi Bureau of Standards in support of industrial

    development. Government is committed to the construction of the State of Art

    Laboratory in Blantyre, whose ground breaking ceremony took place in

    February, 2016.

    Mr. Speaker, Sir, during the 2016/2017 financial year, Government will

    continue implementing reforms in order to enhance Malawi’s attractiveness as

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    an investment destination. The reforms will now include reviewing the

    Regulations to establish Export Processing Zones, which will in turn facilitate

    the promotion of industrialization.

    Labour and Employment

    Mr. Speaker Sir, labour plays a vital role in the socio-economic development of

    the country. Government, therefore, is committed to promoting a high quality,

    skilled and productive workforce.

    In order to improve quality in our technical colleges, Government is

    constructing ICT and Business Centres, classrooms and workshops at

    Lilongwe, Nasawa, Salima and Soche Technical Colleges.

    Mr. Speaker, Sir, Government is aware that Malawi has available skilled labour

    that can foster development of our country. In order to provide job

    opportunities to the available labour force, Government will review the current

     Temporary Employment Permit procedures. We will tighten the issuance of

     Temporary Employment Permits to ensure that only special skills which are notavailable in the country are considered.

    Mr. Speaker, Sir, in order to bridge the information gap between employers

    and the labour force, Government is currently developing a Labour Market

    Information System which will increase access to and availability of labour

    market information in the country. The system will also help Government to

    modernize public employment services.

    In this financial year, Mr. Speaker, Sir, Government continued to conduct

    labour inspection in workplaces to ensure that workplaces complied with

    regulatory framework on occupational health and safety standards. We

    inspected about 500 workplaces during the year under review.

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    Mr. Speaker, Sir, delay on workers compensation payments has been a major

    concern for a long time. In response to this undesirable situation, Government

    is developing a Workers’ Compensation Fund. Apart from helping to speed up

    workers compensation payments, the Fund will also guarantee availability of

    finances. This will reduce financial burden to the Government and the private

    sector.

    Tourism, Wildlife and Culture

    Mr. Speaker, Sir, the tourism sector has a huge potential to contribute to our

    country’s economic growth and development. However, the slow pace of growth

    of this sector remains an area of concern to the Government.

    In order to create new impetus in the sector and realize full potential, I have,

    therefore, moved the Department of Tourism from the Ministry responsible for

    Information to the Ministry responsible for Industry and Trade. Tourism must

    be understood as an industry.

    Government will implement more measures to drive tangible growth andsuccess in the tourism industry. These include:

    •  implementing the Malawi Tourism 2020 Strategy;

    •  reviewing the Tourism Policy;

    •  upgrading to bitumen standards access roads to places with tourist

    value; and

    •  constructing the Malawi Institute of Tourism Campus in Lilongwe.

    Further, Government will expedite the enactment of the National Heritage

    Council Bill  law to ensure promotion and preservation of the country’s rich

    cultural heritage.

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    Integrated Rural Development

    Mr. Speaker, Sir, Government is aware that for this nation to develop, priority

    must be given to the development of rural areas. In view of this, Government

    remains committed to improving the living standards of the rural poor.

    During the year under review, Government completed construction of Rural

    Growth Centers at Jenda in Mzimba, Malomo in Ntchisi and Monkey Bay in

    Mangochi districts. Government also completed construction of a modern

    market at Nkhamenya in Kasungu District; Nthandizi, Phalula and Ulongwe

    markets in Balaka District; and Mbulumbuzi Market in Chiradzulu District.

    Mr. Speaker, Sir, with regards to implementation of social support

    programmes, Government disbursed a total of US$20.4 million to a total of

    450,131 households through the Community Driven Public Works and Social

    Cash Transfer components of the programme.

    Mr. Speaker, Sir, during the 2016/2017 fiscal year, Government will continue

    implementing the Social Support programme in order to provide cash transfers

    to poor households. This will enable them purchase subsidized farm inputs

    and food during the lean season. Government will also complete the second

    phase of Rural Growth Centers; and complete devolution  of functions to

    Local Authorities.

    INFRASTRUCTURE DEVELOPMENT

    Transport Infrastructure

    Mr. Speaker, Sir, a good transportation system is a fundamental prerequisite

    to any country’s economic growth and human development. That

    notwithstanding, our transport costs remain among the highest in the region.

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    Realising this need, Government has been undertaking measures to reduce

    transport costs through the implementation of the National Transport Policy 

    which we launched in April, 2015. Through this policy a number of remedial

    measures in the transport are being undertaken as follows.

    Road Transport

    In order to increase the amount of resources available for road maintenance,

    Government, in the 2015/2016 financial year, implemented a number of

    reforms. These reforms aimed at increasing resources collected by the Roads

    Fund Administration. The structure of the fuel levy was revised from an

    absolute figure to a percentage of pump price; and this led to a 60 percent

    increase in the resources available for road maintenance programs. The

    collection of transit fees in all our border posts was outsourced on an agency

    arrangement with the Malawi Revenue Authority in order to reduce transit fee

    leakages. This led to a 30 percent increase in revenues collected from transit

    fees.

    Despite this significant increase in resources available for road maintenance,

    the annual financing gap still remains high at about US$55 million. In order toreduce this financing gap, Government is exploring the possibility of tolling

    selected roads under Public Private Partnership arrangement, to provide extra

    resources for road maintenance.

    Mr. Speaker, Sir, Government will also continue working towards improving

    accessibility and mobility for the country’s rural population through

    maintenance and construction of new roads in rural areas, focusing on those

    areas that are economically active. Some of the key rural roads upgrading

    projects that Government will focus on in the 2016/2017 financial year

    include:

    •   The resumption of the Zomba – Jali – Kamwendo – Phalombe –

    Chitakale road; and the Thyolo - Thekerani - Muona - Bangula Road;

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    •   The continuation of the Jenda-Edingeni Road;

    •   The Completion of the Chiringa – Miseu Folo - Chiradzulu road; and

    •   The Completion of the Lumbadzi – Dowa – Chezi Road upgrading.

    Mr. Speaker, Sir, with regard to improvement of the condition of the existing

    roads, a number of roads in the main cities of Blantyre, Lilongwe, Zomba and

    Mzuzu have been targeted for rehabilitation in 2016/2017 fiscal year and

    beyond, with a view to improving the flow of traffic and reducing congestion

    which of late has become a common problem.

    Mr. Speaker, Sir, other road projects which are scheduled for commencement

    in the next fiscal year include:

    •  Karonga – Songwe Road Rehabilitation Project

    •  Mzuzu – Nkhata Bay Road Rehabilitation Project; and

    • 

    Liwonde – Mangochi Road Rehabilitation Project.

    Mr. Speaker, Sir, I am pleased to report that Government, through theDirectorate of Road Traffic and Safety Services has been upgrading the Malawi

     Traffic Information System with new modules being added to the system in

    phases. This system has automated and integrated all aspects of traffic and

    safety services. Mr. Speaker, Sir, one of the benefits that has accrued from the

    improved system is an increase in revenues collected by the Directorate.

    Mr. Speaker, Sir, in order to reduce congestion at Road Traffic and Safety

    Services centres, Government will outsource Vehicle Inspection Services to

    private service providers. An inspection and testing equipment has already

    been procured to facilitate this process.

    Rail Transport

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    Mr. Speaker, Sir, regarding rail transport, Government has continued to

    prioritize the Nacala Corridor. I am pleased to report that a 138 km railway

    line between Nkaya and Kachaso and a 100km section between Nkaya and

    Nayuchi became operational in December last year. However, the operations

    are being threatened by attacks along the line. Government is doing everything

    possible to stop the attacks. Mr. Speaker, Sir, let me also take this opportunity

    to urge all Malawians to show a sense of patriotism and respect for private and

    public property, as continued sabotage of the trains will eventually lead to an

    increased cost of goods and services caused by increased transportation costs.

    Water Transport

    Mr. Speaker, Sir, with regard to water transport, let me reiterate Government’s

    commitment to the Shire-Zambezi Waterway Project.

    Mr. Speaker, Sir, the Governments of Malawi, Mozambique and Zambia

    secured resources from the African Development Bank through SADC to

    conduct a comprehensive feasibility study. I am pleased to report that the

    preliminary findings of the study showed that the two rivers are navigable. The

    three Governments will, therefore, meet in the next few months to consider thefull report and reach an agreement on the way forward. Upon implementation

    of this project, it is expected that transport costs will fall by 30 percent.

    Air Transport

    Mr. Speaker, Sir, we need to start thinking of Malawi as an air-linked country.

    Air transport continues to play an important role in the development of our

    economy. Government is, therefore, working towards creating an enabling

    environment to facilitate the operations of air transport.

    Mr. Speaker, Sir, let me report that Government has sourced funding from the

     Japanese Government for the expansion of the terminal building at Kamuzu

    International Airport. This will include construction of a new forward holding

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    departure lounge; and rehabilitation of the domestic passenger facilities.

    Construction works are expected to start in July, 2016. In addition, under the

    Chinese infrastructural projects, a new airport will be built at Chileka.

    Government also plans to rehabilitate and improve the Mzuzu Airport.

    Water Development

    Mr. Speaker, Sir, Government remains committed to the provision of safe water

    to the masses across the country. It is for this reason that Government has

    taken significant steps in establishing the National Water Resources

    Authority  which will serve as a regulatory body for water resources

    management.

    During the year under review, Government:-

    •  continued with construction works on Liwonde Barrage and new Liwonde

    Bridge;

     

    continued implementing the Songwe River Basin DevelopmentProgramme in collaboration with the Government of the Republic of

     Tanzania. Our aim is to improve living standards of the basin population

    for both countries; and

    •  Government also completed construction of water supply systems in

    Dedza, Chitipa, Nkhata-Bay and Chikhwawa districts.

    Mr. Speaker, Sir, in the 2016/2017 financial year, Government will:

    •  continue with expansion works in developing ground water and drilling

    boreholes in areas with low water supply coverage;

    •  operationalise the National Water Resources Authority; and

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    •  continue with construction works on gravity-fed water supply schemes.

    Government is aware of the water shortages experienced particularly in the

    cities of Lilongwe and Blantyre. Government will continue to implement short,

    medium and long term strategies to address the prevailing situation, including

    construction of a dam across Diamphwe River in Lilongwe, drawing water from

    Lake Malawi, and tapping water from Mulanje Mountain to Blantyre.

    Energy Development

    Mr. Speaker, Sir, Government is determined to restructure the energy industry

    with the aim of providing a level playing field for private sector participation in

    the generation and supply of electricity. In this respect, ESCOM will be

    responsible for transmission and distribution and a separate Electricity

    Generation Company will be responsible for generation of electricity. An

    enabling Bill will be presented to this August House during this sitting.

    Mr. Speaker, Sir, Government has so far signed 26 Memorandum of

    Understanding with potential Independent Power Producers Investors in the

    Power Sector. The project proposals range from solar, coal and hydropower

    generation technologies.

    Apart from the Malawi Challenge Account Project whose main focus is

    rehabilitation and upgrading of Nkula A and building of high voltage

    transmission across the country, Government is also implementing the Energy

    Sector Support Project funded by the World Bank and African Development

    Bank. The project focuses on conducting feasibility studies for additional

    Hydro Power generation in the country.

    In the coming fiscal year, Government will continue providing solutions to

    challenges faced in the energy sector. Among priority projects, Government

    will soon sign a financial Agreement with the Exim Bank of China for

    Kam’mwamba Coal Fired Power Project.

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    Information and Communication Technology

    Mr. Speaker, Sir, Information and Communication Technology (ICT) is one of

    the key catalyst for socio-economic development. Government is, therefore,

    taking progressive steps to improve ICT governance by creating the enabling

    environment for development of ICT. In this regard, I am pleased to report that

    the E-Transactions Bill, Communications Bill, and Access to Information Bill

    were submitted to this august House and are awaiting enactment.

    Government has also completed implementing various national and regional

    communications infrastructure projects. Our goal is to improve the speed, cost

    and penetration of the internet services. We have now launched the fibre optic

    project connecting Malawi through Zambia and Tanzania.

    SOCIAL SUPPORT AND DISASTER RISK MANAGEMENT

    Disaster Risk Management

    Mr. Speaker, Sir, in response to food shortages caused by the adverse weather

    conditions, Government has been providing relief food and cash to the targeted

    food insecure households. This is being done with support from development

    partners, civil society organisations, the private sector and individuals within

    and outside the country. This far, a total of 70,000 metric tons of maize was

    released for distribution to the targeted food insecure households.

    Mr. Speaker, Sir, disaster recovery interventions are being guided by the

    National Disaster Recovery Framework which was developed after carrying outpost disaster needs assessment. The assessment revealed that MK168.6 billion

    is required for disaster recovery interventions. I am pleased to report that

    MK53.4billion has already been secured from the World Bank under the

    Malawi Flood Emergency Recovery Project. I, therefore, once again appeal to

    Development and cooperating partners, NGOs, the private sector and

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    individuals to contribute towards the implementation of the national disaster

    recovery framework.

    Mr. Speaker, Sir, in terms of progress made in the implementation of the

    disaster recovery framework, I wish to report that:-

    •  798.6 kilometers of feeder roads have been rehabilitated, 118.9 hectares

    of land re-afforested and 5.7 kilometers of irrigation canals that were

    damaged by the floods have been re-constructed using labour intensive

    methods;

    •  a total of 33, 241.64 metric tons of maize was procured for restocking the

    Strategic Grain Reserve;

    •  reconstruction and improvement of roads and bridges in the affected

    areas is under way; and

    •  a thorough assessment of all education and health facilities that were

    heavily damaged by the floods in Mulanje and Nsanje districts has been

    done and reconstruction works will commence soon.

    Further, we have so far provided relief assistance in terms of food and non-food

    items to about 32, 198 households in 25 districts.

    Going forward, Government will:-

    •  facilitate the development of a National Disaster Risk Management and

    Resilient Framework;

    • 

    promote the implementation of community based risk reductioninterventions such as afforestation programmes to address disaster

    risks;

    •  finalise the review of the Disaster Preparedness and Relief Act; and

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    •  continue the implementation of recovery interventions under the Malawi

    Floods Emergency Recovery Project.

    Elderly and Persons with Disabilities

    Mr. Speaker, Sir, the Government remains committed to improving the welfare

    of the elderly and those living with disabilities. Therefore, during the 2015/16

    financial year Government provided various vocational and skills training to

    over 216 persons; launched the National Disability Mainstreaming Strategy;

    and undertook an investigative study to establish the root cause of attacks and

    killing of persons with albinism. The study was conducted in Machinga,

    Mulanje, Zomba, Dedza and Chitipa Districts. Government has prosecuted

    those suspected to be engaging in these heinous activities and they have been

    speedily convicted by our courts.

    Mr. Speaker, Sir, Government undertook a comprehensive public awareness

    on promotion and protection of the human rights of older persons and on thefight against witchcraft related violence. Being elderly is not a crime and,

    therefore, all old persons must be respected, protected, and taken care of.

    Government will in the next financial year intensify awareness campaign on the

    rights and welfare of people with disability, review the 1911 Witchcraft Act 

    and develop a National Elderly Bill for presentation to this august house.

    SOCIAL DEVELOPMENT

    Public Health

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    Mr. Speaker, Sir, Government is committed to ensure healthy lives and

    promote well-being for all Malawians. Government is, however, aware, that the

    health sector continues to face a number of challenges, including critical

    shortage of staff, essential drugs and equipment. Government has, and will

    continue to work tirelessly in order to address these challenges. During the

    2015/2016 fiscal year, Government, through the Central Medical Stores Trust,

    developed a Concept of “MUST HAVE” list of medicine and medical supplies.

     This will rationalize the use of the scarce resources that are made available for

    procurement of health commodities.

    In order to address the shortage of medical personnel, Government is currently

    processing the recruitment of 1,412 young men and women who havegraduated from the Malawi College of Health Sciences and the Christian Health

    Association of Malawi (CHAM) training colleges. We have also received a list of

    51 fresh graduate Medical doctors, 10 Optometrists, 28 Physiotherapists and

    34 Pharmacists from the College of Medicine, who will be placed on 18 months

    internship at Queen Elizabeth Central Hospital and Kamuzu Central Hospital.

    Mr. Speaker, Sir, to further improve delivery of health services, during the

    2015/2016 fiscal year, Government:-

    •  continued the construction of 140 houses under Umoyo Housing

    programme and five flats for staff;

    •  signed a Memorandum of understanding with Christian Health

    Association of Malawi aimed at increasing access to essential health

    services especially for rural remote communities; and

    •  secured resources from Global Alliance for Vaccines and Immunisations

    for non-traditional vaccines amounting to over 14 million USD.

    Mr. Speaker, Sir, in the forth coming year, Government will:

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    •  continue to provide resources to Central Medical Stores Trust on a

    quarterly basis to enable the Trust to, among others, process tenders in

    a more predictable and efficient manner;

    • 

    reduce pilferage of drugs through strengthening oversight functions of

    hospitals by health advisory committees;

    •  review the Pharmacy, Medicines and Poison Act, specifically to ensure

    that stiffer penalties are included in this Act; and

    •  commence construction of New Phalombe Hospital.

    Malaria, HIV and AIDS Management

    Mr. Speaker, Sir, with regard to Malaria, HIV and AIDS management, I am

    pleased to report that Government secured resources from Global fund for

    Malaria, HIV and TB. These resources will ensure complementation of

    Government’s efforts in reducing cases of malaria as well as increasing the

    number of people receiving free Anti-Retroviral Therapies.

    Education, Science and Technology

    Mr. Speaker, Sir, education is a means for building human capital.

    Government is, therefore, committed to ensuring provision of quality education

    at all levels.

    I am pleased to report that, during the year under review, notable

    achievements were made in the sector including the following:-

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    •  timely payment of teachers’ salaries across the country owing to the

    decentralization of payment of salaries of teachers to the education

    divisions;

    • 

    opening of Chiradzulu Teachers’ Training College which has a capacity of

    560 student teachers;

    •  construction of laboratories and libraries in 33 Community Day

    Secondary Schools. These will give students a better chance to compete

    with their counterparts learning in conventional secondary schools on

    equal basis;

    • 

    upgrading of 33 Community Day Secondary Schools to conventional

    secondary schools; and

    •  the Establishment of a Higher Education Students Loans and Grants

    Board to manage the loan facility for students in public universities.

    Mr. Speaker, Sir, in the next financial year, Government will, among others:-

    •  commence the construction of three teacher training colleges in Rumphi,

    Chikhwawa and Mchinji districts;

    •  continue with the construction of Machinga and Thumbwe Secondary

    School;

    •  upgrade 21 CDSSs to conventional secondary schools; and

    •  continue with the expansion of infrastructure in the various public

    universities and four Technical Colleges in Lilongwe, Salima, Soche andNasawa.

    Gender, Women and Development

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    Mr. Speaker, Sir, Government is determined to empower women by ensuring

    that they are active participants in the development of this country. In this

    regard, in the year under review, Government:-

    • 

    launched the revised 2016-2021 National Gender Policy which will guide

    gender mainstreaming and women empowerment initiatives;

    •  institutionalized gender mainstreaming in academic institutions by

    facilitating development of gender policies in our Public Universities;

    •  trained 246 Magistrates, Police Prosecutors and Social Welfare Officers in

    Gender Related Laws; and

    •  undertook mobile court sessions through which 49 gender based related

    cases were handled in 14 districts.

    Mr. Speaker, Sir, in the 2016/2017 financial year, Government will scale up

    women economic empowerment activities. Among other things, Government

    will provide various business skills to Village Savings and Loans business

    groups.

    Child Protection and Development

    Mr. Speaker, Sir, children need love, care and protection because experiences

    they undergo as they grow up will affect their destiny. To this end, Government

    remains committed to the protection of our children, as well as the provision of

    Early Childhood Development (ECD) centres across the country.

    During the year under review, Government:-

    •  completed the construction of 8 ECD centres;

    •  raised awareness of ECD programmes amongst the public through the

    launch of the Early Childhood Development week;

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    •  strengthened the child protection system through training of 80 trainers;

    and

    •  re-united 72 street children with their parents and guardians; 

    In the coming financial year, Government will continue to increase access to

    Early Childhood Development Services by constructing more ECD centres and

    protecting our children from all forms of abuse. We will also roll out Child

    Protection Information Management System at District level; and continue

    removing street kids and beggars from the streets.

    Lands, Housing and Urban Development

    Mr. Speaker, Sir, land still remains the basis for achieving socio-economic

    development. Realising this, Government has continued to work tirelessly to

    make land available to all Malawians and credible foreign investors.

    Additionally, Government is committed to ensure the provision of decent and

    affordable houses for Malawians in rural and urban areas. To this end,

    Government has continued to implement the Decent and Affordable Housing

    Subsidy Programme  (Cement and Malata) which was launched during the

    2014/2015 fiscal year.

    In this regard, during the 2015/2016 fiscal year, Government:-

    •  under the Decent and Affordable Housing Subsidy Programme,

    completed 1,700 houses whilst 8,040 are under construction;

    •  Continued to provide mortgage loans for purchase and

    construction of houses by public officers through the publicservants House Ownership Scheme; and

    •  Allocated 94.8 hectares to Daeyang Luke Hospital in Lilongwe City

    under Phase III for the construction of the University Teaching

    Hospital among other projects.

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    Mr. Speaker, Sir, in the coming financial year, Government will continue

    implementing the Cement and Malata Programme to ensure that rural areas

    have decent houses. There is no turning back because we have an obligation to

    improve the quality of life for those who cannot afford.

    Youth Development and Empowerment

    Mr. Speaker, Sir, as you are aware, more than 60 percent of our population is

    made up of the youth. If empowered, they will certainly play an assertive and

    constructive role in the development of our nation. Therefore, Government will

    continue to empower the youth in a number of porgrammes. These include the

    construction of Youth Multipurpose Learning Centers, which provide a

    platform for the youth to access a variety of education and skills building

    programs.

    I am pleased to inform this august House that Government launched the first

    ever Youth Status Report which captures indicators that can be used to assess

    the status of young people in our country. This enables us to make more

    informed decisions for the Youth.

    In the coming financial year, Government will continue to implement

    programmes that will empower the youth to become productive citizens of our

    nation.

    Democratic Governance

    Mr. Speaker, Sir, my Government is determined to promote the rule of law, justice, democracy and good governance. The Government is also committed to

    promote strict adherence and observance of the tenets and dictates of the

    Constitution in order to promote the welfare of Malawians.

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    Government remains committed to ensuring that the poor and vulnerable

    people are not denied access to social services through corruption, fraud and

    theft. For this reason, my Government remains resolute to prosecute cases

    involving theft of public funds popularly known as cashgate .

    My Government handled 21 Cashgate  cases. We have concluded 6 of them and

    13 are at advanced stages. More prosecution is to come.

    We will recruit more lawyers in order to efficiently and effectively deliver

    services in all spheres of justice delivery. Government will also embark on

    initiatives and reforms that revolutionize the operations of the Ministry of

     Justice and Constitutional Affairs as part of Public Sector Reforms. For

    example, the Government plans to establish online case management system

    and a computerized civil registry to improve data management and tracking of

    case files. This will help Government and all stakeholders to easily follow and

    track cases as they progress at every stage. Government will also computerize

    the record management system at the Administrator General’s Department to

    ensure improved management of deceased estate case files.

    Mr. Speaker, Sir, Government will also develop the National ProsecutionPolicy. This will provide guidelines for the conduct of public prosecutions by

    setting standards that will underpin all prosecutorial principles and practices

    of common values. As a result, these measures will promote consistency and

    professionalism in key decision making processes and trial practices.

    Mr. Speaker, Sir, with regard to international obligations, I am pleased to

    report that my Government has made great strides in meeting Malawi’s

    international human rights obligations by leading efforts to clear Malawi’s State

    party Report backlog. In the 2015/2016 financial year, Malawi successfully

    presented her initial and combined report on the African Charter on Human

    and People’s Rights and the Protocol on the Rights of Women. In fact, Malawi

    was recorded as the first country to comply with the African Commission state

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    party reporting Guidelines. Malawi also successfully presented her 7th periodic

    report on the Convention on the Elimination of Discrimination Against Women

    (CEDAW) and her second cycle report on the Universal periodic Review (UPR) to

    the United National Human Rights Council.

    The Fight against Corruption

    Mr. Speaker, Sir, my Government maintains a zero tolerance stand against

    corruption. We are prosecuting 50 cases in the courts involved in theft of

    public funds, including those involved in cash gate. So far, 12 convictions have

    been secured, whilst the other cases are at various stages of trial in the courts.

    Investigations are also continuing in other cases and once these are concluded

    the suspects will be brought before the courts to be charged and tried.

    I also wish to report that the Anti-Corruption Bureau, in consultation with

    various stakeholders, is coordinating efforts to review the National Anti-

    Corruption Strategy.  This will provide a more holistic focus to tackling the

    problem of corruption. In addition to this, the fight against corruption is also

    being strengthened through various prevention and public education

    initiatives.

    Mr. Speaker, Sir, Government is aware of the challenge of resources that the

    fight against corruption faces. Government will, therefore, continue to ensure

    that resources and other support are provided to consolidate efforts to tackle

    corruption in Malawi.

    Public Sector Reforms

    Mr. Speaker, Sir, as you are aware, I have prioritized the reform agenda since

    taking Office in May, 2014. I established a Public Service Reforms Commission

    to help in the implementation of the reforms agenda. Under the Vice President’s

    supervision, Government is implementing bold and decisive reforms to ensure

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    a well-motivated, competent and result-oriented public service. In our

    transformation drive, we aim to instill a business-like culture that will

    increasingly hold public officials and service providers accountable for their

    decisions and actions.

    Mr. Speaker, Sir, Controlling Officers in Government Ministries, Departments

    and Agencies are now signing binding performance contracts to deliver on

    certain targets and outcomes. Soon these contracts will also be signed by

    individuals and there will be consequences for poor performance.

    I have also instructed that performance evaluation should be conducted by

    entities outside Government, in order to lend some objectivity, credibility and

    integrity to the whole exercise.

    During the year under review, Government:-

    •  On a pilot basis, turned Lilongwe and Mangochi Post Offices into One

    Stop Shop Service Centres in a bid to facilitate easy and quick access to

    public services;

     

    commenced implementation of reforms aimed at improving servicedelivery in sixty four parastatal organizations including the three regional

    boards, ADMARC, ESCOM and MBC to mention but a few;

    •  strengthened the Road Traffic and Safety Services including

    decentralizing the Malawi Traffic Information System in Lilongwe,

    Blantyre, Mzuzu and Zomba and establishment of auxiliary centres at

    City Centre in Lilongwe and Makata in Blantyre;

    •  launched Malawi Community of Practice on managing for development

    results;

    •  established the Greenbelt Initiative Holdings Limited in order to

    accelerate investments in the irrigation sector;

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    •  initiated the establishment of Malawi School of Government that will,

    among other things, promote skills development, responsible behaviour

    and productive work culture within the Civil Service;

    • 

    collaborated with the Parliamentary Committee on Government

    Assurance and Public Sector Reforms;

    •  commenced construction of the Malawi Bureau of Standards

    Standardized Quality Assurance and Meteorology Laboratory. This will

    enable testing and certification of Malawian products for export to be

    done locally;

    • 

    reduced the number of Principal Secretaries from 46 to 20 as part of the

    process to rationalize the public service; and

    •  Conducted a personnel audit in all Ministries, Departments and Agencies

    to enable us reconcile records and make appropriate decisions in view of

    the soaring wage bill;

    Mr. Speaker, Sir, these are only highlights. Much more is happening.

    In the forthcoming fiscal year, we will continue to:-

    •  review the Service Commissions;

    •  resuscitate Integrated Rural Growth Centres to promote establishment of

    Satellite Model Villages;

    •  review the Public Service Act (1994) and develop a Public Service

    Management Policy; and

    •  construct four more One Stop Shop Service Centres in Salima, Mzuzu,

    Mzimba and Blantyre using part of the US$15 million grant funding from

    the World Bank.

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    Again, these are only highlights.

    National Peace and Security

    Mr. Speaker, Sir, Government recognizes that national peace and security are a

    prerequisite for socio-economic and political development. It is for this reason

    that Government has continued to put in place peace and security

    arrangements.

    Mr. Speaker, Sir, in order to counteract new and complex areas of security

    such as transnational organized crime and illegal migration, Government

    continues to strengthen our security institutions to enable them adequately

    respond to the prevailing security threats.

    During the year under review, Government recruited an additional 1,800 new

    officers in the Malawi Police Service. In so doing, we reduced the police officer

    to population ratio from 1 to 1,300 to 1 to 1,100. This is a 15 percent

    improvement. Our target is to achieve the United Nations benchmark of 1 to

    500 and completely minimize crime.

    Further, Government is implementing a universal and compulsory registration

    of births and deaths. This is currently piloted in four districts of Chitipa,

    Lilongwe, Ntcheu and Blantyre. Structures are being put in place in the

    remaining districts, and it is expected that every district will be registering

    births and deaths by the end of this year. All this is building on the process

    towards registration and issuance of national identity cards to all bona-fide

    Malawians, resident aliens and an additional Identification system for refugees

    and asylum seekers.

    Mr. Speaker, Sir, Government has already identified a reputable international

    firm to roll out the registration and issuance of National Identity cards to

    Malawians from the age of 16. The pilot phase is expected to issue 5,000

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    Identity cards and later reach 100,000 Malawians in selected districts and

     Traditional Authorities by December, 2016. We will issue over 9 million Identity

    cards by July, 2018.

    Mr. Speaker, Sir, Government is currently hosting over 25,000 refugees and

    asylum seekers from the central and north east African regions, and over

    10,000 asylum seekers from Mozambique. To ensure that we manage the entry

    and exit of our borders, we are currently in the process of automating our

    border posts. The project will enhance tracking of immigrants and increase

    efficiency in clearing both people and goods.

    Other reforms and measures in the pipeline include automation of the Permit

    Issuance System and installation of E-visa Application and Issuance System.

    Moreover, we also intend to enhance the security policy and legislation

    framework. We will introduce the first ever National Security Policy and

    Migration and Citizenship Policy. Laws that are under review include the

    Refugees Act, the Prisons Act and the Firearms Control Act.

    As regards to peace support operations, Mr. Speaker, Sir, the Malawi Defence

    Force continues to participate in various peace keeping operations. Currently,

    Malawi Defence Force is participating in observer missions in Darfur, Ivory

    Coast and Democratic Republic of Congo. These Missions provide the

    opportunity for our military personnel to acquire special skills and experience

    which is critical to capacity building of our Defence Force. I am pleased to

    report that the Malawi Defence Force has consistently been commended by the

    international community for its discipline.

    In the coming financial year, Government will continue to provide the

    necessary support to our security institutions in order to ensure the safety and

    security of all people in this country. Among other measures, we will:

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    •  recruit more officers and make security machinery more visible,

    accessible and responsive;

    •  ensure that our security institutions continue to work with relevant

    stakeholders in the protection of the rights of persons living with

    albinism, children, the elderly and other vulnerable groups;

    •  intensify border patrols and constructing one-stop shops in order to curb

    cross border crimes; and

    •  procure and install improved security communication infrastructure to

    improve coordination.

    International Relations

    Mr. Speaker, Sir, in line with the policy objective of safeguarding Malawi’s

    foreign interests abroad, socially and economically, the main thrust of

    Government’s foreign policy has been development diplomacy. Government

    has, therefore, worked hard in this regard, and registered a number of

    successes in the past financial year.

    In order to expand physical presence in other jurisdictions, Government

    opened a new Embassy in Geneva, Switzerland, with accreditation to United

    Nations agencies based in Geneva. The main aim of opening this embassy is to

    strengthen strategic ties with the Government of Switzerland and other

    European countries as well as all other Geneva based UN Agencies. Malawi has

    also recently opened a Consulate in Tete, Mozambique, to facilitate trade andinvestment between Malawi and Mozambique.

    Government has also maintained cordial and fraternal relations with the

    Government of the Republic of Tanzania. This has been manifested in the

    wellbeing of our two peoples and continued growth in trade and business

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    engagements between our two countries. This notwithstanding, the two

    Governments continue to work on an amicable solution to the so called Lake

    Malawi boundary dispute. I say “so clear” because the issue of the boundary

    has been so clear for 126 years.

    Mr. Speaker, Sir, during the 2016/17 fiscal year, Government plans to

    rationalize our foreign missions in order to make them lean and efficient with

    the right numbers of personnel with requisite competences. We will also recall

    individuals who, in some cases have stayed in these missions for up to 10 or

    15 years!

    CONCLUSION

    Mr. Speaker, Sir, before I conclude, let me emphasize that we are making

    progress and delivering on our electoral mandate despite the challenges that

    we are facing as a nation at the moment. In saying this, I know and

    understand that there is still more that needs to be done. As a small player in a

    highly complex, volatile and globalized economy, we are bound to face many

    more challenges along the way due to externally induced pressures and

    shocks.

    Mr. Speaker, Sir, in such unpredictable and competitive environment,

    Government will do everything possible within its powers to safeguard the

    interests of our nation. I have no doubt whatsoever that the resilience that we

    have always shown as a nation will once again prove vital in addressing most of

    the prevailing economic and social problems. It is our duty to ensure that the

    economy is revived faster so that Malawians can begin to lead a fulfilled and

    dignified life. Government considers the enjoyment of this right as being sacred

    and absolute.

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    Mr. Speaker, Sir, I therefore call upon all Malawians to unite in building a

    better and inclusive society for all. At fifty plus as an independent nation, I feel

    we are at the critical stage of development where patriotism, hard work,

    discipline, commitment to duty and above all selflessness and sacrifice must be

    exemplified by all of us including members of this august House. All the efforts

    by the Government shall be in vain if we do not bury our differences and put

    the interests of our country and people first. There must be no room for divisive

    elements and complacency in our society. We all must sacrifice, and subject

    our own personal needs to the needs of our nation.

    Mr. Speaker, Sir, I am emphasizing unity because we will from time to time, as

    a nation, be required to make difficult but necessary choices. We will also berequired to carry out strategic reforms that must put our country on a

    sustainable path for sustainable growth. That journey must begin now and

    involve all of us. Our collective resolve should be to employ innovative ways

    that will expedite and maximize delivery of the much needed basic services to

    the people of Malawi - the hallmark of the DPP Manifesto. We must target and

    achieve radical economic transformation.

    I would, therefore, like to salute various local, international and bilateral

    development partners for their contribution towards the development of our

    country and ameliorating the suffering of Malawians. You did not hesitate to

    come to our rescue when I appealed for support towards food shortages in the

    country as the realities of climate change continue to affect us. Guided by the

    famous saying a  friend in need is a friend indeed,  we will continue to work

    together in addressing the socio-economic challenges facing our nation today.

    I would also like to thank all Malawians and in, particular, leaders of various

    faith based organizations who regularly come to discuss with me on various

    issues affecting our nation. I see them as a moral compass and conscience of

    our society. In that vein, I reaffirm today that I am open to honest and

    constructive conversations on development of our beloved nation.

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    Members of this august House also deserve special recognition for the

    important role that you have played in the past twelve months. Let us continue

    working together in the furtherance of our national interests. After all, we

    belong to different branches of the same Government. History has placed on

    our shoulders, an important responsibility of changing the circumstances of

    our people together. History will harshly judge us if we fail to seize this God-

    given opportunity to bring about the much needed change.

    Above all, Mr. Speaker, Sir, I am indebted to the Almighty God for the peace

    and stability that we continue to enjoy in this country. This gives me hope and

    confidence that most of our present predicaments will shortly be history.

    God bless you all

    God bless Mother Malawi

    Thank you, Mr. Speaker, Sir.