By Brenda Kayo:
Millennium Challenge Account (MCA) Malawi has signed a $44.1 million (about K77.2 billion) agreement with city councils, Malawi Local Government Association (Malga) and National Local Government Finance Committee to support implementation of development projects in the country’s cities.
The agreement, signed in Lilongwe Thursday, would see the councils of Lilongwe, Zomba, Blantyre and Mzuzu receiving $22 million (about K38.5 billion) for implementation of development projects.
The remaining $22 million will go to other sectors.
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MCA Director for Increase and Productivity Project Themba Chirwa said the agreement was premised on establishing policies that would help councils collect taxes and use them effectively.
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He said the project also included a property mapping and evaluation process to help councils have accurate information on properties in areas under their jurisdiction.
“The main objective of this agreement is to support councils in establishing policies and systems that will help them collect taxes and use them effectively,” Chirwa said.
Malga President Esther Sagawa urged the councils to use the funds provided wisely.
“We are grateful for this support and will ensure that the funds are used effectively to benefit service users,” she said.
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Zomba City Chief Executive Officer Archangel Bakolo also said the councils would ensure that the funds were used effectively to support development projects in their areas.
“We will make sure that the funds are used transparently and accountably to benefit residents,” Bakolo said.
In May this year, President Lazarus Chakwera launched the $350 million second MCA compact for Malawi to transform land sector and infrastructure development programmes.
The project is premised on modernising and expanding the country’s road network.
The agreement is for three years and is scheduled to end in 2027.
