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GOVERNMENT OF MALAWI

NATIONAL REPORT ON PROGRESS MADE IN THE


IMPLEMENTATION OF THE NEW URBAN AGENDA

March 2021

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Contents
LIST OF FIGURES ....................................................................................................................................................... iv
LIST OF TABLES .......................................................................................................................................................... v
ACRONYMS.................................................................................................................................................................... vi
EXECUTIVE SUMMARY ........................................................................................................................................ viii
PART ONE: BASIC INFORMATION .................................................................................................................... 1
1.1 BACKGROUND............................................................................................................................................ 1
1.2 Urbanisation Demographics ...................................................................................................................... 1
1.3 Methodology of Preparing the Report ................................................................................................... 3
PART TWO: TRANSFORMATIVE COMMITMENTS FOR SUSTAINABLE URBAN
DEVELOPMENT............................................................................................................................................................ 4
CHAPTER ONE Sustainable Urban Development for Social Inclusion and Ending Poverty .............. 5
1.1 Social Inclusion and Ending Poverty ...................................................................................................... 5
1.1.1 Eradication of Poverty in all its Forms .................................................................................................. 6
1.1.2 Social Inclusion of Vulnerable Groups .................................................................................................. 8
1.1.3 Equal Access to Public Open Spaces including Streets, Cycle Lanes and Sidewalks ................ 9
1.2 Access to adequate Housing .................................................................................................................... 10
1.2.1 Ensure access to Adequate and affordable Housing ........................................................................ 10
1.2.2 Ensure Access to Sustainable Housing Finance Options ........................................................... 11
1.2.3 Establish Security of Tenure ............................................................................................................. 12
1.2.4 Establish Slum Upgrading Programmes ........................................................................................ 13
1.3 Access to Basic Services ........................................................................................................................... 13
1.3.1 Access to Safe Drinking Water............................................................................................................. 13
1.3.2 Improved sanitation ............................................................................................................................ 14
1.3.3 Solid Waste Disposal.......................................................................................................................... 14
1.3.4 Ensure Access to Safe and Efficient Public Transport System ................................................. 15
Key Achievements ........................................................................................................................................................ 15
1.3.5 Provide Access to Modern renewable energy ............................................................................... 16
1.4 Challenges Hindering Social Inclusion and Ending Poverty ....................................................... 16
1.5 Lessons Learnt ............................................................................................................................................ 17

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CHAPTER TWO: SUSTAINABLE AND INCLUSIVE URBAN PROSPERITY AND
OPPORTUNITIES FOR ALL ................................................................................................................................. 18
2.1 Inclusive Urban Economy. ........................................................................................................................... 18
2.1.1 Productive Employment for All including the Youth ...................................................................... 18
2.1.2 Strengthening the informal economy .............................................................................................. 20
2.1.3 Small- and Medium-sized Enterprises............................................................................................ 22
2.1.4 Promote an enabling, fair and responsible environment for business and innovation ......... 23
2.2 Sustainable Prosperity for All ................................................................................................................ 24
2.2.1 Diversify the urban economy and promote cultural and creative industries .......................... 24
2.2.2 Development of Technical and Entrepreneurial Skills into a Modern Urban Economy ..... 24
2.2.3 Develop urban-rural linkages to maximize productivity ............................................................ 25
2.3 Challenges Hindering Sustainable and Inclusive Urban Prosperity and Opportunities for
All 26
CHAPTER THREE: ENVIRONMENTALLY SUSTAINABLE AND RESILIENT URBAN
DEVELOPMENT......................................................................................................................................................... 27
3.1. Resilience, Mitigation and Adaptation of Cities and Human Settlements .............................. 27
3.1.1 Minimize Urban sprawl and loss of biodiversity ......................................................................... 27
3.1.2 Climate change mitigation and adaptation .................................................................................... 29
3.1.3 Early Warning systems ...................................................................................................................... 30
3.1.4 Building Urban Resilience through Quality Infrastructure and Spatial Planning ................. 31
3.2 Sustainable Management and Use of Natural Resources ............................................................. 31
3.2.1 Strengthening sustainable management of natural resources in urban areas. ........................ 31
3.2.2 Resource Conservation and Waste Reduction, Reuse, and Recycling. ................................... 32
3.2.3 Implementation of the Environmentally Sound Management of Water Resources and
Urban Coastal Areas. ............................................................................................................................................ 33
3.2.4 Adoption of Smart-City Approach that Leverages Digitization, Clean Energy and
Technologies........................................................................................................................................................... 33
3.3. Key Challenges Hindering Environmentally Sustainable and Resilient Urban Development34
3.4 Lessons Learnt ............................................................................................................................................ 34
PART THREE: EFFECTIVE IMPLEMENTATION ................................................................................... 36
CHAPTER FOUR: BUILDING THE URBAN GOVERNANCE STRUCTURE: ESTABLISHING
A SUPPORTIVE FRAMEWORK.......................................................................................................................... 36
4.1 Decentralization of Subnational and Local Governments ............................................................ 36

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4.2 Linkage of Urban Policies to Finance Mechanisms and Budgets............................................... 36
4.3 Develop Legal and Policy Frameworks to Enhance the Ability of Governments to
Implement Urban Policies..................................................................................................................................... 37
4.4 Building the Capacity of Local and Sub-National Governments to Implement Local and
Metropolitan Multilevel Governance. ............................................................................................................... 38
4.5 Implementation of Participatory, Age-and Gender-Responsive Approaches to Urban
Policy and Planning................................................................................................................................................. 38
4.6 Achieve Women’s Full Participation in all Fields and all Levels of Decision-Making........ 39
4.7 Key Challenges Hindering Building the Urban Governance Structure................................... 39
4.8 Lessons Learnt ............................................................................................................................................ 40
CHAPTER FIVE: PLANNING AND MANAGING URBAN SPATIAL DEVELOPMENT ............. 41
5.1 Implementation of Integrated and Balanced Territorial Development Polices ..................... 41
5.2 Inclusion of Housing into Urban Development Plans .................................................................... 42
5.3 Implementation of Planned Extensions of Urban Areas ............................................................... 42
5.4 Strengthening of Small and Intermediate Cities and Towns ....................................................... 43
6.1 Mobilisation of Financial Resources .................................................................................................... 45
6.1.1 Development of Financing Frameworks for Implementing the NUA at All Levels of
Government ............................................................................................................................................................ 45
6.1.2 Mobilize Endogenous (internal) Sources of Finance and Expand the Revenue Base of
Subnational and Local Governments. ............................................................................................................... 45
6.2 Capacity Development .................................................................................................................................. 46
6.2.1 Fostering Exchanges of Urban Solutions and Mutual Learning ............................................... 46
6.2.2 Engagement of Local Government Associations as Promoters and Providers of Capacity
Building 47
6.4 Information Technology and Innovations.......................................................................................... 47
6.4.1 Implementation of Digital Tools including Geospatial Information Systems to Improve
Urban and Territorial Planning , Land Administration and Access to Urban Services ......................... 47
6.5 Key Challenges Hindering Means of Communication ................................................................... 48
6.5 Lessons Learnt ............................................................................................................................................ 48
PART FOUR: FOLLOW-UP AND REVIEW.................................................................................................... 49
REFERENCES .............................................................................................................................................................. 49

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LIST OF FIGURES
Figure 1: Location of Malawi and the Neighbouring Countries……………….…1
Figure 2: Urban Centres and their Relative Population Sizes in Malawi…….….2
Figure 3: Tempo of Urbanisation in Malawi………………………………………3
Figure 4: Malawi COVID-19 Dashboard…………………………………………...4
Figure 5: Number of Groups Which Accessed NEEF Loans by February 2021...6
Figure 6: Solid Waste Transfer Stations in Lilongwe City………………………..16
Figure 7: Percentage of Employment of Youths Aged 15-35…………………...20
Figure 8: Distribution of Working Age Population in Malawi………………….21
Figure 9: Economic Distribution at District Level in Malawi……………………22
Figure 10: Existing Road Network in Malawi………,…………………………….27
Figure 11: Cities in Africa under UNA Riverfront Revitalization Project……….35
Figure 12: Lilongwe City 2030 Land Use Plan……………………………………..45

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LIST OF TABLES
Table 1: Types of Housing Loans by Select Financial Services in the year 2020…....13

Table 2: Working Age, Economically Active and Economically Inactive


Populations…………………….…………….…………………………………..20
Table 3: Targeted Number of Beneficiaries of the Social Cash Transfer in
Cities in Malawi…………………………………………………………………23

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ACRONYMS
CBOs Community Based Organisations
CCODE Centre for Community Organisation and Development
CDF Constituency Development Fund
CFTC Competition and Fair Trading Commission
COMSIP Community Savings and Investment Promotion
COSOMA Copyright Society of Malawi
DODMA Department of Disaster Management
DRM Disaster Risk Management
DTM Digital Terrain Model
DWCP Decent Work Country Programme
e-CRG e-communications Research Group Consulting
EDH Enterprise Development Holdings
EGENCO Electricity Generation Company
ESCOM Electricity Supply Corporation of Malawi
EWS Early Warning Systems
FINCA Foundation for International Community Assistance
FoAC Foundation of Arts and Culture
GDP Gross Domestic Product
IBAT Integrated Biodiversity Assessment Tool
IGUTP International Guidelines on Urban and Territorial Planning
JPYEE Joint Programme of Youth Employment and Empowerment
LWB Lilongwe Water Board
MALGA Malawi Local Government Association
MARDEF Malawi Rural Development Fund
MGDS Malawi Growth and Development Strategy
MHC Malawi Housing Corporation

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MNHC Malawi National Habitat Committee
MRDRMP Malawi Resilient and Disaster Risk Management Project
MRFC Malawi Rural Finance Company
MSUDP Malawi Sustainable Urban Development Programme

MUSCCO Malawi Union of Savings and Credit Co-operatives

MW63 Malawi 2063 Vision


NCIC National Construction Industry Council
NEEF National Economic Empowerment Fund
NGOs Non- Governmental Organisations
NSO National Statistics Office
NSUP National Slum Upgrading Project
NUA New Urban Agenda
NUP National Urban Policy
OCR Optical Character Recognition
PICTS Promoting Investment and Competitiveness in Tourism Sector
RAP Resilience Action Plans
SADC Southern African Development Community
SEforAll Sustainable Energy for All
SDGs Sustainable Development Goals
SMMEs Small Micro and Medium Enterprises
SULSDEC Sustainable Urban Land and Shelter Development Consultants
TNM Telecom Networks Malawi
UN-HABITAT United Nations Human Settlement Programme
UNA Urban Natural Assets
WEDGE Women’s Enterprises Development and Gender Equity

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FOREWORD

Malawi as a member state of the United Nations endorsed the New Urban Agenda which was
agreed upon during the Habitat III Conference held Quito, Ecuador in 2016. By adopting the
New Urban Agenda, Malawi as a country has been committed to incorporate standards and
principles laid out in it in planning and management of urban development in order to achieve
sustainable and more liveable cities and urban centres in the country. This quadrennial report has
taken stock of the progress made and challenges faced in the implementation of the New Urban
Agenda, identifying further steps to address them.

The country has made great strides in some areas while others remain as work in progress. Some
of the achievements include the development of: key policy instruments such as National Urban
Policy, National Housing Policy; investment by the government in infrastructure development
programmes such as Constituency Development Fund and Local Development Fund ;
Formulation of programmes such as Malawi Sustainable Urban Development Programme and
bankable projects; and promotion of policy dialogue among all levels of government, the private,
community sectors and other representatives of civil society.

The report also narrates some of the challenges experienced which include slow implementation
of key policies and legislations; and lack of commitment by potential financiers to fund urban
development plans, proposals and programmes; and weak coordination, monitoring, evaluation
and feedback frameworks among others. This has resulted in lack of management of rapid
urbanization in Malawi as such this has put more pressure on existing urban infrastructure such
as water and sanitation, energy systems, solid waste management, transport networks and
housing.

The report has outlined some steps further to prioritize urban management and shelter strategies
geared towards provision of affordable housing, prevention of slum growth, and effective slum
and informal settlements upgrading; and reinforce rural urban linkages and development to
harness the entire continuum of human settlements and harnessing the potential of urbanization
by emphasizing on effective urban planning for human settlements

As a country, we may not have accomplished a great number of standards and principles laid out
in the agenda, but we are confident that the New Urban Agenda will contribute towards
sustainable development of our cities and human settlements globally. The country is committed
to stick to the New Urban Agenda until great strides are accomplished before its expiry.

I wish to thank all individuals, National Habitat Committee partners, and stakeholder institutions
for their valuable contributions towards preparation of this report.

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Kezzie Kasambara Msukwa M.P.

MINISTER OF LANDS.

PREFACE

The United Nations Conferences on Housing and Sustainable Urban Development give us an
opportunity to discuss a New Urban Agenda which focus on policies and strategies that can
result in sustainable urbanization. The Conferences also give developing countries like Malawi
opportunities to interact with other countries on home grown solutions based on shared best
practices from all over the world.

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I believe that the key to success in attaining the New Urban Agenda depends on our willingness
to work together across the government ministries, departments and agencies, academic
institutions, the private sector, civil society organisations, professional bodies and individuals.
Implementation of the New Urban agenda by developing countries depends also on the true and
strong partnership with international organisations and development partners in supporting their
different projects

The National Habitat Committee has spearheaded platforms, formulation of programs for urban
development in Malawi. Some of its activities have been coordination of national, regional and
international fora such as Malawi Urban Forum, World Urban Forum, World Habitat Day and
World Cities Day among others. Outcome of these fora have informed Government on
formulation of national policies, regulations, programs and projects related to urban development
in Malawi.

I take this opportunity to acknowledge the cooperation of members of the National Habitat
Committee, Ministries and government departments, parastatal organizations, private sector,
academia and all stakeholders who supplied the team with required information towards the
preparation leading to culmination of this National Report.

I also look forward to continued collaboration by all partners in the post HABITAT IV especially
on follow-up of implementations of proposals and resolutions that will arise from the
Conference.

Duncane Chione

SECRETARY FOR LANDS

EXECUTIVE SUMMARY
This report was prepared by the Malawi National Habitat Committee on behalf of the Malawi
Government.

Part one gives the setting of the country for which the report was prepared. It includes a brief
description on the country’s COVID-19 Response.

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Part two discusses the progress Malawi has made so far in implementing commitments outlined
in the New Urban Agenda.

Part three discusses measures, initiatives and means that have been put in place to help in the
implementation of the New Urban Agenda in Malawi.

Part four discusses monitoring strategies in the implementation of the agenda in the country.

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PART ONE: BASIC INFORMATION
1.1 BACKGROUND
Malawi is a land linked country located in the north east of the southern Africa. It is bordered by
Tanzania in the North, Zambia in the west and Mozambique in the southern part. See figure 1
which shows location of Malawi and its neighbouring countries.
The sovereign Republic of Malawi gained
its independence in 1964. According to the
2018 official population census, Malawi had
17.6 million people and in 2021, it is
projected to have risen to 20.7 million
people. English and Chichewa are the two
official languages.

Malawi’s economy has remained


predominantly agricultural based since
independence, with a few agro-based and
other industries playing as an integral part of
the economy. Agriculture currency accounts
for about 60.6 % of the Gross Domestic
Product (GDP) and 60% of earnings from
the merchandised exports while
manufacturing and trade contributes 10.5%
and 10.8% respectively. The industrial
sector’s share of monetary GDP has
remained at 15-16% while that of
manufacturing sector alone has remained at
about 10% over the last decade. The service
sector which comprises of tourism, transport
Figure 1: Location of Malawi and Its Neighbouring
and communication, trade, financial and Countries
business services accounts for 60% of the
GDP.

1.2 Urbanisation Demographics

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National Statistics Office of Malawi interprets urbanization as a growing share of the population
that lives in urban
settlements. The urban
population size of
Malawi has increased
from 2.0 million people
in 2008 to 2.8 million
people in 2018. The
percentage share of
urban population to the
total had increased
from 14.4 percent in
1998, 14.9 in 2008 to
16.0 percent in 2018.
The following Figure 2
depicts the location of
centres classified as
urban and their relative
population sizes in
Malawi. The urban
population in largely
concentrated in four
cities of Lilongwe,
Blantyre, Mzuzu and
Zomba accounted for
76.7 percent of the total
urban population in
Malawi.

In terms of the tempo


of urbanization being Figure 2: Urban Centres and their Relative Population Sizes
the average annual
exponential rate of the
urban share at which
the urban population is growing over a 10-year period, National Statistics Office data indicated it
increased from 1998 to 2008 from 4.7 percent to 5.2 percent, but declined in between 2008 to
2018 from 5.2 percent to 3.6 percent.
Although the speed of urbanization was found to be at 3.6%, this is still one of the highest rates
in the world. See figure 3 which shows the tempo of urbanization in Malawi.

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Despite benefiting from fruits
of urbanization, rapid
urbanization has caused large
sector of the urban population
living in low urban standard
of living in Malawi such as
poor housing and inadequate
access to water and sanitation
facilities, energy sources and
unsustainable waste
management systems.
Figure 3: Tempo of Urbanisation in Malawi (NSO, 2020)

1.3 Methodology of Preparing the Report


The current report was prepared by a special Task Team which was instituted by the Malawi
National Habitat Committee. The work was coordinated by Mercy Betty Dube (The Director
for Urban Development in the Ministry of Lands) and sections of the report were authored by
Mphatso Kadaluka( Deputy Director for Urban Development, Ministry of Lands), Gift
Kasamira(Monitoring and Evaluation Specialist, Lilongwe City Council), Wonderful
Hunga(Urban Specialist- CCODE), Kumbukani Ng’ambi ( Chief Economist – Ministry of
Lands), Zuzeni Lemani(Principal Urban Development Officer, Ministry of Lands) and
WiseGeorge Kamwiyo(Urban Development Officer, Ministry of Lands).

The initial data collection exercise started with identifying the information required to write the
report according to the guidelines issued by the Un-Habitat. Secondly, establishing the likely
secondary data needs based on the requirements identified in the sections of the report.

Relevant data was sourced from custodian Ministries, Departments and Agencies as well as Non-
Governmental Organisations and the Private Sector. The data was found in form of reports,
desktop research and facebook pages, and telephone conversations with key informants from the
relevant organisations.

The data was analyzed accordingly and the information was presented in form of texts, tables,
maps and figures in order to come up with this complete report. The draft report was circulated
among all other members of the Malawi National Habitat Committee for comments. Comments
were sent on line and the document was refined according. The report was finally validated
through a virtual platform for submission to the UN-HABITAT.

1.4 The Country’s COVID-19 Response

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Since the first case of coronavirus appeared in Malawi April 2nd, the country had confirmed a
total of 33,505 cumulative confirmed cases and 1, 114 deaths as of 29th March 2021. See figure
4 which shows the Malawi COVID-19 Daily Report Dashboard
As part of the response to the
COVID-19 outbreak, the
Government of Malawi (GoM)
instituted the Malawi Presidential
Task Force as the main platform to
manage and disseminate
information of the pandemic.

The taskforce has implemented


several measures to limit the spread
of the virus. These include:
(i). Facilitated the gazzetting of
COVID-19 Laws such as: closing
and opening of borders; closing Figure 4: Malawi COVID-19 Daily Report Dashboard (Ministry
of Health Facebook Page: March 2021)
and opening of schools; restricting
number of people attending
activities that involve an audience, such as music shows, sports, arts, and religious gatherings;
and wearing of face masks in all public places as mandatory.

(ii). Coordinated opening of COVID-19 Test Centres and field hospitals for admitting COVID-
19 patients across the country.

(iii). Facilitated the acquisition of AstraZeneca vaccine from the UN’s COVID-19 Vaccine
Global Access (COVAX) Facility. The country rolled out the first phase of a nationwide
COVID-19 vaccination campaign on 11th March, 2021.
1.5 Stakeholder Partnerships and Commitments
The Malawi Government, through the Department of Urban Development in the Ministry of
Lands works in close collaboration with members of the Malawi National Habitat Committee
(MNHC). The Malawi National Habitat Committee comprise mainly of relevant Government
Ministries, Departments and Agencies (MDAs), local councils, academic institutions,
professional bodies, Non- Governmental Organisations, Civil Society Organisations(CSOs),
private sector, development partners, service providers, youth representatives and women
representatives.
The main platforms of engagements include the quarterly National Habitat Committee meetings
and the biennial Malawi Urban Forums.

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Through these platforms stakeholders share their experiences, best practices they are
implementing and pieces of advice on areas for improvement on matters related to urban affairs
in the country.
There are suggestions to integrate in the NHC, the Infrastructure and Services sub-committee
which will be mandated to coordinate and monitor matters provision and management of urban
infrastructure in all the urban centres in the country.

PART TWO: TRANSFORMATIVE COMMITMENTS FOR


SUSTAINABLE URBAN DEVELOPMENT

CHAPTER ONE: SUSTAINABLE URBAN DEVELOPMENT FOR SOCIAL


INCLUSION AND
ENDING POVERTY

1.1 Social Inclusion and Ending Poverty


Malawi as a country realizes the fact that equity, through consideration and inclusion of
vulnerable groups in all aspects of life, is the key strategy in achieving social inclusion and
ending poverty in all its forms in development agenda of developing countries. Poverty and
vulnerability are widespread in Malawi and so many people need social support to help them
meet their basic needs and overcome their exposure to risks. The government of Malawi and its
cooperating partners recognize how vulnerable groups have been marginalized and they are
implementing several interventions to make sure that no one is left behind. Several programs

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have been rolled out to facilitate living together and strength social support which will contribute
towards operationalising the 2030 Sustainable Development Agenda and the implementation of
SDGs 1 and 2 to end poverty and hunger.

1.1.1 Eradication of Poverty in all its Forms


Poverty in Malawi remains widespread with nearly 70 percent of its 17 million people live on
less than $1.90 a day (Sunshine Trust, 2019). Meanwhile, according to the World Bank (2017)
latest poverty figures show the national poverty rate increased slightly from 50.7% in 2010 to
51.5% in 2016, but extreme national poverty decreased from 24.5% in 2010/11 to 20.1 percent in
2016/17. Research by Centre for Social Concern (2013) showed that poverty in Malawi is
wearing an urban face, as its gets widespread among the urban dwellers, who constitute 16% of
the total country population.

In 2010, the Integrated Household Survey estimated that 50.7% of the population lived below the
national poverty line of MK 37,002 (at 2010 prices), down slightly from 52.4% in 2005. This
figure would have risen to over 80% if the international poverty line of US$2 a day was applied.
The survey also found that whilst the poverty rate had slightly fallen, the proportion of the
population classified as ultra-poor had risen by 2.2 percentage points to 24.5% between 2005 and
2010. The Human Development Report of 2016 used 2013/14 data to estimate that 56.1% of
Malawi’s population were multi-dimensionally poor while an additional 27.2% were just above
the multi-dimensional poverty threshold. The Multidimensional Poverty Index identifies multiple
overlapping deprivations suffered by households related to education, health and living
standards.

Most of these groups are poor because they are distinctly disadvantaged due to marginalisation,
exclusion, violence, abuse, exploitation and natural disasters. Therefore, the government and
cooperative partners are strengthening the provision of social support and protection to many
people whose living standards are vulnerable to the recurring and occasional threats that the
country is exposed to. The Government of Malawi has always put poverty eradication at the core
of its development agenda. In line with this commitment, the government has introduced
programmes that are geared at eliminating poverty in all its forms.

Key Achievements

Establishment of the National Cash Transfer Programme: In addition, to cushion poor


Malawians against economic shocks induced by various economic shocks including the effects
of climate change, the government launched the National Cash transfer programme in 2006 to
with the aim of cushioning poor Malawians against economic shocks induced by various shocks
including the effects of climate change. The programme has currently been extended to all parts

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of the country including urban areas. So far through the National Cash Transfer Programme, over
80,000 poor households have benefitted in Malawi’s urban areas during this period of COVID-
19 pandemic.

Launching and Operationalisation of the Collateral Registry: The Malawi Government


launched the Collateral Registry in 2016 with the aim of improving access to capital for business.
This facility allows use of movable assets including livestock as acceptable collateral as way of
promoting access to capital finance for small scale businesses. As in many other countries,
financial institutions in Malawi traditionally require fixed assets such as land or buildings as
collateral for loans. This has improved access to capital.

Establishment of the National Economic Empowerment Fund Limited (NEEF). NEEF is a


micro finance institution
owned by Malawi
Government. It disburses
group loans which include:
Payroll Loans, a salaried
loan to employees in
Government ministries and
departments, and in the
private sector which can be
accessed by individuals;
group loans which comprise
women groups, youth’s
groups as well as mixed
groups of men and
women; Business Loans targeted at Small and Medium Entrepreneurs (SMEs) and can be
accessed by individuals as well as groups; Agricultural Loans meant to finance farm inputs like
fertilizers and seeds and can be accessed by individuals as well as groups; and Trade Finance
Loans meant to finance short term contracts and orders and can be accessed by individuals only.
In the first phase of the 2020/2021 financial year the NEEF has disbursed nearly MK 1.5 billion
to Nine Hundred and Seven (907) groups of Micro-Entrepreneurs which largely comprised of
634 groups of women seconded by 238 groups of youths, and finally 35 mixed groups of men
and women as outlined in following figure 5 which shows number of different groups which
accessed NEEF loans by February 2021.

Establishment of Community Savings and Investment Promotion (COMSIP): COMSIP is a


member owned union of savings and investment cooperatives covering the whole country and
registered under the Cooperative Act No 36 of 1998. Financed by the World Bank, COMSIP
Cooperative Union Limited is implementing a Livelihood Restoration Program under the

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Government of Malawi COVID 19 for Urban Cash Interventions (CUCI). The program has
provided cash transfers to selected households in the urban poor communities of Lilongwe,
Blantyre, Zomba and Mzuzu to cushion their economic hardships in the midst of COVID-19
Pandemic.

1.1.2 Social Inclusion of Vulnerable Groups

According to the World Bank (2017) social inclusion is the process of improving the terms on
which individuals and groups take part in society—improving the ability, opportunity, and
dignity of those disadvantaged on the basis of their identity. In Malawi social inclusion of
vulnerable groups such as women, youth, older persons and persons with disabilities and
migrants has been at the core of government business in order to ensure inclusive growth and
development.
Key Achievements
Establishment of the New Ministry: The Government of Malawi has recently introduced the
Ministry of Civic Education and National Unity in 2020. This Ministry is there to bolster
inclusion of all groups of people in national building efforts. Through its public awareness drive
has a project on educating the masses of protecting persons with Albinism, the elderly, and
persons with other disabilities through radio messages.

Planning the Establishment of Special Day: The government is in the process of establishing
the National Day of Unity and Cultural Heritage which will be an annual national event where
Malawians will be celebrating their various cultures. The day is being proposed as one way of
promoting peaceful coexistence, oneness and sense of national identity.

Special Protection for Vulnerable Groups: Over the past years there have been targeted
killings of people with albinism. This led to exclusion of the people with albinism from various
aspects of social life due to dread. In order to improve the plight of the people with albinos, the
Government has increased their protection and the courts now melt out deterrent sentences to
those that infringe on the rights of people with albinism.

Enactment of Disability Act: The Government of Malawi enacted the Disability Act (2013),
which among other things proposes the establishment of the Disability Empowerment Fund,
which is expected to provide funds to people with disabilities as a way of empowering them
financially so that they can participate in economic activities. This is yet to be implemented.

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Campaigns against Attacks on Migrant Groups: Mean while there has been initiatives to
improve provision of social services to displaced persons such as refugees. For example, the
government of Malawi has supported initiatives to improve the water and sanitations conditions
in refugee camps.

There have also been awareness campaigns by the Malawi Police service to avert xenophobic
attacks on foreigners plying businesses in local communities. This has helped to prevent and
contain xenophobia.

1.1.3 Equal Access to Public Open Spaces including Streets, Cycle Lanes and Sidewalks

Public open spaces have significant importance in the life of the urban settlements. These spaces
can be green spaces, walking streets, bicycle lanes and bicycle lanes. The government of Malawi
recognizes that well-designed cities should incorporate these spaces for public use. Urban green
spaces such as parks, sports fields, woods, riverfronts, and gardens give people the space for
physical activity, relaxation, watching, eating and peace. Several studies have shown that green
spaces are associated with better air quality, cooler temperatures, and greater biodiversity. These
spaces also help in stress reduction and boost mental and physical health.

Walking Streets, sidewalks provide clear spaces for activities such as walking, running and
shopping to local people as well as tourists. In terms of bicycle lanes people have the option to
run, bike or stroll along a long segment of lane dedicated to that purpose. However, utilization of
such public spaces has been marginal due to poor state of the spaces in all the cities of Malawi.
This is because these public places have been greatly neglected while others have been
encroached and changed their uses. The few surviving ones have been degraded to the point of
non-use.

On the other hand, SDG 11 target 7 advocates states that by 2030, governments are required to
have provided universal access to safe, inclusive and accessible green and public spaces, in
particular for women and children, older persons and persons with disabilities. To ensure
increased access to public spaces including streets, sidewalks, and cycling lanes the Malawi
government and its cooperating partners are making some progress in order to achieve this
target.

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Key Achievements

Preparation of a National Inventory of Public Spaces: The government of Malawi has


prepared an inventory of e open and green spaces in the four cities of Mzuzu, Lilongwe, Zomba
and Blantyre as a step towards re-planning and management of the existing these public spaces.

Rehabilitation of the Neglected Public Spaces: Councils and other government departments
and agencies have embarked the exercise of rehabilitating the remaining public spaces with the
aim of improving their shape as well as accessibility.

1.2 Access to adequate Housing


Malawi as a country recognizes adequate housing as one of the most basic human necessities for
maintaining a reasonable standard of living. Adequate housing means the accessibility to
affordable, well designed, and well serviced housing which may also include security of tenure.
However, the supply of adequate housing stock cannot match the pressure of increasing demand
for it. As a result, the growing population and rapid rate of urbanisation in the country continues
there is an acute need for adequate housing especially among the poor in the urban areas. This
scenario has led to the proliferation of slums and informal settlements characterized by
inadequate basic services in the four cities and other urban areas in Malawi. Government and all
stakeholders are facilitating the different programmes of production of adequate housing in urban
areas in Malawi. In order to implement the principles in the New Urban Agenda the Government
and all stakeholders need to scale up these interventions.

1.2.1 Ensure access to Adequate and affordable Housing


The United Nations Committee on Economic , Social and Cultural Rights as shelter which has:
legal security of tenure; access basic infrastructure such as potable drinking water, energy for
cooking, heating and lighting, sanitation and washing facilities, food storage, refuse disposal and
site drainage; affordable arrangements in terms of rentals as well as construction materials;
habitable environment in terms of adequate space and other threats to health, structural hazards,
and disease vectors; access to adequate housing resources such as the elderly, sick, children,
physically disabled and other ill-health problems; access to work, health care services and other
social facilities and adequate cultural expression. The government of Malawi in its commitment
to the calls of the SDG 11 target number 1 which advocates to ensure access for all to adequate,
safe and affordable housing and basic services and upgrade slums and New Urban Agenda on
calling states to implement urban policies, the government of Malawi and other cooperating
partners has managed to implement some activities in its efforts to meet the goal of access
adequate housing.

Key Achievements

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Formation and operationalization of housing scheme for security institutions: The
government formulated and embarked a construction of 10,000 staff houses for security
institutions of the Malawi Police, Malawi Defence Force, Immigration Department and Prison
Services as a part of a larger housing program that it is geared to be undertaken to address
shortage of decent and adequate housing especially in cities and urban areas in the country.

Public Housing Schemes: The Malawi government, through its agencies such as Malawi
Housing Corporation (MHC), Airport Development Limited and Ministry of Lands construct and
manage some housing units in major cities and urban centres in the country. For example,
Malawi Housing Corporation is currently building 254 housing units across the country.
Formulation of the National Urban Policy: The government formulated the National Housing
Policy in 2019. The policy promotes the provision of affordable serviced land for housing for the
urban poor to prevent the proliferation of informal settlements and illegal developments. It also
promotes efficient financing and implementation of housing programmes in cities and other
urban areas in the country.
Formulation of the National Housing Policy: The government formulated the National
Housing Policy in 2019. The policy provides strategies to regulate the provision of housing to
address issues of shelter development. Through the policy the government acknowledges its role
in formulation of housing programmes and projects, standards and guidelines, monitoring the
provision of adequate housing, promoting the operation of micro financing institutions in
housing provision and promoting Public Private Partnerships arrangements in the housing sector.

Involvement by the Private Sector: The private sector organisations such as Sustainable Urban
Land and Shelter Development Consultants (SULSDEC) and have some projects in construction
of affordable houses in the cities of Blantyre, Mzuzu, Zomba and Lilongwe. For example,
SULSDEC has huge parcels of prime urban land in all major cities which it has designed the
detailed layout plans and it is constructing 1000 affordable housing by 2030 for sale or renting.
The company also sales serviced plots at affordable prices.

1.2.2 Ensure Access to Sustainable Housing Finance Options


Housing finance remains a major obstacle to home ownership in developing countries such as
Malawi, especially among low-income earners. Many have decried the tendency of commercial
banks to demand expensive collateral and formal employment for ease of enforcement of payroll
deductions. This approach hinders access to credit by low-income citizens, not just in the
housing sector but also for small-scale businesses. To ensure improved access to sustainable
housing finance the government and its cooperating partners are undertaking several programs to
ensure increased access to sustainable housing finance.

Key Achievements

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Establishment of the Home Ownership Scheme Fund: The Government established the civil
servants Home Ownership Scheme Fund since 2004. The Scheme has been providing housing
loan facilities to civil servants for the purposes of either purchasing or constructing a residential
house at an affordable interest rate of 6.5 percent. Over the past five years there are so far nearly
5,000 civil servants who have benefited from the scheme.

Proliferation of Housing Finance Institutions: There has been an increased activity by micro
finance institutions in the housing construction sector. Housing construction finance is largely
being offered by non-bank financial institutions such as the Centre for Community Organisation
and Development (CCODE), Select Financial Services and Epik Finance and Enterprise
Development Holdings (EDH). For example, Select Financial Services disbursed US$ 1,255,200
housing construction loans for the period from January 2020 to December 2020 as outlined in
table 1.

Type of Loan Number of Beneficiaries Total Value(MK) in


Millions
Housing Loan 1,241 525.3(US$700,400)
Teachers Union of Malawi 865 416.1(US$554,800)
Housing Loan
Table 1: Types of Housing Loans by Select Financial Services in the year 2020: (Resource Person, 2021)

1.2.3 Establish Security of Tenure


In Malawi informal market largely exists in urban areas. This has enabled households to trade
and hold land, both on an ownership and rental basis. These people do not generally possess any
legal security of tenure which can guarantee them legal protection against forced eviction,
harassment and other threats. The existing frameworks are unable to accommodate the growing
informal sector, which comprises more than 70 percent of the urban population. The government
and its cooperating partners are instituting several measures to overcome the challenge of
unsecure tenure especially in traditional housing areas and slum areas.

Key Achievements
Preparation of Sectional Titling: The government is preparing a legal framework sectional
titling bill to improve help regularization and issuing of title for flats and other compound
households.

Formalisation of Informal Settlements: The government has formalized some informal


settlements which have met minimum standards in the major cities in the country through
rezoning and issuing of titles.

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1.2.4 Establish Slum Upgrading Programmes
A slum household is defined as a group of individuals living under the same roof lacking one or
more of the following conditions: access to improved water, access to improved sanitation,
sufficient living area, and durability of housing. Population living in slums is the proportion of
the population living in slum households in the urban areas. According to United Nations Human
Settlement Programme (UN- HABITAT) nearly 70 percent of people living in urban areas are
located in the slums and other informal settlements. The government and its cooperating partners
are instituting projects and interventions to improve the living standards in the slum areas.

Key Achievements
Formulation of a National Slum Upgrading Project: The government in collaboration with
stakeholders has prepared a concept of the National Slum Upgrading Project to be piloted in
Lilongwe City. The government has already identified a decanting site to construct 500 housing
units.

1.3 Access to Basic Services


Malawi as a country believes that access to urban infrastructure and services such as water and
sanitation facilities, energy sources and waste management are basic needs for raising the living
standards of urban population of any country. However rapid population growth coupled with
uncontrolled urbanization has resulted into poor access to basic urban infrastructure and service
in the country’s cities and urban centres. Councils do not have capacities to solve the challenges
of service provision. The government of Malawi and other stakeholders are have formulated
several programs and projects to assist councils in provision of basic services such as drinking
water, sanitation and solid waste disposal, transport networks, and renewable energy in its
commitment in the implementation of the New Urban Agenda.

1.3.1 Access to Safe Drinking Water


Malawi is committed to implementation of SDG 6 target number 1 which advocates for
improved access to safe and affordable drinking water everyone on earth by 2030. According to
the National Statistics Office 2020 Thematic Report on Water and Sanitation an urban household
was considered to have access to improved water if it had piped water either into a dwelling yard
or plot and a communal stand pipe. Malawi Government and its relevant stakeholders are
implementing several interventions.
Key Achievements
Provision of Storage Tanks: The waters boards operating in cities and urban areas are
erecting more storage capacities in the country with support from the world Bank.

Proliferation of Communal Standpipes: There has been an increased number of communal


standpipes for provision of safe water in poor urban communities such as in the traditional
housing areas, slum areas and informal settlements. The communal standpipes in the low-

13
income housing communities are largely managed by water boards, cities councils,
NGOs/CBOs and individuals.

Introduction of I-Taps: Water Boards have introduced innovative technologies to make


purchases of safe water more accessible and cost effective for end-users through the use of I-
taps

Initialisation of Lake Malawi Supply Water Project- The government of Malawi in


collaboration with Lilongwe Water Board (LWB) is financing the Lake Malawi to Lilongwe
City Water Project which is expected to pump and deliver daily 59 million litres of potable
water. The project is aimed at solving water problems that have been affecting the ever and
fast growing population of Lilongwe over the past ten years.

1.3.2 Improved sanitation


Malawi as country is committed to implement SDG 6 target 2 which aims at achieving access
to adequate and equitable sanitation and hygiene for all and to end open defecation. The
Thematic Report of National Statistics of 2020 indicates that sanitation status of
conventional flush toilets is moderately low in urban areas in the four cities of Mzuzu,
Lilongwe, Zomba and Blantyre. Nearly 80 percent of the urban households in Malawi used
different types of traditional pit latrines while only about 15 percent used flush toilets. The
government of Malawi and all other relevant stakeholders have put several interventions to
ensure improved sanitation facilities in the cities and other urban areas.

Key Achievements
Formulation and Operationalisation of the National Sanitation Policy: The Malawi
Government formulated and operationalized in 2007. The policy advocates improved delivery
of improved sanitation services through: provision adequate wastewater disposal facilities at
all wastewater generation points; and provision of wastewater treatment and disposal facilities
for all new piped water supply connections.

Increased Access to Tap Water: Increased supply of tap water to slum areas, informal
settlements has increased excreta and urine disposal facilities such as on-site septic tanks and
connection to main sewers mainly in the four major cities.

1.3.3 Solid Waste Disposal

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Cities and other urban areas in Malawi are still grappling with challenges of waste
management. The National Statistics Office reported in 2020 reported that most of the
urban households dumped untreated solid waste in uncovered places such as open pits,
gardens and local dumps, while few households treated it by either burning or burying. Very
few households properly managed their solid waste through well-established waste collection,
treatment and disposal system. The Government and its cooperating partners in their
commitment to implementing SDG 12 target 5 which aims at substantially reducing waste
generation through prevention, reduction, recycling and reuse are implementing several
policies, programmes and projects in order to improve the current trends of solid management
systems in cities and all other urban areas.

Key Achievements
Commissioning of Waste Transfer Stations: Councils have commissioned a number of
waste transfer stations in order to help reduce solid waste in their respective cities. For
example, Lilongwe City Council with support from the Flemish International Cooperation
Agency and through the United Nations Development Programme, have commissioned
four Waste Transfer Stations in a bid to help reduce solid waste disposed at dump sites in
the Lilongwe City by 80% as highlighted in following figure 6.

Proliferation of Solid Waste Recycling Plants: Some private companies and community
based organization have established recycling plants for solid waste such as from thin plastics
into thick plastics, printing paper into egg tray
cartons and biodegradable waste into briquettes.

1.3.4 Ensure Access to Safe and Efficient


Public Transport System
Apart from walking, the other major forms of
urban transport operating in include minibuses,
taxis, bicycles, motorcycle and three wheelers.
However, there incidences of traffic congestion
especially during peak hours and weekends
especially Saturdays. The government and its
cooperating partners are instituting several
interventions to ensure safe and efficient forms of
public transport systems.

Key Achievements
Preparation of the National Transport Plan:
The Government prepared the National Transport
Plan in 2017 which advocates multimodal
transport and sustainable modes of transport in Figure 6: Solid Waste Transfers Station in
Lilongwe City (Resource Person)

15
cities such public bus systems and non-motorized transport systems.

Completion of some Road Infrastructure: Government has completed some road


infrastructure such as modern interchange in Area 18 in Lilongwe City, traffic lights and several
roundabouts as means of traffic calming techniques.

1.3.5 Provide Access to Modern renewable energy


Malawi is one of the countries that produces and distributes little amount of electricity in Africa
and the world as a whole. In its quest to increase access to affordable, reliable sustainable,
efficient and modern energy for every person in the country, the government and cooperating
partners is making a lot of strides in order to achieve this goal.

Key Achievements
Formulation and Operationalization of the Malawi Energy Policy: The government in 2018
formulated and operationalized the Malawi Energy Policy with the aim of increasing access to
affordable, reliable, sustainable, efficient and modern energy for every person in the country.

Formulation of the Malawi’s Sustainable Energy for All (SEforAll) Action Agenda: The
government in 2017 formulated the Malawi’s Sustainable Energy for All (SEforAll) Action
Agenda with an intention of providing access to modern energy services for all by 2030, through
on- and off-grid electrification and improved cook stoves.

Millennium Challenge Corporation: The government entered a US$350 million compact with
Millennium Challenge Corporation to help fund infrastructure projects, especially to increase
transmission and distribution capacity.

Unbandling of Electricity Supply Corporation of Malawi (ESCOM): In 2017 ESCOM


unbundled to act solely as dispatcher and Electricity Generation Company (EGENCO) was
formed to handle generation in order to improve efficiency.

ESCOM Investment Plan: ESCOM plans to invest in various solar photovoltaic (PV) and small
hydro projects in the near term in order to increase production

1.4 Challenges Hindering Social Inclusion and Ending Poverty


i. The supply of adequate housing stock is very low in Malawi because of lack of
funding to the sector.
ii. Mushrooming of slums and informal settlements is still a major challenge in
major cities in Malawi because of rapid urbanization.

16
iii. Micro financing loans are still accessed by few elite individuals from the few
micro financing institutions at the moment due to prohibiting high interest rates.
iv. Rapid urbanization overstretches the capacities of supply of all basic services
such as water, sanitation, solid waste management, roads, and energy among
others
v. Lack of finances for provision of urban infrastructure is a challenge among the
service providers.
1.5 Lessons Learnt
i. To address the shortage of adequate housing there is need for councils, government and
its agencies to implement social housing projects in all urban areas in the country.
ii. Micro financing institution should outreach the low income groups and with flexible
interest rates.
iii. Government and development partners should fund slum upgrading projects in the cities
iv. Increased investments in provision of basic services is a key to uplifting living standards
of urban dwellers
v. Production of supplementary, alternative and clean sources of energy such as solar and
biomass is a way to go if the cities and urban areas can achieve access to renewable
energy

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CHAPTER TWO: SUSTAINABLE AND INCLUSIVE URBAN PROSPERITY AND
OPPORTUNITIES FOR ALL

Malawi as a country recognizes the need to achieve Sustainable & Inclusive Urban Prosperity &
Opportunities for All. The government and cooperating partners are implementing several
initiatives to achieve this goal by developing vibrant, inclusive and sustainable urban economies,
providing productive training and employment to its citizens, promoting the small and medium
enterprises, fostering an enabling environment for businesses and innovation, supporting urban –
rural interactions and connectivity by strengthening transport networks, technology and
communication networks among other things.

2.1 Inclusive Urban Economy.


Malawi is over-dependent on foreign aid, which accounted for close to 40 percent of the national
budget during most of the past decade. Due to the unstable growth of the Malawi economy the
country has not experienced significant improvements in living conditions for the majority of the
people. In particular, the weak economic fundamentals have resulted in sluggish job creation,
which is not being commensurate with the rapidly increasing working-age population.
Consequently, high levels of unemployment, underemployment and informal employment beset
Malawi. About 20 percent of the country’s labour force is unemployed, 27 percent of those in
employment are underemployed, and 89 percent are informally employed. The unemployment
rates are highest among youth aged 15-29 years, with about 30 percent unemployed. This shows
that the economy is struggling to create adequate economic opportunities for new entrants in the
labour market (Ministry of Finance, Economic Planning and Development, 2016)

Urban economies act as hubs for national development. About 40 % of the GDP is generated in
urban areas. To achieve inclusive urban economies, the government and stakeholders have
initiated several programs for the youths, elderly and women.

2.1.1 Productive Employment for All including the Youth


In 2020, about 74.7 percent of the economically active youths were employed in Malawi (NSO
2020: Economic characteristics of population Report). There were more employed male youths
than female youths at national level. More than half of the youth in each of the region were
employed, with the rate of 77.1 percent in the Southern region, 75 percent in the Central region
and 65.9 percent in the Northern region.

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Figure 7: Percentage of Employed Youth aged 15-35 by Sex and Residence in Malawi(NSO,
2020)

Key Achievements
Formulation and Operationalisation of the Joint Programme of Youth Employment and
Empowerment (JPYEE): JPYEE is a UN response to the MGDS 111 priority number 8 on
“Youth Development and Empowerment” which is also reflected in National Youth Policy and
Ministry of Youth Strategic Plan. The UN System in Malawi is elaborating two UN Joint
Programmes on Gender and Private Sector Development which will seek to harmonise
participating agencies’ approach to addressing Gender in Development and the prospect of
private sector led development as a means for generating employment.

Table 2: Working Age, Economically Active and Economically Inactive Populations(NSO,2020)

19
Figure 8: Distribution of the Working Age Population in Malawi (NSO, 2020)

In 2018 the working age population constituted largely of economically active persons (72
percent). Economically inactive persons accounted for only 28 percent. See figure 8 which
shows the distribution of working age population in Malawi as of 2018.
In the said period, the majority of youth were self-employed (60.9 percent) followed by unpaid
family workers (20.4 percent) then employees (13.3 percent). There were 1.4 percent of youth
who were identified as employers and 4.0 percent who were in other forms of employment
(NSO, 2018)

Formulation and Operationalisation of the Graduate Paying Internship Program:


Currently, Malawi Government through the Ministry of Labour is implementing Graduate
Paying Internship Program which seeks to economically empower young women and men for
improved employability in decent work and sustainable entrepreneurship in Malawi.
Specifically, the programme aims at equipping young graduates from public and private
universities with skills before they penetrate into the job market.

2.1.2 Strengthening the informal economy

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Like most Sub-Saharan Africa countries, Malawi depends much on the informal sector economy
with at least 80 percent of the
work force involved in
informal activities. The growth
of the informal sector in
Malawi has been attributed to
low job creation in the formal
sector forcing the expansion of
the informal sector. According
to the new National Youth
Policy (2020), the absorption
rate of the formal sector for
new graduates is at 10 percent
annually leaving the 90 percent
for the informal sector with
more females calculated
around 9 percent each year not
getting any employment.
Figure 9 is the Map of Malawi
showing economy distribution
at district level.

Key Achievements
Inclusion of City Dwellers as Figure 9: Economic Distribution at District Level in Malawi (NSO,
Beneficiaries of Social Cash 2020)
Transfer: The Malawi Government through the Ministry of Finance in collaboration with the
Ministry of Gender had embarked on the program of transferring cash to vulnerable households
which have been hit hard with Covid-19 pandemic especially in the four Urban Councils of
Mzuzu, Lilongwe, Zomba and Blantyre. Under this program, selected beneficiaries receive cash
handouts of K35, 000 (US$47) for the initial period of three months. This program is expected to
run for three months starting from December, 2020 to February, 2021 with a possibility of an
extension of three months depending on availability of funds. The beneficiary urban councils
include Lilongwe, Blantyre, Zomba and Mzuzu city Councils and had the following targeted
number of beneficiaries (Table 3).

NO URBAN COUNCIL TARGET NUMBER OF


BENEFICIARIES
1 Blantyre 71,000
2 Lilongwe 85,000

21
3 Mzuzu 18,000
4 Zomba 9,000
Table 3: Targeted Number of Beneficiaries of Social Cash Transfers in Cities in Malawi (Resource
Person)
Currently, beneficiaries have started receiving cash transfers for the first two months of January
and February, 2021. It is expected that the last phase of transfers will be done in April, 2021.

Creation of Savings Groups; Malawi Government has engaged Councils to work together with
COMSIP to facilitate creation of Savings Groups to save money and venture into business
activities. These groups will in turn be connected to micro finance institutions to get adequate
capital for bigger businesses. To date, Lilongwe City Council and COMSIP have created 280
Saving Groups in 16 peri-urban areas and these are working under close supervision of COMSIP
trained Case workers. This if executed well is a very important initiative with potential to reduce
poverty levels among city citizens including the youths and women and may in the long-run
improve the city’s economy.

Creation of the Third Malawi Growth and Development Strategy (MGDS III): MGDS III
covers the period 2017 to 2022. The strategy notes the importance of creating enough rural and
urban jobs and entrepreneurship opportunities for both men and women. It also notes the
importance of widening the tax base to finance Malawi’s development and meet the needs of
citizens. However, the key strategies in MGDS III do not explicitly refer to the informal
economy. This is a problem because the five-year development strategy is meant to guide
preparation of Ministry Strategic Plans and budgets

Fulfilling Corporate Social Responsibilities: Some NGOs like Youth of Malawi have done on
many occasions a corporate social responsibility through giving out several loans to villagers to
start businesses, with varying degrees of success. The businesses include; tailoring business for
local women, hair businesses, seed business, clothing business among others

2.1.3 Small- and Medium-sized Enterprises


Malawi recognizes the need of supporting Small- and Medium-sized Enterprises in the country.
There are several initiatives that the Government and its cooperating partners are implementing
to ensure that the SMEs thrive in the country.
Key Achievements
Creation of Small and Medium Enterprises Development Institute (SMEDI): SMEDI is a
parastatal organization under the Ministry of Industry and it supports in capacity building,
training, research, markets development to bring about employment, inclusive growth and
improved living conditions of Small and Medium Enterprises in Malawi.

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Establishment and Operationalisation of the National Economic Empowerment Fund
(NEEF): Malawi introduced the Malawi Rural Development Fund (MARDEF) that was later
changed to National Economic Empowerment Fund (NEEF) with an aim of providing soft loans
to small scale entrepreneurs to start or improve their businesses. Interventions by non-
governmental organizations like COMSIP also help the Malawi government to empower the
small-scale business entrepreneurs economically. At community level, there some people who
develop village banks that are used to lend and borrow each other money to start some small-
scale businesses (Newpaper)

2.1.4 Promote an enabling, fair and responsible environment for business and innovation

Malawi is committed to ensure that there is an enabling, fair and responsive environment for
business and innovations so that those local businesses can as well thrive.

Key Achievements
Established the Competition and Fair Trading Commission (CFTC): CFTC to regulate,
monitor, control and prevent acts or behaviours which would adversely affect competition and
fair trading in Malawi. CFTC is dedicated to improving the efficiency of Malawi’s economy for
the benefit of all Malawians. This is done in the following ways: (1)Regulation of mergers and
acquisitions of companies; (2) Monitoring monopolies and concentration of market power and
taking corrective action against abuse of dominance; (3) Prohibiting anti-competitive practices
by enterprises against each other; and (4) Consumer Protection: Taking corrective action against
enterprises that create unfair trading conditions for the consumer.

Initiation of the Women’s Entrepreneurship Development and Gender-Equality (WEDGE)


Project; The ILO initiated a three-year Women’s Entrepreneurship Development and Gender-
Equality (WEDGE) Project in four Southern African countries including Malawi. Small, micro
and medium enterprises (SMMEs) in Malawi particularly microenterprises make up a large
proportion of economic activity and employment SEED is promoting an enabling environment
for social and environmental entrepreneurship in Malawi through the greening of Business
Development Services. SEED Supporting the Resilience of Eco-Inclusive Enterprises during and
after the Covid-19 Pandemic.
Advocacy of E- Commerce: Malawi is also advocating for e commerce and the market for
Internet connectivity is driven by two mobile operators, namely Airtel Malawi and Telekom
Networks Malawi (TNM). A third operator, Access Communications, has a residual position. All
three combined cover approximately 50 per cent of the population in 3G coverage, while 4G has
been recently rolled out mainly in the three major cities, Lilongwe, Blantyre and Mzuzu. The
World Bank has heavily invested in upgrading ICT infrastructural and regulatory environment
and it has renewed its commitment through the Digital Malawi Program, which is expected to

23
contribute to the reduction of the digital divide and foster innovation in public and private e-
services that will bring a good environment for the e business (United Nations, 2019)

2.2 Sustainable Prosperity for All


Since the adoption of the NUA in 2016, the Government and its cooperating partners are
implementing several initiatives in order to achieve Sustainable Prosperity for All in the country.

2.2.1 Diversify the Urban Economy and Promote Cultural and Creative Industries
Malawi as a country recognizes the need of diversifying its urban economies to ensure prosperity
of people’s lives in the urban areas. Several interventions have been implemented to achieve this
indicator.

Key Achievements
Establishment of Foundation for Arts and Culture in Malawi (FoAC): FoAC is engaged in
promoting the activities concerning arts and culture. The organization is engaged in: Training in
the areas of arts and culture; Fundraising for the promotion of arts, culture and cultural
industries; Establishing venues for the performing and visual arts; Organizing and facilitating
arts and culture festivals; and Organizing conferences and other forums to discuss challenges and
opportunities in the fields of arts, culture.

Role of Ministry of Industry, Trade and Tourism: Malawi has the Ministry of Industry, Trade
and Tourism responsible for development of policies that would create economic regulatory
environment that would be conducive to promoting industry and trade and tourism as well as
promoting Malawi products both on local and international markets. The Ministry is mandated to
empower Malawians including small and medium enterprises (SMES) and cooperatives to
participate in economic activities. Key initiatives include: establishment of a project in Southern
Africa - Africa East - P164847- Southern Africa Trade and Connectivity Project (formerly
Nacala Corridor) (The Roads Authority Procurement Plan) through World Bank; Establishment
of a Project on Financial Inclusion and Entrepreneurship Scaling Project - P168577 through
World Bank; Establishment of the Malawi Project Promoting Investment and Competitiveness in
the Tourism Sector (PICTS) through AfDB; and establishment of the National Arts council from
the Tourism.

2.2.2 Development of Technical and Entrepreneurial Skills into a Modern Urban


Economy
In Malawi, unemployment is prevalent in general and the youth in particular. At the same time a
large percentage of the rural youth population is migrating into towns and cities in search of jobs
which unfortunately are also very limited. The majority of the migrants have no technical and
entrepreneurial skills that can enable them get the limited jobs on the labour market. As a result,

24
most of them engage in socio-economic activities such as crime, prostitution, drug abuse and
vandalism. Malawi Government identifies the need to training the youths in different artisan
fields in order to promote self-employment among unskilled and unproductive youth. Therefore,
the Government has initiated several programmes which aim at developing technical and
entrepreneurial skill which may help the youth to thrive in the urban economies in Malawi.

Key Achievements
Establishment of Community Colleges: The government established 28 community colleges in
2014 across the country as a way of increasing access to Technical, Entrepreneurial and
Vocational Education and Training to the youth in Malawi. The project through organisations
such as Foundation for International Community Assistance (FINCA) in Malawi, Malawi Rural
Development Fund (MARDEF), Malawi Rural Finance Company (MRFC) Limited and Malawi
Union of Savings and Credit Co-operatives (MUSCCO) will provide seed money to enable them
start small and medium enterprises.

2.2.3 Develop urban-rural linkages to maximize productivity


Urban rural linkages in Malawi are characterized on one hand by heavy concentration of
agricultural production in the rural areas and exportation of these agricultural products from the
rural areas to urban centres. On the
other hand, urban centres export
several types of manufactured goods
and services to the rural areas.

Key Achievements
Implementation of the Malawi
Public Road Network: The Roads
Authority is responsible for
construction, rehabilitation and
maintenance of the public road
network which is classified into five
categories, namely main roads,
secondary roads, tertiary roads, urban
roads and district roads. The
secondary, Tertiary and districts roads
connect provides a multiple road
network which connect rural and urban
areas in Malawi. See figure 10 which
shows the existing road network in
Malawi. It is estimated that the public

25
road network consists of 15,451 kilometres of roads, and of these only 26 percent is tarmac. The
rest 11,413 representing 74 percent is still either earth or gravel.
Currently the Authority has completed 5 district road projects and there are 5 ongoing road
projects and 5 upcoming road projects.
Introduction of Mobile Money Services: The introduction of mobile money services in Malawi
mainly dominated by Airtel Malawi (Airtel Money) and TNM(Mpamba) have influenced
transfer of money within urban areas
as well as urban and rural areas to Figure 10: Existing Road Network in Malawi (Roads
Authority, 2016)
people who do not have easy access to
banking services. Banking services are mainly located in urban areas and most often it is
expensive to travel and access money especially due to travel costs and poor road network.
People in rural areas can receive money instantly from the sender rather than the old system of
postal money. There is also another facility whereby you can transfer money from your bank
account into mobile money and cash out where ever you are without necessarily travelling long
distances to banks located in urban areas.

2.3 Challenges Hindering Sustainable and Inclusive Urban Prosperity and


Opportunities for All

i. The main challenge on this is that, Malawi does not have an overarching employment and
labour policy, although a number of supportive policies are in the process of
development. However, labour issues are also well articulated in the Malawi Growth and
Development Strategy II and 111 respectively, and therefore it is hoped that the Ministry
of Labour should be allocated adequate budgetary resources befitting its mission and
mandate (DWCP, 2016).
ii. SMEs are still in infancy stage most of them facing challenges such as prohibitive taxes,
lack of access to affordable finances, high business operating costs, competition from
foreigners and persistent power outages. These challenges undermine the growth
potential of the SMEs.
iii. The majority of the youths still do not access to quality vocational education and training
due to lack spaces, human capital and equipment in the technical and community
colleges.
iv. There is generally lack of financial capacity on the part of the Government on
construction of bituminized roads network to connect urban and rural areas.

2.4 Lessons Learnt

i. There is also need for adequate capacity on the of government structures so that they
fulfill their responsibility in financing training on vocational training and infrastructure.

26
ii. Introduction of innovative financing schemes should be considered as an important
investment to ease SMEs in accessing finance for the growth of their businesses.

CHAPTER THREE: ENVIRONMENTALLY SUSTAINABLE AND RESILIENT URBAN


DEVELOPMENT

Environmental sustainability is an integral part of urban development. The Government of


Malawi in close collaboration with relevant stakeholders is implementing various interventions
to ensure resilient and environmentally sustainable urban development

The National Urban Policy adopted by Malawi Government in 2019 prioritizes urban resilience,
climate change adaptation and disaster risk management as one of its policy priority areas.
However, urban centres have recently been affected by disasters exacerbated by climate change,
weak development control mechanisms or enforcement and rapid urbanisation. It is therefore
critical to ensure that urban development mainstreams environmental sustainability and enhance
resilience to urban disasters such as floods, earthquakes, strong winds and lightening.

3.1. Resilience, Mitigation and Adaptation of Cities and Human Settlements


In recent years, the country has witnessed an increase in the frequency and magnitude
of disasters in urban areas, most of which linked to climate change and variability and a
manifestation of poor planning, limited drainage system, inadequate and unregulated waste
disposal and settlement in high risk areas. Government and stakeholders are implementing
projects in the following areas to ensure that our cities are safe, and resilient from different
shocks.

3.1.1 Minimize Urban sprawl and loss of biodiversity


Urban expansion creates significant challenges for biodiversity conservation, and is a significant
factor in current and future predicted species extinctions and is regarded as a major threat to
biodiversity (Hansen et al. 2005). Understanding, assessing, and enhancing urban biodiversity
is of critical importance, from both conservation and social perspectives (Kowarik 2011).

27
Conserving urban biodiversity has unique implications for human well-being, public health, and
for making citizens aware of the importance of biodiversity conservation, as the majority of
people globally will experience “nature” and related ecosystem services primarily within the
urban fabric (Gilbert 1989; McKinney 2002; Miller and Hobbs 2002; Miller 2005; Goddard et
al. 2010).

Malawi’s 6th National Report to the Convention on Biological Diversity developed in 2019,
reports that the decline and loss of biodiversity is reducing nature’s contributions to people in
Malawi, affecting daily lives and hampering the sustainable, social and economic development.
Malawi’s economy and poverty reduction efforts are highly vulnerable to the adverse impacts of
loss of biodiversity and ecosystem services, climate change and extreme weather events. The
country’s increased population growth now estimated at slightly above 17 million (NSO, 2018)
is putting more pressure on biodiversity.

Amongst several drivers of biodiversity loss, overexploitation of biodiversity, climate change,


invasive alien species, pollution and human development choices are the key drivers of loss.
Despite their role in sustaining livelihoods, terrestrial habitats are the most threatened with
habitat loss resulting from increased land use change due to population growth coupled with
increased consumption of forest products, industrial developments

Currently Malawi is overwhelmed with the amount of waste generated in most cities and towns.
Like all fast urbanizing cities in the world, the cities of Malawi are challenged by the
accumulation of waste due to the increase of their urban population and limited resources of
public services which is leading to ecosystem degradation and biodiversity loss. At policy level,
the Environmental Management Act (1996) provides for protection and sound management of
the environment but has no consideration of biodiversity. (Manda, 2013). The lack of
understanding of urban biodiversity limits our ability to develop sustainable biodiversity urban
planning schemes.

A study by ICLEI Urban Natural Assets in Lilongwe (2017) aimed at identifying areas of high
biodiversity value in Lilongwe, quantify the status and threats to the Lilongwe River system
and its catchment and risks from climate change, concluded that Urbanisation and development
affect ecosystems and their associated biodiversity and ecosystem service provision (water,
temperature regulation), either through direct loss or disturbance from light and noise pollution
or human activities. Changes in habitat affect the quantity, quality and connectivity of foraging,
drinking and roosting/nesting/denning resources available to wildlife. Urban landscapes often
comprise patch works of fragmented habitat patches which are interconnected with linear
features. Linear landscape features such as tree lines, river banks and riparian habitats are
important for wildlife often being used for foraging and commuting between habitat patches
increasing the functional connectivity of the landscape (Limpens & Kapteyn 1991; Verboom et
al. 1999).

28
Key Achievements
Formulation and Operationalisation of the National Biodiversity Strategy and Action Plan:
To ensure a coherent policy framework, the Government of Malawi developed a National
Biodiversity Strategy and Action Plan in 2015, as a framework for managing Malawi’s
biodiversity for 2015-2025 and also as a guiding tool for implementation of the Global
Biodiversity Framework under the Convention on Biological Diversity.

Among other interventions, the strategy focuses on Conservation and Management of Species
and Conservation and Management of Ecosystems and Habitats. Under conservation and
management of species, at least 250 threatened species, as defined by the IUCN Red List. This
includes, 119 species of fish, most of which are cichlid fish endemic to Lake Malawi. Species
such as Elephants, Rhinos and leopards have been restocked in Majete Wildlife Reserve. In
addition, 13 giraffes were translocated into Majete Wildlife Reserve from South Africa in 2018.
More than 520 elephants and 2,000 other animals were moved from Liwonde National Park and
Majete Wildlife Reserve to Nkhotakota Wildlife Reserve and Nyika National Park between July
2016 and August 2017.

Following the translocations, Nkhotakota is revitalized as a wildlife sanctuary, restoring healthy


population dynamics among key species. In 2018, Malawi implemented this project to update
assessments of the status and distribution of freshwater species in the Lake. The project helped to
build capacity through promotion and training in use of biodiversity information portals, such as
the IUCN Red List of Threatened Species and the Integrated Biodiversity Assessment Tool
(IBAT).

3.1.2 Climate change mitigation and adaptation


Climate change and its associated impacts continue to ravage Malawi, exacerbating poverty and
raising doubts over the ability of the country to attain the recently adopted Sustainable
Development Goals (SDGs). According to the United Nations Entity for Gender Equality and the
Empowerment of Women, the country is losing 1.7 percent of its gross domestic product – about
USD 22 million (MK 16 billion) – on average every year due to the combined effects of drought
and floods.

Climate variability and change are already affecting Malawi, which has experienced a greater
incidence of dry spells and intense rainfall events over the last two decades. These changes have
led to an increase in the frequency of floods, droughts, and pest and disease outbreaks, with
severe economic and social consequences. With projected increases in temperatures, more erratic
precipitation patterns, and increasing frequency and intensity of extreme weather events, already-
distressed economic and social systems in Malawi are likely to become more strained. In
recognition of the increasing climate-related challenges, the Government of Malawi and the

29
donor community have initiated activities to determine vulnerability and adaptation priorities,
and to integrate this knowledge into development and sectoral planning.

Key Achievements
Preparation of Disaster Risk Management Land Use Plans: The Government of Malawi
through the Department of Disaster Management (DODMA) and Department of Physical
Planning has prepared disaster risk management in land use plans across the country in areas
prone to the disasters. Other interventions include hazard mapping, construction of drainage
systems, and enhancing drought and flood risk management.
Implementation of Disaster Resilient Projects: Governments through UN-Habitat has
developed Resilience Action Plans (RAP) for Lilongwe and Zomba cities. The RAPs detail
interventions to enhancing roads and drainage, increasing public space, strengthening
governance mechanisms, early warning systems and contingency plans, enhancing water and
sanitation, and solid waste management.

Another disaster resilient project is currently being implemented in the city of Blantyre through
financial support from the World Bank.

3.1.3 Early Warning systems


It is expected that as climate change unfolds the frequency and intensity of climate related
shocks will change, therefore improving Early Warning Systems (EWSs) is one way to adapt to a
changing climate. As an adaptive measure EWS also benefit the poorer segments of society,
those who do not necessarily benefit from large protective infrastructure project. Furthermore,
improving the EWS also provides benefits for long term planning.

Key Achievements
Establishment of Early Warning Systems: Against this backdrop, the Government of Malawi,
with support from Flanders, through FAO engaged e-Communications Research Group
Consulting (e-CRG) to work on automated solutions to compile, rescue, and analyze climate
data, targeting Zomba and Neno districts of Southern Malawi. The process involved data
collection and capturing from daily data sheets for 5-20 years from stations/ EPAs. The daily
data sheets were scanned into digital images either in JPG or PNG. Scanned images were run
through custom developed Optical Character Recognition (OCR) Software to read and validate
data values. The validated data was inserted into a newly developed central database to be shared
to interested parties.

The results highlighted that there is great potential in automated solutions to compile, rescue, and
analyze climate data. However, there is need to engage policy holders and policy experts to

30
ensure that the rescued data is utilised for informed policy decisions and actions. Forming a
multi-stakeholder national steering committee might be one way of mainstreaming climate
information at policy level, sustaining provision of oversight functions, and ensuring continued
policy dialogue. This is critical given the dense and intertwined development assistant network
on climate change adaptation.

Establishment Digital Terrain Model(DTM): The World Bank project is supporting the
acquisition of high resolution DTM data for the city and watersheds that drain through the city to
allow detailed flood and drainage modeling in order to produce the high-resolution risk
assessment of the city. This investment in data may also support the assessment of other possible
hazards such as landslides, environmental degradation and water scarcity. Flood and drainage
modeling of the city will form the basis for a Comprehensive Runoff and Flood Risk
Management Plan for Blantyre.

3.1.4 Building Urban Resilience through Quality Infrastructure and Spatial Planning
In an effort to reduce the impact of natural and human-made disasters, the Government of
Malawi and other stakeholders are implementing a number of interventions in term of types of
structures which can reduce effects caused by the occurrence of the natural and human-made
disasters.

Key Achievements
Preparation of Guidelines to Construction of Resilient Buildings and Housing: Government
has prepared guidelines through its departments and agencies (National Construction Industry
Council (NCIC) and Department of Housing) building designs and construction materials which
can resist shocks of natural and human-made disasters.

Implementing Disaster Resilient Projects: There are some projects that are being undertaken in
some cities in Malawi currently taking place in the cities of Zomba and Blantyre which include
provision of necessary infrastructure such as construction of bridges and storm drains.

3.2 Sustainable Management and Use of Natural Resources


Natural resources are the backbone of national economies including urban areas. The
government and stakeholders have initiated several projects and policies to ensure sustainable
management of the country’s natural resources.

3.2.1 Strengthening sustainable management of natural resources in urban areas.


In its commitment to strengthen sustainable management of natural resources in urban areas the
Government has adopted several legal frameworks and programs in order to achieve this goal.

Adoption of the National Environmental Policy and Enactment of the Environment


Management Act: The Government adopted the National Environmental Policy in 2004 and

31
enacted the Environment Management Act in 2017 whose overall goal is the promotion of
sustainable social and economic development through the sound management and protection of
the environment and natural resources. The government of Malawi and other stakeholders have
initiated a number of policy reforms and projects to ensure sustainable management of natural
resources in urban areas these include;

Implementation of a Sustainable Urban Forest Management: Under a UN- Habitat Urban


Resilience Project in Zomba City, working with Forest Research Institute of Malawi and the
District office responsible for urban forestry the Government is implementing project which
involves setting up of tree nurseries and planting trees as well as important support interventions
to enhance the overall sustainability of the initiative. The purpose of the project is to prevent soil
degradation and erosion with the aim of improving river banks and overall flood intensity
downstream.

Continuation of National Forestry Season: The National Forestry Season which is conducted
every rainy season with the aim of replenishing forest resources in both urban and rural areas is
being continued in all urban areas in Malawi. For example as for 2020/2021 rainy season
Government made commitment to plant 60 million seedlings.

Implementation of the Malawi Resilience and Disaster Risk Management Project


(MRDRMP): Government of Malawi through a Malawi Resilience and Disaster Risk
Management Project funded by World Bank has a subcomponent on catchment management or
watershed management which involves the integrated use and management of land, vegetation
and water resources through various innervations, all these innervations are done in consultation
with local people.

3.2.2 Resource Conservation and Waste Reduction, Reuse, and Recycling.


To meet its commitment on Resource Conservation and Waste Reduction, Reuse, and Recycling
the Malawi Government and its cooperating partners has introduced several initiatives to achieve
this goal.

Key Achievements

Approval of the Environmental Management (waste Management and Sanitation)


Regulations: The government approved the Environmental Management (waste Management
and Sanitation) Regulations in 2017. These have been adopted to promote, coordinate, monitor
and oversee compliance with environment, natural resource utilization to unsure sustainable
development and poverty reduction.

Promotion of Conservation of Resources: The government of Malawi, through councils, the


private sector and other stakeholders, have taken stride to promote conservation of resources
through promotion of reduction of waste production, reusing of non-biodegradable materials and
recycling of wastes, through establishment of waste transfer centres where sorting of waste is

32
done. After waste sorting, there is production of organic manure, briquettes and other ornamental
products.

3.2.3 Implementation of the Environmentally Sound Management of Water Resources


and Urban Coastal Areas.
To ensure its commitment to implementing the environmentally sound management of water
resources and urban coastal areas in Malawi, the Government has instituted some interventions
to meet this goal.
Key Achievements
Approval of the Legal Frameworks on Water Management: The government of Malawi
adopted the National Water Resources Policy in 2005 and enacted the Water Resources Act in
2013 and prepared the National Water Resources Master Plan in 2014. All these are geared at
promoting the conservation, management, development and utilization of water resources.

Implementation of the Urban Natural Assets (UNA) Project: Through ECLEI, an


international organization, a number of
initiatives such as river clean-up
activities under a project called Urban
Natural Assets is implementing
activities for urban riverfronts
revitalization in some cities in Africa
(figure 11). The project aims at
improving and maintaining urban
rivers buffer zones

Figure 11: Cities in Africa under UNA


Riverfront Revitalization Project

3.2.4 Adoption of Smart-City Approach that Leverages Digitization, Clean Energy


and Technologies.
Malawi is committed to adopt and implement the Smart-City Approach in managing the
ReProjectRevittalisation
challenges being faced in its cities. The Government understands that Smart Cities
means cities that use innovative and digital technologies in its daily endeavors. The
government would like to emulate and replicate smart cities initiatives being
implemented in other developing countries such as India and Brazil. It believes that the
approach improves public services delivery to city dwellers. Several initiatives are being
implemented in the country to ensure steps paradigm shift from analogue to digital
public service delivery.
Key Achievements

33
Approval of the National ICT Policy and Digital Government Strategy: The
Government through the Department of E-Government adopted the National ICT Policy
in 2013 and the Digital Government Strategy in 2019 with an aim of accelerating poverty
reduction, job creation, and emboldens social justice by ensuring e-service delivery
through digital applications accessible remotely through mobile devices.
Rolling out of Digital Technologies in Service Delivery: Some government service
providers have started rolling out digital technologies in its service delivery in all the
cities and towns in Malawi. For example, water boards are have currently rolled out the
installation of digital water meters, likewise ESCOM has rolled out the project of
replacing old electricity meters with digital prepaid meters.

3.3. Key Challenges Hindering Environmentally Sustainable and Resilient Urban


Development

i. Administrative inefficiencies and lack of accountability leading to poor energy


generation and distribution.
ii. Lack of decentralization and diversification of energy source such as natural gas,
and other renewable sources of energy.
iii. Absence participation of the private sector through private public partnerships in
the energy sector that would make the sector more competitive.
iv. Lack of a coherent and coordinated approach to implementing conservation
interventions; inadequate biodiversity mainstreaming across relevant sectors;
illegal import of biological resources introducing new invasive alien species and
posing a threat to natural ecosystems; and illegal export of biological resources
and bio-traders conniving with foreigners at the expense of the communities.
v. Challenges in early warning systems include scarce and limited data due to
deterioration of weather monitoring stations and unavailability of quality checked
and digitized data. In addition, manual approaches to rescuing data have been
rendered ineffective due to inadequate staff and insufficient technical capability to
rescue huge data sets. Consequently, nonexistence of site-specific data greatly
hampers climate information analysis and strategic decision-making to reduce
the vulnerabilities associated with climate variability.
3.4 Lessons Learnt
i. Decentralization is the key to accelerating access to distributed energy services
in sub-Saharan Africa including Malawi.

34
ii. Participation of the private sector through private public partnerships
arrangements is the key to an effective and efficient basic service delivery
systems in most cities of the world.
iii. Natural infrastructure can play a key role in increasing resilience to the impacts of
climate change and extreme events in the cities.

35
PART THREE: EFFECTIVE IMPLEMENTATION

CHAPTER FOUR: BUILDING THE URBAN GOVERNANCE STRUCTURE:


ESTABLISHING
A SUPPORTIVE FRAMEWORK

4.1 Decentralization of Subnational and Local Governments


After about thirty years of a highly centralized one party rule, in 1993, a radical political
transformation had occurred in Malawi with the introduction of Multi-party democracy.
Thereafter, Malawi adopted a new constitution based on the principles of participatory
democracy in 1994.
Now, as part of the process of consolidating democracy and as a strategy for realising
the country’s development goal of poverty reduction, Malawi Government also resolved
to decentralise political and administrative authority to district level.
Key Achievement
Formulation of a National Decentralisation Policy and the Local Government Act:
To accelerate its decentration efforts the Government of Malawi formulated the National
Decentralisation Policy and enacted the Local Government Act in 1998. The
Decentralisation Policy seeks to create a democratic environment and institutions in
Malawi for governance and development, at the local level which eventually facilitates
participation of the grassroots in decision-making processes.
Under this policy, Malawi Government has devolved administration and political
authority to the district level, integrates governmental agencies at the district and local
levels into one administrative unit, through the process of institutional integration,
manpower absorption, composite budgeting and provision of funds for the decentralised
services and has diverted the centre of implementation responsibilities and transferred
the same to the districts. Some of the devolved sectors include Education, Health,
Environment, Emergency (including fire services), Community, Public amenities (Youth
and sports), planning, water, Natural Resources and Land resource utilization among
others. Other sectors are still in the process of preparing devolution plans and yet to
devolve.

4.2 Linkage of Urban Policies to Finance Mechanisms and Budgets


In Malawi, Councils are mandated to provide infrastructural and economic development
through the in their areas of jurisdiction from the resources they mobilise. While on the
other central government formulate the policies which the councils are supposed to

36
implement. The government has formulated several policies and act which promote
generation of revenue from local and external services.

Key Achievements
Linkage of the National Urban Policy and Finance Mechanisms: The National
Urban Policy advocates for innovative resource mobilization for urban
development.

Linkage of Local Government Act and Resource Mobilisation: The Local


Government Act of 1998 provides powers and functions to the newly formulated
National Local Government Finance Committee of 2018 to: (1) coordinate, consolidate
and monitor the local council budgets; (2) mobilise, allocate, disburse and account for
financial resources; and (3) regulate and ensure prudent use of financial resources in
Local Councils. The Local Government Act (1998) further permits local councils to take
loans from internal sources.

4.3 Develop Legal and Policy Frameworks to Enhance the Ability of


Governments to Implement Urban Policies.

The principal relevant legislation for implementing the urban policies is the Local
Government Act 1998. This provides a framework for decentralisation, establishing the
councils and providing for their composition, powers, functions and financing. The
objectives of local government are ‘to further the constitutional order based on
democratic principles, accountability, transparency and participation of the people in
decision-making and development processes. However, Malawi is preparing some legal
and policy frameworks to ensure smooth implementation of urban policies.
Key Achievements
Commencement of the Formulation of Urban Development Bill: The government is
in the process of developing the Urban Development Bill which will set the legal
mandates of various urban development structures on their roles of implementing the
national urban policy. This includes the strengthening of existing urban local level
structures and legalizing the functions of the National Habitat Committee and Malawi
Urban Forums.

The National Urban Policy has proposed a number issues such as : establishment of
an urban classification system; facilitation of the development of plans and designs
that promote compact, socially inclusive, better integrated and linked cities that foster
sustainable urban development and are resilient to climate change; encouragement to

37
cities to become engines of economic growth by promoting local-level investment and
financial self-sufficiency; promotion of effective and efficient development and
management of urbanising rural growth centres and district towns to enable them to
grow into small and medium cities, leading to a more equitable spatial distribution of
population and development; and facilitation of the coordination of institutions involved
in managing urbanization.

Amendment of the 1998 Local Government Act: The Government is in the process of
amending the 1998 Local Government Act in tackle issues pertaining to composition of
local level urban structures such as block leaders which was overlooked in the current
law.

4.4 Building the Capacity of Local and Sub-National Governments to


Implement Local and Metropolitan Multilevel Governance.

Malawi has conducted several trainings to build up capacity for Local and Sub-National
Governments to Implement Local and Metropolitan Multilevel Governance:
Key Achievements
Conduction of Training Workshops on Capacity Building: The National
Decentralisation policy called for the need to build capacity of District Councils to ensure
success at all levels. In 2019, the ministry of Local Government and Rural development
had organized training with all urban councils on Sustainable Urban development in all
towns and cities.
In the same year, Malawi Government had provided four trainings to orient Councilors
on their roles and responsibilities. In 2019 and 2020, New Members of Parliament,
Ward Councilors, Ward Development Committees, Urban and Ward level civil protection
Committees were established and trained.
Filling of Vacant Positions: Malawi Government has so far filled 60 percent of all
strategic positions of staff working in the Councils in Malawi.

4.5 Implementation of Participatory, Age-and Gender-Responsive Approaches


to Urban Policy and Planning.

Urban planning covers a wide spectrum of concerns including employment, housing,


open space, transport and environment to name just a few. Gender is relevant to all of
these. For example, urban areas provide women with better employment opportunities
than do rural areas. Pro-urban planning policies are thus more likely to benefit women
than those seeking to halt urban growth.

38
The low score is mainly attributed to negative social norms and discriminatory practices,
resulting in low levels of representation in politics and the economy with 93 percent of
women in unpaid labour compared to 79 percent of men.

Key Achievements

Increased Membership of the Malawi Physical Planners (MIPP). A good number of


women have joined the MIPP. MIPP is a professional body which comprises of
Malawian urban planners.

Representation of Women in Key Position in Urban Policy Formulation and


Implementation: A lot of women are employed in key positions engaged in Urban
Policy formulation and implementation. For example, the Director of Department of
Urban Development in the Ministry of Lands is a woman. The Department is a key
stakeholder in urban affairs in the country.
4.6 Achieve Women’s Full Participation in all Fields and all Levels of Decision-
Making
Malawi Government has made some strides in achieving women’s full participation at all
levels. However, there is still more that needs to be done.
Key Achievements
Increase of Women in Politics and other Governance Sectors: It should be reported
that for the first time in the history of Malawi politics, in 2020, Malawi increased the
percentage (to 38%) of women appointed in cabinet positions. Additionally, currently,
35% of the 193 members of parliament are women nationally.
Commencement of the Mentorship Program: Acknowledging the fact that there are
still cultural and systematic barriers that discourage women including girls to lead,
Malawi Government is currently implementing Mentorship program aimed at
encouraging girls to take up leadership responsibilities in their areas of work.
Proposals on the Electoral Reform Bill: This Ministry of Gender is closely working
with the Ministry of Justice to ensure that these electoral reform bills are deliberated
upon in parliament in June, 2021 which will empower women to have a reasonable and
acceptable representation in politics.
4.7 Key Challenges Hindering Building the Urban Governance Structure

i. There are several incoherent legal and policy instruments that are utilised by an
assortment of institutions involved in urban planning, management and land
governance. An analysis of some of the legislation and policies reveal several
conflicts, contradictions and implementation challenges.
ii. There is an overlay of competing jurisdictions and leaderships from various
ministries, city authorities, parastatals and political constituencies. Ultimately a

39
multiplicity of competing, uncoordinated and non-collaborative institutions have
emerged from initiatives under different regimes without central government ever
deliberately consolidating them into a coherent whole.
iii. There is weak community and citizenship participatory structures in urban
governance in the country.

4.8 Lessons Learnt

i. Strengthening the role of the Department of Urban Development as a


coordinating body for institutions involved in urban development affairs and
preparation of coherent legal and policy instruments is the key for successful
implementation of urban policies in the country.
ii. Active citizen participation through structures such as ward committees, CSOs,
women groups, youths’ groups is a key to effective urban governance.

40
CHAPTER FIVE: PLANNING AND MANAGING URBAN SPATIAL DEVELOPMENT

The New Urban Agenda advocates the localization of International Guidelines on Urban
and Territorial Planning (IGUTP), in the members UN member states. The Guidelines were
approved by the Governing Council in resolution 25/6 of 23 April 2015, which calls upon
“international financial institutions, development agencies, and UN-Habitat to assist
interested member States in using and adapting the Guidelines to their territorial and
national contexts, where appropriate, and further developing tools and monitoring
indicators. Malawi supports the use of the guidelines for planning, designing and
implementing the urban areas, which it hopes will lead to more compact, socially
inclusive, better integrated and connected cities and territories that foster sustainable
urban development.

5.1 Implementation of Integrated and Balanced Territorial Development Polices


The (IGUTP) provide direction in establishing planning functions at national, regional,
district, city, neighbourhood and village levels to ensure connections and balanced system
of cities, towns, districts, small towns and villages. To meet the recommendations of these
guidelines, the government is planning and implementing several projects and programs to
ensure integrated and balanced territory development.

Achievements

Launching of the Malawi 2063 Vision (MW63): The government launched the Malawi
2063 vision in 2021 which replaced Vision 2020 which expired in December 2020. The
Malawi 2063 (MW2063) aims to transform Malawi into a wealthy and self-reliant
industrialized ‘upper middle-income country’ by the year 2063. The three main pillars of
the vision include agricultural productivity and commercialisation, resource-based
industrialisation and urbanization. On urbanization the Vision advocates for the
formulation of National Spatial Frame and promotion of secondary cities and World-
class urban centers and tourism hubs across the country with requisite socio-economic
amenities for a high-quality life.
Devolution of Planning Functions: The Ministry of Lands has prepared a devolution
plan of planning function to district and village level to ensure participatory planning of
local communities.

41
Enactment and Operationalisation of New Land Related Laws: The government
enacted new land related laws such as Physical Planning Act, Land Act, Customary
Land Act,and Surveys Act in 2016. The laws have been piloted in two districts so far.
The pilot phase involved planning of district, urban structure and village plans. The
programme is yet to be rolled out throughout the country.

5.2 Inclusion of Housing into Urban Development Plans


Housing is regarded as one of the key urban infrastructure. Planning and management
of housing as an urban infrastructure should not be done in isolation but in relationship
to other planning functions such as access to transport, jobs, and necessary public
services such water and sanitation, health, waste management, health and safety.
Housing should be regarded as an anchoring component in the construction and
expansion of cities and the main driver that catalyzes sustainable and resilient territorial
development through land-use, infrastructure and transport sectors. Housing should
also be located, sited and designed in safer places free from natural disasters.

The New Urban Agenda also recognizes the need for adequate and affordable housing
within the framework of sustainable urban development. The New Urban Agenda
provides an opportunity to achieve the Sustainable Development Goal 11, which calls
for access to adequate housing and basic services and the upgrading of slums. The
government and cooperating partners have prepared policies which advocates housing
as the centre of urban development.

Key Achievements
Formulation and Operationalization of the National Housing Policy: The housing
policy contains coherent set of strategies to promote integrated planning of housing in
urban development plans. For example, the policy advocates acquisition of land in
urban areas for housing, formulation of Housing Act and Sectional Titling Act.

Formulation and Operationalization of the National Urban Policy: The National


Urban Policy advocates the planning and management of housing in urban areas as the
key basic infrastructure. The policy among other things advocates development and
implementation of urban strategic plans for housing, infrastructure and service provision

5.3 Implementation of Planned Extensions of Urban Areas


Cities in Malawi are equally experiencing pressure on land due to rapid urbanization.
This has led to greater extent the mushrooming of slums especially in vacant and
undeveloped parts of the cities. This is also paralleled with resumption of informal
landlords who acquire land on urban fringe areas. These informal landlords prepare
detailed layout plans and allocate plots to individuals for especially residential

42
development. This however has resulted in rapid urban sprawl and rise in prices of
parcels of land. Such types of development lack enforcement, disorderly development
and lack of provision of basic services. In line with the UN-Habitat’s call for planned city
expansions the Government of Malawi, councils and cooperating are doing everything
possible in defining growth of new limits of cities in the country.

Key Achievement
Extension of Cities Boundaries. Some cities have planned and approved the
extensions of their boundaries. For
example, Lilongwe City Council
prepared and legalized its 2030
land use plan. The Lilongwe City
Council 2030 land use proposes
extension of city boundaries
especially southwards and north
east parts. See figure 12 which
show 2030 land use plan for
Lilongwe City
5.4 Strengthening of Small
and Intermediate Cities and
Towns
Malawi as a country continues to
rely on agriculture for its socio-
economic development. To
transform its development agenda,
the country needs radical shift to
commercial farming and make it
feed into industrial development. It
is believed that agricultural
industrialization will be key in
creating jobs and supporting the
sustainable urbanization pillar of
the envisioned Malawi Vision 2063
through strengthening and creation
of small and intermediate cities
and towns based in agriculture. Figure 12: Lilongwe City 2030 Land Use Plan (JICA Study
Team, 2010)
Key Achievement

Commissioning of the Agro-Industrial Secondary Cities Project: The Government


of Malawi through the National Planning Commission inaugurated the Agro-Industrial
Secondary Cities Project in the country in 2021. The project aims at creating 7 agro-

43
industrial Secondary cities across the country. It is hoped that the project will promote
socio-economic development of the country as well as reduce rural –urban migration to
the four cities of Mzuzu, Lilongwe, Zomba and Blantyre. The secondary cities will be
mainly centred on large scale production of viable commercial crops.

5.6 Challenges Hindering Planning and Managing of Urban Spatial Development


i. Lack of enforcement mechanisms for existing urban development plans
ii. Existence of very good plans which lack funding for their effective
implementation.

iii. Lack of well trained staff in planning and management of urban spatial plans
iv. Lack of capacities by councils to plan and manage the sustainable growth of their
urban centres
v. Lack of finances to compensate urban dwellers who are settling in informal
settlements built on public land.
5.7 Lessons learnt
i. Effective planning and management mechanisms are a key to achieving urban
spatial development
ii. Capacity development in well trained staff and financial capabilities are a key in
effective implementation of sustainable urban development programmes.

99

44
CHAPTER SIX: MEANS OF IMPLEMENTATION

Urban development plans and policies are only useful if they are being implemented
accordingly. There comprehensive implementation frameworks based on sensible
financial resource mobilisation and institutional resources in a coordinated manner is a
key the successful implementation of national urban development policies and plans.
The Malawi Government recognizes the need to identify a wide range of means for the
successful implementation of the New Urban Agenda.
6.1 Mobilisation of Financial Resources

6.1.1 Development of Financing Frameworks for Implementing the NUA at


All Levels of Government
The Government has made several attempts to provide comprehensive financing
frameworks for the implementation of the National Urban Policy and the New Urban
Agenda.
Key Achievements
Establishment of Constituency Development Fund (CDF): Government established
CDF with a view of spreading development evenly throughout the country. The CDF is
there to respond to immediate, short-term community development needs. The CDF is
coordinated by the Member of Parliament of the responsible constituencies. Members of
Parliament in collaboration with ward councilors and their constituents prepare project
proposals that maximize their welfare in line with their needs and preferences in each
constituency of the 193 constituencies. The projects such as drainage channels and
bridges have been constructed in wards and constituencies found in urban areas which
have contributed to the implementation of the New Urban Agenda.

Preparation of the Urban Development Fund: The Ministry of Lands has prepared a
concept paper on the possible establishment of the Urban Development Fund. Once
instituted, the fund will mobilise financial resources from sources such as levies and
donors. The financial resources will be used to support the provision of urban
infrastructure in cities and other urban centres in the country and contribute towards the
implementation of the New Urban Agenda.

6.1.2 Mobilize Endogenous (internal) Sources of Finance and Expand the Revenue Base
of Subnational and Local Governments.
The key Ministry of Lands in collaboration with members of the National Habitat
Committee are trying all they can to lobby for finances within the country for financing
projects which will contribute to the effective implementation of the New Urban Agenda.
Key Achievement

45
Preparation of the Malawi Sustainable Urban Development Program: The ministry
of Lands has prepared the Malawi Sustainable Urban Development Program as a
special purpose vehicle for implementing the Malawi National Urban Policy which is a
localised tool for implementing the National Urban Agenda in the country. Once funded,
the programme will assist councils with provision of bankable projects. The projects are
aimed at expanding revenue bases for the councils.

6.2 Capacity Development


Malawi recognizes the fact that enhancing the capacity of councils to plan, finance, and
manage the delivery of services is paramount to enhanced service delivery and
attainment of goals and objectives outlined in the MGDS III, Vision 2063 (MW2063) and
as well as the New Urban Agenda. Malawi as a country is making some strands in
making sure there is capacity development in the implementation of the New Urban
Agenda.

6.2.1 Fostering Exchanges of Urban Solutions and Mutual Learning


Malawi is committed in fostering exchanges of urban solutions and mutual learning at
both local and international levels. The Government and stakeholders facilitates training
sessions and forums which can build capacity to all relevant actors in urban
development matters.

Key Achievements
Attendance at Urban Forums: The government through the Ministry of Lands
coordinates attendance of staff especially from councils, academia and CSO’s to attend
to forums such as World Urban Forums, Malawi Urban Forums and National Habitat
Committee. These forums provide platform for sharing ideas and experience on urban
policies and urban development programmes at local, regional and international level.
For example, the Malawi delegation of 21 participants attended the 10 th Session of the
World Urban Forum which was held in February 2020 in Abu Dhabi, United Arab
Emirates.

Attendance to Trainings Related to Urban Development: Officers from Government


ministries, department and agencies attend both long term and short term courses
related to urban development planning and urban development management within or
outside the country. The most popular countries include China, India, the UK,
Netherlands and South Africa. The trainings could be in form of Malawi Government,
university and foreign governments’ scholarship.

46
6.2.2 Engagement of Local Government Associations as Promoters and
Providers of Capacity Building
The Government of Malawi support the plea by the New Urban Agenda that local
government associations should engaged in promoting and providing capacity
development to national, sub-national and local governments involved in urban
development activities. The government believes their involvement in national
consultations on urban policies and development priorities, and their cooperation with
sub-national and local governments, along with civil society, private sector,
professionals, academia and research institutions, and their existing networks is the key
to delivering on capacity development programmes in the country.

Key Achievement
Operation of Local Governments Associations in the Country: Although there are
few local governments operating in the country, there is one more notable local
government association which is outstanding, the Malawi, Association of Local
Government (MALGA). MALGA is recognised by the government as the voice of local
authorities and is the body for coordinating local government training. For example,
MALGA has developed the Local Government System in Malawi Handbook and
conducted several orientation workshops to council members on guide for conduct of
council business, budgeting and financial management in local authorities, development
planning systems and integrity in Councils.

6.4 Information Technology and Innovations


Malawi acknowledges that emerging technologies have the potential of changing the
relationship between national, sub national, local governments and citizens in terms of
how our cities are managed. The Government is moving forward to developing
information technology and innovations that would enhance easy access to information
to the public related urban development and monitoring of indicators in the
implementation of the New Urban Agenda.

6.4.1 Implementation of Digital Tools including Geospatial Information Systems


to Improve Urban and Territorial Planning, Land Administration and Access
to Urban Services
The Malawi Government is committed to ensuring the creation, promotion, and
enhancement of open user- friendly, and participatory data platforms using
technological and social tools available to transfer and share knowledge among
national, sub-national, and local governments and relevant stakeholders, including non-
state actors and people, to enhance effective urban planning and management.
The country is making some strands in area by moving towards establishing and
operationalising the National Urban Observatory.

47
Key Achievement
Establishment of the National Urban Observatory: The government has formulated
the Concept Note on the establishment of the National Urban Observatory in the
country. The Urban Observatory will be a tool for monitoring, tracking and measuring
progress of urban indicators in line with the implementation of the New Urban Agenda.

6.5 Key Challenges Hindering Means of Communication

i. The wholesale adoption of the decentralization process tends to ignore a


critical debate on capacity challenges in local government. The main
argument is that the success of intervention is contingent upon the availability
of adequate capacity in local government institutions.
ii. Capacity problems, including the lack of appropriately trained personnel and a
shortage of funds, seriously hamper effective service delivery. Thus, there is
a need for implementing comprehensive capacity building programmes,
including training and development, and financial management strategies to
attain the desired objectives.
iii. However, most of the times, local revenues are always so inadequate that
they may not carter for implementation of capital projects.
iv. The lack of trained staff in councils impedes the smooth running of councils
from urban development planning, resource mobilization, urban development
management and urban governance.

6.5 Lessons Learnt


i. Increased Government funding for capital projects to Councils is a key to
effective and efficient delivery of public services in local councils.
ii. Councils increased base of revenue collection for investment in bankable
projects is the key of meeting the needs of city citizens.

iii. Improved coordination among players is the key in achieving integrated


sustainable urban development in the cities and other urban centres in the
country.

iv. Government’s interventions in increasing the number of well trained staff are
the key to successful urban development in the country.

48
PART FOUR: FOLLOW-UP AND REVIEW

In order to monitor the implementation of the New Urban Agenda, there are a number of
actions Government and cooperating partners has outlined to undertake. Among the
actions include:

i. Reviving and legalizing the functions of the National Habitat Committee, which is
a multi-stakeholder committee which convenes every quarter to discuss and
report on matters of urban development and human settlement.
ii. The government will be holding urban forums where feedback on urban
development issues will be provided.
iii. Ensure robust accountability mechanisms will be required at different levels of
government. National, subnational and local governments will be required to
account to their own citizens and to the international community for the actions
they have taken in advancing the commitments of the NUA in the country.
iv. The government will make sure that staff is well trained in the establishment of
the National Urban Observatory, which will be a tool for monitoring indicators of
the commitments in the NUA

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