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Saturday, 24 May 2008

Malawi unveils budget for 2008/09

LUSAKA, May 24 (Xinhua) -- Malawi Finance Minister Goodall Gondwe unveiled Friday a 229.2 billion kwacha (1.58 billion U.S. dollars)) budget for the 2008/09 financial year, which has seen village headmen getting a 400 percent honoraria hike, civil servants walking away with an average 20 percent salary raise and tax free income threshold pegged at 9,000 kwacha from 7,000 kwacha.

Total resources for the budget are projected at 208 billion kwacha with 118 billion kwacha from domestic sources and 90 billion kwacha in grants, website of The Nation newspaper of the country reported Saturday.

Gondwe said as a result the overall deficit is estimated at 21.2 billion kwacha which is 3.4 percent of the Gross Domestic Product (GDP) and this shortfall will be fully financed by foreign borrowing. Domestic borrowing is estimated to fall by 1.7 billion kwacha, he said.

In last year's 172 billion kwacha budget, the government pushed salaries of the country's six paramount chiefs to 50,000 kwacha, senior chiefs cart away home 30,000 kwacha, Traditional Authorities (TA) honoraria is at 18,000 kwacha while Sub TAs are at 8,000 kwacha a month.

But the village headman will now receive 2,500 kwacha from 500 kwacha while group village headmen perks move from 1,000 kwacha to5,000 kwacha monthly, representing a 400 percent jump in both cases. (1 U.S. dollar = 145 kwacha)

'We believe in Malawi that Africa can feed itself

Malawian President Bingu wa Mutharika on Saturday said that Africa was able to feed itself, suggesting other African nations should learn farming lessons from his country.

"We believe in Malawi that Africa can feed itself," Mutharika told reporters before he departed for Japan to attend a meeting of African leaders.

"Malawians have been able to feed themselves. There are a lot of countries that want to see me to ask me 'how did you Malawians do this?' ... 'how did you turn things and be able to feed yourself?'."

Mutharika did not say what has led to Malawi's success, although the country, where food security is a pressing issue, is set for a second back-to-back bumper maize harvest due to subsidised fertiliser.

Up to five million people were in need of food aid in 2005 following drought and the government spent over $100-million to import more than 400 000 tonnes of food to avert hunger.

Malawi last had a bumper harvest in 1999 when free fertiliser and seeds were distrbiuted to millions of villagers.

"We are not boasting but we will tell them this is our experience. Maybe they can also adapt and become hunger-free in future," Mutharika said.

He said Malawi's main focus was to "fight poverty." About half of the 12-million citizens live below the poverty line and on less than $1 a day.

Mutharika said his country had six priorities, including improving its agriculture -- the economy's backbone -- as well as transport and communications, irrigation, food security and energy.

"And of course we want to fight HIV and Aids," he added. About 14% of Malawians are infected with the killer syndrome.

"We are asking all our donors to focus on this. This is the way we will move forward," Mutharika said. - AFP

Madonna to become a Malawian

MADONNA is to be made an honorary citizen of Malawi for her work with orphans in the poor African country.

The queen of pop is adopting a Malawian toddler and is setting up a girls' school there.

She funds seven orphanages including her own, where 4000 children get education and food.

Deputy tourism and culture minister Billy Kaunda said: "We are proud as a country to be associated with such a megastar "She will have freedom of all cities here - she won't be bothered with issues like visas and other limitations."

Work is due to start "very soon" on Madonna's charity school near the capital Lilongwe.

And a high court judge in Malawi is set to rule on finalising her adoption of two-year-old David Banda next week.

Malawi has two million orphaned children - half as a result of HIV or AIDS.

China's first ambassador to Malawi presents credentials to president

LUSAKA, May 23 (Xinhua) -- China's first ambassador to Malawi Lin Songtian Friday presented his letter of credentials to Malawian President Bingu Wa Mutharika in the capital of Lilongwe.

Lin is the first Chinese ambassador to the African country after it severed its 42-year ties with Taiwan earlier this year. Malawi and China announced on Jan. 14 that the two countries had formalized relations at the end of 2007 with the signing of a joint communique during the official visit to Beijing by Davis Katsonga, a special envoy of the Malawian president.

After the presentation of credentials, President Mutharika told Lin that he is satisfied with the progress made since the establishment of bilateral ties. His government is looking forward to cooperation with China in fields like agriculture and infrastructure.

Mutharika asked the ambassador to convey his sincere condolences to the Chinese victims in the 8.0-magnitude quake that struck southwest China's Sichuan province on May 12.

He also commended the immediate and massive relief efforts by the Chinese government, believing that the Chinese people will soon recover from the disaster.

Lin Songtian appreciated Mutharika's sympathy for the Chinese people.

He said the two countries have made substantial achievements since the establishment of diplomatic ties. The Chinese government is willing to enhance cooperation with Malawi for a sound relationship, the ambassador added.