After all is said, we are on the right food path

BY The Daily Times

12:38:46 - 30 May 2008



As
President Bingu wa Mutharika was addressing a high-level meeting in
Japan yesterday on sustaining food security in the world, 40 other
world leaders in attendance listened in awe.



Malawi, a small country that was hit by a savage drought only a few
years ago was now able to grow excess grain, enough to even sell and
donate to neighbouring countries.



President Mutharika espoused Malawi's success story of recent years,
especially after managing to feed itself and have some grain left over
for the first time in as many years.



Today, the world over is battling escalating food prices and scarcity
of food and our president told those at the Tokyo International
Conference on African Development (TICAD) that maybe the way to go
would be introducing subsidy programmes for farmers, especially the
small-holder farmer.



Interestingly, as Mutharika was delivering that speech, an opposition
legislator, Ishmael Chafukira was disparaging efforts made by Mutharika
to bring food security at the household level.



Chafukira said it was ridiculous for Mutharika to be giving small silos
to the farmers when they have no grain to put in the silos.



This year, our crop estimate is that we will have a surplus of 500,000 down from over a million the previous year.



Perhaps after all the dust has settled and we remove the politics from
the scenario, a thorough post-mortem of this year's harvest will reveal
that we could have done much, much better and in Japan, President
Mutharika would have even boasted of bigger margins of a surplus
harvest.



Granted, we were unlucky that the rains in some parts of the country we incessant, washing away crops and gardens.



Our biggest challenge, though, that has prevented Malawi from achieving universal food security has been our own selves.



The same subsidy programme that President Mutharika touted its successes almost became our undoing.



When greed came into the picture and the distribution of subsidized
fertiliser coupons was marred by administrative chaos, the benefits
were almost wiped out.



When the subsidy programme was first mooted, the noble idea was to come
to the aid of the smallholder farmer unable to buy the commodity at
expensive market prices.



Today, even in the face of the projected food surplus, there are many
pockets were hunger is stalking the people and where a bag of maize is
selling way beyond affordable prices.



We do not share the pessimism of Ishmael Chafukira because we believe
that the silos being distributed to the villagers are a vital component
in our quest to achieve food security.



Rather, we share the vision of President Mutharika that once every gain
is properly stored, when wastage is reduced, then can Malawi still be a
success story.



Of course, this year we got many things wrong in the distribution of
subsidy fertiliser coupons, but from that experience, we can only learn
and correct what we did not do right last time.



Next year, we look forward to our president addressing an international
conference, telling all of Malawi's success story in attaining food
security.

Malawi President addresses food crisis at Tokyo International Conference on African Development

President Bingu wa Mutharika has asked 40 world
leaders attending an international African development conference in
Japan to follow Malawi 's agricultural input subsidy program to combat
escalating food prices and scarcity of food.



Giving a key note address Thursday afternoon, entitled 'Asia-Africa
cooperation in the new global system' during the fourth Tokyo
International Conference on African Development (TICAD 1V) in Yokohama
City, Japan, Mutharika said the recent rise in food prices and the
scarcity of food requires the meeting of world leaders to have
consensus on how to deal with these problems.



"I believe that at the Asia-Africa cooperation level, we can respond to
this global food crisis in a number of ways…a new agricultural input
subsidy program should be supported to enable smallholder farmers in
Asia and Africa to access at affordable costs, fertiliser, pesticides,
herbicides, agricultural implements and tractors, improved seed
varieties and marketing for their produce," said Mutharika.



Government claimed last year that Malawi had 3.5 million tonnes surplus
food and sold some of the maize to Zimbabwe through private traders.



However, the exportation of maize, Malawi's staple food, has been put
on hold after noting that there is a food shortage in some parts of the
country.



Mutharika also said more powerful countries must explore ways of
assisting Asian and African countries with modern science and
technology in agriculture and irrigation to increase production.



"More financing should be channeled into new agricultural research
programs, for instance in seed multiplication and production of drought
resistant crops to improve agricultural productivity and hence, food
availability," he said.



The President also said governments in Asia and Africa should find ways
of increasing investments in agriculture, irrigation and food security,
saying this might be done through budgetary allocations, donor support
and private sector investment.



"In Malawi, we have tried some of the proposals I am making and for the
past three years, we have had substantial food surplus over and above
our annual food requirements. Until a few years ago, it was always
assumed that Malawians could not produce enough food to feed ourselves
and would, therefore, always be condemned to starvation".



On Africa and Asia relationship, Mutharika said other areas of possible
Asia-Africa cooperation in addition to agriculture and food security
can be in energy supply and generation, irrigation and water
management, integrated rural development, transport infrastructure
development and the prevention and management of HIV and AIDS and
nutrition disorders.



He also said there was great potential for cooperation in the fields of health, education and tourism development.



Mutharika also applauded the One Village One Product scheme.



"This programme is doing wonders in Malawi in addressing poverty
reduction of the rural communities. This could be another area of
Asia-Africa cooperation spearheaded by Japan ," said Mutharika

Bakili Muluzi arrest justifiable - Presidential advisor

Presidential advisor on political affairs
Hetherwick Ntaba Tuesday addressed a press conference where he said the
arrest of former President Bakili Muluzi was justifiable because it was
made in respect of the country’s security laws.



However, one of Muluzi’s lawyers Fahad Assani said that Ntaba was
‘misguided in his comments as they were made simply to satisfy his job
at the Office of President and Cabinet (OPC).’



Assani said he would formally respond to the accusations against Muluzi in a court of law.



But Ntaba said Muluzi, as former president, thought that he was above the law and could not be arrested.



Muluzi was arrested at Kamuzu International Airport in Lilongwe on
arrival from a holiday in the UK for alleged treason. He was ferried in
a Malawi Army plane, which dropped him in Blantyre to be under house
arrest.



Muluzi has since described his arrest as laughable, political
harassment and a DPP political strategy aimed at blocking him from
contesting in the 2009 general elections after being elected as his
party’s candidate at its April 24, 2008 convention.



Ntaba claimed Malawians had breathed a sigh of relief when police
uncovered the coup plot and immediately moved on the alleged coup
plotters before an “evil event” took place.



“The arrest of Muluzi was a simple application of the security laws of
this country because no one is above the laws of this country,” said
Ntaba.



He said those who want to create an impression that Muluzi was being
victimised, harassed, abused and subjected to a political process were
very wrong.



Ntaba, who is also Democratic Progressive Party (DPP) secretary
general, said police had incriminating evidence that a security breach
was imminent in the country forcing them to act on Muluzi.



“The former president, as you all know, has vowed to unseat the
President. Dr Muluzi has repeatedly insulted the President for quite
some time, and I think you are all aware that the President has not
reacted to all these insults,” said Ntaba.



He said President Bingu wa Mutharika was not politically vindictive and
if he were such he would have arrested Muluzi a long time ago over a
catalogue of insults that Muluzi spewed on Mutharika.



He cited remarks Muluzi made at a rally in Lilongwe that Mutharika was
a tube he inflated and that he could as well deflate it with ease.



Muluzi went further, according to Ntaba, to claim that Mutharika had
been a difficult person to sell to the people during the 2004
presidential campaign, an insult he said has not driven the President
to act on him.



He also said Muluzi made ‘outrageous statements’ last year at a rally
in Nkhotakota that the country did not have a President but Mutharika
left him scot-free, adding the former president has been intimidating
the president by remarks such as “who is Bingu wa Mutharika after all?”



According to Ntaba, Muluzi has repeatedly asked his MPs to reject the
budget every year, citing the rejection of K8 billion additional
budget, whose resources came from HIPC debt relief.



However, since president Bingu wa Mutharika took over government in
2004, every budget has been passed with difficulty by a Parliament
whose majority is the opposition.



On why police arrested Muluzi on arrival instead of the time he was
leaving the country for UK if indeed the state had evidence of treason,
Ntaba said police move in when there is a strong evidence against a
suspect.



He also attacked reports that Muluzi started planning to take over
government in 2006, saying there was no sense in the claim because
Muluzi would have been arrested then.

China to finance Malawi sports and leisure development

The government of the People's Republic of China is to finance the
construction of a sports complex, an international conference centre, a
university complex and a five-star hotel in Malawi.

China's Deputy Minister of Commerce, Gao Hucheng,
says the Chinese government will finance these projects in addition
ongoing projects that were being backrolled by the Taiwanese government
before Malawi severed diplomatic ties with Taiwan in favour of the
mainland in December last year.

This took place after the Asian
economic giant had reportedly dangled $6-billion in development aid for
the impoverished Southern African country.

Consequently, the
Taiwanese government abandoned all the projects it had been financing
in Malawi, including the construction of the $45-million
Karonga–Chitipa road, in the northern region of the country, and the
construction of a Parliamentary complex in the capital, Lilongwe.

"The
government of the People's Republic of China is ready to finance the
projects that were abandoned by the Taiwanese in addition to the new
projects," says Hucheng, who recently led a 46-member Chinese
delegation to Malawi. Its main objective was to explore for investment
opportunities in the African country.

Hucheng says China is
currently seeking a contractor for the Karonga–Chitipa road project,
which a Taiwanese contractor abandoned in its preliminary phase.

The
government of China announced earlier this year that it would hire a
contractor from within the Southern African Development Community
region to build the Karonga–Chitipa road project because it would take
a long time for a Chinese contractor to mobilise and ship equipment to
Malawi.

Engineers from China have already inspected the project
and concluded that it would be completed in two years; the Taiwanese
who had planned to implement the project in four years.

"We are
aware of the importance of completing this important road project, and
we are working to ensure that work resumes as soon as possible," says
Hucheng.

With regard to the Parliamentary complex, Hucheng says
Chinese designers are inspecting the structure abandoned by the
Taiwanese and that the process to identify a new contractor is at an
advanced stage.

Currently, Malawi's Parliamentary secretariat
is housed in a rented building, while Parliamentary sessions are held
at the New State House, in Lilongwe, which is the official residence of
President Bingu wa Mutharika.

China has pledged to finance all
projects abandoned by the Taiwanese and other new projects, including
components of the $6-billion Shire-Zambezi waterway.

In view of our readership's wishes to comment on Muluzi's arrest

By now it is common knowledge that Bakili Muluzi has been arrested.
However, it is not big news for us yet. People are arrested everyday
and Bakili Muluzi just happens to be one of them.

What will be
of interest to us of course will be what follows, when the evidence is
brought to the courts and a judgement is made. This should also be the
focus of those Malawians interested in Muluzi's arrests in general
whether for treason or corruption.
It is also important to realize
that Bakili Muluzi has not been tried or sentenced yet therefore no
need for the drama seen in some quarters. With the amount of cases he
is yet to answer there is no doubt more arrests are yet to come and
those who support him need to just relax and let the law take its course.

We
have utmost respect and confidence in the security forces of the
country and believe they will provide the nation with the relevant
evidence to support their actions. We should give them the benefit of
the doubt.

Until then, let the law enforcers do their job and allow the judicial system determine Bakili Muluzi's predicament. We feel
Malawi has too many problems for us to be focused on things not
important to national progression like this one.

Mota Engil signs construction agreement with Malawi for port and power stations

LISBON, May 26 (Reuters) - Portugal's largest builder, Mota
Engil (MOTA.LS: Quote, Profile, Research), has signed a memorandum of understanding with
the government of Malawi for the construction of a port in
Nsanje and two hydroelectric power stations.

Mota said in a statement on Monday that the projects would
be public-private partnerships but gave no financial details.
Mota said the memorandum also included its potential involvement
in future mining exploration in Malawi.

The statement said the memorandum covered the potential to
construct the port and power stations and to operate the
facilities.
(Reporting by Axel Bugge, editing by Will Waterman)

Madonna Launches Malawi documentary at Cannes

Madonna arrived at Cannes film festival yesterday with a documentary about the effects of disease and poverty in Malawi.

The film, I Am Because We Are, which she wrote and produced, was directed by her former gardener Nathan Rissman.

It shows how hard life is in Malawi and focuses particularly on children orphaned by Aids.

The film touches on Madonna’s controversial adoption of a baby boy, David Banda, whose mother was killed by the disease.


Speaking at a press conference to launch the film, Madonna discussed
her and husband Guy Ritchie’s battle to adopt their son, comparing the
pain of the process to natural childbirth:

"It was painful and a big struggle and I didn't understand it.


"But in the end I rationalised that when a woman has a child and goes
through natural childbirth she suffers an enormous amount," she said.


"So I went through my own kind of birthing pains, dealing with the
press on my doorstep, accusing me of kidnapping or whatever."


The singer refuted accusations that David was adopted without his
father’s consent – and that his mother had not really died of Aids:

"Yes, his mother did die of Aids and yes, I met his father and he absolutely agreed to the adoption," she said.


"There's just a lot of bureaucracy and administration because this
adoption essentially was the beginning of adoption laws in Malawi."

She added that she saw herself as a role model for future adoptions.


Her collaborator Rissman, who got to know the singer when his wife
worked as her nanny, spent six months over a two year period in Malawi.

Both Madonna and Rissman plan to continue making documentaries which focus on children.

Their next project is a film about the Israel-Palestine conflict.

Malawi private sector hails 2008/09 budget

Economic and civil society commentators have
commended the 2008/09 budget and described it as major possible tool
that would enable the country to move to prosperity.

Press Corporation Limited (PCL) Group Chief Executive officer and
former Finance Minister Matthews Chikaonda said in an interview
yesterday the 2008/2009 budget is well balanced and that it will spur
local and international investment.

Chikaonda said PCL, the largest conglomerate in the country, has had
huge investment plans that will benefit from the removal of taxes in
the manufacturing and construction sectors.

"It is a win/win situation. Government will get more taxes with
expanded investments, while we will increase production. Malawi
Telecommunications Limited has a US$24 million expansion project along
the lakeshore. The same with TNM and even Maldeco on the removal of
aquaculture duties that will take our catch to almost 1,000 tonnes,"
said Chikaonda outside Parliament.

Malawi Economic Justice Network (Mejn) executive director Andrew
Kumbatira said his organisation is impressed with the increased social
sector allocations by almost 60 percent.

Kumbatira also cited efforts by government in the 2008/09 budget to
ensure that it is strongly aligned to the Malawi Growth and Strategy
Paper (MGDS)—a national strategy designed to accelerate the country’s
sustainable economic growth.

Supporting Kumbatira’s sentiments, president for the Society for
Accountancy in Malawi (Socam) Daniel Dunga said as Socam they are happy
to observe that some of the issues that the private sector asked during
the pre-budget consultative by the Finance Minister Goodall Gondwe now
have been addressed in the 2008/09 budget.

"Basically, we wanted changes in the private sector especially to do
with the Value Added Tax (VAT) duties. We hope that with this budget
addressing the issues that we needed, Malawi will now be in a position
to create a conducive business environment," said Dunga.

He also commended government for subsidising agricultural
pesticides, saying the move would help the country to continue
achieving maximum food security

Public Affairs Committee executive director Robert Phiri said the
budget is "well structured, balanced and broadened to accommodate the
majority of Malawians".

General Manager for Lilongwe Cold Storage Kelvin Mmangisa also said
the removal of duty in the manufacturing sector would spur quality
products for local and international markets.

Malawi starts evacuation of citizens from South Africa

LILONGWE (Reuters) - Malawi said on Friday it had started to
evacuate from South Africa more than 850 of its citizens threatened by
xenophobic attacks.

At least 42 people have been killed in South Africa and more than
25,000 driven from their homes in 12 days of violence by mobs accusing
migrants from other parts of Africa of taking jobs and fuelling crime.

"More than 850 Malawians have been affected by the current violence.
All Malawians willing to return home will be evacuated and we have
started the process," Ben Mbewe, foreign affairs principal secretary,
said in a statement.

Mbewe said a task force had been set up to coordinate the evacuation and the first group would be home this weekend.

Malawi's Foreign Minister Joyce Banda flew on Sunday to South Africa to be briefed by embassy officials on the situation.

Malawi has no figures for exactly how many of its nationals work in
South Africa, but there has been an increase in recent years of
Malawians travelling there to look for work on construction sites of
stadiums for the 2010 World Cup.

The Daily Times, one of Malawi's leading papers, on Friday described the ordeals of some Malawians in the attacks.

"I have only managed to bring home my kids, and I have lost all
property, as I am talking to you my house has been razed to the
ground," said Jacqueline, among scores of people who managed to get on
a bus to Malawi.

A bandaged William Maluwa accused South African police of failing to help victims.
"We were being beaten in full view of police and when we asked police
for assistance they would ask for money first," said Maluwa.

Malawi economic growth seen at 7pct

5/24/2008 7:33:00 AM | Reuters South Africa

LILONGWE
(Reuters) - Malawi's economy was expected to expand by 7 percent in the
2008/09 financial year, with inflation easing to 6.5 percent, Finance
Minister Goodall Gondwe said on Friday.

Economic growth measured 8 percent in the 2007/08 financial year, while inflation stood at 8.1 percent year-on-year in April.

Gondwe
said in a budget speech sharply rising global food prices could add to
inflationary pressures, but overall the country should benefit from the
crisis through a forecasted 500,000 tonne maize surplus this season.
'Malawi stands to gain from the global food crisis if it continues
exporting more maize up from last year's,' Gondwe said when he
presented his $1.6 billion budget, aimed at cutting poverty and
boosting food production.

The southern African nation last year
exported 400,000 tonnes of maize to hunger stricken Zimbabwe and
donated 10,000 tonnes to Swaziland.

Gondwe said that Malawi was
expected to harvest 2.9 million tonnes of maize, down from last year's
3.1 million tonnes due to the floods early this year which wiped crops
in the southern part of the country and a four week drought that hit
other maize belts in the country.

The harvest was still more than the national requirement of 2.4 million tonnes.

Gondwe
said about $600 million of the budget finance would come from Malawi's
donors, reflecting a 36 percent increase in aid. 'This increase
demonstrates our continued management of our resources,' he said.
Exports in this financial year would increase to $850 million from $800
million by 2009.

Malawi remains one of the world's poorest
couontries but the government has won praise and billions of dollars in
debt relief for driving reforms that have steered strong economic
growth over the past 3 years.

However, a continued political
feud between the opposition and President Bingu wa Mutharika is
threatening achievements made and may hobble passage of the budget.

Opposition
legislators have threatened to torpedo the budget, although they agreed
on Monday to attend Gondwe speech. 'We decided to go in today. But the
issue of when the debate starts on the budget starts next week? We
don't expect to be part of that discussion,' George Ntafu, United
Democratic Front leader in parliament told Reuters

Shopping store giant PTC sues Muluzi over Metro unpaid bill

Peoples Trading Centre Limited (PTC), owners
of Metro Cash and Carry shops, have this week sued former president
Bakili Muluzi following his alleged failure to settle in full a K5.7
million bill the UDF chairman is said to have incurred during his mass
shopping spree at Metro in Blantyre on April 2.

But Muluzi’s lawyers told The Nation on Tuesday that they will
contest the matter, which has been filed at the Commercial Court in
Blantyre.

Muluzi went to the shop at about noon on April 2 where he offered to
pay for some selected items for all clients inside the shop. He left a
blank cheque—a gesture which ended in chaos as more customers,
including vendors, stampeded into the shop and grabbed whatever they
could lay their hands on.

The initial bill was K21 million which Muluzi protested. After a
verification exercise, Metro slashed the amount to K5,697,520.58
million but, according to some UDF officials, Muluzi was still not
satisfied.

Muluzi’s lawyer Charles Mhango confirmed Metro has dragged Muluzi to
court, claiming that his client paid K4.1 million and that Metro is
claiming an extra K1.4 million. A source at the Commercial Court said
the total bill PTC is claiming is K5,697,520.58.

Court records show that out of the K5,697,520.58, Muluzi—through his
lawyers—on April 18 presented a K4,273,140.00 cheque to the
complainant. PTC claims Muluzi left a K1,424,380.58 balance.

In the statement of claim, PTC gives the breakdown of the bill as
follows: loss of profits for one and a half days—K571,500; staff
overtime for stock-taking—K85,733.51; night allowances—K76,000;
refreshments and other materials used during the stock-taking/audit
exercise—K96,167.47; bus fares for staff—22,360; audit time—K50,000;
management time—K152,700; and damaged stock—K289,991.71.

PTC also claims that during the shopping, Muluzi’s agents Brown
Mpinganjira, Lilian Patel, John Chikakwiya, Ken Msonda and Abubakar
Mbaya removed the plaintiff’s end control supervisory staff who are
normally stationed at the tills to verify goods collected by customers
and their values.

But Mhango said: "We will challenge the matter because what Metro demanded is higher than what my client is supposed to pay.

"They issued an invoice of over K5 million to my client and they are
demanding the extra K1 million-plus which they claim is balance on
invoice, interest, damage to the shop and time spent on the audit
[exercise to verify the bill]."

PTC lawyer Davis Njobvu said he could not comment on the issue as his client might not be amused to have the matter publicised.

Press and Corporation Limited (PCL) group trade executive officer
Pius Mulipa, whose conglomerate owns PTC, said he could not comment on
the matter as it is in court.

UN consults Malawi President on the Global Food Crisis

UNITED NATIONS, May 20 (Xinhua) -- The United Nations Economic and Social Council (ECOSOC) met Tuesday to discuss the global food price surge, with participants calling for urgent action.
In a video message to the session, British Prime Minister Gordon Brown appealed for "greater priority and long-term attention to the underlying problems of poverty and hunger facing some 850 million people."
Brown urged rich countries to "stop undermining the livelihoods of the poorest through agricultural subsidies and dumping."
"It is unacceptable that rich countries still subsidize farming by one billion U.S. dollars a day, costing poor farmers in developing countries an estimated 100 billion dollars a year in lost income," he said. "We must go further in our reform of the CAP (Common Agricultural Policy) and U.S. farm bill," he added.
ECOSOC President Leo Merores told the meeting that the world has the necessary knowledge and expertise to fight the current food crisis but it needs to muster the political will and the resources to ensure there is a lasting solution for the millions of people now suffering.
"The time to act is now," Merores said, stressing the need for both immediate action to meet humanitarian needs and for longer-term increased agricultural production.
"It is my view that agriculture has to be put back in the center of the development agenda," he said.
UN Deputy Secretary-General Asha-Rose Migiro said the crisis is driving an estimated 100 million people or more into deep poverty, on top of the 830 million others already facing acute shortages of basic foods.
"That represents seven lost years in the global fight against poverty and hunger," she said, adding that the progress so far toward the Millennium Development Goals (MDGs), the set of eight anti-poverty targets which world leaders have agreed to work towards by 2015, could be virtually wiped out.
Stressing that much of the problem is man-made, Migiro urged policy-makers to carefully examine the many cases, including the increasing use of biofuels, especially those that are grain-based.
"We must increase investment in agriculture and food security. There is no choice about that," Malawi's President Bingu wa Mutharika told the meeting in a video message.
Mutharika urged international leaders to adjust their policies to the needs and national situations of developing countries while making decisions on agriculture.
Mutharika also urged rich countries to consider changing food aid policies or reorganizing food aid to involve massive investment in agricultural production

for more information about this topic, follow the link below:

Global food crisis

Political crises or not, the greatest need for Malawi at the moment is more economic growth

BY The Daily Times
Malawi has probably never been at the crossroads
as it is at the moment, when politically there are several developments
that have a bearing on the country’s very survival.



Much as multiparty democracy signaled a beginning of a new era in 1994
as Malawians waited patiently for a turn around of their lives, the
story on the ground has tellingly been different. Over forty years of
independence, it is pathetic that Malawians should be striving to get
the basics of life-food, water, electricity etc.



Over 14 years after we attained multiparty democracy, most Malawians
are a disillusioned lot as they haven’t yielded the most out of the
numerous democratic freedoms that came with the switch from one party
to multiparty democracy.



The challenge, therefore, lies on the incumbent government to continue
with the path of economic recovery that it took in 2004 when it took
over the reins of power.



Political crises or not, the greatest need at the moment is more economic growth.



Our beloved country requires a sustained economic growth to bail itself
out of poverty. There is need for improved road infrastructure and
other transport infrastructure. This country requires good health, good
quality education and improved sanitation both in rural and urban
areas. In short, the country’s citizen requires just an average of most
of the basic wants of life.



It is, therefore, reassuring for the government to restate its resolve
to continue with the path towards realizing economic growth for the
country.



It is pleasing that this government has achieved some feat towards achieving economic recovery.



Inflation still hovers at single digit of 8.1 percent and interest rates have been reduced.



Besides, the achievement of debt relief under Highly Indebted Poor
Countries (HIPC), resumption of programmes under International Monetary
Fund, economic growth of 7.9 per cent in 2007/08 fiscal year and
qualification for the compact programme of the Millenium Challenge
Account (MCA) of the United States, all give us hope that the country
is on course to achieve more economic growth.



However, this country could probably have achieved more were it not for
the ‘hostile environment’ that was alluded to at the opening of
Parliament’s budget sitting Monday.



Therefore, the burden is on the government’s shoulders to ensure that
all impediments to achieving the hoped for economic turn around are
removed.



Our economy can only flourish when our aspirations are being shared by
many of us. Certainly, as a nation, we need to ensure that that there
is a peaceful and conducive environment for the economy to flourish.

"Malawi economic growth for the 2009 expected to be higher than any experienced since independence to 2004" - Finance Minister

President Bingu wa Mutharika Monday said that he
has survived since 2004 despite attempts to bring him down because ‘God
is on the side of the government’.



In his state-of-the-nation address on opening of the 2008/09 budget
meeting titled "Malawi: A Nation of Achievers", Mutharika said that God
had been on the side of the government despite lack of support and a
hostile attitude from the opposition.



In his address which started at 10.05 am and ended exactly two hours
later, Mutharika took stock of his achievements in the areas of
agricultural development, food security, public sector reforms,
industry and trade, transport, infrastructure and public works, health,
education, empowerment of women and children, justice and rule of law.



Mutharika, however, did not comment on recent developments on the
political scene such as the on-going Section 65 versus budget impasse
or the arrests of nine people mostly, from opposition UDF, on treason
charges.



Mutharika said in general opposition had wanted his government to fail from the day he took over office in May, 2004.



"For instance, it is on record that the opposition tried to reject the
national budget for each year in 2004, 2005, 2006 and 2007,” he said.



Mutharika disclosed that with his administration's leadership, the
country's maize exports for 2007/08 are estimated at 2.9 million tones,
down from 3.2 million from last year.



"So we expect maize surplus of 500,000 tonnes. There have also been
increases in production in other essential food and cash crops such as
tobacco, cassava, rice and cotton," Mutharika said.



The president also pledged that his government would continue with the
fertiliser and input subsidy programme despite increase in prices of
fertiliser on the international market and reiterated that the subsidy
would again not target everybody.



Mutharika also disclosed that development of Nsanje City is expected to
commence next month under the ‘build operate transfer arrangement’ with
the private sector.



He also said feasibility study on Shire-Zambezi waterway would be
conducted as soon as proposals for the study of the project are
received.



While saying government plans to implement a quick impact reforms
programme to improve performance of public institutions, Mutharika
disclosed that a study done by government had recommended a reduction
in the number of parastatals through either merging or absorbing
subvented organisations into line ministries.



"Mr Speaker, Sir, during the 2007/08 financial year, a reasonable
number of parastatals achieved some fair levels of profitability. These
include Escom, Macra, Tobacco Control Commission, Southern Region Water
Board, ADL, Malawi Bureau of Standards, MHC and Malawi College of
Accountancy," he said.



Parastatals that continued to register poor financial performances were
the usual culprits such as Blantyre and Lilongwe Water Boards, Air
Malawi, Northern and Central Region waterboards, Admarc and Malawi
Posts Corporation.



In the next financial year, institutions being considered for quick
impact performance reviews include the Immigration department,
Administrator General and the judiciary.



In the area of health, especially drugs and medical supplies, Mutharika
disclosed that the Central Medical Stores is undergoing reforms to
establish it as an operation trust.



Among his economic achievements, Mutharika cited debt relief under
HIPC, resumption of programmes under IMF, economic growth of 7.9 per
cent in 2007/08 fiscal year and qualification for the compact programme
of the Millennium Challenge Account (MCA) of the United States
government.



On this, Mutharika said the government had already appointed a
coordination team for the programme, which entails more funding under
MCA.



In an interview outside, Minister of Finance Goodall Gondwe said
economic growth for the 2009 was expected to be higher than any
experienced since independence to 2004.



"We have had unprecedented economic achievements this year. For example
exports have gone as high as K700 million this year and this year we
expect them to go up K800 million. The forecast is that it will pass
the K1 billion mark in 2009," Gondwe said.



Gondwe is expected to issue his budget statement soon after responses
to Mutharika's state-of-the nation address are exhausted but not later
than seven days.

Malawi April inflation lowers to 8.1 PCT

LILONGWE (Reuters) - Malawi's inflation slowed a little to 8.1
percent year-on-year in April from 8.2 percent in March due to a
reduction in food prices, the National Statistical Office (NSO) said on
Monday.

Malawi's second consecutive surplus harvest of the
staple maize grain has helped reduce inflation from 15 percent in June
2006 to single digits last year.

This is however the first time
that annual inflation has slowed since resuming an upward trend in
October last year on the back of higher fuel costs.

The NSO
attributed the slowdown to the start of Malawi's harvesting season,
which has seen food prices going down. Food accounts for 58.1 percent
of the consumer price index.

Core inflation -- which excludes food costs -- however accelerated to 10.2 percent from 9.8 percent.

"Non food items have maintained the rising trend in recent months,
buoyed by pressure exerted by rising fuel prices on the international
market," NSO said.

Lest we forget: November 2001 - US and EU withdraw Aid due to gross mismanagement and corruption in the Muluzi administration

Mr Mathews Chikaonda told the BBC's
Focus on Africa programme that as far as the government was concerned,
"there is no problem with the donors" and he called the reports
"baseless rumours".

Donors say the money is not going where it is supposed to go

But a copy of a leaked memorandum sent
to President Bakili Muluzi dated 25 September 2001 and obtained by BBC
News Online says both the European Union and the United States have
suspended development aid.

Mr Chikaonda later admitted at a rowdy
press conference to writing the memo but accused journalists of
stealing " a very confidential memo."

The minister's letter referred to
"some sad developments which have resulted in some donor funds that
were factored into the 2001/2002 being cancelled for various reasons".

It says the EU has not only suspended
the release of 15m Euros ($13m) but has also demanded a refund of 7m
Euros already disbursed.

Problems ahead

He told the programme that there was a
communication to the president spelling out "potential problems, unless
action is taken in a number of areas".

But the minister would not elaborate on what these problems might be.

However under the heading "Donor
funding" his letter said that the EU delegation had discovered
anomalies while carrying out an audit, discovering that funds had been
used for projects outside any bilateral agreement.

The delegation's economic advisor,
Theo Kaspers, said the EU had written a fresh memorandum of
understanding with conditions which had to be signed.

The United States Government, through
the US Agency for International Development (USAID), has also diverted
at least $6m of the $7m meant for Malawi to another country.

Bad timing

It said the move came in response to the Malawi Government's decision to suspend its privatisation programme.

Other donors, notably Britain, have
also put on hold development aid to Malawi because of corruption,
mismanagement and political uncertainty.

Denmark, whose envoy Orla Bakdal was
forced to leave after the Danish embassy questioned how its money was
being used, has also scaled down sponsored projects in Malawi.

But the finance minister told
journalists that the envoy was recalled following Malawi government's
complaint that he was rude to President Muluzi.

The suspensions of aid could not come at a worse time for Malawi.

Budget would not balance without donor funds

The government needs to imports thousands of
tonnes of maize to offset the worsening food crisis.

In his letter, Mr Chikaonda recommended that the cabinet be informed on the developments to discuss other ways of
raising money.

He also suggested that President Muluzi should take him along to Brussels to discuss developments with the EU.

Meanwhile, the practical effects of the aid suspensions are already being felt.

New salaries for teachers, the police
and medical workers - which President Muluzi promised last June - have
yet to materialise, already fuelling sporadic strike actions.

Kamuzu: Statesman par excellence

BY Tikhala Chibwana

14:46:34 - 14 May 2008

There is no shortage of reasons for remembering
the first president of the country, the father and founder of the
Malawi nation, Dr H. Kamuzu Banda. However, for me, it can all be
summed up in one speech.



Talking of speeches, Dr Banda was a fiery orator known to speak for
hours on end. Some of his speeches were motivational, some persuasive
and yet some were simply informative. Long speeches, short speeches and
even witty ones were all in his repertoire. He had just the speech for
the occasion.



Dr Banda’s speech that left an indelible impression on me though was
one of a kind. It was a speech that is hard to forget for its brevity,
content, perfect timing and its far reaching effect.



The country’s future was hanging in a balance. The man who held the key
was Malawi’s first president. As he had done so many times in his 31
years rule, he lived true to his claim that he was at his best when he
was being opposed. In just a few sentences, Dr Banda made the speech
that would become the point of no return for this country.



The impact of that speech continues to be felt even today. In fact,
that speech resonates with even bigger importance today than it did
then. I would like to think that this was pretty much the speech that
got us to where we are today.



It was in May, 1994. The results for the general elections had started
pouring in. Bakili Muluzi was leading in the presidential race. The
counting was still going on and it would take another two if not three
days before the electoral commission would announce the winner.



There was a lot of anxiety. What would the final results be? What if
the results were disputed by the contesting parties? The voting had
been peaceful but would there be peace after the results were
announced? Many stayed indoors and monitored the situation on radios.



Other than that, all one could do was to wait and see. Whatever the
case, one thing was for sure, Malawi would never be the same. The
expectancy was becoming unbearable for many.



Then came the announcement on the Malawi Broadcasting Corporation (MBC)
radio, on May 19 to be exact, that Dr Banda would address the nation at
9 am. What was he going to say? All the country’s radios were on the
dial this one time. No one wanted second hand news. The only radios not
switched on that day were the ones not working. Little did many suspect
that this would be the turning point.



At 9 am Dr Banda came on air and voluntarily conceded defeat. Just like
that. He acknowledged that the people of Malawi had spoken and that
Bakili Muluzi was the winner. He congratulated the president elect and
offered to work with him.



It was a very short speech by his standards lasting as it did for just
under 10 minutes. It started at 9 am and by 9:10am–-before people had
time to digest what had just happened–-Dr Banda had said his goodbyes
and signed off in his own inimitable way.



Coming from someone like Dr Banda after he had ruled the country for 31
years, his address left the world speechless. Foreign governments
praised Dr Banda “for having behaved in such a civilised manner,” as if
anything less would have been expected from a gentleman of his stature.



Even the then Secretary General of the Commonwealth, Chief Emeka
Anyauko, could not find the right words to describe Dr Banda’s action,
which paved the way for a peaceful transition on a continent where that
is an exception other than the rule.



Conceding defeat is difficult at the best of times. Many who have never
tasted power will threaten to go into the bush if things do not go
their way. But here was Dr Banda, sparing the entire nation the anxiety
of waiting any longer to know who had won.



At that important moment, when it mattered most, Dr Banda declared that
the future of the country mattered a lot more than his political
career. One would wish the current crop of politicians would see things
that way.



Dr Banda had all the state machinery on his side. All he needed was to
say the word and the rest would have been done for him. He just needed
to say he did not agree with the results. There were people ready to
fight for him but he brought the situation under control by bidding
farewell on his terms leaving everyone wondering what manner of a
person was this.



I shudder to think what would have become of the country had he shown
resistance. Obviously, there would have been bloodshed. But Dr Banda
truly had the welfare of the Malawi nation at heart. He left the stage
without grumbling and his reconciliatory speech ushered in the much
needed calmness. It just made things so much easier for everyone.



As a human being, he had his shortcomings but in this one action he
showed us what it meant to be a nationalist. In this one action he
showed what he was made of--if anyone was ever still in doubt.



In the euphoria of the new dispensation there were wholesale changes
being made in the country–-some good and some not so good. One can just
imagine how it must have felt for Dr Banda knowing that some things he
stood for were being changed. But being the gentleman that he was, he
never said a word in protest. Not once did he question the judgement of
the new president, although there were times when he would have been
justified to do so. As a nation we had made our choice. We had made our
bed and we would sleep on it.



There were many unpalatable things said about Dr Banda, this is despite
that he did not have the platform to answer back–-not that he needed
one anyway. He did not answer back or attempt to correct some of the
wrong assertions. Even in his silence, he spoke well.



You see, Dr Banda had done his part and he understood that when you
have done all you could do, you cannot do more. You need to make way
for others to try their luck. To quote State President Bingu wa
Mutharika, “leadership is more like a relay race”. Once you run your
part and pass on the baton stick, you are done. It doesn’t matter even
if you still have lots of energy in your reserve tank. There are no
medals for trying to overtake your teammate. That is how the race is
run for anyone with any regard to the rules.



A colleague called from Zimbabwe a few days ago (after waiting for a
month to get election results) to say, he now understands why Dr Banda
made history at his every turn. Even in his defeat, he displayed grace
and dignity. He was one of a kind--if not in the way he acted then
certainly in the way he bowed out.



This is eating humble pie for my Zimbabwean colleague who made you
regret being born a Malawian during Dr Banda’s rule. He has just
discovered what many knew all along that Dr Banda was not just another
political leader. He was a statesman par excellence.



This is the legacy which current and future leaders will be measured by
when it is time to bid farewell. So far, there is not much competition
in that league.



Today’s politicians in Malawi and indeed in the region could borrow a
leaf from the illustrious leader that God gave Malawi as its first
president

Malawi: From the Man Who Promised Free Shoes

Dianna Games
Johannesburg

IN
HIS first campaign to become president in the early 1990s, Malawi's
Bakili Muluzi offered his countrymen free shoes in return for votes.

A
few weeks ago, Muluzi, with 10 years as president of the country behind
him, made another flamboyant gesture in a bid to be re-elected next
year, after an absence of one term. At the congress of his United
Democratic Front (UDF) party, held three weeks ago to choose a
presidential candidate, he promised free fertiliser to all Malawians.

Now that might not sound outrageous at first glance. But the politics of fertiliser is no small matter in Malawi.

The
government, headed by Bingu wa Mutharika, has already dug deep to
provide heavily subsidised fertiliser to about a million small farmers
over the past two years. The programme cost about $51m last year and
another $78m is budgeted for this year, which the government needs to
fund out of its own revenues due to donor disapproval of the scheme.

Since
the government put the subsidy in place, world fertiliser prices have
risen sharply, increasing by a huge 200% last year. So the fertiliser
subsidy is quickly becoming a prohibitive undertaking for a poor
country such as Malawi.

Muluzi won his party's
presidential nomination and savvy Malawians are hoping that in the
unlikely event that he wins the election, Muluzi will forget he ever
made that promise.

A local businessman who
attended the UDF congress told me that he was unimpressed with the
offer. "In simple terms, Muluzi has promised us the collapse of the
economy," he said.

Of course this negative
view of his "generous" offer is unlikely to deter Muluzi, who, in his
two terms as president between 1994 and 2004, managed to wreck the
country's economy.

What is surprising is that Muluzi still commands political support, given the mess he left Malawi in.

But there is a chance he may be prevented from standing.

First,
he is under investigation by the Anticorruption Bureau for allegedly
diverting $11m of donor money into personal accounts while he was
president.

Second, the constitution, which
only allows the same person to run for two consecutive terms, could be
altered to remove the word "consecutive", an issue being bandied about
in the local newspapers.

No one I spoke to
during a week in the country believed Muluzi would win. But stranger
things have happened in African elections.

Mutharika,
who won the presidency with just 36% of the votes in 2004, has
increased his popularity in urban areas through successful economic
reforms over the past few years, and in the rural areas through the
agricultural subsidies.

He is expected to win
a second term based on the economy, but his popularity may be tempered
by the problematic political situation he ushered in by leaving the
UDF, on whose ticket he won the presidency, less than a year into his
first term and forming his own new party.

For the three years since then, the country's legislative process has been held hostage to floor-crossing shenanigans.

The
president suspended parliamentary proceedings in September last year as
a result of the floor-crossing frenzy. It was reconvened seven months
later, and immediately boycotted by the two main opposition parties.
This political paralysis does not bode well for Mutharika's second-term
aspirations.

My taxi driver in Blantyre was sanguine about
Malawi's politics. "This is Africa", he sighed by way of a reply to my
barrage of questions about the free shoes, the free fertiliser,
Muluzi's support from the very people he had robbed and impoverished,
and so on.

And the shoes? His party supporters
had not forgotten his rash -- and empty -- promise of a decade ago.
They checked back with him at the April congress. He is reported to
have replied, "I didn't know your sizes."

Games is director of Africa @ Work, a research and consulting company

Ethel Mutharika Memorial Music Festival International

Bongani leading a group called Jozi stepped in with fellow popular
South African Kwaito star in the name Ishmael of Avulekile fame and
ruptured into fire the moment they touched the naked microphone to dish
out the best of the rest.

Brenda once appeared in Malawi in the
90's and her son's first appearance in Blantyre was an inspiration to
all orphans as well as a great honour to the Mutharika family.

It
spoke volumes of his intimate feelings about death and orphanage when
he consistently pointed on the words inscribed on his T-shirt in
reference to her late mother's identities.

Like mother like son,
Bongani expressed himself better in his dancing antics when he wriggled
his body as if he had forgotten his bones back in South Africa.

He was not a disappointment when he exited the stage with his mother's popular Vulindlela song while promising to come back.

Vulindlela managed to rip through the patronage with wildest sing along as if it was Brenda herself doing it.

In
his speech at the intermittence of the songs Bongani urged people
especially the youths to be united against pangs of orphanage which
have muzzled the Africa region and turned it into a place of crisis.

"We
thank organizers of the show for making it possible for us to interact
in this big way, and our message is that of unity, we are representing
the whole of Johannesburg, South Africa," he said.
"We are 100
percent dancers, we express ourselves through the music we play and our
dreams are to see the reduction in the problems which come due to
orphanage in African community," said Bongani.
Such was an event where 12 Television cameras flew around pointing at one spot, attracting Dstv's Channel O crew.

Then came Kenyan Nameless who stole Malawi thunder, thudding like a bombclat.
Fun famished youths kept kicking one another's feet, taxing and dancing with ecstatically sharp degree of immerse.

Seeing
five key international artists taking turn competing for supremacy on
an extraordinary day in a mammoth centre town like Limbe, did show a
real definition of happiness.

Saturdays are market days in
Limbe, people from all the corners of Blantyre flood into the centre
town, to spend their day roaming around or shopping while braving the
threats of weather from Mpingwe mountains.

But this Saturday the
situation was different, the crowds kept trooping into Country Club
Limbe (CCL) to commemorate Ethel Mutharika's charismatic life through
music festival.

The above facts combined together do
automatically explain the huge size of patronage at golf club ground
and the electric mood that ruptured into life the moment the powerful
remote driven equipment was set into roll.

It justifies why the
father of the nation State President Bingu wa Mutharika could not
resist driving in and spent brief moment where he was accorded wildest
standing ovation by the jovial youths.

Ten years from now it
would not be surprising to see the occasion evolving into an official
Africa fiesta, the class of Nelson Mandela's HIV Aids 464-46 Concert in
South Africa.

An assurance from Channel's Kabelo that the show
would be shown on Africa's month of celebration programme injected new
value altogether.

As a matter of fact in Mozambique there is
also a similar memorial fiesta the only difference is that there,
people go on public holiday on April 7every year commemorating death of
one First lady who died while in office in 1980's.

The venue
Country Club Limbe (CCL) has special features, it has the widest open
ground, as it has soccer pitch, Hockey as well as golf course almost at
one place.

By noon on the day, there was no space left, the
crowd had muzzled it up, demonstrating the fierce nature of patronage.
It was unbelievable if there were other activities happening with in
the city.
Channel O's pretty man Kabelo who presided over the event as Master of Ceremonies could not get tired signing autographs.

He
opened his business with country men Jozi when they came in sorts of
funny dancing, sometimes almost bending like a fringe making watching
easy.

Lilongwe based Hard Beats a group comprising, two girls
and two boys was a surprise package of the day when they performed
their pop romantic songs while demonstration the ideal definition of
new age live love life long.

Other local young artists worthy
mentioning were Lilongwe based Area 43 Kwame who introduced hip hop
tunes Till 6 and the popular radio single Dance Yavuta, Third Eye from
Blantyre Dominic one and the Merriment of Nkolokosa who did Kiss Kiss
by Chris Brown also made watching meaningful.
It had to be Nameless'
turn to convert the festival into his own when he revealed his chart
busting Iminawewe song where patrons sung along chorus going like
Aiya-iya-yii, Ai ya-wo-oo, mimicking swahili lines.

Probably
one of the best dressed artists, trailing Taygrin's customary suit,
Nameless donned top beautiful purple jacket, fashionable jean, shiny
belt, a lace and black T-shirt.

He came into thunder when he
traveled in his perfect relics, If you like to dance, here is a chance,
It is in the air, it is every where, Nameless, so manner less Oh yes I
like to get into this mess, Karibia, usiya gope (Come close to me,
don't fear).

Drama came when girls started scrambling for him when he jumped down to pick one of his choice from the crowd to dance with.

He was seen throwing his top jacket, sweating profusely when fans challenged him for more.
Dan Lufani's Zimathera mwa khaze was a marvel to think about when his sexy dancers took stage flying their kisses.

The
journey started at Chileka Airport where all the artists including the
most respected Kmillian and Nigerian's 2 Face Idibia made speeches
about their participation on the memorial event and how they inclined
to the plights of under privileged communities as well as orphaned
children.

Executive Director of Ethel Mutharika Foundation
Tapiwa during the night said the event which started last year in
Lilongwe would be back next year.

She reiterated that the late
First Lady Mutharika did not want people to mourn her for ever but to
celebrate her life and further her programmes of cheering under
privileged communities.

"Ethel Mutharika Memorial music festival
would be back next year, we decided to invite international artists of
repute to join hands in working for under privileged communities, the
way my mother wanted it, to be," she said.

Speaking during the
show trustee Duwa Mutharika, said proceeds of the show would be
channelled to the work of constructing an orphanage centre at a
location to be identified in the country

Malawi's farming revolution sets the pace in Africa

By Steve Bloomfield in Chiseka

Monday, 5 May 2008

A green
revolution taking place in the fields of Malawi has, in three years,
turned a nation that was once reliant on international aid to feed half
its population into a food exporter.

In doing so, it has set an example for other developing countries
struggling to feed themselves. But it has done it all against the
express wishes of Britain, the United States and the World Bank – its
largest donors.

Malawi suffered a catastrophic drought in 2005.
The World Food Programme estimated that five million people – out of a
population of 12 million – needed food aid and many villages reported
people dying of starvation.

A new government, led by Bingu wa
Mutharika, believed the problem was straightforward. Farmers were using
seeds that were highly susceptible to disease and weevils, and too few
were using fertiliser. If farmers could afford high-yield maize seeds
and fertiliser, the government argued, they would be able to grow
enough food. At a cost of £30m, the government launched a subsidisation
scheme. With a state coupon, the price of a bag of fertiliser fell from
6,500 kwacha (£23) to 900, while a 2kg bag of hybrid maize seed dropped
from 600 kwacha to 30.

Malawi's donors refused to fund the
programme, arguing that subsidising farmers would not bring the desired
results. They were wrong. Malawi needs about 2.2 million tonnes of
maize a year to feed itself and from a low of 1.2 million tonnes in
2005, national maize production rose to 3.2 million tonnes in 2007,
according to the Ministry of Agriculture.

The results are plain
to see in the village of Chiseka, 50 miles south of the capital
Lilongwe, where the village chief Herbert Kamponda remembers the 30
people who perished during the drought. Most died of starvation but a
few were killed in desperate battles with their neighbours over the
last remaining crops. "People were so hungry they would do anything,"
he said.

All that has changed. Tito Jestala, one of the
village's farmers, proudly shows off his maize store, filled to the top
with corn cobs. One acre produced 250kg of maize three years ago – now
it is producing up to 750kg.

The scheme has its critics, who
argue that agricultural subsidies can be ineffective as they provide
the same benefits to rich farmers that could afford the full price, and
that bigger improvements could have been achieved if the money was
invested in agricultural research. Critics also say that Malawi's
agricultural output has been boosted by good rainy seasons rather than
the subsidy scheme.

Idrissa Mwale, the subsidy coordinator at
Malawi's ministry of agriculture, countered that there had been good
rainfall in the past and still bad harvests.

There is also the
problem of corruption. The scheme has become politicised, with MPs
being given large numbers of coupons to hand out to constituents.
Unsurprisingly, that has led to accusations that ruling party
supporters have benefited more than opposition supporters, but the
government said it has tried to make the scheme as transparent as
possible and at least one former MP has been charged with misusing the
coupons.

One potential problem is the rising cost of fertiliser,
caused by soaring oil prices. However, international donors, after
early scepticism, now support the scheme. Britain donated £4m last
year. With many developing countries in the grip of a global food
crisis, Malawi is now urging its neighbours to follow its example.
"We've set the pace," said Mr Mwale. "Sometimes you have to take a bold
step and say 'This is in the interests of our people'."

Lest we forget: "church leaders campaigned against Mr Mutharika because they did not want Mr Muluzi's legacy to continue" Rev Gunya (2004)

It is exactly 100 days since the economist-turned-politician Bingu wa Mutharika took over the reins of power in Malawi.

Mr Mutharika was hand-picked by outgoing President Muluzi

President Mutharika was anointed by his predecessor
Bakili Muluzi, a choice critics felt was a bid to prolong the former
president's reign.

Mr Mutharika has faced stiff resistance on all fronts.

Senior ruling United Democratic Front (UDF) officials
protested that outgoing President Bakili Muluzi had chosen Mr
Mutharika, a perceived outsider to UDF politics, at their expense. Most
of them quit the party in protest to join opposition ranks.

Opposition and civil society leaders felt that as Mr
Muluzi was unable to run for a third term himself he had settled for Mr
Mutharika, a perceived political lightweight, who he could easily
manipulate.

'My way'

But within his first 100 days in office, President Mutharika has proved he is his own man.

I don't want people to always be worried about when they are going to be arrested

Where people thought Mr Mutharika's presidency would be an extension of
Mr Muluzi's, the new president has shown a complete departure from his
predecessor.

"I like doing things my way," he said in an interview a few days before the election on 20 May 2004.

Where analysts say Mr Muluzi treated corruption with kid gloves, Mr Mutharika has professed "zero tolerance" on corruption.

"I would like to warn all corrupt officials that very soon they will have nowhere to hide," he said.

This has won him the hearts and minds of many who hitherto hated him.

In fact there is a joke doing the rounds in Malawi that
those who voted against Mr Mutharika are the ones enjoying his reign,
while those who shouted themselves hoarse to ensure his victory are now
sulking.

Annoyed

Political analyst Boniface Dulani of the University of
Malawi says Mr Mutharika has won over his critics because he is doing
exactly what Mr Muluzi was not doing.

He seems to be serious on the issue [corruption] so it's a good start MCP leader John Tembo

"Mutharika has surprised most people because he was seen as somebody who was going to be led by Muluzi," says Mr Dulani.

In July, President Mutharika ordered the arrest of the
UDF chief strategist and Mr Muluzi's close aide, Humphrey Mvula, for
alleged corruption to the consternation of party heavyweights.

"Arresting Mvula is arresting the UDF itself," protested Kennedy Makwangwala, the UDF's secretary-general.

Mr Makwangwala accused Mr Mutharika of trying to destabilise the ruling party.

"He should not forget who put him there. We are being treated as if we lost the elections," he said.

Mr Muluzi himself is visibly annoyed at the way Mr Mutharika has been conducting himself lately.

"I don't want people to always be worried about when
they are going to be arrested," the former president told party
loyalists after state prosecutors said six ministers who serviced in Mr
Muluzi's cabinet would face charges of embezzling more than $90m of
state funds.

Happy

Even opposition leaders have guardedly sung the praises of the president.

The rural man or woman would like it most if he [Mr Mutharika] began right now to address their problems Reverend Daniel Gunya

John Tembo, veteran leader of the Malawi Congress Party (MCP), says he
is happy with the president's first 100 days when it comes to
corruption.

"There are signs that he [Mutharika] wants to grapple
with the problem of corruption in high places. He seems to be serious
on the issue so it's a good start."

Unlikely endorsement for the president is also
forthcoming from civil rights and religious leaders, who vehemently
campaigned against Mr Mutharika during the election.

One of Mr Mutharika's most bitter critics, the Reverend
Daniel Gunya says church leaders campaigned against Mr Mutharika
because they did not want Mr Muluzi's legacy to continue.

"Muluzi tolerated corruption and wastefulness. Bingu has proved he is different. Maybe he can be trusted," he said.

But, he warns, ordinary Malawians will measure the
president's success on more mundane matters like his ability to deliver
drugs to hospitals and fertiliser to farms.

"The rural man or woman in the village would like it most if he began right now to address their problems... and social needs."

K3 bn investment pledges in first quarter—Mipa

Malawi attracted investment pledges worth US$21.7 million (about K3.04 billion) in the first three months of this year buoyed by improved macro-economic conditions, the Malawi Investment Promotion Agency (Mipa) has said.

Mipa said in a statement released on Tuesday that 28 companies have expressed interest to open their doors in the country, a development expected to create 2,352 jobs.

Out of the 28 companies, six are from Malawi, five each from South Africa and Mainland China with others coming from the United Kingdom, Zimbabwe, Canada, Tanzania and other countries.

"Most of the new investment continues to be in general manufacturing. Of the 28 new companies that applied for an investment certificate to start their business, 14 are in manufacturing sector, four in tourism, seven in services and three in agriculture/agro processing.

"Having more local investors is a clear indication that the macro-environment is good. Reduced cost of borrowing by commercial banks in recent days has aided more people to borrow and invest," said Mipa senior manager (corporate affairs) Aretha Kamwendo

Two bank rate cuts by the Reserve Bank of Malawi (RBM) last year from 20 percent to 15 percent saw commercial banks, reluctantly though, slashing their base lending rates to around 19 percent from 27 percent at the start of 2007.

During a business captains’ meeting organised by Industry and Trade Minister Henry Mussa in Blantyre mid last month, local investors cited poor incentives as one of the factors affecting investment in Malawi.