Good economic performance helps double Malawi's soft loan funds from the African Development Bank

Lilongwe

The African
Development Bank (AfDB) Group has more than doubled its soft-loan
window funding for Malawi, the Bank Group's President, Donald Kaberuka,
said in Lilongwe, Malawi, on Wednesday.

"Under
our new soft loan lending cycle (2008-10), Malawi will receive a
significant allocation -- more than doubling its level of previous
resources to just under US$ 200 million," Mr. Kaberuka said at the
official opening of the AfDB Malawi Country Office.

He said the decision was based on Malawi's good economic performance.

Mr. Kaberuka said that due to reforms, Malawi had registered unprecedented economic growth and strong macroeconomic performance.

"These
reform efforts are leading to major developments in the delivery of
social services, economic growth and results which visibly impact the
lives of the people," he said.

Mr. Kaberuka
cited Malawi's fertilizer subsidy programme as an example of positive
reform that had helped address the cash constraints facing poor
smallholder farmers, decreased food security and contributed to
economic growth. He urged Malawi's development partners to support the
programme.

He also called on the Malawian
parliament to endorse the AfDB's budget support facility for Malawi,
which had been approved by the Bank's board in 2007.

"At
this time of enormous turbulence and uncertainties in the global
economy and its ramifications on us, it is important that we do not,
either by commission or omission, act in any way that deepens the
crisis.

"For our part, we will continue to be
guided by Malawi's own strategy for growth and development," Mr.
Kaberuka told dignitaries at the ceremony.

Addressing the audience, Malawi Finance Minister, Goodall Gondwe, described the increase in the allocation as "enormous'.

He,
however, urged the AfDB to relax some of its funding regulations to
help ensure that the funding was more readily available to Malawi.

The
AfDB Group currently has nine operations worth US$ 170 million in
Malawi. The operations are mainly in the economic and social sectors,
including rural infrastructure.

The AfDB also provides budgetary support to the Government of Malawi.

Lest we forget, January 2003: Malawi members of parliament flee over Bakili Muluzi's third term row

"It's shameful that the UDF party wants to take us back to the dark days,"
Mr Gwanda Chakuamba (2003)

Two opposition Members of

Parliament from the central tobacco heartland of Kasungu are in hiding
after angry militant youths of the ruling United Democratic Front (UDF)
terrorised their homes.

Gwanda Chakuamba, leader of the
opposition Malawi Congress Party (MCP), told BBC News Online that
Sailes Gulule and Carrington Jimu had fled their homes after the youths
invaded
their compounds Wednesday night, threatening to kill them.

"I am in hiding but I
am worried about my family
" Sailes Gulule

The youths were angered by the
government's failure to change the constitution to enable President
Bakili Muluzi to stand for a third term in office.

A parliamentary bill to this effect was shelved earlier this week after widespread opposition.

The issue has divided Malawians
and when the debate started on Monday, police had to fire tear gas to
disperse some 4,000 people protesting against the bill.

Unless the constitution is changed, Mr Muluzi is due to step down in 2004.

Knives and stones

"It's shameful that the ruling party wants to take us
back to the dark days," Mr Chakuamba said.

Mr Gulule said he was trying to plead with Inspector General of Police Joseph Aironi to provide protection for the MPs.

Speaking from his undisclosed hiding place, Mr Gulule
said the militant youths came to the MPs' houses in an open van in the dead of night.

He
said sympathisers warned him to flee his house because the vehicle was full of people armed with machetes and stones.

"I was really scared," he said. "I am in hiding but I am worried about my family."

Both Mr Gulule and Mr Jimu were reported in the local media
as having rejected UDF attempts to persuade them to vote for the bill.

Food shortages

The two are the latest victims of the fall-out following
the shelving of the controversial third term bid.

Sacked Commerce and Industry
Minister Peter Kaleso and outspoken MP Green Lulilo Mwamondwe, from the
opposition Alliance for Democracy (Aford) had to seek refuge at the
British High Commission after being roughed up by UDF activists.

Two other dissident ruling UDF MPs, Joe Manduwa and
Jan Jaap Sonke, had to be rescued by police after openly saying they would thwart the bill.

Meanwhile, the British High Commission has expressed
disquiet over the holding of the extraordinary parliament session.

In a press release, the UK said
it was sad that at a time Malawi was reeling from severe food shortages
and the impact of HIV/Aids, government saw it wise to spend 7 million
Malawi kwacha ($80, 000) to hold the special debate.

Lest we forget, June 2002: Bakili Muluzi's lack of respect for the Judiciary system of Malawi

The High Court of Malawi has declared unconstitutional President Muluzi's ban on demonstrations against the controversial presidential third-term debate, but the head of state said on Tuesday he would ignore the ruling.

President Bakili Muluzi argued that he had outlawed all demonstrations relating to his bid to amend the constitution, which imposes a limit of two presidential terms, for the sake of "peace and stability".

" I am a good dictator who wants to maintain peace and stability in my country " President Muluzi

A High Court judge said on Monday that the presidential decree was unconstitutional, and that it was the president's duty to ensure that the police and the army protect demonstrators.

A two-third majority is required for the bill to be passed in Parliament, where President Muluzi's United Democratic Front (UDF) hold about 40% of seats.

President Muluzi said that the court ruling was "irresponsible and insensitive".

"I will instruct both the army and police that demonstrations should not take place," he said.

'Eruption of violence'

At a public rally outside the capital Lilongwe on Sunday, President Muluzi rejected allegations that he was a dictator for banning the demonstrations.

"If by ensuring that there is no chaos here, then indeed I am a dictator," he said.

" Wider views should be entertained " Judge Mwaungulu

"But the advantage with me is that I am a good dictator who wants to maintain peace and stability in my country."

On Monday, High Court Judge Dunstain Mwaungulu said that the president's decree was illegal, and that he was issuing an injunction against it.

"Because the issue is now in parliament, it is in the public domain, so wider views should be entertained," he said.

"There is likely to be eruption of violence as different people begin to express their opinion in a dramatic way, that is why organs of state, like police, should ensure maximum security for the demonstrators."

Hiding

Amid the controversy, 20 students held a demonstration on Tuesday in the university town of Zomba, about 70km east of the economic capital Blantyre, where police reinforcements had been brought in.

The students carried anti-third term banners and chanted anti-government slogans, but armed officers prevented them from proceeding.

On Sunday, at least 50 members of the opposition National Democratic Alliance went into hiding in Zomba after skirmishes with suspected UDF youths.

One of the group, Wilfred Shaba, told the BBC's Raphael Tenthani from his hiding place that anyone seen sporting the purple ribbon, which has been adopted by the anti-third term campaign, was a target.

Religious divide

He said that neither the police nor the judiciary had been willing to investigate.

Members of Parliament started a debate on the issue on Friday, but are not expected to put it to a vote until July.

If the bill is passed, the constitution will be amended, allowing President Muluzi to run for a third term in 2004.

Our correspondent says that the present stand-off between the president and the judge is further evidence of the strained relationship between the ruling party and the judiciary.

In November last year, UDF members of parliament moved a motion to impeach Justice Mwaungulu and two other senior judges for being partial to the opposition.

Civil rights and Church groups, which oppose the amendment, are planning demonstrations in the country's cities and towns this Friday.

In contrast, the country's Muslim community has expressed support for the bill.

Delayed national budget affects Malawi's Olympic team

The 10 member Malawi Olympic Committee (MOC) left for the Beijing
games without up keep allowances and kits due to financial constraints.

Speaking after the delegation’s departure at the Kamuzu
International Airport (KIA) in Lilongwe Monday afternoon, MOC president
Floriano Massa said the budget for the trip was K6.5 million to meet
food, sport kits, accommodation expenses, while air tickets were
provided by Malawi government and International Olympic Committee
(IOC).

Government managed to provide K2.5 million, leaving a huge shortfall.

“We have had an impact of the delayed national fiscal budget,
government can not release enough funds now and that has made us fail
to meet other obligations for the trip but we are working out how to
solve the problem,” said Massa.

He said MOC had to fall in debt to facilitate the trip as they were
finalizing on some other necessities while the team was already in
China.

“Things like sport kits are very important and the athletes can not do
without them,” said Massa. “But we are doing everything so that they
are provided with those materials before the games start.”

He promised the athletes that the kits which were being procured from South Africa should reach them on August 5.

Massa said the IOC assisted with some of the air tickets and government met the rest of the expenses.

The Olympic Games will open on August 8 with a ceremony that will parade about 7,000 athletes from 203 countries worldwide.

The Malawi team comprises short distance athletes Chancy Master who
runs 1,500m, Lucia Chandamale, 500m and swimmers Charton Nyirenda and
Zahra Pinto who have been training in South Africa.

Polyanna Pinto (mother to Zahra) accompanied the athletes, while Ken
Dzekedzeke and Yona Walesi are the athletes and swimmers coaches,
respectively. The team manager is Haxson Chapasa who is also MOC
General Secretary.

Malawi Growth and Development Strategy / African Development Bank Group ( AfDB) / AfDB President in Malawi

LILONGWE, Malawi, July 29, 2008/African Press Organization (APO)/ — The President of the African Development Bank Group, Donald Kaberuka, arrived in the Malawian capital, Lilongwe, on Tuesday to begin a two-day official visit.



Mr. Kaberuka will meet with Malawian President Bingu wa Mutharika and hold talks with leading government figures, including the Minister of Finance, Goodall Gondwe, and the Minister of Economic Planning and Development, Ken Lupenga.



“The main objective of the visit is to conduct dialogue with the Government of Malawi on how the African Development Bank can support its various development programmes, particularly those related to the Malawi Growth and Development Strategy,” an AfDB spokesperson said. “The talks will strengthen cooperation between the AfDB and the Government of Malawi.”



While in Malawi, Mr. Kaberuka will participate in the official opening of the African Development Bank’s Malawi Field Office and also address members of the private sector on the theme ‘Africa, the New Landscape: Managing Threats to Sustain Momentum’ in Blantyre, Malawi’s commercial hub. He will, on Thursday, conclude his visit to Malawi with a press conference in the capital, Lilongwe.



Malawi became a member of the African Development Bank Group in June 1969. The AfDB’s operation in the country began in 1972. By June 2008, the AfDB’s commitments in Malawi had reached USD 595.5 million in 92 operations.



The establishment of the Malawi Country Office is part of the Bank’s reform programme that began in 2005 and is aimed at improving efficiency by moving the Bank closer to its clients.



The Bank has, so far, opened 25 regional and field offices as part of its decentralization programme.