Malawi Launches $350M U.S. Aid Compact for Infrastructure
"'Entry into Force' means stop the planning and beginning of implementation of the project on the ground," said Alice Albright, the MCC's chief executive.
LILONGWE, Malawi — The U.S. government's Millennium Challenge Corporation officially kicked off its $350 million compact with Malawi on Thursday aimed at upgrading rural roads and strengthening land administration in the impoverished African country, writes Martin Kamlaike.
President Lazarus Chakwera presided over the launch ceremony at Mzonde ground in central Lilongwe, marking the start of the five-year transport and land reform program intended to boost economic growth.
"Malawi is like a sick baby that needs medication even though the pill may seem to be bitter to swallow," Chakwera said, likening his presidency to a parent's duty.
He defended his overseas travel to secure development funds despite criticism "that he is draining the resources that could have been used for other priorities."
The MCC's compact with Malawi, its second, is projected to benefit 5.3 million rural residents through rehabilitated road networks linking farms to markets and reformed land management services across district councils.
"'Entry into Force' means stop the planning and beginning of implementation of the project on the ground," said Alice Albright, the MCC's chief executive.
She said the agency aims "to change lives of the rural people through improved roads to help farmers have easy access to markets thereby improving their livelihoods."
Albright said Malawi qualified by meeting 18 of 20 criteria covering governance, economic freedom, investment in education and health care, and democratic rights.
"We work with many countries throughout the world... And all the countries we work with must be eligible and the beginning order to qualify MCC funding," she said.
The MCC consistently monitors partner nations to ensure they maintain standards for further funding, Albright added, urging Malawi to focus on meeting those "crucial" benchmarks.
Dye Mawindo, CEO of Millennium Challenge Account-Malawi, said the compact features "two big projects" involving policy reforms to empower district councils in streamlining services and land administration.
Thursday's launch followed the compact's "Entry into Force" declared on May 6 in Dallas.