BUILDING THE FUTURE OF MALAWI: CONNECTED, SUSTAINABLE, AND SMART COMMUNITIES 18.1 Overview Malawi is at a critical juncture. Decades of underinvestment, unplanned growth, and fragmented development have left our urban and rural areas under-resourced and inefficient. Urban migration has led to overcrowding, unemployment, and poor living conditions in cities, while rural communities struggle with limited access to basic services. Malawi is still an open canvas, ready for a bold, visionary approach to urban and rural development. To unlock its full potential, we must embrace strategic planning, modern infrastructure, and sustainable growth models that foster eco-systems for development. Aligned with MW2063’s Urbanization Pillar and key enablers such as Governance, Technology Adoption, and Inclusive Wealth Creation, UTM’s Smart City and Smart Village Initiative offers a bold, transformative framework for sustainable development. By moving away from fragmented development and strategically directing our limited resources, we will build sustainable ecosystems, integrating modern infrastructure, green technologies, and community-driven economic models. This approach will transform Malawi into a nation of connected, vibrant, and self-sufficient communities.
18.2 Challenges in Urban and Rural Development
Regressive and slow-to-adapt leadership: Failing to embrace new technologies and modern urban planning, leaving Malawi with outdated infrastructure and unprepared for the future.
Unplanned Settlements: Haphazard growth in both urban and rural areas has led to inefficient resource use and poor service delivery.
Overcrowding and Urban Migration: Rapid urbanization strains existing infrastructure and creates high unemployment in urban centers.
Limited Infrastructure: Basic services like clean water, electricity, healthcare, and education remain inaccessible to many rural populations.
Revenue Shortfalls: Poor land management and inadequate urban planning limit potential revenue from property rates and taxes.
Environmental Degradation: Unsustainable land use practices threaten ecosystems and biodiversity
18.3 Target Milestones By 2030, UTM aims to:
Develop five Smart Eco-Cities and ten Smart Eco-Villages, through the DDA’s, in strategic locations beyond major cities, leveraging low-hanging development opportunities to serve as models of sustainable growth and innovation.
Provide affordable housing for 500,000 Malawians, integrating eco-friendly designs.
Achieve universal access to clean water, electricity, and internet connectivity in Smart Cities and Villages.
Create 4 million jobs through integrated economic zones, mega farms, and
industrial hubs linked to Smart Cities and Villages.
Reduce urban congestion in cities like Lilongwe, Blantyre and Mzuzu by 50% through urban renewal projects.
18.4 UTM Pledges: Smart City and Smart Village Transformation 18.4.1 Smart City Development Alignment with MW2063: Advances Urbanization and supports economic hubs for inclusive development. UTM Pledges:
Through the DDA’s we will upgrade Lilongwe, Blantyre, Zomba, and Mzuzu into Smart Eco-Cities with modern infrastructure, mixed-use high rise developments to curb urban sprawl, pedestrian and cycling lanes, efficient transportation systems, and expansive green spaces for a sustainable urban future.
Develop smart industrial parks and business districts within cities to attract investment and create jobs.
Transform informal settlements into planned neighborhoods with access to utilities, sanitation, and affordable housing.
18.4 UTM Pledges: Smart City and Smart Village Transformation 18.4.1 Smart City Development Alignment with MW2063: Advances Urbanization and supports economic hubs for inclusive development. UTM Pledges:
Through the DDA’s we will upgrade Lilongwe, Blantyre, Zomba, and Mzuzu into Smart Eco-Cities with modern infrastructure, mixed-use high rise developments to curb urban sprawl, pedestrian and cycling lanes, efficient transportation systems, and expansive green spaces for a sustainable urban future.
Develop smart industrial parks and business districts within cities to attract investment and create jobs.
Transform informal settlements into planned neighborhoods with access to utilities, sanitation, and affordable housing. 18.4.2 Smart Village Revitalization Alignment with MW2063: Supports Inclusive Wealth Creation and rural-urban connectivity. UTM Pledges:
Through the DDA’s Implementation Framework, we will develop Smart Villages in every district, providing a long-overdue transformation with modern, affordable housing, healthcare, schools, and renewable energy systems.
Offer low mortgage rates to co-op farmers, build agri-business centers, markets, and small-scale OVOP and big scale ODOP industries to provide rural employment opportunities and wealth creation.
As land relocations occur due to infrastructure projects, mines, mega farms, or consolidated land initiatives, affected communities will be provided with low cost loans, besides their compensations, for affordable housing options to ensure stability and improved living conditions.
Provide free housing plans to rural communities to promote organized, modern settlements, aligning with the Ministry of Lands’ new land and urbanization policies for sustainable development, and provide title deeds.
Promote sustainable practices like water harvesting, and eco-tourism.
18.4.4 Technology and Connectivity Alignment with MW2063: Promotes Technology Adoption and economic transformation. UTM Pledges:
Deploy broadband internet and digital infrastructure across all Smart Cities and Villages to bridge the digital divide.
Integrate e-governance platforms for efficient service delivery, including online permits and land registrations. 18.4.5 Economic Hubs and Anchor Industries Alignment with MW2063: Fosters Industrialization and enhances local economies. UTM Pledges:
Establish mega farms, mining zones, and tourism hubs as economic anchors for Smart Cities and Villages.
Leverage agro-processing and value addition industries to create jobs and boost GDP.
Develop trade corridors and logistics hubs to facilitate regional and international commerce.
18.5 The Role of DDAs in Implementation
Coordinating Development: DDAs will work closely with the Malawi Development Agency (MDA) and the National Planning Commission (NPC) to align local development projects with national priorities.
Planning and Zoning: Ensure efficient land use through proper zoning and sustainable urban planning.
Infrastructure Implementation: Oversee the construction of key infrastructure, including roads, housing, and public facilities, in both Smart Cities and Smart Villages.
Community Engagement: Facilitate active participation from local communities to ensure equitable resource distribution and inclusive development.
Monitoring and Accountability: Conduct regular audits and progress reports to ensure transparency and effectiveness in project execution.
18.6 Estimated Investment and Funding Mechanisms Estimated Investment: $10-15 billion over the next decade to transform Malawi from the ground up Proposed Funding Sources:
National Budget Allocation for Smart Development: Commit 30% of the annual budget over the next five years to fund Smart City and Smart Village development projects through District Development Agencies (DDAs). This investment will support cross-cutting sectors, including infrastructure, housing, renewable energy, digital connectivity, healthcare, education, and economic hubs, ensuring a holistic and sustainable transformation of urban and rural communities.
Public-Private Partnerships (PPPs): Attract private sector investment to cofinance infrastructure, housing, and industrial zones.
Malawi Housing Corporation: Malawi Housing will fund the Social Housing Component of the Smart City and Smart Villages offering low interest rate mortgages
Public and Private Pension Funds: Leverage the Public Private Pension Investment Corporation (PPPIC) to invest in safe projects within the Smart City and Smart City designated Zones. Not limited to Mega Farms, Value Add industries, Electricity Transmission, Solar or Wind Farms or Hydrogen Energy sources, Toll Roads.
Crowdfunding & Fintech Solutions: Use digital platforms such as GoFundMe, Kiva, and housing projects crowdfunding initiatives to enable broad-based microcontributions towards housing and other projects.
Diaspora Bonds & Investment Funds: Draw some funding from the newly formed Dziko Bond and other Investment Funds for projects implementation.
Green Financing: Secure international climate funds for eco-friendly and sustainable initiatives.
FDI and Social Impact Bonds: Collaborate with foreign investors to support housing, technology, and industrialization projects tied to measurable outcomes.
Malawi Stock Exchange: Leverage the Stock exchange for various project investments in the Smart City and Smart Village Designated areas.
Ground and City Rates: With the implementation of new and improved land management laws, the government will enhance the collection of ground and city rates nationwide, ensuring better revenue generation for urban development and public services.
Conclusion The Smart City and Smart Village Initiative represents a bold new chapter in Malawi’s development journey. Aligned with MW2063’s Urbanization and Inclusive Wealth Creation Pillars, this initiative will create sustainable, connected, and economically vibrant communities that meet the needs of the present while preparing for the challenges of the future. Under UTM leadership, Malawi will transition from fragmented growth to organized, innovative development. Together, we will build cities and villages that are hubs of opportunity, engines of prosperity, and models of sustainability for generations to come.
