Finance Minister Sosten Gwengwe and MCC CEO Alice Albright after signing the contract
* Building and success is a strong commitment to Malawi’s democratic governance
* MCC board selected Malawi for a second phase in 2018 which is being signed today and is a great moment
* We are impressed with President Chakwera’s commitment to build Malawi and his vision to reduce poverty levels
By Lisa Kadango Malango, MANA in Washington DC
President Lazarus Chakwera and US Secretary of State Anthony Blinken presided over the signing ceremony of the second Millennium Challenge Compact (MCC) amounting to US$350 million in Washington DC on Wednesday.
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MCC’s Chief Executive Officer (CEO), Alice Albright said her country was impressed with Chakwera administration’s commitment to build Malawi and reduce poverty from the grassroots level.
“The government of Malawi partnered with MCC and Malawi was eligible to secure US$350 million compact, which was designed to overhaul the power sector to transform the energy sector, clean water, improved sanitation, boost agriculture yields, efficient transportation infrastructure among others,” she said.
“Building and success is a strong commitment to Malawi’s democratic governance and MCC board selected Malawi for a second phase in 2018 which is being signed today and is a great moment.
“We are impressed with President Chakwera’s commitment to build Malawi and his vision to reduce poverty levels, among others — hence the signing of the Compact marks a great milestone as it will assist in the construction of sub stations increase electricity transmission road network among others.”
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She added that the MCC would benefit over 13 million Malawians and boost Malawi’s economy and in different sectors of development.
In his response, President Lazarus Chakwera described the Compact as a positive impact on Malawi’s economy through the construction of over 300 kilometers of roads — that include Mkanda-Mchinji-Mwase, from Chikwawa; Rumphi to Euthini in Mzimba, from Chileka to Chigwirizano in Lilongwe from Chantulo in Mangochi turnoff at Golomoti to Monkey.
“Malawi is transforming and is no longer going to be the same after making tough and painful corrective economic decisions that will yield dividends for the country,” he said.
Chakwera thanked the US government for showing commitment, which would go a long way to achieve the vision for Malawi as a country.
US Secretary of State, Anthony Blinken pledged more support for Malawi’s developmental goals that includes the Extended Credit Facility with the International Monetary Fund (IMF).
He assured the President of America’s support in Malawi quest to implement Malawi 2063 towards food security, self reliant, industrious and job creation among others.
The MCC cooperation was represented by MCC CEO, Alice Albright and Malawi Government was represented by Sosten Gwengwe, Minister of Finance and Economic Affairs; Secretary to the Treasury and Minister of Foreign Affairs, Nancy Tembo among others.
Chakwera with World Bank Managing Director, Axel Von Trotsenburg
After his meeting with IMF Managing Director, Kristalina Georgieva and World Bank Managing Director, Axel Von Trotsenburg, President Chakwera described his two engagements as fruitful and appealed for quick support for Malawi as the country is currently going through challenges as a result of crisis and pandemics.
The discussion centered on the benchmarks Malawi was aiming to fast track the disbursement of US$ 1.5 billion which the World Bank has approved for different projects in Malawi.
In an interview with Managing Director of World Bank, Trotsenburg said the World Bank group was ready to assist African countries and Malawi stands to benefit.
He said President Chakwera’s government has good policies that would change Malawi and transform people’s lives hence the need for the financial support.
“The President shared some of the challenges Malawi was currently facing, Malawi needs financial support now so there was need to build our partnership and brainstorm how best we can work together to bring out results on the ground,” Trotsenburg said.
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He added that there was need to scale up support due to the fact that Malawi as one of many other African countries have been heavily affected by effects of climate change crisis CoVID-19 pandemic and that makes difficult for countries that have less resources.
“That’s the reason why World Bank has been calling for much more support to African countries, hence this meeting with Malawi’s President is timely and crucial,” he said, while assuring that Malawi stands to benefit a lot and called on government to build a strong strategy that would help the people to access clean water, quality education, health systems and food security among others.
Trotsenburg added that World Bank want to be part of Malawi’s effort that would see people’s lives improve in the years to come.
The World Bank group was represented by World Bank Executive Director for Africa, Taufila Nyamadzabo as well as World Bank vice-president for eastern and southern Africa, Victoria Kwakwa.
President Chakwera continues to engage heads of various international institutions to lobby for financial support in order to strengthen collaboration and follow up pledges made in previous meetings.
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