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Malawi should get 345 million Euros from the 9th European Development Fund during the 2001-2007 period, according to a European Union's strategy paper. The European aid will be allocated mainly to the agriculture and to the transport sectors, as well as on macro-economic support focussed on the education and health sectors.
Assistance in agriculture will target diversified rural production and income generation. The objective is to improve national food security and household food self-sufficiency. The EU is concerned that the performance of this sector is much below its potential, due to "deficient policies, ineffective institutional arrangements and capacities, rapid environmental degradation, limited off-farm employment and inadequate access to productive assets like land".
The EU's objective is also to maintain and upgrade the main roads network through the National Roads Authority and to finance through a labour intensity public works programme the improvement of the rural feeder roads.
In addition, European money should help improve the links between Malawi's internal markets and the regional/global market, on the corridor leading to the Mozambican port of Nacala. So far, says the document, "in contrast to some other sectors there has ...