MALAWI HIGHLIGHTS - JANUARY 14

UNCLAS SECTION 01 OF 02 LILONGWE 000034 C O R R E C T E D COPY //CORRECTED SUMMARY// SENSITIVE SIPDIS LONDON FOR AF WATCHER PETER LORD E.O. 12958: N/A TAGS: PGOV EINV AU MI SUBJECT: MALAWI HIGHLIGHTS - JANUARY 14 REF: 09 TRIPOLI 1036 LILONGWE 00000034 001.6 OF 002 ¶1. (U) SUMMARY: The following is a compilation of recent highlights from the "Warm Heart of Africa." -- SADC Members Urged to Support Mutharika for AU Chair -- Minister for the Disabled Says Devices Needed -- Vice President Banda Unhappy with TV Coverage -- Energy Regulator Recommends Increasing Biofuel Usage -- Government Steps in to Bail Out Air Malawi -- Maize Exports Continue at a Reduced Level -- President's Pet Project Gets Support for Study End summary. SADC MEMBERS URGED TO SUPPORT MUTHARIKA FOR AU CHAIR -------------- -------------- ¶2. (SBU) Local media reports that Minister of Foreign Affairs Etta Banda attended the SADC Inter-State Politics and Diplomacy Committee (ISPDC) of the Ministerial Committee of the Organ meeting held January 7 in Maputo. According to the reports, the committee members present were urged to "remain steadfast in their support for the SADC candidate (Malawi President Bingu wa Mutharika) for the AU Chairmanship." The admonishment apparently comes in reaction to rumored efforts by Libya to have Muammar al-Quadhafi elected to an unprecedented second term (reftel). The meeting reiterated SADC's 2009 Kinshasa Summit endorsement of Mutharika for the post and called on members to "individually and collectively commit to support Malawi in the process." MINISTER FOR THE DISABLED SAYS DEVICES NEEDED -------------- ¶3. (U) Minister for Persons with Disabilities and the Elderly Reen Bessie Kachere told the Ambassador in a January 6 meeting that an acute shortage of wheelchairs and other adaptive devices was the most daunting issue for her cash-strapped ministry. Stressing the value of "people-to-people" solutions when grappling with such challenges, the Ambassador offered to help the ministry to better engage with private local and U.S. organizations that could help address the need. The minister also gave an update on GOM efforts to draft legislation aimed at improving accessibility and services for Malawi's disabled and elderly. The ministry hopes to have a homegrown version of the landmark 1990 Americans with Disabilities Act ready for consideration at the next sitting of Malawi's parliament. VICE PRESIDENT BANDA UNHAPPY WITH TV COVERAGE -------------- ¶4. (SBU) Local media reported that Vice President Joyce Banda blasted a Television Malawi (TVM) camera crew recently for giving her "scanty coverage." The Vice President is a likely Democratic Progressive Party (DPP) presidential candidate in the 2014 elections, but faces a formidable potential rival in Justice Minister and presidential brother Peter Mutharika. The unhappy VP said of TVM, "You come here to pretend you are (filming) me, then you don't bother to beam the material, or you cut it off so that it doesn't make sense." Banda's outburst comes amid rumors of a directive from the President that the country's sole television station not carry Banda's voice in news items. TVM executives denied receiving any such order saying, "When she does say something newsworthy, we air her." ENERGY REGULATOR RECOMMENDS INCREASING BIOFUEL USAGE -------------- -------------- ¶5. (U) A task force established by the Malawi Energy Regulatory Authority (MERA) has recommended that the ratio of ethanol blended into petrol be increased to 20 percent from the current 10 percent. The Ministry of Energy has accepted the recommendation in principle and is looking into the legal requirements for its implementation, as well as the feasibility of also blending diesel fuel. In addition to the environmental benefits of a cleaner burning fuel, increasing the ethanol ratio would also contribute to reducing Malawi's fuel import bill, since the ethanol used in the blending is produced locally. LILONGWE 00000034 002.6 OF 002 GOVERNMENT STEPS IN TO BAIL OUT AIR MALAWI -------------- ¶6. (SBU) Government has stepped in once again to rescue troubled flag carrier Air Malawi, paying an outstanding repair bill that has kept the carrier's two jet aircraft (a Boeing 737-300 and a Boeing 737-500) stranded in South Africa, one for over a year. The airline had been operating with expensive leased aircraft. Having earlier been identified for privatization, Air Malawi could not find a buyer and the airline continues to operate as a loss-making state-owned enterprise (SOE). Despite GOM pledges that it would not tolerate continued poor performance by SOEs, it is now considering further action for a complete bail-out of the airline, which carries a significant debt burden. MAIZE EXPORTS CONTINUE AT A REDUCED LEVEL -------------- ¶7. (SBU) Having lifted a 2008 export ban on maize in 2009, the GOM continues to issue export licenses for the country's principle staple food crop. After four successive years of crop surpluses, Malawi has adequate maize supplies, but memories are still fresh from the food crisis of 2001, when poor harvests were exacerbated by large maize exports. Poor early rains in some regions of the country suggest a smaller 2010 crop, and have prompted a reduction in the size of export licenses. ADB SUPPORTS STUDY OF PRESIDENT'S PET PROJECT -------------- ¶8. (SBU) The African Development Bank has approved a grant of USD 3.4 million to fund a feasibility study for the proposed Shire-Zambezi Waterway. The project, which has been identified as a priority in the Malawi Growth and Development Strategy and is a particular favorite of President Mutharika, would give landlocked Malawi access to the sea via the two named rivers through the port of Nsanje (already under construction) at the extreme southern tip of the country. The study, expected to begin in the first quarter of 2010, will examine the hydrology of the rivers, among other aspects. Even if the waterway itself should prove technically feasible - something that has yet to be demonstrated - questions will remain regarding such issues as how goods would be moved from Nsanje to the rest of Malawi or Zambia beyond. SULLIVAN