IMF forecasts stable inflation beyond 2018 | The Times Group

IMF forecasts stable inflation beyond 2018 | The Times Group: By William Kumwembe:

The International Monetary Fund (IMF) has projected a solid downward trajectory of inflation beyond 2018, converging at 5 percent in the long term.

The Bretton Woods institution has since said it expects Malawi’s inflation to average 9 percent this year, in line with an earlier projection by Reserve Bank of Malawi (RBM).

IMF says it expects inflation to close at 9.5 percent by end of 2018.

Growth forecasts raise eyebrows - The Nation Online

Growth forecasts raise eyebrows - The Nation Online: Businesses and economic analysts have bemoaned Malawi’s ambitious gross domestic product (GDP) targets, saying they slow down growth as businesses take a wait-and-see approach.

In turn, government misses out on revenue, analysts have said.

Malawi Supreme court favours Khato on Salima-Lilongwe Water Project - The Maravi Post

Malawi Supreme court favours Khato on Salima-Lilongwe Water Project - The Maravi Post: BLANTYRE-(MaraviPost)-The Malawi Supreme Court of Appeal judges on Thursday throw away an objection application in which two civil society organisations (CSOs) want� to replace the Malawi Law Society (MLS) in the Salima-Lilongwe Water Project case

The two CSOs—Youth and Society (YAS) and Centre for Human Rights and Rehabilitation (CHRR) wanted the case to back to the High Court of Malawi to determine the legality of the project in respect of awarding of the contract to Khato Civils Limited as well as commencement of work without an environmental impact assessment (EIA) report.

Inflation under control—RBM | The Times Group

Inflation under control—RBM | The Times Group: he Reserve Bank of Malawi (RBM) has said it remains confident the country’s inflation remains under control and would average between 9.3 and 9.6 percent this year.

This is despite inflation rising for the third straight month in September although at a slower pace.

Headline inflation edged up by 0.2 percentage points to 9.5 percent in September 2018, from 9.3 percent recorded in August 2018.

Report shows trade gap still widening - The Nation Online

Report shows trade gap still widening - The Nation Online: The Malawi Growth and Development Strategy (MGDS) III aspirations were this week put on the spotlight following revelations from the International Trade Index on Trade Map that the country’s imports are declining. The index observes that Malawi’s imports from the rest of Africa declined over the past five years, at a time exports are also declining. It shows that Malawi’s imports declined from $1.2 billion (about K876 billion) in 2013 to $758 million (K555 billion) in 2017.

Malawi's Kanyika Niobium ready for mining; promises 1000 jobs...as extractive industry revenue down 10% - The Maravi Post

Malawi's Kanyika Niobium ready for mining; promises 1000 jobs...as extractive industry revenue down 10% - The Maravi Post: LILONGWE-(MaraviPost)-The halted Kanyika Niobium Project says the “mine is ready”, after years of giving hope to communities at Inkhosi Mabilabo Jere in the Northern district of Mzimba.

The exploration of Niobium and Tantalum that started 2006 to 2012, the project has assured 1,000 jobs to Malawians when mining starts in 18 months time.

This comes as the second Malawi Extractive Industries Transparency Initiative (Mweiti) report shows that revenue has gone down 10 percent to MK5.3 billion.

Malawi Set to Get Zambia Power to Minimise Blackouts - allAfrica.com

Southern Africa: Malawi Set to Get Zambia Power to Minimise Blackouts Malawi is set to start getting 20 megawatts of electricity from Zambia starting this week, bringing hope that the persistent power blackouts would be minimized. Minister of Energy Aggrey Massi said on Saturday that this follows an interconnection power agreement which the governments of Malawi and Zambia signed a month ago in Lusaka. "The government is making strides to end the power blackouts and this is just one step among many the government has lined up," Massi said.

Price hikes push up inflation to 9.5% - The Nation Online

Price hikes push up inflation to 9.5% - The Nation Online: . Rising electricity tariffs is expected to put pressure on inflation In September, Malawi Energy Regulatory Authority (Mera) increased the price of fuel by an average of five percent, a development which compelled service providers to push up their prices as well. During the same month, Mera also approved a 31.8 percent tariff hike for Electricity Supply Corporation of Malawi (Escom) over a four-year period. Maize prices, on the other hand, have also gone up to an average of K7 500 per 50 kilogramme (kg) bag from an average of K5 000 per 50 kg bag some months before. 

African Governments Are Paying for the World Bank’s Mauritius Miracle – Foreign Policy

African Governments Are Paying for the World Bank’s Mauritius Miracle – Foreign Policy: OCTOBER 18, 2018, 11:05 AM PORT LOUIS, Mauritius—The security guard at Malawi Mangoes’ registered address at an office at the St Louis Business Centre in downtown Port Louis is not sure if we’re in the right place. The staff at the front desk are bewildered by our request to speak to someone from the company. The otherwise modest office block has flat-screen televisions on the walls and glossy magazines with titles like Savile Row and Family Business on a table in a small waiting area. After about 20 minutes, a woman in a suit appears, bearing apologies—she had been out to lunch. At first, she seems to mistake us for investors in Malawi Mangoes. We jump in to clarify: We’re journalists looking to talk to someone from the company, which in 2014 received a $5 million loan from the private investment arm of the World Bank, the International Finance Corporation (IFC). Our interlocutor appears confused, as if she knows little about the business, or why we might be attempting to learn more about it in Port Louis, Mauritius.

Malawi Govt Gets K5.6 Billion From Mining Sector - Activist Calls for Enactment of New Minerals Bill - allAfrica.com

Malawi Govt Gets K5.6 Billion From Mining Sector - Activist Calls for Enactment of New Minerals Bill - allAfrica.com: The Malawi government received over K5.3 billion from the mining sector in the 2015/2016 financial year, says the Malawi Extractive Industries Transparency Initiative (MWEITI) report for the year in question launched on Wednesday night in Lilongwe.

It was revealed during the launch that Raiply Malawi Limited, the company which processes timber products in Viphya Plantation, paid most of this tax.

This is the second MWEITI report since Malawi began subscribing to Extractive Industries Transparency Initiative (EITI) standards.

Malawi shines on tax reforms� - The Nation Online

Malawi shines on tax reforms� - The Nation Online: The 2018 Oxfam and Development Finance International Commitment to Reducing Inequality (CRI) Index has ranked Malawi among the best 10 countries in the world in designing progressive tax systems aimed at reducing inequalities.

The report shows that Australia, Denmark and South Africa occupy the first three positions in that order, with Malawi on position seven while near the bottom of the tax index are Bahrain and Vanuatu, which have no corporate or personal income tax

Community threaten to close Optichem mine - The Nation Online

Community threaten to close Optichem mine - The Nation Online: Disgruntled community in Phalombe District have threatened to close Thundulu Mine to force Optichem (Malawi) Limited to invest in local projects.

The locals, speaking during a fact-finding meeting organised by Centre for Policy and Advocacy (Cepa), said they would block roads to stop trucks from hauling rock phosphate from the hills in Phalombe North East.

MCTU push for minimum wage increase - The Nation Online

MCTU push for minimum wage increase - The Nation Online: Barely two weeks after the Malawi Energy Regulatory Authority (Mera) revised upwards fuel pump prices, the Malawi Congress of Trade Union (MCTU) is pushing for the revision of the minimum wage to match what it calls the current economic situation. MCTU Secretary general Denis Kalekeni argued that the fuel pump price increase has led to the rise of transport fares and other essential commodities pushing workers at a disadvantage.

Nyasa partners South Africa firm | The Times Group

Nyasa partners South Africa firm | The Times Group: Local cigarette manufacturer, Nyasa Manufacturing Company (NMC), has entered into a partnership with a South Africa- based multinational firm, Gold Leaf Tobacco Limited.

The partnership would see Malawi becoming a regional hub of cigarette production for the firm.

Reserve Bank of Malawi sees inflation averaging 9% in 2018 | The Times Group

Reserve Bank of Malawi sees inflation averaging 9% in 2018 | The Times Group: The Reserve Bank of Malawi (RBM) has said it expects Malawi’s inflation to average nine percent this year.

The prediction comes at a time Malawi’s inflation is threatening to run away following recent electricity and fuel price hikes which have driven up transport costs.

Malawi Revenue Authority requires installation of 300KVA UPS | ESI-Africa.com

Malawi Revenue Authority requires installation of 300KVA UPS | ESI-Africa.com: The Malawi Revenue Authority (MRA) has budgeted public funds to be used for the procurement of supply, delivery and installation of a 300KVA uninterrupted power supply system (UPS) for Msonkho House in Blantyre.

The Chairperson, Internal Procurement and Disposal of Assets Committee of Malawi Revenue Authority now invites sealed bids from eligible and qualified bidders for the supply and delivery of the above mentioned.

Malawi Stock Exchange pens Escom on borrowing | The Times Group

Malawi Stock Exchange pens Escom on borrowing | The Times Group: Malawi Stock Exchange (MSE) has written Electricity Supply Corporation of Malawi (Escom) and Secretary to the Treasury over the power utility firm’s proposal to borrow K30 billion from the money market.

MSE Chief Executive Officer, John Kamanga, confirmed in an interview Tuesday that his institution penned Escom a fortnight ago.

Escom revises tariff structure | The Times Group

Escom revises tariff structure | The Times Group: Electricity Supply Corporation of Malawi (Escom) has revised its base tariff structure following a 31.8 percent electricity tariff adjustment nod by Malawi Energy Regulatory Authority (Mera).

Escom applied for a 60 percent electricity tariff adjustment.

Escom has since introduced a life-line tariff in the new structure to cater for low income households to access electricity at lower rates, while reducing the subsidy for other sections of the consumers.

AfDB approves Malawi’s economic strategy - Vanguard News

AfDB approves Malawi’s economic strategy - Vanguard News: The African Development Bank has approved its Country Strategy Paper for Malawi for 2018-2022 to boost economic diversification, reduce dependency on rain-fed agriculture and build resilience for growth in the southern African nation. The Country Strategy Paper will guide the African Development Bank’s operations in Malawi with regards to its financial, technical and knowledge assistance to the country.

Admarc invests K800m in cotton production - The Nation Online

Admarc invests K800m in cotton production - The Nation Online: State produce trader Agricultural Development and Marketing Corporation (Admarc) has invested about K800 million in cotton irrigation farming in Chikwawa to increase output and boost the cotton industry.

Production of cotton, Malawi’s number four foreign exchange earner after tobacco, tea and sugar, has over the years been decreasing due to what experts say is lack of sustainable input supply system arising from lack of financial support to farmers due to loan defaults.

Firm sees inflation rate on bumpy ride - The Nation Online

Firm sees inflation rate on bumpy ride - The Nation Online: alawi faces a rollercoaster ride of rising inflation rate as the country is in the lean season in terms of food availability, an investment management and advisory firm has said.

In its September 2018 economic outlook, Nico Asset Managers Limited, a subsidiary of listed financial services group Nico Holdings plc, noted that the food inflation will continue to rise largely due to the lean season that has begun much earlier in� September rather than the usual October

IMF cuts Malawi’s Growth to 3.3% - The Nation Online

IMF cuts Malawi’s Growth to 3.3% - The Nation Online: IMF cuts Malawi’s Growth to 3.3% Eric Mtemang’ombe October 11, 2018 0 Comments � Malawi’s gross domestic product (GDP) growth will drop to 3.3 percent in 2018, declining by 0.7 percentage points from four percent recorded in 2017, blamed on declining maize output and power outages that have slowed down industrial growth, the International monetary Fund (IMF) has said. The IMF projection, contained in the World Economic Outlook for October 2018 released on Monday, is 0.2 percentage points lower than the economic growth recorded in 2017 and 2.4 percentage points lower than the 2018 average for low income countries.

IMF says 5% inflation target achievable | The Times Group

IMF says 5% inflation target achievable | The Times Group: The International Monetary Fund (IMF) has said Malawi could attain the five percent inflation target by 2021 if the system maintains a prudent economic management.

The Fund said the economy could even attain disinflation—a temporary slowing of the pace of price inflation by 2023.

Malawi’s headline quickened by 0.3 percentage points in August to 9.3 percent as escalating food prices continued to bite.

Malawi to tap electricity from Mozambique - official - Journal du Cameroun

Malawi to tap electricity from Mozambique - official - Journal du Cameroun: Mozambique’s deputy Minister of Mineral Resources and Energy, Augusto Fernando has said his country and Malawi are to be interconnected through the Mozambican national power grid.Fernando told APA in an exclusive interview on Monday that the bid to build the power-lines interconnecting the two countries is expected to be launched next year. “In addition to the interconnection, between the two countries, a branch line from Malawi back to northern Nampula province and elsewhere in the country, will be built in the future. This will allow Mozambique to have a second alternative because we always think Tete has Cahora Bassa, which supplies electricity”, he said in Maputo.

Malawi’s compact fate in December - The Nation Online

Malawi’s compact fate in December - The Nation Online: Following a failed meeting between President Peter Mutharika and Millennium Challenge Corporation (MCC) executives in New York, Malawi will have to wait until December when the MCC Board will decide on eligible countries for the next compact financing.

Khato water deal back - The Nation Online

Khato water deal back - The Nation Online: Khato water deal back Frank Namangale October 7, 2018 0 Comments Government has signed a deal with a financier of the K400 billion Lilongwe-Salima Project, effectively putting on course the project that faced several hurdles, Nation on Sunday has established.

Terrastone workers stage protests over abuse, low pay | The Times Group

Terrastone workers stage protests over abuse, low pay | The Times Group: Workers for Terrastone Construction Limited which is building Malawi Bureau of Standards (MBS) laboratory complex in Blantyre have downed tools over alleged abuse and low pay.

The workers who are over 100 staged protests at the gates of the construction site yesterday morning to force Terrastone management to look into their challenges.

IMF expects 4 pct growth in Malawi in 2019, economy performing well | Reuters

IMF expects 4 pct growth in Malawi in 2019, economy performing well | Reuters: IMF expects 4 pct growth in Malawi in 2019, economy performing well
2 MIN READ

BLANTYRE, Oct 6 (Reuters) - The International Monetary Fund (IMF) said it expected Malawi’s economy to grow by around 4 percent in 2019, followed by a rise to 6-7 percent over the medium term.

In a statement on Friday, the IMF said Malawi was performing well under a three-year $112 million loan facility agreed earlier this year to help the southern African country reform its economy.

“Malawi’s economy continues to grow while inflation remains on a declining trend,” the statement read.

International Monetary Fund (IMF) Reaches Staff-Level Agreement on the First Review of Malawi’s Extended Credit Facility | Africanews

International Monetary Fund (IMF) Reaches Staff-Level Agreement on the First Review of Malawi’s Extended Credit Facility | Africanews: he IMF team reached a staff-level agreement with the authorities of Malawi on the completion of the first review under the Extended Credit Facility; Moderate economic growth is likely to strengthen to about 4 percent in 2019, followed by a rise to 6-7 percent over the medium term; Looking forward, fiscal policy should focus on actions to restore budget balance to correct for last year’s spending overruns and help cope with any shortfalls in budget support.

An International Monetary Fund (IMF) team led by Pritha Mitra, Mission Chief for Malawi, visited Lilongwe from September 25-October 5, 2018 to conduct discussions on the first review of the three-year arrangement for Malawi under the Extended Credit Facility (ECF) [1] (see Press Release No. 18/157 ).

At the end of the mission, Ms. Mitra issued the following statement:

“The IMF team reached a staff-level agreement with the authorities of Malawi on the completion of the first review under the Extended Credit Facility (ECF), which is subject to the approval of the IMF Executive Board.

Read-across from Talaxis investment suggests Mkango Ltd is trading at a significant discount, says SP Angel

Read-across from Talaxis investment suggests Mkango Ltd is trading at a significant discount, says SP Angel: Mkango's rare earths projects have already attracted significant interest, and cash

According to the US Geological Survey, China accounts for around 79% of the world’s rare earth production. That’s as far as can be ascertained, because much of Chinese production is opaque and hard to quantify.

Either way, such an imbalance in global production at a time when trade war rhetoric against the Chinese is rapidly being converted into hard tariffs, is likely to favour significant rare earths operations in jurisdictions outside of China.

READ:�Mkango Resources receives more encouraging assays from drilling at Songwe Hill
Mkango Resources Ltd (LON:MKA) has one such project, the Songwe Hill operation in Malawi. This project is moving rapidly towards a production decision, helped along by a significant investment at the project level from major commodities trader Talaxis.

This Talaxis investment is interesting in several ways. First, there’s every likelihood that Talaxis will follow its money when a production decision is made, meaning that for Mkango, financing Songwe Hill could be pretty straightforward.

MALAWI: Public electricity company at geothermal school in Kenya - Afrik 21

MALAWI: Public electricity company at geothermal school in Kenya - Afrik 21: Malawi wants to get into geothermal energy with the objective to draw on Kenya's experience. A delegation from Malawi Electricity Generating Company travelled to Nairobi for working sessions with Kenya Electricity Generating Company (KenGen) and Geothermal Development Company (GDC).
Geothermal energy has a significant impact on Kenya’s energy mix: 30% in 2018. The country’s first power plant (Olkaria I) dates back to 1981. Kenya is the leading producer of geothermal energy on the African continent, with an installed capacity of 700 MW. Many projects are underway in the country. It is therefore from that experience that Malawi wants to learn from.

New tariff should Boost power supply - The Nation Online

New tariff should Boost power supply - The Nation Online: New tariff should Boost power supply Archibald kasakura October 4, 2018 0 Comments � Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has said the 31.8 percent electricity tariff hike over a four-year period will be meaningless if Escom does not improve power supply. The pronouncement by MCCCI chief executive officer Chancellor Kaferapanjira on Tuesday comes on the back of a tariff hike approval by Malawi Energy Regulatory Authority (Mera) on Monday based on Electricity Supply Corporation of Malawi (Escom) undertaking to improve electricity supply, which has been intermittent for the past three years

Extractive industry revenue down 10% to k5.3bn—report - The Nation Online

Extractive industry revenue down 10% to k5.3bn—report - The Nation Online: k5.3bn—report
Martha Chirambo
October 5, 2018
0 Comments
Malawi has earned K5.3 billion in revenue from the extractive industry, the second Extractive Industries Transparency Initiative (Mweiti) report shows.

This is a 10 percent drop from the 2015 revenue which stood at K5.93 billion

Graphite miner posts K3.8 billion annual loss - The Nation Online

Graphite miner posts K3.8 billion annual loss - The Nation Online: Sovereign Metals Limited, an Australian Stock Exchange (ASX)-listed mining firm conducting a feasibility study for graphite at Malingunde in Lilongwe, has posted pre-tax loss of $5.2 million (about K3.8 billion) largely due to exploration expenditure.

This is on top of another loss of $3.6 million (K2.6 billion) posted the year before, according to the company’s 2018 annual report.

But mining expert Grain Malunga, who is also former minister of Natural Resources, Energy and Mining, in an interview, argued that under normal circumstances, the firm was not supposed to post losses as mining has not yet started.

He said the miner is only in research stage.

Malawi Stock Exchange maintains bullish run in Q3 | The Times Group

Malawi Stock Exchange maintains bullish run in Q3 | The Times Group: The Malawi Stock Exchange (MSE) continued with its bullish performance in the third quarter of 2018 as reflected by a 57.47 percent increase in share value.

In its third Quarter Market Performance report released on Wednesday, MSE indicates that the market, however, recorded a 76.35 percent decrease in terms of share volumes traded.

IMF, Capital Hill in talks | The Times Group

IMF, Capital Hill in talks | The Times Group: By MacDonald Thom: The International Monetary Fund (IMF) is this morning holding a press conference, after its team, led by Pritha Mitra, Mission Chief to Malawi, visited the country from September 25 to October 5.

The team was in the country to conduct discussions about the first review of the three-year arrangement for Malawi under Extended Credit Facility (ECF) for about $112.3�million.

Electricity tariff 32% up | The Times Group

Electricity tariff 32% up | The Times Group: Malawi Energy Regulatory Authority (Mera) has rebuffed Electricity Supply Corporation of Malawi’s (Escom) proposal to effect a 60 percent base electricity tariff increase between 2018 and 2022 and has instead, allowed the parastatal to increase the electricity charges by an average of 31.8 percent.

Comment On Rare Earth Mining in Balaka

For more than a decade a geologist, Michael Saner has held the rare earth mining to ransom.

 US$100-million from the Malawi Government for damages plus sunk costs, legal costs and interest. “ The matter dates back to 2000 when the ministry granted Saner the EPL for Kangankude Mine in Balaka. The EPL was issued on March 15, 2000, for an initial period of three years and it was renewable.

On November 25 2002, Saner submitted an application to renew his EPL of  Kangankunde Carbonatite located in Balaka District and in compliance with the Mines and Minerals Act, the application was submitted three months prior to the expiry date of the EPL but the ministry did not respond to Saner’s renewal application and no grounds were given.

The ministry only gave the reasons for non-renewal in May 2003 after inquiry and officers in the ministry told Saner that the EPL would be renewed but it was not.

However, the ministry issued the mining license to a close associate of Muluzi  Tony Patel, in May 2003 although Patel never held an EPL or engaged in mining. He was a furniture seller. . Three years later Patel sold the “rights” for US$4 million to Lynas Corporation Limited, an Australian publicly-listed company. Mr. Patel

In 2006, Saner obtained a court order which required that the EPL be renewed but it was not renewed, a development which made Saner unable to move to the exploitation phase which was the main objective of the EPL and in 2010, Saner obtained an injunction which prohibits the granting of a mineral license of Kangankunde to any other party other than him” (https://mwnation.com/court-awards-a-geologist-k69-5bn}/

Now we are informed that  ASX-listed Lindian Resources’ geologist Michael Saner has signed a consent order with the Malawi Ministry of Natural Resources and Environmental Affairs, bringing the company a step closer to acquiring up to 75% in the Kangankunde rare earth project, in Malawi.

This has huge implications for the rare earth industry. Given the previous experience, we insist on a transparent process. What exactly is the new agreement with Saner? Does this lay to rest his outrageous claim?