Urbanisation and Poverty - International Development Committee Contents


Written evidence submitted by Gilbert Chilinde, Physical Planner—Policy Monitoring and Evaluation, Malawi

URBANIZATION AND URBAN POVERTY IN MALAWI

Introduction

  1.  This paper gives a brief overview of the current status of Malawi's urbanization challenges in line with the commitment to achieve the Millennium Development Goals (MDGs).

BASIC INFORMATION ON MALAWI


Area
118,000 sq km

Population
2008
13,066,320
Population over 18
2008
6,216,432
Population density
2008
139 persons per sq Km
Percentage under 15s
2007
47%[4]
Life expectancy at birth
2006
Male, 47: Female, 48[5]
Number of households
2008
2,957,693
Mean household size
2008
4.4 persons
Intercensal growth rate
1998-2008
2.8% pa
Gross Domestic Product[6]
2007
US$10.59billion
GDP per capita (US$, PPP)
and ranking[7]
2007
$800
9211/225)
Annual economic growth rate
2006
8.5%
Prevalence of HIV/AIDS (aged 15-49)
2008
12%
Under-5s mortality rate per thousand
2005
120
Consumer Price Inflation rates
May 2008
National
7.9%
Urban
10.3
Composite Consumer Price index (2000 = 100)
Feb 2008
National
276.4
Urban
308.7
Human Development Index
and ranking[8]
2007-08
0.437
(164/177)
Percentage below poverty line
2004
52.4%
Urban Gini Co-efficient
1997-98
0.52
Percentage urban population
2008
44%

Source: Quarterly Statistical Bulletin, June 2008, NSO, Zomba.

BACKGROUND

  2.  Malawi has four major urban centres with city status namely; Blantyre, Lilongwe, Mzuzu and Zomba. There are also eight secondary towns namely; Karonga, Kasungu, Salima, Dedza, Mangochi, Balaka, Liwonde and Luchenza. In addition, there are twenty three district centres and more than seventy nine market centres spread across the country. These cities, towns and centres are all growing rapidly and at unprecedented rates.

  3.  The natural urban population growth is attributed to high fertility rate at 4.2 (Population and Housing Census, National Statistics Office, 2008) alongside rapid rural-urban migration. The harsh rural environment, decreasing rural land holdings, inadequate off farm economic activities, environmental degradation due to wood fuel harvesting are all influencing decisions for the exodus to new urbanizing centres, towns and cities on promise of better life opportunities for formal employment and better education (Englund 2001, Kayuni and Tambulasi, 2005, Chilinde, 2008). The resulting effect is the urbanization of poverty due to the growing number of the rural poor who are moving to the urbanizing centres, towns and cities.

  4.  In 2007, the United Nations Population Fund reported that Malawi has been urbanizing at the rate of 6.3% per annum between 2000 and 2015, or at an average rate of 4.7% from 2005-10 making Malawi one of the fastest urbanizing countries in Africa and the world. It further estimated that Malawi's urban population as a percentage of the total population will have doubled from 16.3% in 2003 to 32% in 2030.

  5.  According to the World Urbanization Prospects of 2001, the absolute urban population growth in Malawi will overtake rural growth before 2025 with an urban population increase of 214,000 per annum during 2020-25 compared to 193,000 in the rural areas. The outlook further revealed that from 2025-30 the annual urban population increase will be 225,000 compared to 187,000 for the rural areas. It is clear therefore that achieving sustainable urbanization is one of the most pressing challenges facing Malawi.

MANAGING URBANIZATION CHALLENGES

  6.  Malawi is a signatory to the Millennium Declaration of the United Nations on the Millennium Development Goals (MDGs) and the Government's challenge is to ensure that Malawi meets the MDG targets on improving the lives of people living in slums by among other things spearheading a two pronged approach that addresses slum upgrading and slum prevention. This will also impact on such indicators like health, water and sanitation, and reduction of urban poverty among others.

  7.  The critical factor to note about the rapid urbanization in Malawi is that although the economy has been registering substantive average growth above 6% per annum between 2004 and 2009, the majority of the urban residents particularly those who live in informal settlements are yet to realize the benefits of this growth. This is attributed to inadequate participation by the urban poor and National budgetary constraints to deliver adequate community infrastructure and services. The result is the increasing urban poverty manifested by the highest incidence of communicable diseases such as cholera in urban poor areas in the cities with Lilongwe being highly affected in 2008 (Ministry of Health, Official Statement aired on Malawi Broadcasting Corporation).

  8.  The Welfare Monitoring Survey of 2005 by the Malawi National Statistics Office reported that about 24% of the urban population was living in poverty representing 5.5% of the poor in Malawi and 11% of the total population. However, quoting an economic paper from the Ministry of Finance, the Daily Times business page of Monday 25 May 2009 reported that urban poverty has been reduced from 24% in 2005 to 11% in 2009 (where poverty meant earning less than MK16165 per person per year about US$130 at 2005 Exchange rates).

  9.  However, most of the informal settlements where 66% (1.468 million) of the urban population lives in Malawi (State of the World Cities Report 2008-09, Moyo, 2008) are still characterized by slum conditions such as poor access and/or dusty roads and no electricity, absent or inadequate social services like health, education, water and sanitation. In addition, insecure tenure due to squatting and poor housing conditions are mutually related and reinforcing in these settlements. The problem of squatting is due to the poor being priced out of the legal housing and land markets because of high demand against supply side constraints that increase land and house prices to the disadvantage of the low income groups.

  10.  The housing shortage in Malawi's cities is further attributed to inadequate capacity of the financial sector to support housing supply on a significant scale. The NBS Bank is the only institution providing long-term mortgage financing. Although reduced government borrowing from 2004 and competition has forced other commercial banks to embark on three year term lending, the amortization period is perceived as too short for home financing (Kaluwa, 2008). The result is that low income people are not able to access loans for housing finance due to high pricing that make many people unable to afford high monthly installments.

  11.  The Malawi Housing Corporation (MHC), a government institution has built conventional housing in low, medium and high density areas but has never been able to meet the demand. Its current housing stock stands at 6,000 located throughout Malawi with the majority in the four cities. Despite budgetary constraints, MHC has plans to construct 5,000 houses and service 5,000 plots between 2008 and 2012. It is also planning to construct 32 student hostels for the University of Malawi in Zomba, Blantyre and Lilongwe as well as the University of Mzuzu. However, this is still inadequate in view of the current demand which stands at 100,000 applicants waiting for house allocation (Malawi Housing Profile, 2009 UN-Habitat-Malawi, Unpublished).

  12.  Some low income urban poor community saving groups have been accessing housing funds from the Mchenga Fund through the Malawi Homeless Peoples Federation (MPHF) and the Centre for Community Organization and Development (CCODE), a non governmental organization. According to Manda, (2007), the fund stood at MK120 million (US$850,000) in 2007. Between 2003 and 2009, the Mchenga Fund provided loans to over 1,500 people, 80% of whom are women from urban poor communities. The loans have resulted in the construction of 768 new dwellings in three projects, 100 new sanitation facilities, 200 home improvement projects and 300 loans were given for small businesses. Due to declining donor funding amidst high demand for service from the Mchenga Fund, CCODE is looking for other sources of financing to enable it reach out to more urban poor community groups.

  13.  The rate of unemployment in urban areas is very high such that Blantyre City reported a rate of 57% in its Structure Plan of 2000. The most important feature to note is that some of the unemployed engage in petty trading whose visible manifestation is street vending. This has created running fiascos between urban authorities and Vendors in an attempt to control vending which contributes to littering in the Cities. The City Assemblies with the help of the Police cleared the illegal stalls which the vendors erected along the city streets and pavements in an exercise dubbed "Operation Dongosolo" in 2004. Much as this was welcomed by the public, analysts said the operation destroyed livelihoods for the unemployed urban poor (Kayuni and Tambulasi, 2005).

  14.  In the period 2006 to 2011, Government's Malawi Growth and Development Strategy (MGDS) prioritized infrastructure development one of which were urban roads. A number of roads have been constructed and/or improved in the cities of Blantyre, Lilongwe, Mzuzu and Zomba. However, it is expected that the programme will be extended to bituminize access roads to low income areas particularly in High Density Traditional Housing Areas (THAs) and other settlements to the standard currently available in Low Density Housing Areas.

  15.  Solid Waste Management is a problem in Malawi's Urban Centres because disposal is mainly through sanitary landfill and open dump methods and few are incinerated, and recycled In many smaller urban centres the major method of solid waste management is open dumping and is obviously more harmful and leads to many environmental and health hazards (Kayuni and Tambulasi, 2005). Currently, the Lilongwe City Assembly is about to pilot a participatory solid waste management project dubbed, "Waste for Wealth: Promoting a Zero Waste Environment" in partnership with the private sector, two non-governmental organizations and the community. Support to upscale such a project to other urban centres once the pilot is successful will be of paramount importance to ensure a cleaner urban environment.

  16.  Promoting Building Technology and Research Development to identify, evaluate and test appropriate technologies related to shelter is also important. Such a programme could spearhead access to low cost technologies for shelter that will improve access to affordable and quality housing, water and sanitation technologies. This Programme could be tasked with learning about novel technologies and best practices from other countries and testing them for use in Malawi. Availability of this type of information would ensure that decisions on optimal technologies for use in Malawi are evidenced based. The programme could also facilitate use of these technologies if government is supported to establish operational building technology regulations. In addition, support to existing institutions like the Commission for the Establishment of the University of Science and Technology, the Technical Entrepreneurship and Vocational Training Authority (TEVETA) and National Construction Industry Council could create a linkage between these new technologies and the workers, so as not only to have abundant skilled labour but a workforce that understands and can implement the new building technologies.

BIBLIOGRAPHY

Englund H. (2002) "The Village in the City, the City in the Village: Migrants in Lilongwe" in Journal of Southern African Studies. 28 (1) 137-154

Chilinde G.P. Ntata P. and Chipeta L. "Participation in Community Driven Development among the Urban Poor: The Case of Lilongwe City" Kamlongera C (ed) Challenges in Promoting Community Driven Development: Some Learning Experiences from the Malawi Social Action Fund, Jhango Heinemann Publishers 180-216

Kaluwa B. (2008) Urban Dynamics and Poverty: Policy Dilemmas and Paradoxes in Service Provision. Paper presented at the First Malawi Urban Forum, 8-9 December 2008, Unpublished.

Kayuni H and Tambulasi R, (2005). What does Commitment to Environment and Development Imply for Urban Centres in Malawi? Paper presented at the Urbanization, Environment and Development in Africa seminar 25-28 February 2005 Stellenbosch, South Africa.

Manda, M A.Z. (2007) "Mchenga—Urban Poor Housing Fund in Malawi" in Environment and Urbanization, 2007 19:337.

Moyo M. (2008) Urban Planning for Harmonious Urbanization in Malawi: Challenges and Perspectives. Paper presented at the First Malawi Urban Forum, 8-9 December 2008, Lilongwe, Unpublished.

National Statistical Office (2008) Malawi Housing and Population Census Preliminary Report, Zomba

UN-Habitat (2009) Harmonious Cities: State of the World Cities Report 2008-09, Earthscan.

UN-Habitat-Malawi (2009) Malawi Housing Profile, Understanding how the housing sector works, Unpublished Draft.







4   World Bank,(2009: 352). Back

5   World Bank,(2009: 352). Back

6   IndexMundi. Back

7   IndexMundi. Back

8   "The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and enrolment at the primary, secondary and tertiary level) and having a decent standard of living (measured by purchasing power parity, PPP, income)" (UNDP, 2008). Back


 
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