President Banda said this in Parliament in Lilongwe Friday in her state-of-the-nation address flagging off the 2013/14 budget session.
She said her administration would revive rural economies and improve rural community social economic conditions in an attempt to bring meaningful incomes into individual rural households.
"Government will specifically target the individual villages across the country with comprehensive high impact interventions that will accelerate the betterment of well-being of rural and urban poor,"
Banda said announcing an initiative that will be called Mudzi Transformation Trust.
The aim of the trust, she said, would be to mobilise accessible, responsive and flexible resources to support social and economic projects for the desired transformation of the lives of all Malawians.
The implementation of the programme, she said, will be linked to the formal registration of some 20, 000 village heads who will work with the trust in mobilising communities.
The President said her year-long experience in office has deepened her understanding and experience with the private sector as an effective and responsive entity in so far as supporting community development is concerned both as a business case and a corporate social responsibility.
Through the trust, Banda hopes to see improvements in the provision of clean and portable water, building assets of households, access to farm loans and improved access to markets.
"The trust will also generate its own resources through businesses like commercial farming, value addition and real
estate development among other things," she said.
The address was not without drama with the opposition, on several occasions, booing her in clear disagreement with some issues the President raised especially on her assertions that she
inherited government when the economy had collapsed, that corruption is being tackled head-on and that - unlike in the past - the subsidised fertiliser programme ran with minimal hurdles last growing season.
Banda said on the economic front, substantial progress was being made with the economy projected to grow by 6.1 percent next year. Inflation, she said, is expected to decrease by 14 percent by the close of 2013.
"Mr. Speaker, Sir, I believe that we have laid a solid foundation for hope, prosperity and growth. During the year under review, we have brought Malawi back from the brink – politically, financially and economically. We are now in a position where we can begin to focus more clearly on the long term," she said in her speech themed 'Malawi on the Road to Transformation.
Overall, Banda covered areas of governance, macro-economic stability, issues of bottlenecks to economic growth, increasing and diversifying exports, industry and mining, social protection, household income generation and agriculture among other things.
The President also announced the restructuring of the Agricultural Development and Marketing Corporation (Admarc) in an effort to make it viable.