Malawi

1.0 Introduction

Formerly known as the Nyasaland, Malawi gained independence from British Colonial rule in 1964.  Following two decades of one-party rule under of Hastings Banda, the country returned to multiparty democracy in 1994 after a referendum to adopt a new constitution.

Economic performance has been consistent and impressive although poverty levels continue to remain high. Increased household food security and falling poverty have complimented strong macroeconomic performance to see increasing improvement in the living conditions of people.

2.0 Country Snapshot

3.0 Transport and Development in Context

The Malawian economy has been performing very well in recent times. According to the World Bank, this is the result of sound macroeconomic programmes complemented by good weather and supportive donor environment. Like most Sub-Saharan African countries, the agricultural sector has been the major source of this growth process. In a period when the world was saddled with the ‘credit crunch’ and most countries were obtaining negative growth rates, Malawi in 2008 achieved a growth rate of 9.8%, the highest for the country in the decade. Growth rate since 2005 has averaged 7% over the last five years. Malawi is tipped to achieve about half of the Millennium Development Goals (MDG) by 2015 ⁴, a feat which is found to be unachievable by the Sub-Saharan region. This progress has been complimented by increased household food security.

In spite of this, Malawi is ranked 160 out of 180 on the ladder of the Human Development Index with high poverty levels remaining largely unchanged. Available indicators reveal that about 40% of the country’s population are below the poverty line as at 2009 with the worst affected being female headed household (www.africanecnomicoutlook.org; MGDS ⁵, 2007).

The continued economic vulnerability is manifested in the fact that whereas 30% of the poor moved out of poverty, the same percentage of non-poor moved into the poverty bracket. With per capita income of less than $300, the government would have to step up efforts in order to achieve the Malawian’s Vision 2020. The unacceptability of this low living condition has triggered numerous government responses including the development of comprehensive policy frameworks to deal with the situation.

The current overarching operational policy framework for the medium term is the Malawi Growth and Development Strategy. This document which is to serve as the main reference point for all government policies as well as the private sector and civil society between the period 2006 and 2011 is designed towards the goals of the Malawian’s Vision 2020. It aims to alleviate poverty through sustainable economic growth and infrastructure development. One of the six ⁶ priority areas of this strategy over this period is transport infrastructure development which has been identified as a major catalyst to the overall development of the country. The emphasis on these six areas is to accelerate the achievement of the MDGs as well as Malawi’s Vision 2020.

The importance of transport development also stems from the policy shift from social consumption to sustainable economic growth and infrastructural development. The rationale for the emphasis on infrastructural development and in particular transport development is due to the high production cost resulting from high cost of transport. About 55% of production cost is driven by transport cost in Malawi compared to 17% in Less Developed countries in general. In the light of this, the government aims to increase road network which is the dominant form of transport and also improve the use of water transport. More than 50% of government expenditure is to be spent on transport development throughout the medium term period.

The major challenge for the transport sector is the under financing of rural transport sub-sector, a product of the overemphasis on urban transport development. This is also as a result of inadequate source of finance for the development of the sector.

4.0 Overview of the Transport Sector

Like most developing countries, road transport is the dominant form of transportation accounting for about 70% of internal freight and 99% of passenger traffic. More than 90% of international freight and passenger traffic is on road, as a consequence of Malawi being a landlocked country. Recognising its importance, the government aims to ensure achieve 71% good, 18% fair and 1% poor road network conditions by 2011. Malawi is served by four modes of transport and these are highlighted below.

Road ⁷         Total length of Road:                                          24 929 km
                       Paved Roads:                                                     4 073 km
                       Unpaved Roads:                                                 20 856 km

Railways*     Total Length:                                                        797 km
                      Narrow Gauge (1.067-m Gauge):                         797km

Airports*       Total: 32
                       Paved = 6              Unpaved = 26

Waterways*  Total length 700 km;

5.0 Road Classification System

The road network in Malawi is classified into main, secondary, tertiary, district and community road networks. The length of the various road classifications and their proportions of the entire road network are indicated in the table below.

Source: The Roads Authority, 2008 ⁸

6.0 Institutional framework for the sector

Ministry of Transport and Public Work
This is the oversight Ministry for the sector. Further information on the Ministry of Transport and Public Works can be obtained at www.malawi.gov.mw/Transport/TransportIndex.htm

The Roads Authority
The Roads Authority which was part of the National Roads Authority was established by the Act of Parliament No.3 of 2006 to construct, rehabilitate and maintain public roads. Further information can be obtained on http://www.ra.org.mw/index.html

7.0 Relevant Rural Transport Programmes

Malawi Rural Travel and Transport Program (MRTTP)
The Malawi Rural Travel and Transport Program (MRTTP) was established in 1999 to address issues in the transport sub-sector in a coherent manner. The goal of the MRTTP is to contribute to poverty reduction through the improvement of accessibility to socio-economic goods, services and facilities by rural communities. Further information on this is available at http://www.sadccitizen.net/regiondocs/4000209.pdf.

Road Sector Program (2006/ 2011)
This is a five-year program prepared by the Ministry of Transport and Public Works with the aim of developing a road maintenance program for the implementation within the Malawi Growth and Development Strategy. It is a long term road infrastructure investment plan based on the government policy direction both for the short and medium term.

8.0 Some Key Documents and Websites

Millennium Challenge Corporation: Malawi Compact Program Development (2011 – 2016)
This is the project concept paper for the transport sector as part of the Malawi Compact Program Development – a five agreement between the Millennium Challenge Corporation and the Malawi Government. http://www4.worldbank.org/afr/ssatp/Resources/CountryDocuments/PRTSR_Malawi_FinalReport.pdf 

SSATP Review of Malawi’s National Transport Policy and Poverty Reduction Strategy
This document reviews the Malawi Poverty Reduction Strategy and the Malawi National Transport Policy. Following this review, the action plan in the report was amended to reflect this shift in government thinking. Full document is available at
http://www4.worldbank.org/afr/ssatp/Resources/CountryDocuments/PRTSR_Malawi_FinalReport.pdf 

Malawi Growth and Development Strategy 2006 – 2011
This is the overarching operational medium term strategy designed towards the attainment of the nation’s Vision 2020. The main thrust is to create wealth through sustainable growth and infrastructure development as a means of achieving poverty alleviation. Full document as viewed on 25/06/10 is available at http://www.malawi.gov.mw/News3/MGDS%20November%202006%20-%20MEPD.pdf

Rural Transport Policy Development Process In Malawi
This case study examines the role of the Rural Travel and Transport Program (RTTP) in Malawi and how it has contributed to the transport policy and institutional framework of the country. It looks at the objectives of the Rural Transport Policy (RTP), and identifies the various investments, regulatory and pricing strategies required for the policy to be successful. The institutional framework of rural transport activities in Malawi and measures employed to address problems of finance are also investigated. Full document is available at http://www.sadccitizen.net/regiondocs/4000209.pdf  viewed on 24/04/10

East/Southern Africa Region