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Malawi scores high on Millenium Challenge Account indicators

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Malawi stands a chance of benefiting from another Millenium Challenge Account (MCA) compact following its good performance on the programme indicators.

The country is already beneficiary from a $350 million MCA pact targeting the energy sector.

Addressing members of the media in Mangochi, MCA-Malawi Deputy Chief Executive Officer, Lameck Mithi, said the American Government monitors the performance of donor funded countries, which determines whether a country qualifies for another funding or not.

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Mithi said depending on the priorities of the Malawi Government, the second compact might fund projects in other sectors.

“Currently, the Malawi government has scored 16 out of 20 of the indicators and this means Malawi stands a chance of getting a second compact. It is, however, not automatic that the second compact will also go to the energy sector. It will depend on the project proposal the government will put forward,” he said.

Mithi further said the government should make sure that the reforms they have put in place are successful and that issues of corruption are also addressed.

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Speaking on electricity Supply Corporation of Malawi (Escom) unbundling process, Mithi, Escom is expected to be split into two companies which will start operating as separate entities by January, 1, 2017.

“We are currently waiting for Escom to allocate staff to the two companies and we feel this will be done by December, 31, 2016. The unbundling will allow other players in the field to participate in power generation investments.

“By allowing the private sector to invest in power generation, it means we will be increasing the capacity of generation and this will therefore increase the number of people accessing electricity in the country,” Mithi said.

The MCA-Compact is expected to come to an end in September, 2018.

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