Malawi has signed a second US$ 350 million Millennium Challenge Compact (MCC) with the US government in Washington DC on Wednesday.
The three projects under the new compact that will address issues of the high price of road freight transport service and access to land for investment.
The Malawi Transport and Land Compact, which includes an additional $26.5 million contribution from the Government of Malawi, is designed to reduce transport costs by upgrading more than 300 kilometers of roads to connect farmers to markets and by strengthening the country’s land administration.
Malawi's President, Lazarus Chakwera and US Secretary of State Anthony Blinken were at the signing.
Chief Executive Officer (CEO) for the Millenium Challenge Corporation Alice Albright said she was impressed with government's commitment to build Malawi and reduce poverty from the grassroots level.
"The government of Malawi partnered with MCC and Malawi was eligible to secure US$ 350 million compact which was designed to overhaul the power sector to transform the energy sector, provide clean water, improved sanitation, boost agriculture yields, efficient transportation infrastructure among others.
"Building on this success is a strong commitment to Malawi’s democratic governance and MCC board selected Malawi for a second phase in 2018 which is being signed today and is a great moment," Albright pointed out.
She added that, "I am impressed with President Chakwera's commitment to build Malawi and his vision to reduce poverty levels among others hence the signing of the Compact marks a great milestone as it will assist in the construction of sub stations increase electricity transmission road network among others."
THE CEO added that the MCC would benefit over 13 million Malawians and boost Malawi’s economy and in different sectors of development.
President Lazarus Chakwera described the Compact as a positive impact on Malawi’s economy.
"Malawi is transforming and is no longer going to be the same after making tough and painful corrective economic decisions that will yield dividends for the country," he said.
Chakwera thanked the US government for showing commitment which would go a long way to achieve the vision for Malawi as a country.
US Secretary of State, Anthony Blinken pledged more support for Malawi's developmental goals that includes the Extended Credit Facility with the International Monetary Fund (IMF).
He assured the President of America's support in Malawi quest to implement Malawi 2063 towards food security, self reliant, industrious and job creation among others.
The MCC cooperation was represented by MCC CEO, Alice Albright and Malawi Government was represented by Sosten Gwengwe, Minister of Finance and Economic Affairs, Secretary to the treasury, Minister of Foreign Affairs Nancy Tembo among others.