MACRA Strategic Plan 2015-2020

M a l a w i C o M M u n i C a t i o n s R e g u l a t o R y a u t h o R i t y

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To facilitate the development of the ICT Sector through efficient and effective regulation and research

Mission

ValuesOperational ExcellenceStakeholder/Customer focusInnovationTeamworkTransparency & AccountabilityIntegrity

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VisionUniversal access and usage of ICT services in Malawi


ABBREVIATIONS AND ACRONYMS iii

LIST OF TABLES iv

LIST OF FIGURES iv

FOREWORD FROM THE BOARD CHAIRPERSON ii

OVERVIEW FROM THE DIRECTOR GENERAL iii

EXECUTIVE SUMMARY iv

1.0 INTRODUCTION 1

1.1 Institutional Mandate 1

1.2 Performance Review of Strategic Plan 2010-2015 1

1.3 Approach used to develop the Strategic Plan 3

2.0 STRATEGIC ANALYSIS 5

2.1 Internal Analysis 5

2.2 External Analysis 5

2.3 Key issues 13

3.0 2015—2020 STRATEGIC DIRECTION 15

3.1 Vision of MACRA 15

3.2 Mission of MACRA 15

3.3 Values of MACRA 15

3.4 Strategic Objectives and Initiatives 17

3.5 Critical Success Factors 22

3.6 Key Strategic Assumptions 22

4.0 IMPLEMENTATION ARRANGEMENTS 23

5.0 CONCLUSION 29

APPENDIX 1: MACRA’S CORPORATE SCORECARD 31

APPENDIX 2: 2015/16 -2019/20 FISCAL YEARS BSC -14 KEY MEASURES AND KPIs 36

APPENDIX 3: MACRA’S RISK MANAGEMENT 37

Table of Contents


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VisionUniversal access and usage of ICT services in Malawi

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BSC Balanced ScoreCardCERT Computer Emergency Response TeamCIRMS Consolidated ICT Regulatory Monitoring SystemCOMESA Common Market for Eastern and Southern Africa CRASA Communication Regulators’ Association of Southern AfricaCSR Corporate Social ResponsibilityDG Director GeneralDHRMD Department of Human Resources Management and DevelopmentDOB Director of BroadcastingDOFA Director of Finance and AdministrationDOLS Director of Legal ServicesDOP Director of Postal ServicesDOT Director of TelecommunicationsDSL Digital Subscriber LineDTH Direct To HomeFMM Frequency Monitoring ManagementFreq FrequencyFY Financial YearGDP Gross Domestic ProductGoM Government of MalawiICT Information and Communication TechnologyIDI ICT Development IndexIP Internal ProcessITU International Telecommunication UnionKPI Key Performance IndicatorLG Learning and GrowthMACRA Malawi Communication Regulatory AuthorityMCT Multipurpose Communications TelecentresMGDS Malawi Growth and Development StrategyM&E Monitoring and EvaluationMFEPD Ministry of Finance, Economic Planning and DevelopmentMK Malawi KwachaMOU Memorandum of UnderstandingOMTI Objectives, Measures, Targets and InitiativesPESTEL Political, Economic, Social, Technological, Environmental and LegalSADC Southern Africa Development CommunitySDNP Sustainable Development Network ProjectSWOT Strengths, Weaknesses, Opportunities and ThreatsTV TelevisionUA Universal AccessUSF Universal Service FundVSAT Virtual SatelliteYTD Year to Date

Abbreviations and Acronyms

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Figure No. Description Page No.

Figure 1 Performance as per strategic outcomes 2

Figure 2 Overall performance of SP2010-2015 2

Figure 3 MACRA Strategy Map 2015/16-2019/20 16

List of TablesTable No. Description Page No.

Table 1 ICT Sector players in Malawi 7

Table 2 ICT penetration and usage in Malawi during 2013 8

Table 3 ICT Development-Selected African Countries 11

Table 4 Comparison of IDI, Ease of Doing Business & Global Competitiveness 12

Table 5 Summary of opportunities and threats 13

Table 6 Proportion of Cost Categories per Total Cash flow 23

Table 7 Current staff establishment 24

Table 8 Key measures and performance indicators 26

List of Figures

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On behalf of the Board of Directors of Malawi Communications Regulatory Authority (MACRA), I am grateful to present the 2015-2020 Strategic Plan which has been developed after thorough consultations with our stakeholders.

Firstly, I wish to commend MACRA for the efforts and professionalism in which the organization has shown in serving the country in regulating ICT services.

The development of the new Strategic Plan covering the period 2015 to 2020 has been necessitated by the Malawi Growth and Development Strategy II - MGDSII which identifies ICTs as a key factor in the development of the country’s economy. The Plan aims at attaining one of the Strategy’s key thematic areas’ sub theme 4 on infrastructure development. It also recognizes MACRA’s central role as a regulatory body on ICT and its contribution to the National ICT Policy goal of “contributing to socio-economic development through maximum integration of ICT in all sectors and the provision of ICT services to the rural areas.” The Strategic Plan is a detailed integration of key Government and ICT sector policies and strategies.

MACRA will focus on consolidating the successes it achieved over the years and further build and strengthen its mandate in this regard. The Authority will endeavour to align its activities to the ICT policy in order to improve the lives of all Malawians in as far as telecommunications, broadcasting and postal services are concerned, and to position the ICT sector as a key driver of the economy.

In order to realise this undertaking, MACRA will periodically be reviewing the Strategic Plan to ensure that its regulatory

programmes, budget allocations, skills base and human resources are properly adjusted to respond to the prevailing environment so as to effectively contribute to the national development agenda.

It is our hope that after the next five years, Malawi will be able to make strides in the achievement of a knowledge-based economy and information-rich society by turning the ICT potential into real benefits for its people as well as closing the digital divide gap.

As MACRA’s Chairperson, I would like to assure management of the Board’s support and guidance towards the implementation of this plan. I also wish to thank all those who participated in the planning and designing processes as well as those that have continuously supported MACRA in coming up with this comprehensive guiding tool.

Ms. Mervis Mangulenje

From the Board Chairperson

ForewordFrom the Board Chairperson

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During the past 5 years, MACRA’s operational performance has greatly improved. All the sub sectors we regulate i.e. telecommunications, broadcasting and postal have evolved and we have worked tirelessly to ensure that services are

available to most Malawians with more emphasis in the rural and under-served areas.

I am therefore pleased to present the third MACRA’s 5-Year Corporate Strategic Plan for the period 2015-2020. This Strategic Plan, which is based on the Balanced Scorecard methodology, is yet another indication of what MACRA strives to achieve in serving the ICT sector better. This methodology has structured the Plan into four perspectives that are critical for achieving our vision of “Universal access and usage of ICT services in Malawi”. This will provide a basis for evaluation of the Authority’s performance by our stakeholders over the implementation of the Plan. The four perspectives include: (i) Customer/Stakeholder engagement, (ii) Internal Processes alignment, (iii) Learning and Growth, and (iv) Financial prudence and credibility.

This Strategic Plan builds on the achievements attained in the first strategic plan (2010-2015) and is built around two core strategic areas of regulation and research that are critical for operational excellence and financial sustainability. Extensive consultations were conducted during the preparation in order to ensure that the Plan reflects both institutional and stakeholder aspirations.

Furthermore, assumptions were made in the preparation of the Strategic Plan that formed part of the foundation on which the Plan has been built. The Plan assumes, among others, that there will be continued Government and other stakeholders support for universal access and usage of ICT services in Malawi. It also assumes that MACRA will be permitted to function independently according to the existing and revised legislation.

The implementation of this Plan has been designed to run on annual basis to allow MACRA evaluate its performance and therefore be able to refocus its efforts in the subsequent financial year. We will use it to prioritise our forward programmes through successive annual budget and work plans. The flexibility in the implementation process will ensure that the Plan is adaptable to key developments in national development agenda as well as policy and legislative environment. The Plan has also highlighted the risks that could hinder its smooth execution and provided the mitigation measures.

I take this opportunity to express my sincere appreciation to all those who were involved in the formulation of this strategic plan at different levels. Special thanks go to the MACRA Board for their guidance and input and members of staff who made invaluable contributions in developing this plan. I would also like acknowledge our licensees for their compliance to the country’s ICT regulations over the years as well as key stakeholders for providing input to the Plan. We look forward to a continued good working cooperation as strategic partners in the development of ICTs in Malawi.

MACRA will diligently work with the various key stakeholders in the ICT sector to ensure achievement of the set targets in the Plan. I affirm my own commitment and that of the entire MACRA management and staff to give our unreserved efforts in the implementation of this Strategic Plan.

Mr Godfrey Itaye

OverviewFrom the Director General

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MACRA commissioned a strategic planning process to develop a new five year strategic plan 2015-2020 following the conclusion of Strategic Plan 2010-2015. Overall performance of Strategic Plan 2010-2015 was at 79 percent with substantial gains made in the areas of sustained and reliable financial performance as well as efficient and professional human resource. However, in order to consolidate the gains made and also to address the challenges that were encountered in the implementation of Strategic Plan 2010-2015, MACRA adopted the Balanced ScoreCard (BSC) methodology for the new Plan 2015-2020. The BSC is a well known tool for executing strategic plans since it looks at the four perspectives of managing and implementing strategy: (i) Customer/Stakeholder, (ii) Internal Processes, (iii) Learning and Growth and (iv) Financial,. Each section in this strategic plan was assigned specific annual milestones that will allow MACRA to achieve its mission.

MACRA is committed to conducting business efficiently, communicating openly and collaborating effectively with its stakeholders. The Plan identifies, the challenges, risks and opportunities MACRA faces and the strategies it will use to facilitate the development of the ICT Sector through efficient and effective regulation and research.

The Strategic Plan for MACRA is not prepared in isolation from other planning activities in Malawi. The plan has been prepared to be consistent with the aspirations of Malawi Growth and Development Strategy (MGDS II) and the National ICT Policy.

The Plan was developed through a process that involved; meetings and interviews with all the key stakeholders in the ICT sector (operators, Government agencies/ministries and consumers) and internal consultations with the Board and members of staff.

A situational analysis that was undertaken through the consultative process revealed the following key issues that merit MACRA’s urgent attention: a) Need to facilitate fair competition, promote consumer protection and to facilitate access

and usage of ICT services; b) Need to enhance operational excellence, pursue research, innovation and best practices; c) Need to facilitate secure ICT systems and services, the development of an effective and

efficient legal and regulatory framework and to promote a digital economy in a converged regulatory environment;

d) Need to strengthen relationships and communication with stakeholders; e) Need to foster regional and international cooperation in the ICT sector;f) Need to strengthen human capital, timely and reliable sharing of information, and;g) Need to increase revenue growth and management and to optimise resource allocation

and utilization;h) Need to improve institutional capacity and corporate governance for better service delivery.

Executive Summary

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Responses to these strategic issues culminated into the following strategic direction:

Vision: “Universal access and usage of ICT services in Malawi”.

Mission: “To facilitate the development of the ICT Sector through efficient and effective regulation and research.”

Values: Operational Excellence, Customer Focus, Innovation, Teamwork, Transparency & Accountability and Integrity

STRATEGIC OBjECTIVES:

Customer/Stakeholder Perspective –To achieve our vision, we should appear to our customers/stakeholders as:

C1: Strengthening relationships and communication with stakeholdersC2: Fostering regional and international cooperation in the ICT sectorC3: Promoting consumer protection C4: Facilitating access and usage of ICT servicesC5: Facilitating fair competition

Internal Processes- To satisfy our customers / stakeholders, we need to effectively and efficiently undertake the following business processes:

IP1: Enhancing operational excellenceIP2: Pursuing research, innovation and best practices IP3: Facilitating secure ICT systems and servicesIP4: Facilitating effective and efficient legal and regulatory frameworkIP5: Monitoring and enforcement of the legal and regulatory frameworkIP6: Facilitating investment in the ICT sector

Learning and Growth- To achieve our vision, we will sustain our ability to change and improve through:

LG1: Strengthening human capitalLG2: Timely and reliable sharing of informationLG3: Improving institutional capacity and corporate governance

Financial – To succeed financially, the Authority should aim at:

F1: Optimising resource allocation and utilizationF2: Increasing revenue growth

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The above objectives will be operationalised through the Balanced ScoreCard methodology which is shown in Appendix 1.

For proper Monitoring and Evaluation of the Plan’s performance, 14 Measures and their related Key Performance Indicators (KPIs) in the four perspectives of Customer/Stakeholder, Internal Processes, Learning & Growth and Financial have been extracted from the main Corporate Balanced ScoreCard and highlighted as key to achieve the above objectives. The measures and KPIs are shown in the table below:

Measure Key Performance Indicator By june 2020

Customer/Stakeholders

CI Customer Satisfaction Index 75%

C4 Voice Telephony Penetration 75%

C4 Internet Penetration 25%

C4 Postal and Courier Penetration 1:40,000

C4 Electronic Commerce Penetration 55%

C4 TV Broadcast Coverage(Population) 80%

Internal Processes

IP1 Percentage of projects completed 80%

IP5 Level of regulatory compliance 100%

IP6 ICT contribution to GDP 8%

Learning and Growth

LG1 % of employees with requisite skills to perform their jobs 100%

LG1 Employee engagement index 90%

LG1 Level of staff performance 80%

Financial

F1 Cost as a percentage of total revenue 40%

F2 Revenue yield 50%

Key PerformanceIndicator by june 2020

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COSTS AND FINANCING: Overall financial resource requirements to implement the Strategic Plan over the five years will be

provided through annual budget estimates approved by the Board and Government. The estimated cost for the strategy is MK 61 billion (including staff and capital costs) and is expected to be financed through annual budgets to be approved by the Board and Government through the Ministry of Finance. Over the period, recurrent costs account for 73% while capital costs account for 27%. Projected income to fund this strategic plan is mainly based on the income from; (1) operators i.e. license fees, frequency spectrum fees, annual levy payments, international call termination fees, licence renewal fees and (2) other income from short term investments and grants.

MONITORING AND EVALUATION OF THE PLAN: The overall responsibility for monitoring and evaluation of the Strategic Plan rests with the MACRA

Board, coordinated through the Director General. The monitoring, evaluation and control for the strategic plan is anticipated to achieve the following;• To track the implementation of scheduled activities;• To ascertain whether resources earmarked for the implementation of the scheduled activities

suffice and are delivering what they were planned to deliver;• To establish whether there are any un-anticipated challenges that may arise and seek ways of

solving them;• To evaluate whether planned outputs/outcomes were actually realized; and,• To ascertain whether the institutional capacity in terms of logistics, human and financial

resources are adequate to enable MACRA realize its vision and goals.The routine monitoring and evaluation activities and tools to be used shall entail among the following; regular Board and management meetings, annual strategic plan reviews by management, annual audits, annual performance reports, annual monitoring and evaluation reports and mid-term review reports.

RISKS TO THE PLAN:A number of risks and their mitigation measures have been identified for the successful

implementation of this strategic plan (Appendix 3). Key among these include; political interference, regulatory (conflicting laws, failure to pass new bills, etc), funding (delays in approval of budgets and release of funds), absence of dividend policy, reputation risk and inability to keep pace with rapid technological changes. The Plan outlines the risk mitigation measures as well as to counteract their occurrence.

Lay -out of Strategic Plan 2015-2020

The Plan is organized as follows: Chapter 1 gives is an introduction and background of MACRA including a performance review of Strategic Plan 2010-2015 and the methodology used to develop the Plan; Chapter 2 summarizes the situational analysis that informed the planning process. Chapter 3 presents in detail the strategic direction of MACRA over the next 5 years while Chapter 4 presents the key implementing arrangements including the financing, organisation and monitoring and evaluation. Finally, Chapter 5 presents the conclusion of the strategic plan.

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1.1 Institutional Mandate

MACRA was established under the Communication Act Cap 68:01 of the Laws of Malawi which was enacted in 1998. It is charged with the responsibility of ensuring that reliable and affordable ICT services are provided throughout Malawi. The Authority has power to regulate the whole communications sector in respect of telecommunications, broadcasting, postal services, and the management of the radio frequency spectrum.

MACRA plays a critical role in the management of Malawi’s ICT sector. According to its mandate, MACRA is required to;

i. Protect the interest of consumers, purchasers and users of telecommunications services. ii. Promote open access to information by means of communication services. iii. Promote efficiency and competition among the persons involved in telecommunication

services or supply of communications equipment. iv. Encourage the introduction of new communication services. v. Promote research in telecommunications including radio telecommunication. vi. Foster the development of communications services and technology in accordance with

internationally recognized standards.

In order to effectively accomplish this mandate in the next five years, MACRA has developed a strategic plan that will be used as a guiding tool to the Authority in planning and monitoring its activities to improve the delivery of services in the ICT sector. The plan has been prepared to be consistent with the aspirations of Malawi Growth and Development Strategy (MGDS II) and the National ICT Policy goals.

1.2 Performance Review of Strategic Plan 2010-2015

MACRA has been implementing a strategic plan from 2010 to 2015. The strategic plan had seven strategic outcomes with a total of 29 outputs. These strategic outcomes are listed below:

1) Developed effective and efficient legal and regulatory framework2) Developed effective enforcement system for compliance with communication Act,

regulations made under the Act and license obligations. 3) Efficient and professional human resource4) Increased access to ICT services 5) Sustained and reliable financial performance 6) Increased public awareness of MACRA’s existence and functions 7) Adequate and modern infrastructure acquired

1.0 Introduction

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1.0 Introduction

Figure 1: Performance as per strategic outcomes

Figure 2: Overall Performance SP 2010-2015

Figures 1 and 2 below give a summary of the performance against each strategic outcome of the previous strategic plan and overall performance respectively.

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75

25

67.063

67.0

100

33.0 3338 40

60

0 0 0 0 0 0 0 0 0

100

Non Compliant Outputs(%) Outputs Complied(%) Outputs Work in Progress(%)

StrategicOutcome 1

(N=4)

StrategicOutcome 2

(N=3)

StrategicOutcome 7

(N=2)

StrategicOutcome 3

(N=6)

StrategicOutcome 4

(N=8)

StrategicOutcome 5

(N=5)

StrategicOutcome 6

(N=1)

Non CompliantOutputs

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80

70

60

50

40

30

20

10

0% o

f out

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mpl

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CompliantOutputs

Work in Progress Overall Status of Implementation

21 45 34 79

% Implementation of Planned Outputs MACRA Strategic Plan 2010 - 2015

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In figure 1, the highest degree of execution of planned activities was registered under strategic outcome 6 (100% achievement) and strategic outcome 3 (67% achievement). It is also important to note that the worst performing outcome was 1 (registering 25% achievement).

In figure 2, overall performance of the strategic plan was registered at 79% (with 45% of outputs complied to and 34% still work in progress). The new Strategic Plan has taken note of the challenges that were encountered during the implementation of SP 2010-2015 and has put in place mechanisms to mitigate their negative effects.

1.3 Approach used to develop the Strategic Plan

The detailed methodology is given below:

• Review of SP 2010-2015 and key documents (Communications Act, Draft Communication Bill, MGDS II, ICT Policy): Prior to the planning meetings, a review of key documents was carried out in December 2014 to ascertain the current situation and operational environment of MACRA. Discussions were also made with respective Directors in MACRA

• Stakeholder Interviews: During December 2014, stakeholder consultations were carried out in all the three regions of Malawi. Stakeholders consulted included; Operators, Government Agencies and Ministries and Consumers. The views collected informed the planning workshops in December 2014 and January 2015.

• Management session/meeting on BSC training and Planning session: A two day session on the BSC training was conducted to the Management of MACRA which was followed by further three days of planning session in January 2015. The output of the planning sessions was a draft Corporate Scorecard

• BSC cascading: A four day workshop was organised in January 2015 with Management to cascade the Corporate BSC to individual Directories. The output of this workshop was detailed individual Directorates Scorecards

• Board session/meeting –a half-day session was organised on 10th January 2015 present the draft strategy to the new MACRA Board

• Final Draft Strategy- Comments on the draft strategy by Management made during February and March 2015 to produce the final document

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The strategic analysis is based on the examination of internal factors that comprise the Authority’s strengths and weaknesses as well as the external factors that either favour her success or constrain the ability to survive and grow. These factors are then summarised in form of key issues that MACRA should address over the next five years and form the bedrock of its strategy.

2.1 Internal Analysis

Internal analysis comprises an organisation’s strengths – the capabilities and endowments that can be deployed to produce goods and services that meet or exceed clients’ expectations or weaknesses that include inadequacies and limitations that constrain the ability to fulfil clients’ expectations.

2.1.1 MACRA’s Strengths• Legal Mandate-sole ICT regulatory authority• Government support• Has adequate financial resources• A pool of highly skilled staff• Recognized internationally by other ICT regulatory bodies and related organizations. MACRA

is a member of several local, regional and international bodies• Offices situated closer to most influential operators

2.1.2 MACRA’s Weaknesses • Perceived bias in regulation by operators • Taking long to respond to industry issues• Delays in giving feedback to operators• Inadequate customer relationship management practices• Inadequate enforcement of regulations arising from loopholes in the Communications

Act• Lack of a clear dividend policy which may influence unplanned demand for payment to

government• Current Organogram and office set-up inadequate to effectively deliver MACRA’s mandate• Inadequate policies and procedures to effectively manage day-to-day operations

2.2 External Analysis

The external analysis that was conducted analyzed the factors outside the Authority which can either promote or hinder institutional growth and sustainability. These were examined at three levels: (i) the Political, Economic, Social, Technological, Environmental and Legal (PESTEL)

2.0 Strategic Analysis

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2.0 Strategic Analysis factors that are occurring domestically in Malawi and on the international scene; (ii) regional ICT Development Index, Ease of Doing Business and Competitiveness Comparison, and (iii) the extent to which MACRA has met the expectations of its stakeholders. The issues emerging from these three levels are summarised as opportunities and threats currently facing MACRA.

2.2.1 PESTEL Analysis

2.2.1.1 Political Environment

a) Malawi has a stable political environment coupled with political goodwill to drive the ICT agenda as a key development issue as reflected in the overarching national development agenda, the Malawi Growth and Development Strategy III (MGDS III). The Government of Malawi has set ICT development as one of the priority areas for the socio-development of the country. Government aim at ensuring that ICT services are universally available in the country mainly the rural and under-served areas so that it acts as catalyst of economic growth and development. Government’s emphasis is that almost all sectors of the economy rely on ICT infrastructure and services to perform.

b) However, perceptions of political interference continue to undermine the Authority’s image as an independent regulator. In addition, MACRA as a statutory corporation is to an extent affected by the bureaucracy in Government set-up. This is because some of the Authority’s service delivery procedures involve seeking Government approval.

c) Malawi is a member of Common Market for Eastern and Southern Africa (COMESA) and Southern African Development Community (SADC). The representation at these regional blocks is at the Head of States which Malawi abides to by the decisions which are made at such high level meetings. This has accorded an opportunity to MACRA to have representation at both ARICEA and CRASA forums, respectively, that look at ICT regulatory and policy issues.

2.2.1.2 Performance of the Economy and ICT Sub-sector

a) GDP growth: Malawi’s national economy has relatively registered growth over the five year period. In 2010, the Gross Domestic Product (GDP) grew by 9.5 percent but it slumped to 3.5% and 2.1% in 2011 and 2012, respectively, due to challenges and policy bottlenecks including poor tobacco revenues, scarcity of foreign exchange, fuel shortages and power disruptions. The country also experienced high inflation rates over the five year period. Annual average inflation rate was at 7.6% in 2011 which escalated to 21.3% and 27.3% in 2012 and 2013 respectively, mainly due to devaluation of the Kwacha by about 150% over the last two years. The shortage of foreign currency will likely delay the ability of operators to fund further network upgrades. In 2014, the average annual price increase was at 19.4%. Over the past two years, the economic environment has stabilized and growth rates have picked up at 6.1% in 2013 and were estimated to have grown by 6.3% in 2014 based on the MFEPD, Annual Economic Report, 2014.

b) Information and Communication Sub-sector Performance: Over the same five year period, Information and Communication sub-sector has registered positive growth. The sub sector grew by 7.6 percent in 2010 contributing about 3.5% to the total GDP. However, there was a dip in the growth rate at 4.3% in 2011. Since then, the growth projectile has been upward

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with a growth of 10.9% in 2014. Nevertheless, the share of information and communication sub sector’s contribution towards GDP has averaged at 4% over the five year period which has slightly increased from 3.7% in 2011 to 4.2% in 2014. This increase wass attributed to the increasing investment in the sub sector and the diversification of different products on the market (Annual Economic Report, 2014).

i. Telecommunications industry: The ICT sector in Malawi has been liberalized with competition introduced in mobile, internet and the broadcasting services. Malawi has two major mobile network operators (MNOs): Bharti Airtel (formerly Zain) and Telecom Networks Malawi (TNM) Limited. A third licence was awarded to Celcom in 2011 with the company yet to roll-out. The Malawi Telecommunications Limited (MTL) and Access Communications Ltd (ACL) are the providers in the fixed line segment. MTL was privatized in 2005 and is 80 percent owned by Telecomm Holdings Limited, while the government retains the other 20 percent. During the implementation of the current Strategic Plan (2010-2015), MACRA introduced a unified licensing regime that provides for all operators to offer both mobile and fixed services. Currently, there are 15 licensed operational internet service providers in the sector.

• Broadband services: The Regulator adopted a converged licensing framework that has encouraged provision of broadband services by mobile and fixed line operators. Airtel and TMN launched 3G mobile services based on High Speed Downlink Packet Access (HSDPA) technology while MTL and ACL are operating Code Division Multiple Access (CDMA) fixed-wireless networks which support full mobility and broadband access using EV-DO technology. There has also been rollout of Wi-MAX network by MTL which is being used as a basis for Internet services by service providers. Internet service providers offer DSL services and WiMAX wireless broadband footprints. There were 202,499 3G subscribers in 2013. The subscribers of WiMAX and EVDO services are estimated to be around 355,867 and about 2,854 fixed broadband DSL subscribers.

Malawi’s broadband infrastructure has made a significant improvement in recent years with MTL extending fibre backbone network for connection to SEACOM through Mozambique, and access to the EASSy cable through Tanzania. As of 2012, there was a total of only 2,116 kilometres of fibre optic cable in the country connecting the commercial city of Blantyre to Lilongwe via Balaka, Zomba, Balaka, Salima and Dedza with a bandwidth capacity of 10 Gbps. The northern ring extends to Mzuzu via Kasungu and Mzimba. The statistics shown clearly indicate the dire need for improving broadband coverage in the country.

Table 1: Telephony and ISP Players in Malawi

Service Number of players

Telephony Services 5 (4 are operational)

Internet Service Providers 46

VSAT 230


1See ITU data, http://www.itu.int/net/pressoffice/press_releases/2013/41.aspx#.UvlSarTgpLM

Table 2: ICT Penetration and Usage in Malawi as of end 2014

Service Subscribers Penetration

Fixed 33,569 0.22%

Mobile 5,059,221 38.3%

Internet 934,000 6.7%

DSL 2,854 0.02%

3G mobile broadband 202,499 1.34%

WiMAX and EVDO 391,454 2.6%

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• Fixed line services: the situation of fixed line segment mirrors that of the African countries where penetration remains very low and declining. The number of fixed line subscribers was 33,569 in 2013 representing a penetration of about 0.22%. Only about 17% of the switching capacity is in use and this is likely to shrink further due to the inevitable substitution of main lines by mobile services.

• Mobile services: Malawi has been able to achieve 80% mobile signal coverage. However, with only one-third (38% penetration) of the population having access to the cellular network as of 2013, mobile penetration remains very low in comparison to the African average of about 76%, thus there is still potential for growth.

• Internet Services – the internet industry is competitive with over 12 operational ISPs, but the limited availability and high cost of international bandwidth has kept prices high and held back growth. Malawi’s internet penetration rate of about 6.7% in 2014 is seven times below the global average of 40%1. The country’s international internet bandwidth was about 2 Gbps in 2013. The International Outgoing internet bandwidth (Mbit/s) was 928 Mbps and the incoming bandwidth was 1,012 Mbps in 2013. There has been a significant drive for increasing access to the internet in rural and underserved areas to improve ICT usage at the household levels. The Government is implementing the Multipurpose Community Tele-centre project by establishing telecentres. The project aims at bridging the digital divide by empowering the rural communities to have access and utilization of ICTs services.

ii. Broadcasting industry The broadcasting sector has registered tremendous growth over the period under

review. The number of licensed or authorized radio stations has risen from 21 in 2011 to 51 by end of 2014. During the same period the number of licensed television stations increased from 4 in 2010 to 27 television stations in 2014.

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2.2.1.3 Social Developments

a) Malawi has a large and growing proportion of the young, dynamic and technologically savvy age group of between 10 to 45 years that has a high demand for existing and new ICT services. The demand for high quality communications service delivery is expected to continue to grow in the medium to long term.

b) Increased awareness of ICT, improved literacy levels and broadening up of ICT services have contributed to demand and consumption of ICT services. However, there is high income inequality between the rich and the poor and this has resulted in less consumption of ICT services mainly in the rural areas.

c) There is a shortage of advanced ICT skills in the country. The ICT sector skills are being developed through the four universities – the University of Malawi, Mzuzu University, Livingstonia University and the Catholic University that have colleges and computer science and engineering departments. Malawi Government has a National College of Information Technology (NACIT) that is fully dedicated to ICT and responsible for developing and producing ICT technicians and professionals at Diploma and Degree levels. However, academic training is not accompanied by industry certification and entrepreneurship skills.

2.2.1.4 Technological Advancement

a) Technological advancements have enabled the Authority to improve in its service delivery at minimal costs. This has led to MACRA to adopt modern monitoring tools in the area of frequency management, broadcasting and quality of services to assist with ensuring efficient operation of licensed operators in the ICT sector.

b) The fast changing technology has led to high staff training costs for the authority and other players in the sector as staff have to constantly keep upgrading their skills to keep pace with changes in the environment.

c) Issues of cyber crime is on the increase worldwide thereby slowing down the development of the sector, and leading to considerable losses by the affected operators and users. This has called for enhancement of cyber security in delivery of ICT services. CERT, Computer Emergency Readiness Team, has become critical. This is a team of experts set up to oversee and improve a country’s cyber security, coordinate cyber information sharing and

iii. Postal Sub-sector The postal and courier services performance was subdued over the period under review.

The sector experienced a decline in the number of licensed operators in the country from 16 in 2010 going down to 13 in 2014. Similarly, the number of all operators’ and agent outlets slightly decreased to 383 in 2014 from 388 in 2010 countrywide. This has worsened the postal and courier penetration (population per post office and/or courier outlet) from 1:35,000 in 2010 to 1:45,000 in 2014. This performance is mainly attributed to general economic climate in the country and the shift in traditional postal services (sending mail) to new ways of communicating by the population. There is need for postal agencies to take advantage of technology in offering value added services to the nation.


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proactively manage cyber risks to the nation while protecting the constitutional rights of its citizens.

d) There is a mismatch between the rate of legislative development and the rapid changes in the ICT technology with the former considerably lagging behind and therefore impeding investment and development in the sector.

e) MACRA has done very little in the area of Research and Development (R&D) in the ICT sector which has led to fewer innovations.

2.2.1.5 Environmental Factors

a) The rapid change in technology means an increase in the rate of obsolesce in the sector and calls for frequent replacement of obsolete infrastructure and equipment. This may lead to e-waste e.g. technological hardware discarded as a result of obsolescence.

b) In the sector, one of the major environment concern is the construction of towers for service provision. There have been calls from environmentalists to ensure that towers are shared by operators and where possible should be set on high rise buildings rather than open fields. MACRA has taken a proactive role to encourage infrastructure sharing and assess whether operators are complying with the environment conservation requirements as well as EMF radiation guidelines in the interest of the general public.

c) Power Shortage and Intermittent Supply: Malawi faces significant power shortages and intermittent supply with only 7% of the country having access to electricity, one of the lowest electrification rates in the world. The present distribution of electricity has tremendous implications for the use of ICTs in rural and underserved areas. The electricity grid is concentrated in urban centres, where 25% of urban households have access, compared to a mere 1 percent of rural households. The shortage does not only reduce the use of ICTs but also the cost of doing business in Malawi as most enterprises revert to backup generators.

2.2.1.6 Legal Environmenta) In Malawi, the ICT sector is governed by the Communications Act of 1998 and the recently

adopted ICT Policy Statement (2013). The Act provides for the establishment of MACRA and for regulation of the sector. However, the legal framework has been overtaken by new developments in the postal, telecom and broadcasting sectors. In particular, the important roles that broadband and convergence play and the shift from price regulation to consumer-led regulation especially in leading innovation, protecting consumers and fostering a knowledge economy have not been adequately addressed in the governing legal framework.

The Government of Malawi recognizes the shortcomings with the legislative framework and has recently finalized reviewing the Communications Act (1998). Besides, GoM is finalizing an Electronic Transactions and Management Bill that will provide for regulation in the broader IT sector. In the broadcasting sector, the government adopted a Digital Broadcasting Policy in 2013. Government has also been working towards adopting a policy

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

to use ICTs to stimulate other sectors and create a vibrant domestic ICT economy. This is evident in the inclusion of the ICT in its national development agenda, the MGDS.

b) The Ministry of Information, Communications Technologies and Civic Education has been leading the ICT policy development effort since 2006, yet the actual policy document was only adopted in September 2013. The objective of the policy is to facilitate the creation of an enabling environment for efficient, effective and sustainable utilisation, exploitation and development of ICT in all sectors of the economy, including the rural and underserved communities, in order to attain an information-rich and knowledge-based society and economy2. The policy covers eight thematic areas, which have been identified as necessary for ICTs to enhance rapid growth of the economy: strategic ICT leadership, human capital development, e-government services, ICT in industries, ICT infrastructure development, ICT in the priority growth sectors, responsive ICT legal regulatory and institutional framework, national security, international cooperation, and universal access to ICT and ICT related services. The ICT Policy is expected to stimulate the development of the sector and the revision of other legislations and regulatory frameworks. The 2013 ICT policy is operationalized through the ICT Master Plan of 2014-2031.

c) The sector is also affected by lack of legislation on E-waste, lack of a general understanding of the ICT laws by operators and other key stakeholders and delays in passing of judgements.

d) The low level of broadband infrastructure and the absence of the legislation in the areas of privacy, data protection, information security and cybercrime imply that Malawi’s participation in the cloud computing is at very early stages. While the basis of government cloud are being developed through a Government Wide Area Network (GWAN) which connects all ministries and department to improve efficiency in delivery of services and reduce costs and through a national web portal – www.malawi.gov.mw, there has been limited progress towards making public sector data available to public and private entities. The Government of Malawi has not yet adopted an open data approach for offering a large number of data sets to users.

Significant work lies ahead in terms of establishing a national data center and creating enterprise architecture, interoperability frameworks and crafting the legislations that will encourage open data and cloud infrastructure. The adoption of an Electronic Transactions and Management Bill is expected to boost the progress towards improved open data environment. On the users’ side, Malawi’s uptake on social media is on the rise. Facebook users for instance, are estimated to be around 200,000 (1.2% of the population) in 20133 with some decline in online activity due to a high cost for services. Thus, the potential for ICT use in governance and social media has not been reached.

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2Government of Malawi, Malawi ICT Policy,http://www.malawi.gov.mw/images%5CPublications%5CMalawi%20ICT%20Policy%20Final.pdf3http://www.socialbakers.com/facebook-statistics/malawi


2.2.2 Regional ICT Development Index Comparison

A comparison of IDI performance among selected African countries is given in the table below:

Table 3: ICT Development- Selected African Countries

Botswana 21,590 15 174,165 160.64

Kenya 57,033 39 205,856 70.59

Swaziland 4,200 24.7 46,000 71.47

Nigeria 15,045 38 360,537 73.29

Zambia 10,850 15.4 115,762 71.50

Uganda 41,500 16.2 207,474 44.09

Tanzania 51,903 4.4 164,999 55.72

Malawi 2,854 5.4 33,569 32.33

Mozambique 17,983 5.4 77,568 48.00

MobileCelllular

Subscriptionper 100

inhabitantsFixed Tel.

Subscriptions

%age of Individuals

using the internet

Fixed(Wired) Broadband

SubscriptionsCountry

Note: ICT Development Index (IDI) is based on ICT access, use and skills.Source: www.itu.int(MIS Report 2014)

Table 3 shows that Malawi, compared to other countries in the region scores quite low on the major IDI indicators and hence the need to scale up ICT access, use and skills in Malawi.

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s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

Table 4: Comparison of IDI, Ease of Doing Business and Global Competitiveness Indicators

Botswana 104 4.01 100 3.94 56 74

Kenya 124 2.79 124 2.62 129 90

Swaziland 128 2.60 128 2.43 123 123

Nigeria 133 2.35 135 2.14 147 127

Zambia 144 2.02 143 1.97 83 96

Uganda 146 1.94 144 1.90 132 122

Tanzania 152 1.76 152 1.72 145 121

Malawi 158 1.52 156 1.50 171 132

Mozambique 159 1.52 159 1.40 139 133

Rank 2013

(N=166)IDI

2013Rank2012

Rank(N=189)

Rank(N=144)

IDI2012

GlobalCompetitiveness

Index(2013)

Ease of Doing

Business(2013)

ICT Development Index(2012-2013)Country

Source: Ease of Doing Business Website (2014), Global Competitiveness Website (2014)

Looking at the ease of doing business and global competitiveness indicators, apart from Mozambique, Malawi scores lowly compared to other countries in the region.

2.2.3 Stakeholder Management

MACRA operates and coordinated with various stakeholders both internally and externally. Stakeholders interviewed (Staff, Operators and Government Agencies/Ministries) during consultations were of the view that MACRA has not been able to adequately deliver the following:• Reducing political interference which heavily impacts on MACRA’s independence and

corporate image; • Promoting universal ICT access and usage to all population;• Effectively enforcing sector regulations that have just been developed, licences and

reviewed Communications Ac;• Keeping abreast of recent trends and dynamics in the ICT industry;• Effective regulation through participation and representation in various fora; • Reorientation of MACRA to be a facilitator in the communications sector rather than focusing

on regulation;• Strengthening relationships with its operators;• Encouraging the participation of indigenous Malawians in the communications sector; • Ensure enhancement and respect for consumer protection.

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Table 5: Summary of Opportunities and Threats

The external analysis above culminates into the following opportunities and threats summarised in Table 5 below:

a) Increase in the use of ICT services a) Advancement in Technology

impacting on automation, e-learning, research and service delivery in the sector

b) Local and international partnership and benchmarking opportunities to improve the ICT sector in Malawi (Other regulators in SADC, COMESA and East Africa Community, ITU, ATU, etc)

c) Increased Government support on ICT development (ICT has been designated as one of the priority areas in economic development of Malawi)

d) Strengthening relationships with operators and other key stakeholders

a) Political influence in the operations of MACRA

b) Poor ICT infrastructurec) High cost of access to ICT services

among operatorsd) Shortage of ICT skills in the countrye) Delays in adopting new billsf) Rigid legal framework which limits

development of the sector g) Lack of electricity in rural areas

affecting ICT penetration and accessh) High inflation rate affecting the cost

of doing businessi) Dynamic changes in the industry

affecting the legal and regulatory landscape - happening at a faster pace than the legal framework

j) New technologies have led to the decline in the usage of traditional postal services

k) Cyber threats/crimel) Delays by the Judiciary in passing

judgement affecting MACRA operations

Opportunities Threats

2.3 Key issues

The internal and external analyses raised the following key issues that merit urgent attention:

Customers/Stakeholders1. Strengthen relationships and communication with stakeholders 2. Foster regional and international cooperation in the ICT sector3. Facilitate fair competition4. Promote consumer protection5. Facilitate access and usage of ICT services

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s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

Internal Processes6. Enhance operational excellence7. Pursue research, innovation and best practices 8. Facilitate secure ICT systems and services9. Facilitate the development of an effective and efficient legal and regulatory framework10. Promote a digital economy in a converged regulatory environment

Learning and Growth11. Strengthen human capital 12. Timely and reliable sharing of information13. Improve institutional capacity and corporate governance Financial14. Optimise resource allocation and utilization15. Increase revenue growth and management

These issues will form the foundation of the new MACRA strategy over the next 5 years.

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The strategic direction of MACRA includes its vision, mission, values, strategic objectives and actions/initiatives.

3.1 Vision of MACRA“Universal access and usage of ICT services in Malawi.”

3.2 Mission of MACRA“To facilitate the development of the ICT Sector through efficient and effective regulation and research.”

3.3 Values of MACRAIn pursuit of the above vision and mission, the attitude and conduct of the Board, management and all staff of MACRA will at all times be guided and bound by the following core values:

i. Operational ExcellenceMACRA will seek distinction by creating value for its customers/stakeholders through efficient and effective regulation and superior service, incorporating exemplary leadership.

ii. Customer FocusMACRA exists to serve its range of customers/stakeholders and they come first. In doing this, MACRA shall adhere to high customer focus standards, in a fair and consistent manner.

iii. InnovationMACRA will always be creative and constantly looking for ways to improve ICT service delivery.

iv. TeamworkIn sharing MACRA’s vision, we shall rely on MACRA’s employees to work as a team to get results

v. Transparency and AccountabilityWe shall maintain an open-door policy and consult with our key stakeholders as frequently as possible to ensure that their needs are met

vi. IntegrityMACRA will ensure honest and open dealings with all stakeholders, devoid of financial malpractices, misinformation and legal impropriety.

The strategic direction of MACRA for the next 5 years is shown in the figure 3:

3.0 2015-2020 Strategic direction

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3.0 2015-2020 Strategic direction Figure 3: MACRA’s Strategy Map

Our Values: Operational Excellence, Customer Focus, Innovation, Team Work, Transparency & Accountability and Integrity

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3.4 Strategic Objectives and Initiatives

3.4.1 Strengthen relationships and communication with stakeholders

We will achieve this objective through the following initiatives:i. Conduct annual satisfaction surveysii. Review and implement revised communication strategyiii. Hold stakeholder consultationsiv. Execute MoUs/annual review of MoUsv. Develop concept papervi. Create strategic alliancesvii. Conduct outreach programmes in all regionsviii. Conduct operators’ workshopsix. Conduct sensitization workshops on new Acts, regulations and licences

3.4.2 Foster regional and international cooperation in the ICT sector

We will achieve this objective through the following initiatives:i. Develop and implement travel planii. Sourcing invoices and payment of annual feesiii. Hold stakeholder consultationsiv. Execute MoUs/annual review of MoUsv. Commemorate various ICT World events

3.4.3 Promote consumer protection

We will achieve this objective through the following initiatives:i. Review complaint handling proceduresii. Manage complaintsiii. Conduct annual regulatory audits on consumer obligationsiv. Conduct annual consumer price reviewsv. Review of service level agreements and code of conduct of operatorsvi. Periodic tariff and tariff structure reviewsvii. Recommend and enforce regulatory interventionsviii. Stakeholder engagementix. Consumer education and awarenessx. Facilitate formation of advocacy groupsxi. Conduct annual assessment of compliance xii. Conduct quality of service audits

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3.4.4 Facilitate access and usage of ICT services

We will achieve this objective through the following initiatives:i. Conduct industrial analysis and baseline surveysii. Licensing of new operatorsiii. Establish and operationalise Universal Service Fund (USF)iv. Introduce new spectrum assignment modelv. Develop and implement broadband strategyvi. Lobby for tax exemptions for receiving equipmentvii. Undertake market reviewsviii. Facilitate quality content developmentix. Increase DTH licenseesx. Develop regulations on electronic commercexi. Monitor compliance to local content standardsxii. Review of licensing categories

3.4.5 Facilitate fair competition

We will achieve this objective through the following initiatives:i. Undertake market studies and reviewsii. Identification of new licence potentialsiii. Adopt technology and service neutral regulation and licensingiv. Adopt market based spectrum assignment mechanismv. Undertake consultations with stakeholdersvi. Implement recommendations

3.4.6 Enhance operational excellence

We will achieve this objective through the following initiatives:i. Develop guidelines(licensing, broadcasting, determining exclusivity, postage stamps,

etc) ii. Conduct stakeholder consultationsiii. Implement guidelines as part of business continuity initiativesiv. Develop project concept(Physical Addressing and post code, Multipurpose Telecenters,

Connectivity for Postal Infrastructure, Recorded Mail Monitoring System)v. Upgrade existing projectsvi. Implement projectsvii. Review of Board charter every 2 yearsviii. Conduct Board meetings in accordance with Board calendarix. Facilitate annual Board appraisalsx. Conduct Board orientationxi. Internal consultations with directoratesxii. Execute framework agreements

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xiii. Develop internal procurement guidelinesxiv. Formulation of annual procurement plansxv. Conduct public procurement workshops for staffxvi. Preparation and submission of quarterly procurement reportsxvii. Review internal audit strategyxviii. Implement risk registerxix. Carry out scheduled auditsxx. Monitor implementation of findings and recommendationsxxi. Conduct risk assessment audits

3.4.7 Pursue research, innovation and best practices

i. Develop concept noteii. Conduct relevant benchmarkingiii. Align local environment to best practicesiv. Implement standardised best practices v. Undertake compliance auditvi. Develop and implement research projectsvii. Publish research findingsviii. Implement research recommendationsix. Develop and implement areas for pilot study for new technologiesx. Develop concept for innovative awardsxi. Implement innovative award programxii. Customise innovation initiatives for commercial usexiii. Develop and implement partnership concept with academia and research institutionsxiv. Establish a research and development unit

3.4.8 Facilitate secure ICT systems and services

We will achieve this objective through the following initiatives:i. Develop specifications for off-sitesii. Identify and assess available optionsiii. Incorporate recommendation in the budgetiv. Implement system back-upv. Upgrade current biometric systemvi. Develop specifications for new systemvii. Install biometric systemviii. Develop specifications for digital record systemix. Implement digital record systemx. Benchmark testing and conformance centre in selected countriesxi. Develop specifications for conformance and Interoperability centre(C&I)xii. Lobby for ITU technical and financial assistancexiii. Implement C&I centre(Phase 1-RF Component)xiv. Automation needs assessment

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xv. Develop specifications for automationxvi. Identify alternative system options and resource requirementsxvii. Integrate and automate all systemsxviii. Establish CERT unitxix. Operationalise CERT

3.4.9 Facilitate effective and efficient legal and regulatory framework

We will achieve this objective through the following initiatives:i. Conduct sensitization meetingsii. Develop and implement regulationsiii. Stakeholder consultations on Converged Licensing Framework(CLF)iv. Issuance of new CLF licencesv. Implement CLF licensing

3.4.10 Monitoring and enforcement of the legal and regulatory framework

We will achieve this objective through the following initiatives:i. Conduct annual technical auditsii. Implement recommendationsiii. Conduct compliance auditsiv. Review directorates’ policiesv. Follow on implementation of recommendations on audit reportsvi. Review licences and implement recommendations on reviewed licences

3.4.11 Facilitate investment in the ICT sector

We will achieve this objective through the following initiatives:i. Conduct ICT access and usage surveyii. Implement survey recommendations

3.4.12 Strengthen human capital

We will achieve this objective through the following initiatives:i. Conduct a skills gap analysis surveyii. Conduct and implement functional review recommendationsiii. Long and short-term trainingiv. Competence certificationv. Management developmentvi. Continuous professional developmentvii. Career paths planningviii. Succession planningix. Reward and recognition practices

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s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

x. Coaching and mentoringxi. Continuous review of remunerationxii. Staff satisfaction surveysxiii. Team building activitiesxiv. Interdepartmental programmesxv. Employee wellness programmesxvi. Performance planning and evaluation using the Balanced ScoreCardxvii. Performance based rewards and recognition

3.4.13 Timely and reliable sharing of information

We will achieve this objective through the following initiatives:i. Use of Intranet, newsletters and other alternative means for sharing informationii. Improve communication channels and feedback

3.4.14 Improve institutional capacity and corporate governance

We will achieve this objective through the following initiatives:i. Conduct assessment on skills gapii. Organise workshops and seminarsiii. Mentorships, peer learningiv. Benchmarkingv. Management and Board retreatsvi. Review internal policies and proceduresvii. Fleet management automationviii. Implement enterprise risk management frameworkix. Review and implement Corporate Social Responsibility guidelinesx. Review and approve initiatives for CSRxi. Finalise land acquisition for new office complexxii. Commence construction of office complexxiii. Monitoring and supervision of construction works

3.4.15 Optimise resource allocation and utilization

We will achieve this objective through the following initiatives:i. Implement Budgetary Softwareii. Prepare activity based budgetsiii. Produce monthly management accounts complete with variance analysis by the 15th of

every monthiv. Production of quarterly and annual reportsv. Production of annual audited financial statements by 30 Septembervi. Enhance regulatory accounting vii. Integrate accounting system with other technical systems

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3.4.16 Increase Revenue Growth

We will achieve this objective through the following initiatives:i. Review of licence feesii. Introduce new revenue streamsiii. Develop and implement investment policyiv. Prudent investment of funds with banks at best negotiated interest ratesv. Production of investment status reportsvi. Facilitate the development of dividend policyvii. Introduce better debt management mechanisms

3.5 Critical Success Factors

Key success factors are those critical ingredients that an organisation needs to ensure are in place in order to succeed or achieve its desired goals. The following are identified as MACRA’s critical factors to successful execution of this strategic plan: i. Provision of leadership and commitment from the executive management;ii. Strengthening the coordination and execution of the Strategic Plan through the Director

General’s office; iii. Effective translation of strategic plan targets into annual plans and budgets;iv. Effective and efficient communication between staff on the implementation of

initiatives and targets;v. Aligning MACRA’s organization structure to the strategy; vi. Ability to attract and retain skilled and experienced personnel;vii. Clear understanding of the Strategy by all members of staff;viii. Predictable and adequate financing for the initiatives identified in the strategy;ix. Good relations and effective communication with key stakeholders.

3.6 Key Strategic Assumptions

In developing the Strategic Plan a number of assumptions were made in order to effectively and efficiently implement the Plan. The key strategic assumptions on which the Plan is premised on include:i. There will be continued Government and Development Partners support for universal

access and usage of ICT services in Malawi;ii. MACRA will be permitted to function independently according to the existing and revised

legislation upon which this plan is based;iii. There will be continued collaboration with all stakeholders in the ICT sector;iv. Investing in employee development will result in increased productivity, retention and

efficiency. Henceforth, MACRA will have sufficient funding to engage, train and retain competent staff;

v. The Ministry of Information, Communication Technologies and Civic Education and other oversight agencies/bodies will diligently perform their oversight functions of creating a conducive regulatory and policy environment.

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s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

4.0 Implementation arrangements4.1 Financing of the Strategic Plan

This section describes the financial requirements and sources of funds for the implementation of the Strategic Plan.

(i) Financial RequirementIn implementing this Strategic Plan MACRA will continue to utilise the internally generated revenue streams to finance the implementaion process. These sources include frequency spectrum fees, license fees and levies. MACRA will aim at investing in human and capital resources for the development of the ICT sector. These resources will be provided through budgets to be approved by the Board and Government.

Table 6: Proportion of Cost Categories per Total Cash flow projection for Implementation of SP2015-2020

*Human Capital includes (staff training and costs of outsourced staff)

Projected income to fund this strategic plan is mainly based on the income from; (i) operators i.e. license fees, frequency spectrum fees, annual levy payments, international call termination fees, licence renewal fees and (ii) other income from investment interests by MACRA.

Financial Year 2015/16 2016/17 2017/18 2018/19 2019/20 Total

Cost Categories

Capital 23.4% 30.8% 29.8% 35.1% 13.2% 26.9%

Material 16.9% 14.1% 13.8% 12.0% 15.7% 14.2%

Human Capital* 5.2% 4.1% 4.2% 5.0% 4.2% 4.5%

Government Excess 37.4% 34.1% 33.9% 30.1% 40.7% 34.9%

Staff costs 17.0% 16.9% 18.4% 17.9% 26.3% 19.4%

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4.2 Organisation and Institutional Set-up

The successful implementation of this Strategic Plan hinges on availability of adequate skilled human resources in addition to the resource requirements as detailed out in the section above.

Ministry of Information, Communications Technologies and Civic EducationThe Ministry responsible for ICT is the policy making organ for Government on Communications issues in the country. The Ministry issues Policy directions to the Authority on how it should


4.0 Implementation arrangements

# Directorate Actual Establishment (December 2014)

1 Board of Directors 7

2 Executive Directorate 14

3 Finance and Administration 44

4 Telecommunications 14

5 Postal 5

6 Broadcasting 9

7 Legal 5

Total 92

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discharge its duties according to both the law and the Government Policy. The Ministry facilitates the the development of a conducive policy, legal and regulatory frameworks. Currently the Ministry is implementing the Malawi ICT Policy launched in 2013 which translates the MGDS II key priority area under ICT development.

Board of DirectorsThe Board of Directors is appointed according to Section 6 of the Communications Act. In line with the Board Charter, the Board is responsible for the implementation of Government Policy and ensuring good governance is adhered to in the regulation of communication services.The Board performs this function through Management which is responsible for the day to day operations of the organization. The Board also offers strategic direction to the organization to ensure that the organization achieves the goals and objectives of its shareholders i.e. Government.

Currently, MACRA operates under the organisational structure approved by the Board in 2011 after the functional review. The Ministry responsible for Information provides policy direction for the communication sector. The institution has Board of Directors that is responsible for Government policy implementation. Under the Board of Directors, the institution is headed by a Director General (DG), deputised by the Deputy Director General (DDG). It has six Directorates, each headed by a Director.

The Directorates are: (i) Executive, (ii) Finance & Administration, (iii) Telecommunications, (iv) Postal Services, (v) Broadcasting, and (vi) Legal Services. Within each Directorate, there are Managers, Officers, Technicians and Support Staff in order of hierarchy. The current establishment under each directorate is given in the table below.

Table 7: Current Staff Establishment

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

• Strengthen the coordination and execution of the Strategic Plan through Office of Director General with a coordination unit. The coordination unit will be in charge of strategy planning, monitoring execution and reviews and will be working in collaboration with all the Directorates as they implement their strategies;

• Strengthen the M&E unit to effectively monitor MACRA’s strategic plan targets; • Establishment of a research and development unit to spearhead research and innovations

in the ICT sector;• Strengthen communication functions to cater for corporate communication, branding

and stakeholder engagement;• Strengthen IT unit to meet MACRA’s wide IT requirements and timely information sharing;

4.3 Monitoring and Evaluation of the Strategic Plan

Monitoring is the systematic and continuous tracking of the progress towards the stated objectives while evaluation is the periodic and objective assessment of the performance of the plan. Monitoring and Evaluation (M&E) will be an integral part of the implementation of the Strategic Plan and the results will keep to inform in decision making and planning.

4.3.1. Objectives of the M&E Plan

This Monitoring and Evaluation Plan is intended to fulfil the following objectives:(i) To track the progress in implementation of the Strategic Plan in order to identify and

promptly report observed or likely deviations (providing early warnings); (ii) To account to the stakeholders through regular reporting and reviews; and(iii) To foster learning through participatory evaluations and documenting lessons learnt

during the implementation of the Strategic Plan

4.3.2. Outcome Based Measurements and Key Performance Indicators

The outcome-based measurements are found in the attached MACRA Corporate ScoreCard OMTI Table. These will determine the success or failure of this strategic plan. In general, 14 key measures and performance indicators in the table below have been identified to be central to the success of this plan.

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Current establishment stands at 92 staff members as of end December 2014. In order to effectively implement this strategic plan, a functional review is proposed to be conducted during FY 2015/16. The review will be based on the staffing needs as provided by the Directorates and analysis of the additional workload imposed by this Strategic Plan.

Being mindful of the eminent functional review, the following recommendations have been made to the current structure to effectively implement this strategic plan.


Table 8: Key measures and performance indicators

Measure Key Performance Indicator By june 2020


CI Customer Satisfaction Index 75%

C4 Voice Telephony Penetration 75%

C4 Internet Penetration 25%

C4 Postal and Courier Penetration 1:40,000

C4 Electronic Commerce Penetration 55%

C4 TV Broadcast Coverage(Population) 80%

Internal Processes

IP1 Percentage of projects completed 80%

IP5 Level of regulatory compliance 100%

IP6 ICT contribution to GDP 8%

Learning and Growth

LG1 % of employees with requisite skills to perform their jobs 100%

LG1 Employee engagement index 90%

LG1 Level of staff performance 80%

Financial

F1 Cost as a percentage of total revenue 40%

F2 Revenue yield 50%

The detailed ScoreCard for the above measurements is shown in Annex 3.

4.3.3. Monitoring and Evaluation Mechanisms/Tools

(i) Balanced ScoreCard (BSC)

The Balanced ScoreCard (BSC) is a tool for executing the strategic plan and monitoring performance. The ScoreCard will be based on the 5 year targets which will be broken down into annual milestones and quarterly targets (see appendix 1). The Director General’s ScoreCard will be based on the 14 key performance targets as shown in Appendix 2. The Directors will extract their respective objectives and measures from the corporate ScoreCard and will be

28

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

responsible for the achievement of targets under their Directorates. They will in turn assign individual targets to their respective Deputy Directors, Managers and Officers.

MACRA’s Senior Management team will convene quarterly meetings to review the performance of the ScoreCards for the DG and Directors. The outcome of these reviews will be used in decision making and subsequent planning.

(ii) Annual Budgets

The annual budgets will serve two purposes:a. Operational plan for the strategic planb. Monitoring Tool for annual milestonesAnnual reviews will focus on the efficient utilisation of budgets as well as effective completion of initiatives.

(iii) Progress Reporting

The purpose of progress reporting is to account for the resources utilised and outputs/results utilised. Every quarter, MACRA management will prepare and submit to the Board and other stakeholders a Quarterly Performance Report highlighting the progress towards the achievement of the Key Performance Indicators in general and quarterly targets in particular. At the end of the financial year, MACRA management will prepare and submit to the Board and other stakeholders an Annual Report highlighting the progress towards the achievement of the Key Performance Indicators in general and annual milestones in particular.

(iv) Periodic Evaluations

The purpose of evaluations is to objectively assess the progress towards the attainment of the objectives as stated in the Strategic Plan. The evaluations will assess the relevancy of the strategic objectives, efficiency and effectiveness of the strategies, assumptions and risks, and the strengths and weaknesses in the implementation of the Strategic Plan. The evaluations will be conducted annually (internally) and Mid-term (independent consultants). The outcome of these evaluations will inform refining of the strategic plan.

(v) Performance Audit

Performance audit involves assessing the credibility of the reported performance and compliance with the guidelines and regulations. The purpose is to determine the accuracy of performance results and the degree of compliance with set guidelines and regulations. Performance audits minimise ‘moral hazard’ and ‘inflated’ performance reporting. The Internal Audit unit either in-house or through an independent consultant will carry out annual

29


performance audits. The outcomes of these audits will be shared with the Board and will be used to improve on performance reporting.

The inputs to this review will include; the Annual Report, BSC Report, Risk Assessment Report and Evaluation Reports.

(vi) Change Management

The BSC is a new concept in MACRA and it needs to be given ample time for all staff to internalise its implementation. To support effective implementation of this strategic plan using this concept, a number of areas will require change to suit the new tools. These will include processes, structures, systems, functions, roles and responsibilities as well as staff attitudes and behaviours. Management of MACRA will therefore need to put in place mechanisms to align processes and systems towards the new strategic plan. For staff, management will put in place mechanisms for open, clear and consistent communication within and outside the organisation. The starting point will be the Directorates to train their departments on the use of the BSC.

30

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0M a l a w i C o M M u n i C a t i o n s R e g u l a t o R y a u t h o R i t y

This Strategic Plan has been crafted in fulfilment of MACRA’s mandate to facilitate the development of the ICT sector through efficient and effective regulation and research. The plan has 16 strategic objectives in the four perspectives of the BSC (5 for customer/stakeholder, 6 for internal processes, 3 for learning and growth and 2 for financial/shareholder). Each strategic objective is operationalised through specific measures, targets and initiatives. The plan will require changes in attitude, accountability and work culture since it is based on the BSC methodology.

Execution of this plan will also be made possible by other foundational drivers or organisational pillars included in this Strategic Plan. These include the Financing Mechanisms, Institutional set-up, Monitoring and Evaluation, Management Information Systems Plan, Corporate Governance and Risk Management Plan.

The plan sets the course and direction for our business for the next 5 years. We will use it to prioritise the Authority’s programmes through successive annual work-plans, budgets and other delivery plans.

To assess whether we have achieved our vision, we have defined meaningful performance measures for each of our 16 strategic objectives. Our progress will be monitored through annual targets shown in the strategic plan (OMTI Table), which will be set out within our periodic performance measurement framework. We will know that we have succeeded when we progressively achieved the set objectives, actions and related targets.

5.0 Conclusion

31


5.0 Conclusion


32

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

APPENDIX 1: MACRA’S CORPORATE SCORECARD

33

Perspective StrategicObjective

Measure Baseline Target Initiative Responsibility YearEndingJune’2013/14 ‘16 ‘17 ‘18 ‘19 ‘20

Custom

er

C1Strengthenrelationshipsandcommunicationwithstakeholders

C1.1Customersatisfactionindex

Notavailable

75% 1. Conductannualsatisfactionsurvey

DG 18,248,300 20,073,130 22,080,443 24,288,487 26,717,33640% 50% 60% 70% 75%

C1.2%ageAchievementofCommunicationStrategyinitiatives

NotAvailable

100% 1. Reviewcommunicationstrategy.2. ProduceMACRAmagazinebi

annually3. Producemonthlynewsletter4. InformationEducation&

Communication(IEC)Materials5. MACRAawarenessactivities

DG 147,077,225 153,800,960 169,181,056 186,099,162 204,709,07820% 40% 60% 80% 100%

C.1.3No.ofengagementwithStakeholders

1. Conductplannedvisitstostakeholders

3,031,004 3,334,105 3,667,515 4,034,267 4,437,693

C1.4NoofMOUssignedandimplemented

3 10 1. Holdstakeholderconsultations2. ExecuteMOUs3. AnnualreviewsofMOUs

DOLS

9,422,103 0 0 0 02 4 6 8 10

C1.5No.ofNationalOutreachprograms

Notavailableable

5 1. DevelopConceptPaper2. CreateStrategicalliances.3. Conductoutreachprogrammes

inallregions

DOLS 8,101,589 8,911,748 9,802,923 10,783,216 11,861,5371 2 3 4 5

C1.6Noofoperatorinterfaces

3 100

1. ConductoperatorsWorkshops(Telecoms,Postal,Broadcasting,Legal,&Communication)2. ConductSensitisation

WorkshopsonnewActs,regulations&licences

DG 24,508,220 16,326,885 17,959,574 19,755,531 21,731,08425 45 65 85 100

C2.FosterregionalandinternationalcooperationintheICTsector

C2.1No.ofplanned/scheduledworkshops/conferencesattended

TBA 250

Develop&implementtravelplan DOFA 173,052,000 190,357,200 209,393,920 230,332,212 253,365,43350 100 150 200 250

C2.2%ofSubscriptionstolocalandinternationalbodies

100% 100% 1. SourcingInvoices2. PaymentofAnnualfees

DOFA 101,300,000 111,430,000 122,573,000 134,830,300 148,313,330

100% 100% 100%` 100% 100%

C2.3No.ofCountrytoCountryMoUs


DOLS 13,125,233 835,120 918,632 1,010,495 11,403,585

2 3 4 3 3

C2.4No.ofWorlddaycommemorations

1 2 1. CommemoratevariousICTworlddayevents

DG 45,281,794 49,809,973 54,790,970 60,270,067 66,297,074

2 3 3 3 3

C3.Promoteconsumerprotection

C3.1%of2ndLevelcomplaintsresolved

20% 85% 1. Reviewcomplainthandlingprocedures.

2. Managecomplaints

DOLS 1,640,715 1,804,786 1,985,265 2,183,791 2,402,170

50% 60% 70% 80% 85%

C3.2Percentageofoperatorcompliancetoconsumerobligations

NotAvailable

90% 1. Conductannualregulatoryauditonconsumerobligations

2. Conductannualconsumerpricereviews

3. Reviewofservicelevelagreementsandcodeofconductofoperators

4. Periodictariff&tariffStructurereviews

5. Recommendandenforceregulatoryinterventions

DOLS 5,838,205 6,422,026 7,064,229 7,770,651 8,547,717

50% 60% 70% 80% 90%

C3.3.No.ofconsumeradvocacygroupsformed

0 5 1. Stakeholderengagement2. Consumereducationand

Awareness3. Facilitateformationofadvocacy

groups

DOLS 28,018,564 30,820,420 33,902,462 37,292,709 41,021,9801 2 3 4 5

C3.4Nooftariffstructurereviews

1. Developoftariffcoststructure2. Bestpracticewithintheregion3. Conductannualassessmentof

compliance

11,840,900

C3.5No.ofqualityofserviceauditsconducted

12 60 1. Conductqualityofserviceaudits

DOT,DOPDOB

12,950,256 14,245,282 15,669,810 17,236,791 18,960,47012

24

36 48 60

C4.FacilitateaccessandusageofICTservices

C4.1VoiceTelephonyPenetration

39.8% 75% 1. Conductindustrialanalysisandbaselinesurveys

2. Licensingofnewoperators3. EstablishUniversalService

Fund(USF)4. Introducenewspectrum

assignmentmodel5. ImplementruralICTaccess

programmes

DOT 600,808,467 647,305,578 696,499,968 1,036,507,473 838,089,98645 50 55 65 75

C4.2BroadbandPenetration

6.7% 25% 1. Developandimplementbroadbandstrategy

2. Licensenewoperators3. OperationaliseUSF

DOT 5,687,416 3,704,158 4,074,573 4,482,031 4,930,2348 10 15 20 25

C4.3PostalandCourierPenetration

1:60,000

1:40,000

1. Conductsurveys2. Licensingofnewoperators3. OperationaliseUSF

DOP 1,873,200 2,060,520 2,266,572 2,493,229 2,742,5521:58000 1:55,000 1:50,000 1:45,000 1:400000

C4.4TVBroadcastCoverage

TBA 80%

1. Conductbaselinesurveys2. Licensingofnewoperators3. OperationaliseUSF4. Reviewlicencecategories.

DOB 3,834,680 4,218,148 4,639,963 5,103,959 5,614,355

40 50 60 70 80

C4.5IncreaseViewership

TBA 20% 1. Lobbyfortaxexemptionsforreceivingequipment

2. Undertakemarketreviews3. Facilitatequalitycontent

development4. IncreaseDTHlicensees

DOB 4,110,000 5,984,400 5 10 15 17 20

C4.6ElectronicCommercePenetration

TBA 55% 1. Developregulationsonelectroniccommerce

2. Undertakemarketreviews

DG 2,351,480

15 25 35 45 55

C4.7Proportionoflocaltointernationalcontent

20:80 60:40 1. Monitorcompliancetolocalcontentstandards

DG 6,034,376 2,116,814 2,328,495 2,561,344 2,817,47920:80 30:70 40:60 50:50 60:40

C4.8ImproveListenership

60% 80% 1. Undertakemarketreviews2. Facilitatequalitycontent

development3. Reviewoflicensingcategories

DOB 6,655,200 1,237,940 1,361,734 1,497,907 1,647,69865 70 75 80 80

C5.Facilitatefaircompetition

C5.1Proportionofconvergedlicencesissued

TBA 100%

1. Undertakemarketreviews2. Identificationofnewlicence

potentials3. Adopttechnology&service

neutralregulation&licensing4. AdoptMarketbasedspectrum

assignmentmechanism.

DOLS 16,674,423 100% 100% 100% 100% 100%

C5.2ReducedMarketdominance

25% <10% 1. Undertakemarketstudyandreviews

2. Implementrecommendations

DG 1,085,000 3,712,023 1,312,850 1,444,135 1,58854925% 20% 15% 12% <10%

APPENDIX1:MACRA’SCORPORATESCORECARD

Internet


34



Custom

er



Notavailable


DG 18,248,300 20,073,130 22,080,443 24,288,487 26,717,33640% 50% 60% 70% 75%


NotAvailable




DG 147,077,225 153,800,960 169,181,056 186,099,162 204,709,07820% 40% 60% 80% 100%



3,031,004 3,334,105 3,667,515 4,034,267 4,437,693



DOLS

9,422,103 0 0 0 02 4 6 8 10


Notavailableable


inallregions

DOLS 8,101,589 8,911,748 9,802,923 10,783,216 11,861,5371 2 3 4 5


3 100



DG 24,508,220 16,326,885 17,959,574 19,755,531 21,731,08425 45 65 85 100



TBA 250




DOFA 101,300,000 111,430,000 122,573,000 134,830,300 148,313,330

100% 100% 100%` 100% 100%



DOLS 13,125,233 835,120 918,632 1,010,495 11,403,585

2 3 4 3 3



DG 45,281,794 49,809,973 54,790,970 60,270,067 66,297,074

2 3 3 3 3




2. Managecomplaints

DOLS 1,640,715 1,804,786 1,985,265 2,183,791 2,402,170

50% 60% 70% 80% 85%


NotAvailable






DOLS 5,838,205 6,422,026 7,064,229 7,770,651 8,547,717

50% 60% 70% 80% 90%




groups

DOLS 28,018,564 30,820,420 33,902,462 37,292,709 41,021,9801 2 3 4 5



compliance

11,840,900



DOT,DOPDOB

12,950,256 14,245,282 15,669,810 17,236,791 18,960,47012

24

36 48 60







programmes

DOT 600,808,467 647,305,578 696,499,968 1,036,507,473 838,089,98645 50 55 65 75




DOT 5,687,416 3,704,158 4,074,573 4,482,031 4,930,2348 10 15 20 25


1:60,000

1:40,000


DOP 1,873,200 2,060,520 2,266,572 2,493,229 2,742,5521:58000 1:55,000 1:50,000 1:45,000 1:400000


TBA 80%


DOB 3,834,680 4,218,148 4,639,963 5,103,959 5,614,355

40 50 60 70 80





DOB 4,110,000 5,984,400 5 10 15 17 20




DG 2,351,480

15 25 35 45 55



DG 6,034,376 2,116,814 2,328,495 2,561,344 2,817,47920:80 30:70 40:60 50:50 60:40




DOB 6,655,200 1,237,940 1,361,734 1,497,907 1,647,69865 70 75 80 80



TBA 100%





DOLS 16,674,423 100% 100% 100% 100% 100%




DG 1,085,000 3,712,023 1,312,850 1,444,135 1,58854925% 20% 15% 12% <10%




C5.3Reducedinterconnectionrate.

US0.04 US$0.01

1. Undertakemarketstudyandreviews

2. Undertakeconsultationswithstakeholders


DG 15,509,789 US$0.04 US$0.03 US$0.03 US$0.02 US$0.01

Inte

rnalPro

cess

es

IP1.Enhanceoperationalexcellence

IP1.1Percentageofoperationalguidelinesdevelopedandimplemented

10% 100% 1. Developguidelines(licensing,broadcasting,determiningexclusivity,postagestamps,treatmentonundeliverableitems,prohibiteditems)

2. Conductstakeholderconsultations

3. Implementguidelinesaspartofbusinesscontinuityinitiatives

DOLS 6,958,644 3,483,220 5,421,951 3,564,176 4,468,58360 90 100 100 100

IP1.2Percentageofprojectscompleted

30% 80% 1. Developprojectconcept(PhysicalAddressingandpostcode,MultipurposeTelecentres,Connectivityfor

PostalInfrastructure,RecordedMailMonitoringSystem)

2. Upgradeexistingprojects(ContentMonitoring,GlobalMonitoringSystem,CIRMS,FMM,DigitalMigration)

3. Implementprojects

DOLS,DOT,DG,DOFA,DOP,DOB

82,413,899 69,761,708 78,915,879 84,411,667 95,248,633

30 50 60 70 80

IP1.3Levelofcompliancewithboardcharter

Notavailable

90% 1. Reviewofboardcharterevery2years

2. Conductboardmeetingsinaccordancewithboardcalendar.

3. Facilitateannualboardappraisals.

4. Conductboardorientation.

DOLS 72,673,734 65,152,637 73,170,092 78,834,691 104,612,210

60 70 80 90 90

IP1.4Noofframeworkagreementssignedwithkeysuppliers

7 15 1. Internalconsultationswithdirectorates

2. Executeframeworkagreements.

DG 2,880,000 3,168,000 3,484,800 3,833,280 3,833,280

8 10 15 15 15

IP1.5Levelofcompliancetoprocurementlawsandregulations

90% 100% 1. Developinternalprocurementguidelines

2. Formulationofannualprocurementplans

3. Conductpublicprocurementworkshopsforstaff

4. Preparationandsubmissionofquarterlyprocurementreports

DG 3,735,302 25,110,269 1,878,103 30,383,426 2,272,50592 94 96 98 100

IP1.6Noofaudits

3 20 1. Reviewinternalauditstrategy.2. Implementriskregister3. Carryoutscheduledaudits.4. Monitorimplementationof

findingsandrecommendations5. Conductriskassessmentaudits.

DG 9,606,995 10,922,850 12,015,135 13,216,648 14,538,3134 8 12 16 20

IP2.Pursueresearch,innovationandbestpractices

IP2.1Benchmarkreportoncompliancetobestpracticesproduced

1 1 1. Developconceptnote.2. Conductrelevantbenchmarking.3. Alignlocalenvironmenttobest

practices.4. Implementstandardisedbest

practices.5. Undertakecomplianceaudit

DG,DOLS,DOT,DOFA,DOP,DOB.

583,918 4,719,866 13,721,301 777,195 854,9151 1 1 1 1

IP2.2Numberofresearchprojectsundertaken

1 3 1. Developconcept2. Implementresearchprojects.3. Consultstakeholders4. Publishresearchfindings5. Implementresearch

recommendations6. Projectreview(M&E)

DG 9,690,759 10,659,853 11,725,819 12,898,401 14,188,2411 1 2 2 3

IP2.3No.ofpilotprojectsfornewtechnologies

1 2 1. Developconcept2. Implementareasforpilotstudy

fornewtechnologies.3. Implementrecommendationsof

studies4. Publishstudyfindings5. PilotProjectreview

DG 4,395,600 4,483,160 4,931,476 5,424,624 5,967,0860 1 1 2 2

IP2.4No.ofinnovativeawards

0 5 1. Developconcept2. Implementinnovativeaward

program.3. Customizeinnovationinitiatives

forcommercialuse.

DG 56,375,205 60,852,993 66,938,292 73,632,121 80,995,3331 2 3 4 5

IP2.5No.ofpartnershipswithAcademia&Researchinstitutions

0 2 1. Developpartnershipconcept2. Implementpartnership

DG 5,900,111 4,458,862 4,904,748 5,395,223 5,934,7450 1 1 2 2

IP2.6Researchanddevelopmentunitinstituted

0 1 1. Establisharesearchanddevelopmentunit

DG 31,063,916 3,975,308 4,373,893 4,810,123 5,291,1350 1 1 1 1

IP3.FacilitatesecureICTsystemsandservices

IP3.1Numberofoff-sitebackup

0 2 1. Developspecificationsforoff-sites

2. Identifyandassessavailableoptions

3. Incorporaterecommendationinthebudget

4. Implementsystemback-up

DOT 13,000,000 1 1 2 2 2

IP3.2Numberofbiometricaccesssystems

1 2 1. Upgradecurrentbiometricsystem

2. Developspecificationsfornewsystem

3. Installbiometricsystem

DOT,DOFA 16,623,0391 1 1 2 2

IP3.3Upgradedrecordigitalrecordkeepingsystem

0 1 1. Developspecificationsfordigitalrecordsystem.

2. Implementdigitalrecordsystem

DOFA 49,623,039 0 1 1 1 1

IP3.4Testingandconformancecentreinstituted

0 1 1. Benchmarkinselectedcountries2. Developspecificationsfor

Conformance&Interoperabilitycentre(C&I)

3. LobbyforITUtechnicalandfinancialassistance

4. ImplementC&Icentre(Phase1–RFcomponent)

DOT 2,204,500 61,315,650 0 0 1 1 1

IP3.5Percentageofinternalofficeautomation

40% 80% 1. Automationneedsassessment2. Developspecifications3. Identifyalternativesystem

optionsandresourcerequirements

4. Integrateandautomateallsystems

DOTDOFA

31,604,650 1,980,165 2,178,182 2,396,000 2,635,60050 60 70 80 80

5.

APPENDIX1:MACRA’SCORPORATESCORECARDPerspective StrategicObjective



US0.04 US$0.01




DG 15,509,789 US$0.04 US$0.03 US$0.03 US$0.02 US$0.01

Inte

rnalPro

cess

es






DOLS 6,958,644 3,483,220 5,421,951 3,564,176 4,468,58360 90 100 100 100







82,413,899 69,761,708 78,915,879 84,411,667 95,248,633

30 50 60 70 80


Notavailable





DOLS 72,673,734 65,152,637 73,170,092 78,834,691 104,612,210

60 70 80 90 90




DG 2,880,000 3,168,000 3,484,800 3,833,280 3,833,280

8 10 15 15 15






DG 3,735,302 25,110,269 1,878,103 30,383,426 2,272,50592 94 96 98 100

IP1.6Noofaudits



DG 9,606,995 10,922,850 12,015,135 13,216,648 14,538,3134 8 12 16 20







583,918 4,719,866 13,721,301 777,195 854,9151 1 1 1 1




DG 9,690,759 10,659,853 11,725,819 12,898,401 14,188,2411 1 2 2 3





DG 4,395,600 4,483,160 4,931,476 5,424,624 5,967,0860 1 1 2 2




forcommercialuse.

DG 56,375,205 60,852,993 66,938,292 73,632,121 80,995,3331 2 3 4 5



DG 5,900,111 4,458,862 4,904,748 5,395,223 5,934,7450 1 1 2 2



DG 31,063,916 3,975,308 4,373,893 4,810,123 5,291,1350 1 1 1 1







DOT 13,000,000 1 1 2 2 2





DOT,DOFA 16,623,0391 1 1 2 2




DOFA 49,623,039 0 1 1 1 1






DOT 2,204,500 61,315,650 0 0 1 1 1





DOTDOFA

31,604,650 1,980,165 2,178,182 2,396,000 2,635,60050 60 70 80 80

5.





US0.04 US$0.01




DG 15,509,789 US$0.04 US$0.03 US$0.03 US$0.02 US$0.01

Inte

rnalPro

cess

es






DOLS 6,958,644 3,483,220 5,421,951 3,564,176 4,468,58360 90 100 100 100







82,413,899 69,761,708 78,915,879 84,411,667 95,248,633

30 50 60 70 80


Notavailable





DOLS 72,673,734 65,152,637 73,170,092 78,834,691 104,612,210

60 70 80 90 90




DG 2,880,000 3,168,000 3,484,800 3,833,280 3,833,280

8 10 15 15 15






DG 3,735,302 25,110,269 1,878,103 30,383,426 2,272,50592 94 96 98 100

IP1.6Noofaudits



DG 9,606,995 10,922,850 12,015,135 13,216,648 14,538,3134 8 12 16 20







583,918 4,719,866 13,721,301 777,195 854,9151 1 1 1 1




DG 9,690,759 10,659,853 11,725,819 12,898,401 14,188,2411 1 2 2 3





DG 4,395,600 4,483,160 4,931,476 5,424,624 5,967,0860 1 1 2 2




forcommercialuse.

DG 56,375,205 60,852,993 66,938,292 73,632,121 80,995,3331 2 3 4 5



DG 5,900,111 4,458,862 4,904,748 5,395,223 5,934,7450 1 1 2 2



DG 31,063,916 3,975,308 4,373,893 4,810,123 5,291,1350 1 1 1 1







DOT 13,000,000 1 1 2 2 2





DOT,DOFA 16,623,0391 1 1 2 2




DOFA 49,623,039 0 1 1 1 1






DOT 2,204,500 61,315,650 0 0 1 1 1





DOTDOFA

31,604,650 1,980,165 2,178,182 2,396,000 2,635,60050 60 70 80 80

5.





US0.04 US$0.01




DG 15,509,789 US$0.04 US$0.03 US$0.03 US$0.02 US$0.01

Inte

rnalPro

cess

es






DOLS 6,958,644 3,483,220 5,421,951 3,564,176 4,468,58360 90 100 100 100







82,413,899 69,761,708 78,915,879 84,411,667 95,248,633

30 50 60 70 80


Notavailable





DOLS 72,673,734 65,152,637 73,170,092 78,834,691 104,612,210

60 70 80 90 90




DG 2,880,000 3,168,000 3,484,800 3,833,280 3,833,280

8 10 15 15 15






DG 3,735,302 25,110,269 1,878,103 30,383,426 2,272,50592 94 96 98 100

IP1.6Noofaudits



DG 9,606,995 10,922,850 12,015,135 13,216,648 14,538,3134 8 12 16 20







583,918 4,719,866 13,721,301 777,195 854,9151 1 1 1 1




DG 9,690,759 10,659,853 11,725,819 12,898,401 14,188,2411 1 2 2 3





DG 4,395,600 4,483,160 4,931,476 5,424,624 5,967,0860 1 1 2 2




forcommercialuse.

DG 56,375,205 60,852,993 66,938,292 73,632,121 80,995,3331 2 3 4 5



DG 5,900,111 4,458,862 4,904,748 5,395,223 5,934,7450 1 1 2 2



DG 31,063,916 3,975,308 4,373,893 4,810,123 5,291,1350 1 1 1 1







DOT 13,000,000 1 1 2 2 2





DOT,DOFA 16,623,0391 1 1 2 2




DOFA 49,623,039 0 1 1 1 1






DOT 2,204,500 61,315,650 0 0 1 1 1





DOTDOFA

31,604,650 1,980,165 2,178,182 2,396,000 2,635,60050 60 70 80 80

5.

APPENDIX1:MACRA’SCORPORATESCORECARDAPPENDIX 1: MACRA’S CORPORATE SCORECARD

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

APPENDIX 1: MACRA’S CORPORATE SCORECARD

35




US0.04 US$0.01




DG 15,509,789 US$0.04 US$0.03 US$0.03 US$0.02 US$0.01

Inte

rnalPro

cess

es






DOLS 6,958,644 3,483,220 5,421,951 3,564,176 4,468,58360 90 100 100 100







82,413,899 69,761,708 78,915,879 84,411,667 95,248,633

30 50 60 70 80


Notavailable





DOLS 72,673,734 65,152,637 73,170,092 78,834,691 104,612,210

60 70 80 90 90




DG 2,880,000 3,168,000 3,484,800 3,833,280 3,833,280

8 10 15 15 15






DG 3,735,302 25,110,269 1,878,103 30,383,426 2,272,50592 94 96 98 100

IP1.6Noofaudits



DG 9,606,995 10,922,850 12,015,135 13,216,648 14,538,3134 8 12 16 20







583,918 4,719,866 13,721,301 777,195 854,9151 1 1 1 1




DG 9,690,759 10,659,853 11,725,819 12,898,401 14,188,2411 1 2 2 3





DG 4,395,600 4,483,160 4,931,476 5,424,624 5,967,0860 1 1 2 2




forcommercialuse.

DG 56,375,205 60,852,993 66,938,292 73,632,121 80,995,3331 2 3 4 5



DG 5,900,111 4,458,862 4,904,748 5,395,223 5,934,7450 1 1 2 2



DG 31,063,916 3,975,308 4,373,893 4,810,123 5,291,1350 1 1 1 1







DOT 13,000,000 1 1 2 2 2





DOT,DOFA 16,623,0391 1 1 2 2




DOFA 49,623,039 0 1 1 1 1






DOT 2,204,500 61,315,650 0 0 1 1 1





DOTDOFA

31,604,650 1,980,165 2,178,182 2,396,000 2,635,60050 60 70 80 80

5.




Custom

er



Notavailable


DG 18,248,300 20,073,130 22,080,443 24,288,487 26,717,33640% 50% 60% 70% 75%


NotAvailable




DG 147,077,225 153,800,960 169,181,056 186,099,162 204,709,07820% 40% 60% 80% 100%



3,031,004 3,334,105 3,667,515 4,034,267 4,437,693



DOLS

9,422,103 0 0 0 02 4 6 8 10


Notavailableable


inallregions

DOLS 8,101,589 8,911,748 9,802,923 10,783,216 11,861,5371 2 3 4 5


3 100



DG 24,508,220 16,326,885 17,959,574 19,755,531 21,731,08425 45 65 85 100



TBA 250




DOFA 101,300,000 111,430,000 122,573,000 134,830,300 148,313,330

100% 100% 100%` 100% 100%



DOLS 13,125,233 835,120 918,632 1,010,495 11,403,585

2 3 4 3 3



DG 45,281,794 49,809,973 54,790,970 60,270,067 66,297,074

2 3 3 3 3




2. Managecomplaints

DOLS 1,640,715 1,804,786 1,985,265 2,183,791 2,402,170

50% 60% 70% 80% 85%


NotAvailable






DOLS 5,838,205 6,422,026 7,064,229 7,770,651 8,547,717

50% 60% 70% 80% 90%




groups

DOLS 28,018,564 30,820,420 33,902,462 37,292,709 41,021,9801 2 3 4 5



compliance

11,840,900



DOT,DOPDOB

12,950,256 14,245,282 15,669,810 17,236,791 18,960,47012

24

36 48 60







programmes

DOT 600,808,467 647,305,578 696,499,968 1,036,507,473 838,089,98645 50 55 65 75




DOT 5,687,416 3,704,158 4,074,573 4,482,031 4,930,2348 10 15 20 25


1:60,000

1:40,000


DOP 1,873,200 2,060,520 2,266,572 2,493,229 2,742,5521:58000 1:55,000 1:50,000 1:45,000 1:400000


TBA 80%


DOB 3,834,680 4,218,148 4,639,963 5,103,959 5,614,355

40 50 60 70 80





DOB 4,110,000 5,984,400 5 10 15 17 20




DG 2,351,480

15 25 35 45 55



DG 6,034,376 2,116,814 2,328,495 2,561,344 2,817,47920:80 30:70 40:60 50:50 60:40




DOB 6,655,200 1,237,940 1,361,734 1,497,907 1,647,69865 70 75 80 80



TBA 100%





DOLS 16,674,423 100% 100% 100% 100% 100%




DG 1,085,000 3,712,023 1,312,850 1,444,135 1,58854925% 20% 15% 12% <10%




IP3.6ComputerEmergencyResponseTeam(CERT)implemented

0 1 1. Benchmarkingwithothercountries

2. CapacitybuildingforMACRAandotheragencies

3. Sensitizationandawarenessmeetings.

4. OperationaliseCERT

DOT 48,790854 0 1 1 1 1

IP4.Facilitateeffectiveandefficientlegalandregulatoryframework.

IP4.1No.ofsensitizationmeetingsforCommunicationsActandE-Legislationenactment

0 7 1. Conductsensitizationmeetings.

DOLS 0 0 0 0 04 7 7 7 7

IP4.2Numberofsectorregulationsdeveloped

1 TBA 1. Developregulations2. Implementregulations

DOLS 3,289,500 1,193,500 1,312,850 1,444,135 1,588,549

IP4.3ConvergedLicensingFramework(CLF)implemented

0 1 1. Stakeholderconsultations2. IssuanceofnewCLFlicences3. ImplementCLFlicensing

DOLS 4,414,900 4,856,390 5,342,029 5,876,232 6,463,8551 1 1 1 1

IP5.Monitoringandenforcementofthelegalandregulatoryframework

IP5.1Levelofregulatorycompliance

100% 100% 1. Conductannualtechnicalaudits(Broadcasting,TelecomsandPostal)


DG,DOT,DOB,DOPS

1,430,500 1,573,550 1,730,905 1,903,996 2,094,395100 100 100 100 100

IP5.2Auditreportsproduced

3 20 1. Conductcomplianceaudits.2. Reviewdirectorates’policies.3. Followonimplementationof

recommendations

DG

4 8 12 16 20

IP5.3Percentageoflicencesreviewed

70% 100% 1. Reviewlicences2. Implementrecommendations

DOLS 2,680,900 2,948,990 3,243,889 3,568,278 3,925,106100 100

100 100 100

IP6.FacilitateinvestmentintheICTsector

IP6.1ICTContributiontoGDP

4% 8% 1. ConductICTaccessandusagesurvey

2. Implementsurveyrecommendations

DG 14,123,789 4 5 6 7 8

Lear

ning

&G

rowth

LG1.Strengthenhumancapital

LG1.1Skillsgapanalysisreport

0 1 1. Conductaskillsgapanalysissurvey

2. Implementtheresultsofsurvey3. AnnualassessmentofHRskills4. Instituteinstitutionalanalysison

changesintheindustry

DOFA 5,621,272 6,801,739 1

1 1 1 1

LG1.2Leveloforganisationalalignmenttocorporatestrategy

70% 100% 1. Conductfunctionalreviewanalysis

2. Conducthumanresourcesaudit3. Revieworganisationstructure4. Developandinstituteservice

levelagreementswithotherdirectorates

0 0 0 0 0

75% 80% 100% 100% 100%

LG1.3%ageofemployeeswithrequisiteskillstoperformtheirjobs

80% 100% 1. Longandshort-termtraining2. Competencecertification3. Managementdevelopment4. Continuousprofessional

development.5. Reviewofhumanresource

developmentpolicy

DOFA 115,000,000 126,500,000 141,535,101 153,065,000 168,371,50085 90 100 100 100

LG1.4Employeeretention

90% 100%employeeretention

1. Careerpathsplanning2. Successionplanning3. Rewardandrecognition

practices4. Coachingandmentoring.5. Continuousreviewof

remuneration.

DOFA 9,300,737 10,230,811 11,253,892 12,379,281 13,617,21095 100 100 100 100%

LG1.5Employeeengagementindex

70% 90% 1. Staffsatisfactionsurveys2. Teambuildingactivities.3. Interdepartmentalprograms.4. Employeewellness

programmes.

DOFA 141,481,166 164,834,032 171,192,211 199,449,179 142,017,70075% 80% 85% 90% 90%

LG1.6LevelofStaffperformancescoringabove70%

60% 80% 1. PerformanceplanningandevaluationusingtheBalancedScorecard

2. Coachingandmentoring.3. Performancebased

Rewardsandrecognition.

DOFA 14,540,000 65 70 75 80 80

LG2.Timelyandreliablesharingofinformation

LG2.1Levelofinformationsharingusingmoderncommunicationtools

70% 100% 1. Intranet2. Newsletters3. Alternativemeansforsharing

information(MACRAfacebookpage)

DOFA 26,140,000 1,760,000 1,936,000 2,129,600 2,342,560

75% 80 85 90 100%

LG2.2Timelinessofinformationsharingandfeedback.

80% 100% 1. Improvecommunicationchannelsandfeedback

DOFA 15,994,000 85% 90% 95% 100% 100%

LG3.Improveinstitutionalcapacityandcorporategovernance

LG3.1Numberofleadershipandcorporategovernanceprograms

1 10 1. Conductassessmentonskillsgap

2. Organizeworkshopsandseminars

3. Mentorships4. Peerlearning

DG 65,520,029 79,279,235 2 4 6 8 10

LG3.2NumberofskillsdevelopmentprogramsforBoard

1 5 1. Benchmarking2. SeminarsandWorkshops3. ManagementandBoardretreats

DG 37,520,029 45,399,235 1 2 3 4 5

LG3.3Percentageofinternalsystemsandprocessesdeveloped

40% 80% 1. Managementofregulatorytoolsandequipment.

2. Reviewinternalpoliciesandprocedures

3. Fleetmanagementautomation4. Implemententerpriserisk

managementframework.

DOFA 950,593,151 1,341,002,466 1,423,457,713 2,905,691,484 1,642,124,53350% 60% 70% 80% 80%

LG3.4NumberofCorporateSocialResponsibilityprogramsimplementedperyear

5 10 1. ReviewandimplementCorporateSocialResponsibilityguidelines.

2. ReviewandapproveinitiativesforCSR

DG 41,430,500 44,000,000 48,400,000 53,240,000 58,564,0006 7 8 9 10



36








DOT 48,790854 0 1 1 1 1




DOLS 0 0 0 0 04 7 7 7 7



DOLS 3,289,500 1,193,500 1,312,850 1,444,135 1,588,549



DOLS 4,414,900 4,856,390 5,342,029 5,876,232 6,463,8551 1 1 1 1





DG,DOT,DOB,DOPS

1,430,500 1,573,550 1,730,905 1,903,996 2,094,395100 100 100 100 100



recommendations

DG

4 8 12 16 20



DOLS 2,680,900 2,948,990 3,243,889 3,568,278 3,925,106100 100

100 100 100





DG 14,123,789 4 5 6 7 8

Lear

ning

&G

rowth






DOFA 5,621,272 6,801,739 1

1 1 1 1





0 0 0 0 0

75% 80% 100% 100% 100%




developmentpolicy

DOFA 115,000,000 126,500,000 141,535,101 153,065,000 168,371,50085 90 100 100 100





remuneration.

DOFA 9,300,737 10,230,811 11,253,892 12,379,281 13,617,21095 100 100 100 100%



programmes.

DOFA 141,481,166 164,834,032 171,192,211 199,449,179 142,017,70075% 80% 85% 90% 90%





DOFA 14,540,000 65 70 75 80 80





DOFA 26,140,000 1,760,000 1,936,000 2,129,600 2,342,560

75% 80 85 90 100%



DOFA 15,994,000 85% 90% 95% 100% 100%






DG 65,520,029 79,279,235 2 4 6 8 10



DG 37,520,029 45,399,235 1 2 3 4 5






DOFA 950,593,151 1,341,002,466 1,423,457,713 2,905,691,484 1,642,124,53350% 60% 70% 80% 80%




DG 41,430,500 44,000,000 48,400,000 53,240,000 58,564,0006 7 8 9 10









DOT 48,790854 0 1 1 1 1




DOLS 0 0 0 0 04 7 7 7 7



DOLS 3,289,500 1,193,500 1,312,850 1,444,135 1,588,549



DOLS 4,414,900 4,856,390 5,342,029 5,876,232 6,463,8551 1 1 1 1





DG,DOT,DOB,DOPS

1,430,500 1,573,550 1,730,905 1,903,996 2,094,395100 100 100 100 100



recommendations

DG

4 8 12 16 20



DOLS 2,680,900 2,948,990 3,243,889 3,568,278 3,925,106100 100

100 100 100





DG 14,123,789 4 5 6 7 8

Lear

ning

&G

rowth






DOFA 5,621,272 6,801,739 1

1 1 1 1





0 0 0 0 0

75% 80% 100% 100% 100%




developmentpolicy

DOFA 115,000,000 126,500,000 141,535,101 153,065,000 168,371,50085 90 100 100 100





remuneration.

DOFA 9,300,737 10,230,811 11,253,892 12,379,281 13,617,21095 100 100 100 100%



programmes.

DOFA 141,481,166 164,834,032 171,192,211 199,449,179 142,017,70075% 80% 85% 90% 90%





DOFA 14,540,000 65 70 75 80 80





DOFA 26,140,000 1,760,000 1,936,000 2,129,600 2,342,560

75% 80 85 90 100%



DOFA 15,994,000 85% 90% 95% 100% 100%






DG 65,520,029 79,279,235 2 4 6 8 10



DG 37,520,029 45,399,235 1 2 3 4 5






DOFA 950,593,151 1,341,002,466 1,423,457,713 2,905,691,484 1,642,124,53350% 60% 70% 80% 80%




DG 41,430,500 44,000,000 48,400,000 53,240,000 58,564,0006 7 8 9 10

APPENDIX1:MACRA’SCORPORATESCORECARDAPPENDIX 1: MACRA’S CORPORATE SCORECARD

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

APPENDIX 1: MACRA’S CORPORATE SCORECARD Perspective Strategic

ObjectiveMeasure Baseline Target Initiative Responsibility YearEndingJune’

2013/14 ‘16 ‘17 ‘18 ‘19 ‘20

LG3.5Completionofnewofficecomplex

0 1 1. Finaliselandacquisition2. Identificationofbuilding

contractors3. Commenceconstructionof

officecomplex.4. Monitoringandsupervisionof

constructionworks.

DOFA 1,063,565,504 2,091,522,055 2,300,674,260 2,530,741,686 3,677,21530% 70% 90% 100% 100%

Fina

ncial

F1.Optimiseresourceallocationandutilization

F1.1Costasapercentageoftotalrevenue

50% 40% 1. ImplementBudgetarySoftware2. PrepareActivityBasedBudgets3. ProduceMonthlyManagement

Accountscompletewithvarianceanalysisbythe15thofeverymonth

4. ProductionofQuarterlyandAnnualReports.

5. ProductionofAnnualAuditedFinancialStatementsby30September

6. CapacityBuildingonRegulatoryAccounting

7. BenchmarkingonRegulatoryAccounting

8. IntegrateAccountingsystemwithothertechnicalsystems

DOFA 85,813,142 62,990,730 56,742,971 58,953,604 66,850,07548% 46% 44% 42% 40%

F2.Increaserevenuegrowth

F2.1Revenueyield

18% 50% 1. Reviewoflicencefees2. Introducenewrevenuestreams

DOFA

15,016,267 11,105,234 12,215,757 19,391,259 14,781,06625% 30% 40% 45% 50%

F2.2InvestmentIncomeGrowth

K125,000,000

100%Increase

1. Developandimplementinvestmentpolicy

2. Prudentinvestmentoffundswithbanksatbestnegotiatedinterestrates

3. Productionofinvestmentstatusreports

DOFA 1,037,100 1,140,810 1,254,891 1,380,380 1,518,418 20% 40% 60% 80% 100%

F2.3SurplusRemittancePolicy

0 1 1. Facilitatethedevelopmentofsurplusremittancepolicy

2. Benchmarking3. Consultationswithtreasury

officials4. Implementationofthepolicy

DOFA 3,503,819,944 3,850,000,000 4,235,000,000 4,658,500,000 5,124,350,000 1 1 1 1 1

F2.4Debtwriteoffprovisionratio

1% 0.05% 1. Introducebetterdebtmanagementmechanisms

DOFA 4,167,837 1,284,621 1,413,083 1,554,391 1,709,830

StaffCosts 1,599,038,635 1,918,846,363 2,302,615,635 2,763,138,762 3,315,766,514 Total Cost For Strategy

Implementation 9,313,191,967 11,291,473,638 12,491,257,425 15,467,998,415 12,571,290,816

Revenue Projected 10,608,155,663 11,668,971,229 12,835,868,352 14,119,455,187 15,531,400,706


0.09% 0.08% 0.07% 0.06% 0.05%

37


Measure Owner Freq. 2015/'16 2016/'17 2017/'18 2018/'19 2019/'20 YTD Actual YTD Target

C1 Customer Satisfaction Index DG B-‐A 40% 50% 60% 70% 75% 0%C4 Voice Telephony Penetration DOT B-‐A 45% 50% 55% 65% 75% 0%C4 Broadband Penetration DOT A 8% 10% 15% 20% 25% 0%C4 Postal and Courier Penetration DOP A 1:58,000 1:55,000 1:50,000 1:45,000 1:40,000 0C4 Electronic Commerce Penetration DG A 15% 25% 35% 45% 55% 0%C4 TV Broadcast Coverage(Population) DOB A 40% 50% 60% 70% 80% 0%

IP1 Percentage of projects completedDOLS,DOT,DG,DOFA,DOP,DOB

Q-‐SA 30% 50% 60% 70% 80% 0%

IP5 Level of regulatory complianceDG,DOT, DOB,DOPS Q-‐SA 100% 100% 100% 100% 100% 0%

IP6 ICT contribution to GDP DG A 4% 5% 6% 7% 8% 0%

LG1%age of employees with requisite skills to perform their jobs

DOFA Q-‐SA 85% 90% 100% 100% 100% 0%

LG1 Employee engagement index DOFA S 75% 80% 85% 90% 90% 0%LG1 Level of staff performance DOFA Q-‐SA 65% 70% 75% 80% 80% 0%

F1 Cost as a percentage of total revenue DOFA M 50% 40% 0%F2 Revenue Yield DOFA M 25% 30% 40% 45% 50% 0%


Internal Processes

Learning and Growth

Financial

MACRA BALANCED SCORECARD -2015/'16-2019/'20 FISCAL YEARS

Our Mission: To facilitate the development of the ICT Sector through efficient and effecNve regulaNon and research Our Vision: Universal access and usage of ICT services in Malawi Our Values: OperaNonal Excellence, Customer Focus, InnovaNon , Team Work, Transparency & Accountability and Integrity

APPENDIX 2: 2015/16 -2019/20 FISCAL YEARSBSC -14 KEY MEASURES AND KPIs

Vision: Universal access and usage of ICT services in Malawi.

Mission: To facilitate the development of the ICT Sector through efficient and effective regulation and research.

Values: Operational Excellence, Customer Focus, Innovation, Teamwork, Transparency & Accountability and Integrity

38

Internet PenetrationInternet Penetration

s t R a t e g i C P l a n 2 0 1 5 – 2 0 2 0

39

MACRA’S POSSIBLE RISKS AND ASSOCIATED MITIGATION MEASURES

26

No. Possible Risks Mitigation Measures

1 Pol i t ical Interference • Amend Board Charter to be in l ine with the law • Civic educate PAC and MPs on the new communications bi l l through

workshops • Provide guidance to relevant authorit ies on infr ingement of MACRA’s

operat ions 2 Delays in Board appointment/Corporate

Governance • To remind the appoint ing authorit ies at each appointment of board on

the legal requirements • Amend MACRA Charter to remove the i l legal provisions • Amend MACRA Charter to include other provisions in l ine with Malawi

code • Have a separate detailed Board audit committee charter • Have a separate Internal audit charter • May also have a r isk charter • Develop anti-corruption pol icy

3 Regulatory : • Confl ict ing laws • Failure to pass the new communications

Act • Regulatory capture • Electronic Monitor ing Provisions (New bil l

and regulat ions talk of submitt ing info by l icensees instead of MACRA collect ing info; could cause other legal battles in future)

• E-Legislat ion-(MACRA is solely responsible for the implementation of this Act yet the Authority is not ready for

• Lobby relevant authorit ies to amend laws that contravene the communications Act

• Constant communication and awareness of MACRA’s roles • Amend provisions to enable MACRA collect info on operators • MACRA to review the E-Legislat ion Act & pol icy , note the obl igat ions

and reposit ion i tself in readiness of the passing of the Act , prepare regulatory instruments in advance and to consider the capacity needed to implement the pol icy and Act

No. Possible Risks Mitigation Measures

i ts implementation) 4 Funding:

• Delays in approval of budgets and release of funds

• Funding less than planned projects

• Timely submission of budgets to Ministry of Finance • Engaging relevant stakeholders(Ministry of Finance) to reduce

mismatch between planned funding requirements, budgetary allocations and actual

• Seek for alternative funding .e .g ITU, Publ ic Pr ivate Partnerships • Improve communication and result or iented performance

5 High inflat ion • Proper forecasting 6 Absence of div idend pol icy • Facil i tate i ts development

7 Lack of business continuity • Implement business continuity init iat ives as specif ied in the corporate plan

• Ensure that cr i t ical IT systems that support business are readily and constantly available to end-users

• Install and manage systems that are supported with the relevant ICT pol icies and procedures that wil l enhance disaster recovery and business continuity

8 Restr ict ions on external travel • Submit just i f icat ions t imely • Lobby relevant authorit ies

9 Reputat ion Risk: • Negative media attention-operators and

media cr i t ic ism • Government Agencies gett ing involved in

MACRA’ s operat ions

• Develop and implement a robust communication strategy • Strengthen communication and engagement with operators , media

and the general public • Clearly communicate demarcations of roles and responsibi l i t ies to

Government Agencies

10 Inabil i ty to keep pace with rapid technological changes in the industry

• Strengthen internal research capacity

APPENDIX 3: MACRA’S RISK MANAGEMENT

Risk identification is the first step in a proactive risk management process. It provides opportunities, indicators and information that allow MACRA to proactively plan for risk measures that subsequently minimise the impact or allows MACRA to accomplish its strategic objectives.


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MACRA Strategic Plan 2015-2020