VZCZCXRO8973
RR RUEHLMC
DE RUEHLG #0363/01 1761530
ZNR UUUUU ZZH
R 251530Z JUN 09
FM AMEMBASSY LILONGWE
TO RUEHC/SECSTATE WASHDC 0591
INFO RUEHLO/AMEMBASSY LONDON 0374
RHEHNSC/NSC WASHDC
RHMFISS/HQ USAFRICOM STUTTGART GE
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC

UNCLAS SECTION 01 OF 02 LILONGWE 000363 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV EAID MI
SUBJECT: MUTHARIKA ANNOUNCES A COMPREHENSIVE AND 
FORWARD-LOOKING AGENDA 
 
¶1. (SBU) Summary: In his State of the Nation address on June 
23, President Mutharika highlighted his first 
administration's achievements in food security, economic 
growth, and respect for democracy through successful and 
peaceful elections.  Mutharika said the voters gave him an 
overwhelming mandate to continue his development plan in the 
recent elections, highlighting nine priorities for his second 
administration - agriculture and food security, the Greenbelt 
irrigation project, education, transport and infrastructure, 
integrated rural development, youth empowerment, climate 
change and environmental management, energy and mining, and 
public health.  Mutharika also said he will continue to 
govern justly, without recrimination, to create an atmosphere 
of political tolerance.  The President asked for continued 
foreign assistance and international investment, particularly 
for the Greenbelt project, but also in infrastructure, 
manufacturing, and mining sectors.  Comment: Mutharika's 
development priorities in the key sectors of HIV and health 
care, education, and agricultural development meld well with 
existing and planned USG programs. End Summary. 
 
¶2. (U) In his first State of the Nation address since his 
landslide reelection, Mutharika said Malawians had spoken 
loud and clear, voting on issues and not ethnicity for the 
first time.  He said the election results were an 
overwhelming mandate for the continuation of his policies and 
development agenda of the past five years.  Mutharika 
highlighted his first administration's achievements, focusing 
on macroeconomic stability including low inflation, low 
interest rates, and stable exchange rates.  The President 
credited the improved economic environment for the 7.5% 
average real GDP growth during his first term, which he 
called "Malawi's Economic Miracle."  Mutharika added that his 
government has restored foreign aid donor confidence, saying 
annual aid flows to Malawi had increased 220% since 2004 and 
now totaled over US$630 million annually. 
 
3, (U) Mutharika admitted that Malawi had many needs, but 
said he would use his parliamentary majority to accelerate 
the pace of development.  Saying Malawi would move from 
poverty to prosperity, he would focus the government's 
efforts on nine priorities during the next five years. 
 
   - Agriculture and Food Security 
   - Greenbelt Irrigation and Water Development 
   - Education, Science, and Technology 
   - Transport, Infrastructure, and the Nsanje World Inland 
     Port Development 
   - Climate Change, Natural Resources and Environment 
     Management 
   - Integrated Rural Development 
   - Public Health Sanitation, and HIV/AIDS Management 
   - Youth Development and Empowerment 
   - Energy, Mining, and Industrial Development 
 
4, (U) Addressing each priority in turn, Mutharika said he 
would expand his signature fertilizer subsidy and lower the 
price of a 50kg bag of fertilizer by a further 37% to US$3.52 
for the coming year.  Describing the Greenbelt irrigation 
project as an "economy-changing program" that would create 
thousands of jobs and investment opportunities, Mutharika 
said the project would reduce Malawi's dependence on rain-fed 
agriculture and diversify its food production by focusing on 
rice production and fish farming along Lake Malawi, Lake 
Chirwa, and the Shire river.  The President said that 
education is the key to solving Malawi's capacity issues and 
promised to continue to increase government resources devoted 
to the sector.  Mutharika also said his roads program, which 
had shown how critical transport infrastructure was to 
socio-economic development, would continue at an increased 
pace.  He also declared the Shire-Zambezi Waterway and Nsanje 
Inland Port projects would reduce import and export costs by 
over 60%, claiming funding for the projects from the EU, 
World Bank, and African Development Bank. 
 
¶5. (U) Mutharika briefly addressed the impact of climate 
change on Malawi and stressed he would implement new efforts 
to conserve forests, plant trees, and prevent land 
degradation.  The President said he would continue with 
decentralization, transportation improvement, and rural 
market construction to make sure growth reached the rural 
masses.  He credited donors for their assistance in the fight 
to stop the HIV pandemic and said he would continue to work 
to improve health care delivery for all Malawians.  Mutharika 
pledged to increase vocational and entrepreneurial training 
for youths as well.  Lastly, the President said the 
government would rehabilitate three power stations and 
explore alternative energy sources to expand power generation 
 
LILONGWE 00000363  002 OF 002 
 
 
to encourage investment and manufacturing.  Mutharika also 
said the government would create a conducive environment for 
mining investment which he thought could bring significant 
growth to Malawi. 
 
¶6. (U) After his development priorities, Mutharika discussed 
his commitment to governing justly and respecting human 
rights.  He said that his government would continue to 
consolidate democracy and observe the rule of law.  He 
dismissed fears of a parliamentary autocracy, saying his 
party's large majority in the legislature would advance the 
welfare of Malawians and protect the interests of minorities 
and the vulnerable.  He reiterated that he would govern 
without recrimination or revenge and pledged to create an 
atmosphere of political tolerance and inclusiveness. 
 
¶7. (U) The President concluded by thanking foreign donors for 
their support and asked for continued and increased support 
of his priorities.  He also asked for the support of 
international investors to help accelerate Malawi's pace of 
development.  Mutharika singled out his proposed Greenbelt 
irrigation program along the shores of Lake Malawi and the 
Shire River as an excellent investment opportunity, but also 
touted infrastructure, manufacturing, mining, and technology 
sectors. 
 
¶8. (SBU) Comment: Mutharika's State of the Nation address was 
both comprehensive and forward-looking.  He expanded on many 
ideas he developed in his first administration and reelection 
campaign.  Notably, Mutharika's detailed descriptions of his 
development programs in HIV and health care, education, and 
agricultural development meld well with existing U.S.-funded 
programs in these sectors.  We are encouraged by the GOM's 
reinvigorated approach and will leverage this new momentum to 
work toward our joint goals. 
BODDE