Malawi’s MCC scorecard shows positive strides, boost for second compact

A latest Millennium Challenge Corporation (MCC), a United States government agency,  scorecard shows that Malawi is making positive strides in meeting the minimum requirements and may be awarded a second power compact once the current one concludes next year.

MCA-M chief executive officer Dye Mawindo:Second Malawi compact fate in December,

MCC, provided the money for the energy compact, which is a single sector programme, to support the Malawi government to increase the capacity and stability of the national electricity grid and the efficiency and sustainability of hydro-power generation.

The Malawi government is expected to know in December this year whether it qualifies for the second compact after the expiry of $350.7 million (K256 billion) five-year energy compact in September 2018.

The  latest scorecard, which analyses individual country’s policy indicators, shows that Malawi passed half of the 20 indicators overall, including those on control of corruption and democratic rights.

MCC scorecards comprises 20 indicators measuring policy performance in the areas of economic freedom, investing in people, and ruling justly, and are produced for all low and lower-middle income countries.

The scorecards, including the Malawi scorecard, are available online at

For instance, Malawi has scored highly on health expenditures under investing in people which is at 96 percent and access to credit under economic freedom which earning her 96 percent as well.

According to a statement issued by US Embassy to Malawi, the scorecards use indicators developed by independent, third-party sources, and provide an objective basis for comparison of the policy performance of all candidate countries.

The statement claims that MCC’s Board of Directors uses scorecard performance as one consideration in its decision-making when selecting country partners at its annual country selection meeting each December.

MCC and Malawi government signed a $350.7 million compact in 2011 to revitalize the country’s power sector.

This compact will end in September 2018. The MCC compact, implemented by Malawi government through the Millennium Challenge Account (MCA), is designed to increase the capacity and stability of Malawi’s national electricity grid, bolster the efficiency and sustainability of hydropower generation, and prepare for future expansion by strengthening power sector institutions, regulation, and governance.

Through collaborative implementation with project partners (the Electricity Supply Corporation of Malawi [ESCOM], the Electricity Generation Company [EGENCO], the Ministry of Natural Resource, Energy and Mining, and the Malawian Regulatory Energy Authority [MERA]), the compact aims to reduce poverty by modernizing Malawi’s power sector and improving the availability, reliability, and quality of the power supply through investment in infrastructure development project.

The compact also to create an enabling environment for future expansion of the power sector by strengthening sector institutions and enhancing regulations and governance of the sector through investment in the power sector reform project.

“While Malawi’s MCC compact remains largely on track to complete all major works prior to compact completion in September 2018, the sustainability of MCC investments will require the continued commitment of the Government of Malawi and project partners to achieve power sector reform goals, including an electricity tariff and policy environment that allows the power institutions to cover the cost of producing electricity, expand and maintain the electricity grid, and encourages private sector investment in power generation.

“The publication of MCC scorecards underscores the agency’s commitment to transparency, which is integral to the MCC model and a key component of enhancing U.S. foreign assistance effectiveness and ensuring accountability for U.S. taxpayer resources,” reads the statement.

The compact programme comprises three components, namely infrastructure development, power sector reforms and environment and social performance.

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4 years ago

Kodi inu Azungu inu with this Report of yours yoti we have done better confuses me alot now my questions why are people in thje opposition claiming that the Peter DPP government is failing and has failed???? please chonde kapena it’s because of IGNORANCE UMBULI WA IFE AMALAWI??????

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