MALAWI: POTENTIAL US MISSION COOPERATION WITH

UNCLAS LILONGWE 000107 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EAID ELTN MI SUBJECT: MALAWI: POTENTIAL US MISSION COOPERATION WITH AFRICAN DEVELOPMENT BANK ¶1. (U) On February 17 Frank Kufakwandi, the Resident Representative/Country Manager for the African Development Bank (AfDB),met with the Ambassador to brief him on AfDB activities in Malawi. Kufakwandi noted that AfDB/Malawi manages a USD 200 million portfolio encompassing a wide range of projects and activities. Two key areas are road and irrigation infrastructure. The Bank manages a multinational program also involving Mozambique and Zambia to rehabilitate the transport corridors from the interior to the sea. The Ambassador commended the AfDB for its multinational program on transportation, noting that many of Malawi's problems with transportation involved issues outside of its borders. He noted that well functioning transport corridors would help spur development for all countries involved - Malawi, Zambia and the northern provinces of Mozambique.Other areas where the bank is active include business development, studies on further hydropower development, education and health, and vocational skills training. Since Malawi's economy is dominated by former parastatals, AfDB's support for business focuses on small and medium sized enterprises (SMEs). ¶2. (SBU) Kufakwandi explained that AfDB in Malawi operates under a Country Strategic Paper. It consults with the GOM to determine particular areas of activity. It also tries to harmonize its efforts with other donors such as USAID, DfID, JICA and the World Bank. The Ambassador welcomed further work together with the AfDB, stressing that the U.S. would like to expand cooperation. He raised the possibility of engaging the AfDB as part of a broader conversation including the GOM and all development partners regarding what Malawi really needs to do to promote wealth, development and investment. Such a conversation could begin with an exploration of what goods could be promoted to take advantage of duty-free access to U.S. or European markets. The Ambassador noted, however, that to have the most impact such a discussion really needs to address fundamental issues such as land reform. In this regard the AfDB might be able to draw on its experience in other countries where land reform has met with some success, such as Uganda, Zambia or Mozambique. Kufakwandi responded favorably to the Ambassador's suggestion, and committed to closer engagement with the Embassy at all levels. ¶3. COMMENT: We believe we have an opportunity here to expand our cooperation and interaction with our African interlocutors present in Malawi. All too often donor coordination efforts in Malawi are too focused on the traditional Western donor community. We will continue to exploit opportunities to enhance greater buy-in from our African partners throughout the SADC region to our efforts in Malawi. We need to better encourage regional solutions to the many trans-national problems and issues Malawi faces. BODDE