By Taonga Sabola in Dallas, Texas, Unites States of America:
Malawi and United States of America (USA) governments have, in the wee hours of today [Tuesday], entered into force the $350 million Transport and Land Compact, effectively symbolising the official start of the compact, which is expected to benefit over five million Malawians.
Millennium Challenge Corporation (MCC) Chief Executive Officer Alice Albright announced the entry into force of the compact at the George W. Bush Presidential Centre in Dallas, Texas, during the MCC’s 20th Anniversary celebrations.
Malawi’s second compact was signed on September 28 2022 and comprises three projects, namely the Accelerated Growth Corridors Project (AGC), targeting the reduction of transport costs in rural areas.
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It also comprises the Increased Land Productivity Project, which is aimed at improving land services and enhancing conditions for investment in land; and the American Catalyst Facility for Development Project, which is facilitating USA International Development Finance Corporation investment to bolster private sector engagement in alignment with compact objectives.
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The compact aims to improve rural access to markets through road corridor development and road maintenance reforms, and to improve land administration and the productive use of land while driving inclusive economic growth.
“We are proud of our strong enduring partnership with the people of Malawi, and believe this compact will play a crucial role in Malawi’s economic development.
“This compact is about more than multi-million US dollar grant funding for infrastructure or land policy reforms—it is a testament to our joint investment in the people of Malawi,” Albright said.
President Lazarus Chakwera said the entry into force of the compact marks a long-awaited milestone, a testament to the unwavering dedication and tireless efforts of all the people behind the development and execution of the preparatory works for the Compact.
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According to Chakwera, the journey, this far, has been built on persistence, collaboration and shared vision.
“When Malawi signed the compact, there were a number of conditions that needed to be fulfilled before the compact could become effective. These conditions comprised those requiring legislative action; but there were administrative ones [too].
“This required our utmost attention. Today, with immense pride, I stand before you to announce that Malawi has fulfilled all the Entry Into Force conditions. This launch, therefore, marks the start of the much-anticipated compact implementation,” Chakwera said.
The Malawi leader said under the second compact, the plan is to construct four corridor roads to resolve significant problems in linking farms, particularly smallholder ones, to markets.
“With poor rural road infrastructure, we see extremely high prices of farm-to-market transport and, in some cases, significant market power of transporters and agro-processors.
