HIGHLIGHTS FROM THE STATE OF NATION ADDRESS, MAY 2018

Macroeconomic outlook • Economic growth will average 4 percent in 2018 and 6 percent in 2019 • Single digit inflation has been achieved • Policy rate now at 16 percent • Import cover is now at 6 months • Stable foreign exchange and predictable. • Prices of fuel not rising • Foreign exchange available Construction • A lot of construction taking place , business people engaged in economic activities • Finalizing road to Kasiya and Santhe • Starting Rumphi - Chitipa via Nyika in June 2018 Agriculture • Agriculture Commercialization Project • Government is implementing the Malawi Agricultural Commercialisation Project. Government will select and focus on crops for value chains. • Cooperatives will be formed in order to create productive alliances and value addition chains • Government is Implementing Agriculture Sector Wide Approach Programme for increased investment and markets o Plan to construct 4,000 kilometers of roads in order to enable farming communities access markets. This work began in March. o 40 contractors are already on the ground upgrading rural access roads and building bridges in various communities. • About to deliver Nthola-Ilola-Ngosi Irrigation Scheme to the people of Karonga. • Developing Nchalo Irrigation Scheme. o More investors are coming to develop new farms and increase value addition. For example, a new farm in Chapananga is investing in aquaculture and production of biofuels from bamboos. o Greenbelt project on smart irrigation farming targeting 24,000 hectares. Investors are set to partner with Nchalo Farmers’ Association. • Implementing Shire Valley Transformation irrigation programme with support from World Bank (loan) which covers about 40,000 hectares. Mining • Initiatives include capacity building in mining contract negotiation and in development of modern mining agreements • Government adopted a regionally competitive Mining Fiscal Regime • Reviewing the Mines and Minerals Act of 1981 and the Petroleum Act of 1983 in order to improve legal environment in the country (To be tabled June sitting of parliament) Private Sector Development, Industry and Trade • Textile company being established in Salima to produce yarn and cloth for export to China, India, United States, South Africa and other countries. (FDI) • Introduction of business parks in Blantyre and Lilongwe • Explore business opportunity in products such as Chambo, Kilombero rice, macademia nuts etc. Integrated rural development • Building rural roads, developing rural growth centers, constructing stadiums, providing rural electricity and taking the internet fiber optic backbone to the people. Tourism Wildlife and Culture • Developed and launched the National Tourism Policy and the National Wildlife Policy. • Now inviting serious investors to invest in tourism. Health • Government is establishing boards to run Kamuzu Central Hospital, Queen Elizabeth Central Hospital, Zomba Central Hospital, Mzuzu Central Hospital and Zomba Mental Hospital. • This will improve management of the hospitals and ensure more efficient delivery of services to our people. • Established the Drug Theft Investigation Unit to investigate cases of suspected theft of medicines and medical supplies. • Cabinet has approved the Pharmacy and Medicines Regulation Bill, 2018, which provides stiffer penalties for offenders in drug supplies. Education, Science and Technology • Construction of 3 Teacher Training Colleges in Rumphi, Mchinji and Chikwawa. • These will be completed in 2 years’ time. • Constructed new infrastructures at Chancellor College, the Polytechnic, Mzuzu University and Lilongwe University of Agriculture and Natural Resources. • Government is delinking colleges of the University of Malawi to become independent universities. • Started constructing Mombera University in Mzimba in order to improve livestock production for local consumption and export.

Youth Development and Empowerment • Youth empowerment is a priority for Government because of the opportunity to use them as productive persons. • Government is delivering the Jobs for Youth Project with support from the African Development Bank Road Infrastructure Roads: Various roads are at different stages of construction across the country Rail: • Government completed the rehabilitation of 99 km section of the rail network from Nkaya to Nayuchi. • Also completed the rehabilitation of the 96 km Limbe-Nkaya section of the rail network as well as spot railway rehabilitation of the Balaka-Salima-Kanengo section of the rail network. • Started rehabilitating the 399 km railway section from Nkaya to Mchinji. • Government is reviving the railway from Limbe to Beira and designs are almost completed. It is expected that would start construction works by the end of the year. • Government is negotiating for a new railway from Lilongwe to Mbeya in Tanzania but also going to construct another railway line from Mbeya to Chilumba to connect with water transport where the country will add more vessels to sail as far as Monkeybay. The Memorandum of Understanding has been signed and Govt expects the project to be on Build-Operate-and -Transfer model. Air • There is progress with rehabilitation and expansion works at Kamuzu and Chileka International Airports and construction works at KIA are scheduled to be completed in April, 2019. • Government is negotiating with investors to construct a new international airport in Mangochi. Water Development • Government is upgrading of Liwonde Barrage and works are expected to be completed by end October, 2018. Energy • Government will double the current power supply of 360MW to 720MW by 2020 and generate at least 1,000MW by 2023 through diversification of power generation into coal energy, wind power, solar power, gas power and expand the current hydro system by building dams. • Government is working on power interconnection projects with Mozambique and Zambia • Pipeline projects: o Constructing a dam at Mpatamanga Gorge with support of World Bank to generate to add 300MW to national grid and add capacity to Kapichira to 100MW. o Government to continue pursuing implementation of Kammwamba Coal Fired Plant to generate 300MW by 2021. o Government is negotiating for another 500 megawatts coal fired power project in the Neno side. This is to be implemented by Millennium Energy o Also negotiating another coal fired power plant in either Salima or Golomoti. Information and Communication Technology • Government has enacted progressive laws of the E-transactions and Cyber Security Act, the Communication Act and the Access to Information Act for the past two years. • Launched the National Fiber Backbone Project Land • Government will develop subsidiary legislation for the 10 pieces of land related laws that were enacted in 2016. Currently, only the subsidiary legislation for the Customary Land Act has been finalized and is currently in force. • Government will also develop and implement a rollout road map for the improved land administration and governance programme in line with the new Land Laws Public Sector reforms • In February 2018, Government adopted the first ever Malawi Public Sector Reforms Policy and Malawi Public Service Management Policy. • The Malawi Public Sector Reforms Policy will institutionalize the reforms in all branches of Government. • Government will also review various legislations such as Public Service Act and its regulations. • Government will harmonize the 8 Public Service Commissions into the Malawi Public Commissions Act and its regulations. • Government to finalize a Bill for the establishment of the Malawi School of Government to provide training for leadership and management in the public service. National Peace and Security • Launched the National Security Policy and the National Peace Policy. • These documents will enhance collaboration and coordination among state security agencies as well as non-state actors. • Government is adopting automated Permit and Visa processing and issuing systems.