* Clinton says Banda restores U.S. confidence in Malawi
* Banda's economic reforms improving lives
* U.S. gives Malawi pure bred dairy bull
LILONGWE, Aug 5 (Reuters) - U.S. Secretary of State Hillary
Clinton paid a lightning visit to Malawi on Sunday to
congratulate its new president, one of only two female heads of
state in Africa, for pulling her impoverished country back from
the economic brink after a political crisis.
Clinton, who is on an African tour, landed in Malawi's
capital Lilongwe and headed directly to a meeting with President
Joyce Banda, a veteran women's rights campaigner who had been
the country's vice president and moved into the top job in April
after the death of her erratic predecessor Bingu wa Mutharika.
U.S. officials said Clinton's five hour visit -- the first
ever by a U.S. Secretary of State to the southern African
country -- was a vote of confidence in Banda, who has moved
swiftly to woo back international donors after years of damaging
mismanagement under Mutharika.
"President Banda had made critical reforms that are already
improving lives and spurring economic recovery," Clinton said in
prepared remarks after meeting the 62-year-old leader, who is
now Africa's second female head of state following Liberia's
President Ellen Johnson Sirleaf.
The two leaders traded compliments at Malawi's State House
and then moved behind closed doors for talks that were an
opportunity for two canny political operators to trade notes.
"For a long time we have been women and children's activists
and I have been waiting for the day when we will meet," Banda
said.
Expelled from Mutharika's Democratic Progressive Party (DPP)
in 2010 after an argument about the succession, Banda retained
her state position. Following Mutharika's death from a heart
attack in April, she successfully enforced her constitutional
right to succession and is expected to run the country until
elections scheduled for 2014.
Many of Malawi's 13 million people have welcomed the change
from Mutharika, a former World Bank economist who entered
government pledging reform but ended up enacting increasingly
authoritarian policies and squabbling with donors, who
subsequently froze funds which account for about 40 percent of
government spending.
Banda has passed an austerity budget and allowed the
country's currency, the kwacha, to devalue by some 49 percent -
a move that allowed the International Monetary Fund to approve a
$156.2 million loan to boost growth and address the country's
chronic balance of payment problems.
Major donors such as Britain and the United States restarted
aid programs following Banda's accession. The United States in
June restored a $350 million assistance program under its
Millennium Challenge account which aims to reward good economic
and political governance.
In addition to that package, the United States in 2011
provided $230 million in aid to Malawi aimed at agriculture,
education and HIV/Aids.
While in Malawi, Clinton also announced that the United
States would be spending more than $46 million over the next
three years to help strengthen Malawi's agricultural sector and
said the United States was giving the country a pure bred dairy
bull to help boost the dairy industry.
(Reporting by Andrew Quinn; Editing by Rosalind Russell)