President Lazarus Chakwera is describing the newly signed $350 million Millennium Challenge Corporation (MCC) compact as a key to reducing Malawi’s barriers to growth.
Malawi on Wednesday signed the Transport and Land compact towards improving linkages and access to markets.
Speaking during the ceremony Chakwera pointed out that the compact will go a long way in helping smallholder farmers in rural area, as well as create a conducive environment for the private sector.
Some 300 kilometres of roads across Malawi are set to be transformed in the next five years using the multi-million dollar US development package.
US Secretary of State Antony Blinken, is confident that proper implementation of the compact will increase access to markets for remote farmers, therefore improving trade as well as food security.
On his part, Finance Minister Sosten Gwengwe, who signed on behalf of the Malawi government has vowed to ensure sound and successful implementation of the projects under the compact, towards benefiting and improving lives of Malawians especially small scale farmers.
Currently, most farmers have challenges in getting their farm produce to the right markets due to the poor state of the road network from their areas of work.
The development also expose remote farmers to exploitation by unscrupulous vendors who purchase their produce for peanuts on the pretext of travel cost to reach the farmers.
Aimed at reducing transport costs and strengthening land administration, the Compact will cover the upgrade of various roads in Mzimba, Rumphi, Lilongwe, Kasungu, Mchinji, Ntcheu, Balaka and Mangochi.
Malawi qualified for her second compact in December 2018 following her successful implementation of another $350 million Energy Compact, which has opened up the local sector to independent power producers and built her power sharing capacity.