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Saturday, December 28, 2019

Malawi remittances jump, now at $235m – The Nation Online

Malawi remittances jump, now at $235m – The Nation Online: Malawi has earned $235 million (about K196 billion) in remittance through Money Transfer Operators and Foreign Currency Denominated Accounts in 11 month period to November, Reserve Bank of Malawi (RBM) figures show.

The 11-month figure is nearly twice the $186 million (K137 billion) the country received last year through remittanc

Green belt authority Unveils k6bn project – The Nation Online

Green belt authority Unveils k6bn project – The Nation Online: The Malawi Government, through the Green Belt Authority (GBA), has invested $8 million (about K6 billion) in Intensive Vegetable Farming Project in Lumbadzi, Lilongwe to take advantage of the local and export market.

GBA chief executive officer Henri Njoloma said in an interview on Tuesday in Blantyre that the vegetable project or greenhouse project, is a joint venture (JV) partnership with an Israeli-based Inosselia Commercial Limited, a subsidiary of Inosselia Investment Group, which is a global, progressive conglomerate of companies with a cross sector industry portfolio.

Our Comment on Airtel Shares Offer


The big financial news during the last days of 2019 has been the announcement by Airtel that it is offering  2.2 billion shares primarily to Malawians pegged MK12.69 per share. This will be listed on Malawi Stock Exchange (MSE) for individuals.
There are at least three arguments for attracting foreign investment. The first is that it brings in new capital. The second is that it will bring technology and the third is that will help open up foreign markets for the host country.  The Airtel deal fails in at least two of these. It does not bring in new capital. Instead, it is borrowing locally. Its services are necessarily not tradable so it will not be contributing to Malawi’s export and forex earnings. As for technological, the technologies it used are quite standard.
Unless a foreign company is bringing in new technology and expanding the country’s export there is really no reason for allowing the company to raise funds locally.  Allowing Airtel to borrow locally without insisting on the reciprocal augmentation of Malawi’s technological capacity or export simply leads to the crowding out of domestic enterprises.
Domestic entrepreneurs complain about the lack of credit. Airtel’s offer suggests that there are large sums of funds looking for outlets. We know that pension funds are sitting on more than two billion dollars.  The offer also confirms the indigenous capitalist's complaint that the stock market does not serve them.
What all this point towards is the need for the revival of national development institutions like MDC to lend to national capitalists or, through joint ventures, to acquire new technology and open up export markets. The Airtel deal is bad one. It is short-sighted and indicative of a complete lack of development strategy by the government.

Tuesday, December 24, 2019

Airtel offers 2.2 billion shares to Malawians....Share pegged at MK12.69...Open for public Dec 27 - The Maravi Post

Airtel offers 2.2 billion shares to Malawians....Share pegged at MK12.69...Open for public Dec 27 - The Maravi Post: LILONGWE-(MaraviPost)-Airtel Malawi plc (“Airtel”) today on Christmas Eve offered 2.2 billion shares primarily to Malawians pegged MK12.69 per share.

This will be listed on Malawi Stock Exchange (MSE) for individuals, companies and foreigners to buy shares for business.

Monday, December 23, 2019

Lotus gets approval for Kayelekera buy

Lotus gets approval for Kayelekera buy: RTH (miningweekly.com) – Malawi’s Minister for Natural Resources, Energy and Mining has given ASX-listed Paladin Energy consent to divest of its 85% stake in the Kayelekera uranium project.

Paladin in June struck an agreement with Lotus, a subsidiary of Hylea Metals, to divest of 65% its interest in the project for A$5-million, made up of A$200 000 in cash and A$4.8-million worth of Hylea shares. Paladin will also receive a 3.5% royalty on revenues derived from future production at Kayelekera, capped at A$5-million.

Sovereign Metals (ASX:SVM) to drill for rutile targets - The Market Herald

Sovereign Metals (ASX:SVM) to drill for rutile targets - The Market Herald: Sovereign Metals (SVM) has commenced an air-core drilling program which will test at least three prospects in Malawi.

A total of 45 holes for approximately 1000 metres is planned across three targets to test the extent and tenor of rutile mineralisation at depth.

Saturday, December 21, 2019

Mpatamanga plant could solve power woes—minister – The Nation Online

Mpatamanga plant could solve power woes—minister – The Nation Online: Mpatamanga plant could solve power woes—minister
Nation Online December 16, 2019 0 Comments
Construction of the proposed $1 billion (about K740 billion) 350 megawatt (MW) Mpatamanga Hydropower Plant will be key in meeting future power demand.

Minister of Natural Resources, Energy and Mining Bintony Kutsaira said this on Friday at the launch of the procurement of a strategic sponsor of the project.

Malawi’s first solar energy project reaches financial close | REVE News of the wind sector in Spain and in the world

Malawi’s first solar energy project reaches financial close | REVE News of the wind sector in Spain and in the world: One of Malawi’s first solar projects has reached financial close after attracting investment volume totaling $67 million USD. Initial site works have begun in Nkhotakota, and construction of the first phase is targeted for completion by March 2020. Once complete, the project will add 46 MW of clean energy to the local power supply.

Thursday, December 19, 2019

Inflation back to double digit – The Nation Online

Inflation back to double digit – The Nation Online: Malawi’s headline inflation inched up by 0.8 percentage points to 10.4 percent in November�as food prices continued biting hard, a development the Reserve Bank of Malawi (RBM)�says is still manageable.�

Published figures from National Statistical Office (NSO) show that food inflation stood at 17.2 percent in November while non-food inflation was seen at 5.5 percent in the review month.

Monday, December 16, 2019

Barclays in talks to sell Zimbabwe bank to Malawi‘s First Merchant Bank | Stock Daily Dish

Barclays in talks to sell Zimbabwe bank to Malawi‘s First Merchant Bank | Stock Daily Dish: arclays in talks to sell Zimbabwe bank to Malawi‘s First Merchant Bank

LONDON, March 28 (Reuters) – Barclays is in exclusive talks to sell its stake in its Zimbabwe unit to Malawi-based First Merchant Bank, the lenders said on Tuesday, as the British bank continues its exit from Africa.

First Merchant Bank said in a statement on its website it was in exclusive talks to buy out the 68 percent of Barclays Bank of Zimbabwe owned by the British company.

A spokeswoman for Barclays confirmed the bank was in early discussions with a prospective buyer for its stake in the Zimbabwe bank.

Sunday, December 15, 2019

World Bank questions MW’s revenue target - The Times Group Malawi

World Bank questions MW’s revenue target - The Times Group Malawi: he World Bank has described government’s revenue target in the 2019/2020 national budget as over optimistic.

World Bank County Manager, Greg Toulmin, was speaking in Lilongwe on Thursday during the launch of the 10th Malawi Economic Monitor which is themed ‘Strengthening Human Capital through Nutrition’.

Saturday, December 14, 2019

�9.5m medical training centre project for Malawi

�9.5m medical training centre project for Malawi: A team of architects and engineers are working on a life-changing �9.5m medical training centre project for Malawi, the country’s first specialist postgraduate medical training centre. Leading structural engineering specialist TRP Consulting and architecture practice Cassidy Ashton, based in the North West of England, are working on the initial design stages for the centre, which will also provide the most sophisticated research environment in the African country.

Govt gazettes new minimum wage to take effect Jan 1 – The Nation Online

Govt gazettes new minimum wage to take effect Jan 1 – The Nation Online: Government has formalised the new minimum wage to come into effect on January 1 2020 by publishing the new law in the Government Gazette notice number 68 under the Employment Act (Amendment) 2019.

However, Malawi Congress of Trade Union (MCTU) secretary general Dennis Kalekeni, in a telephone interview said the union will lodge a formal complaint with the Ministry of Labour, Skills and Innovation to protest the decision to delay implementation of the new minimum wage by six months after passage of the budget.

Lack of tannery blamed on slow leather industry growth – The Nation Online

Lack of tannery blamed on slow leather industry growth – The Nation Online: The local leather industry continues to face setbacks, largely due to lack of a tannery that can process hides up to the crust stage, a situation government and players in the sector say is affecting the growth of the leather industry.

Despite a good turnover of hides and skins annually, Malawi lacks the capacity to process the raw materials in the absence of a tannery—a place where hides and skins are processed into leather— resulting in Malawi losing foreign exchange.

K1.1 trn Afreximbank facility on track—RBM – The Nation Online

K1.1 trn Afreximbank facility on track—RBM – The Nation Online: The Reserve Bank of Malawi (RBM) says the $1.4 billion (about K1.1 trillion) Afreximbank investment facility is registering implementation progress as further follow up Memorandum of Understandings (MOUs) with local firms were recently signed with some in the pipeline.

Earlier this year Afreximbank president Benedict Oramah visited the country and held a series of meetings with local private sector representatives. He also met President Peter Mutharika to announce the provision of the facility.

‘Malawi could save K370bn on diversified energy’ – The Nation Online

‘Malawi could save K370bn on diversified energy’ – The Nation Online: A study on Sustainable Energy Investments for Malawi has stressed the need for Malawi to consider adopting least-cost, reliable and diversified energy solutions to save at least $500 million (K370 billion) on investment and operating expenses.

The study was� jointly conducted by Department of Energy Affairs with the United Nations Office of the High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States and Rocky Mountain Institute.

Why govt misses economic targets – The Nation Online

Why govt misses economic targets – The Nation Online: There seems to be something wrong with Malawi Government’s projections of key macroeconomic indicators. They are always not met.

For the past five years, the country’s key macroeconomic variables such as inflation, exchange and interest rates as well as gross domestic product(GDP) growth rate have either missed their targets or been revised downwards.

Saturday, November 30, 2019

LafargeHolcim plans second plant for soil bricks in Malawi - News - GCR

LafargeHolcim plans second plant for soil bricks in Malawi - News - GCR: Switzerland-headquartered cement giant LafargeHolcim has announced plans to increase production of its Durabric product with a second plant in Malawi, claiming it brings affordable housing while saving trees.
Durabric is made from soil, sand, cement and water and does not require firing like commonly-used clay bricks do. The company says that even without firing the Durabric is three times stronger than traditional bricks.

Friday, November 29, 2019

Malawi gets K27bn boost on Nacala road project – The Nation Online

Malawi gets K27bn boost on Nacala road project – The Nation Online: Minister of Finance, Economic Planning and Development Joseph Mwanamvekha has committed to prudent use of $36.7 million (about K27 billion) for the Multinational Nacala Road Corridor Development Project phase five.

The minister said in Lilongwe during the signing of the agreement with African Development Bank (AfDB)� group that government will endeavour to implement the project in accordance with the provisions of the financing agreements as well as Malawi’s own Public Finance Management rules.

Mkango Resources has a ravenous appetite for rare earths

Mkango Resources has a ravenous appetite for rare earths: TSXV and AIM-listed Mkango Resources sits in a rather unique position amongst its junior rare earths peers – who are focused on bringing mines into production but struggling to secure funding to do so.

Not only does Mkango Resources have the financial backing of a prestigious partner – Talaxis – the company is investigating the potential to bring a large-scale mine to market as well as the delivery of separated rare earth metals, CEO WILLIAM DAWES tells LAURA CORNISH.

Mkango’s Songwe Hill rare earth project, located in southern Malawi, could potentially move into construction towards the start of 2021 – upon completion of a bankable feasibility study (BFS) – which is currently underway – and a positive set of results.

Thursday, November 28, 2019

Reserve Bank of Malawi speaks on eco growth constraints - The Times Group Malawi

Reserve Bank of Malawi speaks on eco growth constraints - The Times Group Malawi: The Reserve Bank of Malawi (RBM) said the local economy has remained vurnerable to various shocks for years due to its historical overdependence on agriculture as its mainstay.

RBM Governor Dalitso Kabambe said Malawi’s economy could extremely grow if the country diversified its revenue base.

Monday, November 25, 2019

Slow response to investment – The Nation Online

Slow response to investment – The Nation Online: �Malawi’s investment inflows continue to move at a snail’s pace with figures showing only 35 companies out of 105 2018 investment pledges have materialised, a move Malawi Investment Trade Centre (Mitc) has linked to a challenging business operating environment.

Available figures indicate that Mitc received investment pledges worth $1.4 billion (K1.083 trillion) from 105 companies in 2018 and $234.7 million (K175.5 billion) investment pledges at August this yea

Sunday, November 24, 2019

Malawi News Agency Online - Wealth creation critical in new Vision agenda for Malawi

Malawi News Agency Online - Wealth creation critical in new Vision agenda for Malawi: Lilongwe, November 20, 2019: National Planning Commission (NPC) has emphasized the need to aim at prioritizing wealth creation in the development of�� Vision 2063 agenda for the country.��

NPC Director General, Dr. Thomas Munthali said this Tuesday during Vision 2020 Review Validation workshop held at Crossroads hotel in Lilongwe.

Malawi's economy needs an overhaul - The Maravi Post

Malawi's economy needs an overhaul - The Maravi Post: MZUZU-(MaraviPost)-The Reserve Bank of Malawi (RBM) Governor says if the economy of the country is to flourish, players in the economy need to diversify rather than relying on sector.

Speaking on Thursday at the opening of a two day media training on economic and business reporting in Mzuzu, the RBM boss, Dr Dalitso Kabambe, said Malawi’s economy has heavily relied on rain fed agriculture for so so long.

IMF gives Malawi USD $40 Million (K29 billion) in Direct Budget Support - The Maravi Post

IMF gives Malawi USD $40 Million (K29 billion) in Direct Budget Support - The Maravi Post: Malawi will get resources amounting to US$40.0 million (Approximately, MK29 Billion) from the International Monetary Fund (IMF) in direct budget support, the first time this has happened since 2013 when it was suspended.

Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha, disclosed this Saturday afternoon during a media briefing at Capital Hill in Lilongwe.

Friday, November 22, 2019

Treasury sticks to5% GDP target – The Nation Online

Treasury sticks to5% GDP target – The Nation Online: Ministry of Finance, Economic Planning and Development has maintained that the economy will this year grow by five percent regardless of weather-related shocks, lower tobacco earnings and intermittent power supply.

The ministry’s spokesperson Davis Sado said in an interview on Tuesday said the projected growth is premised on favourable weather conditions in the last growing season and its spillover effects to other sectors.

Thursday, November 21, 2019

Government to buy back K40.7 billion securities - The Times Group Malawi

Government to buy back K40.7 billion securities - The Times Group Malawi: he government will from Thursday buy back securities worth K40.7 billion from individual and institutional investors as a public debt management strategy.

The move is, however, likely to fuel a sharp surge in money supply which could trigger inflation.

According to the Reserve Bank of Malawi, the reverse auction will take place in two tranches with the Thursday auction targeting K20.7 billion and another auction slated for December 5 targeting K20 billion worth of securities.

USAID launches K51.5 billion project | Malawi 24 - Malawi news

USAID launches K51.5 billion project | Malawi 24 - Malawi news: Amid continued efforts to reduce levels of food insecurity at household level in the country, USAID has launched the $70 million (MK 51.5 billion) Titukulane Project.

Wednesday, November 20, 2019

Inflation rises to 9.6% in October - The Times Group Malawi

Inflation rises to 9.6% in October - The Times Group Malawi: Malawi’s headline inflation inched up by 0.4 percentage points to 9.6 percent in October 2019 from 9.2 percent in September, latest figures from National Statistical Office (NSO) show.

The NSO figures show that food inflation went up from 13.9 percent in September to 16.0 percent.

Non-food Inflation decreased to 4.3 percent from 5.4 percent in the preceding two months.

National Planning Commission engages industry on development plan - The Times Group Malawi

National Planning Commission engages industry on development plan - The Times Group Malawi: The National Planning Commission (NPC) on Monday engaged industry captains for their input on the next national development plan.

Over a month before 2020, the commission is soliciting views to be incorporated into a successor blueprint of Vision 2020, which many agree, failed to meet objectives.

Tuesday, November 19, 2019

Government to buy back K40.7 billion securities - The Times Group Malawi

Government to buy back K40.7 billion securities - The Times Group Malawi: The government will from Thursday buy back securities worth K40.7 billion from individual and institutional investors as a public debt management strategy.

The move is, however, likely to fuel a sharp surge in money supply which could trigger inflation.

According to the Reserve Bank of Malawi, the reverse auction will take place in two tranches with the Thursday auction targeting K20.7 billion and another auction slated for December 5 targeting K20 billion worth of securities.

Align reforms to practicalities— World Bank - The Times Group Malawi

Align reforms to practicalities— World Bank - The Times Group Malawi: he World Bank has urged local authorities to be practical when developing business-related policies and reforms.

The call comes as Malawi moved up two steps on the latest World Bank Doing Business Report 2020 released recently.

The country moved from position 111 to position 109, despite registering no reforms this year.

Lilongwe Water Board seeks K382 billion for projects | Malawi 24 - Malawi news

Lilongwe Water Board seeks K382 billion for projects | Malawi 24 - Malawi news: The Lilongwe Water Board (LWB) seeks to raise US$515 Million (about K382 billion) to implement projects that will improve water supply in Lilongwe City.

LWB has developed an ambitious Investment Plan covering a period up to 2045 called the Lilongwe Water Program (LWP) in response to the projected rapid growth in water demand.

Saturday, November 16, 2019

MW inflation below Comesa average – The Nation Online

MW inflation below Comesa average – The Nation Online: n 2012, Malawi’s consumer inflation was one the highest in the Common Market for Eastern and Southern Africa (Comesa) region at 21.4 percent, but since then the country has turned the corner reducing inflation to single digits.

By 2017, Malawi’s inflation had inched downwards to 13.1 percent. This year, at 9.5 percent, Malawi’s inflation rate is below Comesa’s 23.4 percent average, according to a recently published Comesa Harmonised Consumer Price Index (CPI) Monthly News Release.

Lindian commences court proceedings over Kangankunde project - The Market Herald

Lindian commences court proceedings over Kangankunde project - The Market Herald: Lindian Resources has finally commenced a High Court hearing to settle disputes over its Kangankunde Rare Earths project.

The company presented a strong case during its first hearing on November 4 and 5, and is confident its case received a fair hearing.

The Kangankunde project has been plagued by litigation claims for over a decade, with most disputes involving South African geologist Michael Saner's refusal to relinquish his project stake.

Friday, November 15, 2019

US offers hope on tobacco ban - The Times Group Malawi

US offers hope on tobacco ban - The Times Group Malawi: The United States (US) Government has said there is a chance that it would lift a ban imposed on tobacco imports from Malawi if it is convinced that forced and child labour in Malawi have ended.

US Embassy acting Public Affairs Officer Bryan Dwyer has said in an email response that child labour is a significant human rights and governance issue and the Government of Malawi should urgently work with partners to eradicate the practice.

Reserve Bank of Malawi upbeat on private sector credit growth - The Times Group Malawi

Reserve Bank of Malawi upbeat on private sector credit growth - The Times Group Malawi: The Reserve Bank of Malawi (RBM) has reiterated that recent pick-up in the economy coupled with declining interest rates would see continued growth of credit to private sector.

This, the central bank says, would spur productivity and help in creation of job opportunities.

The annual growth rate of private sector credit stood at 17.7 percent in September 2019 compared to 18.8 percent and 8.7 percent in the preceding month, and corresponding month of 2018.

South African Airways strike affects Malawi | Malawi 24 - Malawi news

South African Airways strike affects Malawi | Malawi 24 - Malawi news: Malawi has been affected by the cancellation of South African Airways (SAA) flights in South Africa.

The state owned airline has cancelled “nearly all” flights scheduled for Friday and Saturday because of a strike over wages planned by a majority of employees, television news channel eNCA said.

Malawi Gets K113bn Financing for M1 Road Rehabilitation - Mwanamvekha Says Project to Generate Economic Benefits - allAfrica.com

Malawi Gets K113bn Financing for M1 Road Rehabilitation - Mwanamvekha Says Project to Generate Economic Benefits - allAfrica.com: Malawi government, the European Investment Bank (EIB) and the European Union has today signed a financing agreement worth 139 million euros (about K113 billion) for the rehabilitation of the 346 Kilometer stretch along M1 road.

Minister of Finance Mwanamvekha signed the facility on behalf of Malawi government at Capital Hill, through a televised signing ceremony.

Tuesday, November 12, 2019

RBM decries low per capita GDP – The Nation Online

RBM decries low per capita GDP – The Nation Online: Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe says Malawi’s per capita gross domestic product (GDP) remains ‘very low and flat’ compared to other countries in the world.

The governor has blamed the situation on rapid annual population growth rate at 2.9 percent.

He also said Malawi remains with a huge section of the population trapped in abject poverty as the little output that the country is producing in terms of nominal GDP is thinly shared or spread among the estimated population of 17.6 million Malawians

Treasury records K90 billion deficit in first quarter - The Times Group Malawi

Treasury records K90 billion deficit in first quarter - The Times Group Malawi: reasury recorded a budget deficit of K90.61 billion during the first quarter of the 2019/20 financial year, a development rated by economists as worrisome.

Figures contained in the Reserve bank of Malawi (RBM)’s Monetary Policy Public Report for November 2019 show that total revenues in the first quarter were recorded at K296.20 billion, representing 4.96 percent of Gross Domestic Product (GDP).

Of the amount, K276.93 billion was domestic revenues while K15.52 billion was grants.

New soybean variety set for release in December - The Times Group Malawi

New soybean variety set for release in December - The Times Group Malawi: Chitedze Research Station has unveiled plans to release a new soybean variety that will enable farmers realise bumper yield.

The new variety is said to be tolerant to harsh weather conditions.

Chitedze Research Station Legume Specialist, Florence Ngwira said the new seed, TGX1991 22F, is early maturing.

Sunday, November 10, 2019

Mera cautious on global oil price decline impact – The Nation Online

Mera cautious on global oil price decline impact – The Nation Online: Malawi Energy Regulatory Authority (Mera) says although a decline in global oil prices is good news, its trickle-down effect largely dwells on whether the economy can hold some of its macroeconomic fundamentals.

Mera chief executive officer Collins Magalasi said in an interview on Tuesday that global decline in oil prices could potentially ease consumers’ burden, but other factors, including exchange and inflation rate and freight prices could as well affect potential gains the economy could accrue from the price decline.

Three counters boost MSE in October—report – The Nation Online

Three counters boost MSE in October—report – The Nation Online: The 14-counter Malawi Stock Exchange (MSE) registered a positive return on index in October as reflected in the upward movement of the Malawi All Share Index (Masi) buoyed by price gains� in three counters.

The latest MSE Market Report for October 2019 indicates that the shares market was bullish as Masi moved from 29 546.27 points in September to 30 344.49 points in October on account of price gains in National Bank of Malawi plc, Icon Properties plc and NBS Bank plc.

Wednesday, November 6, 2019

Sovereign Metals finds high-grade rutile at Malawi - The Market Herald

Sovereign Metals finds high-grade rutile at Malawi - The Market Herald: Sovereign Metals has identified a potentially substantial zone of shallow, high-grade rutile mineralisation at the Railroad Prospect.

Results from the prospect include 6 metres at 1.25 per cent rutile, 5 metres at 1.16 per cent rutile, and 13 metres at 1.08 per cent rutile.

These results confirm that Sovereign's ground holding in Malawi has the potential to host a new, globally significant rutile province.

"The first quantitive results from our drilling program show a significant zone of rutile mineralisation at Railroad," Managing Director Dr Julian Stephens commented.

Our Comments on Idle Pension Funds



Is Malawi suffering from the embarrassment of riches? We seem to have accumulated huge savings through our national pension fund now at  (K825.3 billion, representing 16.3 per cent of the Gross Domestic) . RBM projects that by end 2020  pension assets would swell to K1.1 trillion. However, we apparently have no clue what to do with the money.SEE HERE
The Governor of the Central Bank has complained about the low rate of translation of money into a growth-enhancing investment. Only a few days ago, Mr Chihana RBM Chief Examiner for Life Insurance and Pension Funds, said growth in assets has not translated into investments in infrastructure.
 “We have done very well to accumulate the savings but to translate them into infrastructure investment has been a bit of a challenge,” he said.

The new buzzword in development circles is "domestic resource mobilisation" instead of the debilitating focus on attracting aid. We will dance up and down because an IMF mission is coming when we can't find a use for the resources we already have. 

This is not a minor failure. It suggests gross incompetence on the part of those managing our pension funds. The head of the pension fund once suggested that we should export our funds to other countries apparently because there were no investment opportunities Malawi. This calls for a complete overhaul of the management of the pension fund to bring financial experts with some ideal of the great developmental potential of such funds. management of pension funds is not confined to simply receiving funds but also in investing the funds intelligently.  The levels of incompetence in our major financial institutions are simply mindboggling.

Pension assets at 16% of Gross Domestic Product - The Times Group Malawi

Pension assets at 16% of Gross Domestic Product - The Times Group Malawi: ension assets have been growing in the past eight years and now stand at K825.3 billion, representing 16.3 percent of the Gross Domestic Product, figures from the Reserve Bank of Malawi (RBM) show.

The passing of the Pensions Act in 2011 has seen a substantial rise in pension remittance.

Monday, November 4, 2019

Germany gives Malawi €45.3 million - The Times Group Malawi

Germany gives Malawi €45.3 million - The Times Group Malawi: The German government has given Malawi €45.3 million (about K37.3 billion) as part of its development support.

The money will be used in social security, improving health and private sector development in rural areas, among other sectors.

Head of the German delegation to the bilateral negotiation on development cooperation in Malawi, Alois Schneider said the fund is adding to a sum of €91 million Germany has been committing since 2017

Hope for legume farmers as new buyer seeks deals – The Nation Online

Hope for legume farmers as new buyer seeks deals – The Nation Online: Produce buyer, Care Agro Investment has partnered with Lilongwe-based Agricos, to enter into contract with farmers so that there is a ready market for their produce, especially beans.

The company said contractual agreements with farmers will be for the production of red kidney beans and red speckled beans.

Share value drops by 32.68% in October - The Times Group Malawi

Share value drops by 32.68% in October - The Times Group Malawi: The Malawi Stock Exchange (MSE) registered a 32.68 percent drop in share value in October, figures from the local bourse show.

A monthly market performance report for the month indicates that the market transacted a total of 185,453,439 shares at a total consideration of K2,495,407,311.96 in 243 trades compared to 154,699,117 shares at a total consideration of K3, 706,719,389.44 in 246 trades in September.

Firm set to invest K37bn in agriculture – The Nation Online

Firm set to invest K37bn in agriculture – The Nation Online: Pyxus Agriculture Limite, a non-tobacco crops dealer, has announced that it will invest $50 million (about K37 billion) in the country’s agriculture sector in the next five years.

The firm, which started its operations in April this year, is a subsidiary of United Kingdom-based company Pyxus Agriculture Holding Limited, and it focuses on groundnuts and sunflower value addition ventures.

Speaking during a press conference in Lilongwe on Tuesday, Pyxus managing director Ronald Ngwira said the initial asset base investment was $11 million (K8 billion).

US firm dangles k740bn financing – The Nation Online

US firm dangles k740bn financing – The Nation Online: The Overseas Private Investment Corporation (Opic), the development finance institution of the United States government, says Malawi’s private sector can benefit up to $1 billion (about K740 billion) financing opportunity from the agency.

Opic managing director Nancy Rivera said this on Thursday in Lilongwe when she and her delegation held discussions with Reserve Bank of Malawi (RBM) and other officials on the implementation of 30 megawatts (MW) solar project in Nkhotakota.

Speaking at a private sector dinner hosted by RBM in Lilongwe, Rivera said Opic is delighted to provide finance to the Nkhotakota Power Project to contribute to solving the country’s power challenges.

Sunday, November 3, 2019

Malawi News Agency Online - Developed road networks are vital to economic development

Malawi News Agency Online - Developed road networks are vital to economic development: Salima, September 24, 2019: �Roads Fund Administration (RFA) has said developed and maintained roads are key condition for accelerating economic development and social transformation in southern Africa region.

Chairperson for RFA Board of directors, Chancy Gondwe made the remarks Tuesday when he opened a four day African Road Maintenance Funds Association (ARMFA) Southern Africa Focus Group (ASAFG) meeting at Sunbird Livingstonia in Salima whose theme is “Ensuring Value for Money in Road Works”.

He noted that Roads Funds play a critical role of ensuring that sustainable road financing by guaranteeing availability of funds for road construction and maintenanc

Reserve Bank of Malawi maintains bank rate at 13.5 percent - The Times Group Malawi

Reserve Bank of Malawi maintains bank rate at 13.5 percent - The Times Group Malawi: Monetary Policy Committee (MPC) of the Reserve Bank of Malawi (RBM) Wednesday resolved to maintain the policy rate – the country’s indicative cost of borrowing – at 13.5 percent.

The MPC also maintained Lombard Rate at 0.4 percent above the policy rate, and the Liquidity Reserve Requirement at 5 percent and 3.7 percent on local and foreign currency deposits, respectively.

Germany gives Malawi €45.3 million - The Times Group Malawi

Germany gives Malawi €45.3 million - The Times Group Malawi: The German government has given Malawi €45.3 million (about K37.3 billion) as part of its development support.

The money will be used in social security, improving health and private sector development in rural areas, among other sectors.

Head of the German delegation to the bilateral negotiation on development cooperation in Malawi, Alois Schneider said the fund is adding to a sum of €91 million Germany has been committing since 2017.

Saturday, November 2, 2019

Malawi's Disputed Election Was Not Stolen With White-Out

Malawi's Disputed Election Was Not Stolen With White-Out: RGUMENT
Malawi’s Election Was Not Stolen With White-Out
A disputed presidential poll in the small southern African country has led to upheaval. International observers must release key data rather than staying silent if they want to promote stability and trust in the electoral process.

(4) George K Mwale - CONSTRUCTION OF A 60 MW SOLAR FARM ADVANCES IN...

(4) George K Mwale - CONSTRUCTION OF A 60 MW SOLAR FARM ADVANCES IN...: Construction of the 60MWAC solar project in Salima has advanced, months following the ground breaking ceremony by President Professor Arthur Peter Mutharika in December 2018.

A Visit to the site by Cables witnessed that construction works were underway and tens of thousands of solar panels are still arriving on site for installation of the first ever Solar Farm in Malawi and one of the largest in the Sub Saharan Africa.

US suspends tobacco imports from Malawi over forced child labor allegations US suspends tobacco imports from Malawi over forced child labor allegations - CNNPolitics

US suspends tobacco imports from Malawi over forced child labor allegations US suspends tobacco imports from Malawi over forced child labor allegations - CNNPolitics: Washington (CNN)The United States on Friday suspended imports of all tobacco and tobacco products from Malawi for alleged forced labor practices -- including child labor.

Customs and Border Protection, which holds the authority to detain imports, has recently ramped up its efforts to hold companies and suppliers accountable for forced labor practices. The agency issued a "Withhold Release Order" on tobacco from Malawi on Friday, allowing it to detain goods believed to have been produced with forced labor.
"Malawi tobacco is one of those areas where we are trying to send a message," CBP Office Of Trade Executive Assistant Commissioner Brenda Smith told CNN.
Forced labor in Malawi has been well documented. Despite some advancement in preventing child labor, children in Malawi are still engaged in the worst forms of child labor, including in the harvesting of tobacco and in commercial sexual exploitation, according to the US Department of Labor.
Children working with tobacco risk illness from nicotine absorption, including "green tobacco sickness," the Labor Department states. They are also exposed to pesticides, chemicals, and harsh weather conditions.
This type of enforcement is rare for the US, but has significantly increased over the past few years.

Thursday, October 31, 2019

Government to renew gensets deal – The Nation Online

Government to renew gensets deal – The Nation Online: The Minister of Natural Resources, Energy and Mines Bintony Kutsaira says government will renew the Aggreko Power Solutions Limited diesel-powered generators contract at its expiry in January 2020 because the 78-megawatts (MW) capacity gensets have stabilised power supply.

But energy and consumer rights experts have cautioned government to thoroughly scrutinise the decision to renew the contract, saying the arrangement should have been a temporary measure because power generation by diesel is not sustainable

Reserve Bank of Malawi maintains bank rate at 13.5 percent - The Times Group Malawi

Reserve Bank of Malawi maintains bank rate at 13.5 percent - The Times Group Malawi: Monetary Policy Committee (MPC) of the Reserve Bank of Malawi (RBM) Wednesday resolved to maintain the policy rate – the country’s indicative cost of borrowing – at 13.5 percent.

Tuesday, October 29, 2019

Our Comments on Kam'mwamba Coal power project


On 26 Oct 2019 Nyasa Times reported that Malawi has abandoned the Chinese financier for the Kam'mwamnba Coal Fire Plant project. Instead, Egenco would take over the project,  presumably including the mobilisation of funds READ HERE


A few days later we were that the First Lady had been involved with a shady deal through which  “Ghost” consultancy firm - Black & Veach -  was awarded  K7.8 billion contract to provide engineering supervision for the project. READ HERE

A day letter the Minister announced the contract was cancelled or was actually never signed. READ HERE


And finally, the ACP (anti-corruption)  has been brought in. READ HERE

Now, this is a vital project, and we have been informed by the government itself that it is one of the pillars of its plans to address the energy project.  The project has been on for more than six years and should have been completed by now. The Chinese have complained about the delays from the Malawi side.
This mismanagement of large projects is, alas, not unusual. The Salima-Lilongwe project has suffered the same treatment.

We  commented on other p[rojects on the site  about the mismanagement of big projects in Malawi. READ HERE

Electricity and water are utilities that one can't’ afford to miss by a year.

Kam'mwamba and Salima-Lilongwe project are import projects and the government should come out with a full explanation of what is going on if it to encourage investments in Malawi. 

ACB moves in on K7.8bn ghost deal – The Nation Online

ACB moves in on K7.8bn ghost deal – The Nation Online: The Anti-Corruption Bureau (ACB) says it will investigate the Public Procurement and Disposal of Assets Authority (PPDA) for giving a ‘no objection’ to a company in a K7.8 billion contract without ACB vetting.

In an interview on Monday, ACB director general Reyneck Matemba said in respect of the K7.8 billion contract awarded to a “ghost” company, the ACB did not receive any request from the PPDA.

Monday, October 28, 2019

Contract negotiations with ‘ghost’ company were cancelled – Kutsaira | Malawi 24 - Malawi news

Contract negotiations with ‘ghost’ company were cancelled – Kutsaira | Malawi 24 - Malawi news: Minister of Natural Resources, Energy and Mining Bintony Kutsaira has refuted reports that government awarded a K7.8 billion consultancy contract to a ‘ghost’ company saying negotiations were cancelled at an early stage.

The minister made the remarks today following newspaper reports that government awarded a lucrative contract to a company that does not exist.

Malawi First Lady Gertrude, her son implicated in MK7.8 billion ghost company - The Maravi Post

Malawi First Lady Gertrude, her son implicated in MK7.8 billion ghost company - The Maravi Post: BLANTYRE-(MaraviPost)-President Peter Mutharika’s wife Gertrude and his step son Tadikila Mabfuza have been implicated in a ‘ghost’ company scam which got a government contract worth MK7.8 billion.

Local newspaper The Weekend Nation reported on Saturday that Black & Veach was awarded a lucrative contract worth MK7.8 billion to provide technical support, supervision and management of the Kam’mwamba Coal fired Power Generation Project in Neno.

Malawi abandons financial China Gezhouba on Kam’mwamba Coal Project




Ministry of Energy has confirmed that  Kam’mwamba Coal-fired power generation project has now been given to Energy Generation Company (Egenco( to implement it with the government as the sole financial after dumping Chinese financier Gezhouba

Friday, October 25, 2019

Fresh hope of budget support – The Nation Online

Fresh hope of budget support – The Nation Online: Malawi and the World Bank Group have agreed on a five-pillar roadmap that will, among others, act as a precondition for the country to unlock $80 million (about K60 billion) in direct budget support this fiscal year.

Malawi needs K2tn to end power woes – The Nation Online

Malawi needs K2tn to end power woes – The Nation Online: Minister of Natural Resources, Energy, and Mining Bintony Kutsaira has signalled government’s distress to donors and foreign investors over Malawi’s challenges in finding a lasting solution to persistent power outages that are crippling the economy.

The minister has since appealed for a $2.5 billion (about K2 trillion) rescue package in form of foreign investment to boost the country’s power generation and supply capacity.

IMF predicts weaker growth next year - The Times Group Malawi

IMF predicts weaker growth next year - The Times Group Malawi: The International Monetary Fund (IMF) has predicted that the local economy would swell by 5.1 percent next year.

The prediction is 1.9 percentage points shy of the 7 percent Finance Minister Joseph Mwanamvekha predicted in the 2019/20 national budget.

Exports contraction worries economists - The Times Group Malawi

Exports contraction worries economists - The Times Group Malawi: Economics Association of Malawi (Ecama) has said the country needs to seriously consider diversifying its export base in the wake of growing trade deficit.

The call comes as Malawi still faces a significant trade deficit, importing about twice the value of goods it exports, raising questions on the effectiveness of various export strategies it has in place.

Malawi improves on World Bank Doing Business Index - The Times Group Malawi

Malawi improves on World Bank Doing Business Index - The Times Group Malawi: Malawi has moved up two steps on the latest World Bank Doing Business Report 2020 released yesterday.

Malawi has moved from position 111 to position 109, despite registering no reforms this year. Last year, the country recorded two reforms on the Doing Business Report.

The report shows that Malawi recorded a score of 60.9 up from 60.4 on the Doing Business 2019 report.

Paladin deal nears closure amid market uncertainty – The Nation Online

Paladin deal nears closure amid market uncertainty – The Nation Online: Dual-listed Paladin Energy Limited, operators of Kayelekera Uranium Mine in Karonga, says it expects to complete outstanding approvals for the sale of the company’s 85 percent stake.

In its September Quarterly Report, the miner said it has now received noteholder consent for the sale and the transaction has been approved by Lotus shareholders with the key outstanding approval remaining from the Malawi Government, which owns 15 percent stake

IMF raises Malawi’s ECF quota by 33% – The Nation Online

IMF raises Malawi’s ECF quota by 33% – The Nation Online: The International Monetary Fund (IMF) executive board has increased Malawi’s funding quota by 33 percent, automatically allowing the country to tap more resources from the Bretton Woods institution through the Extended Credit Facility (ECF).

Reserve Bank of Malawi (RBM) Governor Dalitso Kabambe broke the news on Tuesday in an interview on the sidelines of the 2019 joint annual meetings by the World Bank and IMF in Washington DC, United States of America (USA).

The IMF member country’s quota determines its maximum financial commitment to the IMF, its voting power and has a bearing on its access to IMF financing.

Thursday, October 24, 2019

Blackouts as Malawi truckers' strike disrupts fuel supplies

Blackouts as Malawi truckers' strike disrupts fuel supplies: Lilongwe (Malawi) (AFP) - A pay strike by truckers in landlocked Malawi has crippled oil and power supplies, leading to prolonged blackouts and fuel shortages on Thursday.

Over 1,000 truck drivers stopped work from Monday, preventing all lorries from entering and exiting the country’s borders with Zambia, Mozambique and Tanzania.

Reserve Bank of Malawi, Ecama upbeat on inflation lowering - The Times Group Malawi

Reserve Bank of Malawi, Ecama upbeat on inflation lowering - The Times Group Malawi: The Economics Association of Malawi (Ecama) has said it expects inflation to continue lowering in the coming months, estimating it to be at 8.9 percent by December 2019.

This comes as Malawi’s headline inflation eased by 0.3 percentage points to 9.2 percent in September 2019 from 9.5 percent in August, according to figures from the National Statistics Office

Govt, truck drivers strike new agreement | Malawi 24 - Malawi news

Govt, truck drivers strike new agreement | Malawi 24 - Malawi news: Govt, truck drivers strike new agreement 0
BY MALAWI24 REPORTER ON OCT 24, 2019POLITICS


The Government and truck drivers have reached a new agreement as the government seeks to end the truck drivers’ strike.

Tuesday, October 22, 2019

New MCC compact Given 2022 target – The Nation Online

New MCC compact Given 2022 target – The Nation Online: �Malawi Millennium Development Trust (MMD), formerly Millennium Challenge Account- Malawi (MCA-Malawi), says it sees the country signing the second Millennium Challenge Corporation (MCC) compact towards the end of 2021 and implementation starting early 2022.

Inflation eases to 9.2 percent - The Times Group Malawi

Inflation eases to 9.2 percent - The Times Group Malawi: Malawi’s headline inflation eased by 0.3 percentage points to 9.2 percent in September 2019 from 9.5 percent in August, latest figures from the National Statistics Office (NSO) show.

This is first time for inflation to drop since May this year. However, the rate remains high when compared to this year’s lowest record of 7.9 percent registered in February.

The NSO figures show that food inflation stood at 13.9 percent in the month under review from 14.6 percent in August 2019.

This is despite a stable increase in maize prices, Malawi’s staple food, currently trading between K12,500 and K15,000 per 50 Kilogramme bag in some parts of the country.

Malawi truck drivers protest low pay | Malawi 24 - Malawi news

Malawi truck drivers protest low pay | Malawi 24 - Malawi news: Drivers today held protests in Lilongwe and Blantyre to push for better pay and better working conditions.


Parked trucks in Blantyre

The drivers parked their trucks at Kanengo in Lilongwe and on the Lilongwe-Mchinji road.

Malawi courts Opec fund, seeks financial support – The Nation Online

Malawi courts Opec fund, seeks financial support – The Nation Online: Malawi Government has requested financial support from the Opec Fund for International Development (Ofid) towards construction of various road projects. On Saturday, a Malawi delegation at the 2019 joint annual meetings of the World Bank and the International Monetary Fund (IMF) met Ofid officials to discuss and negotiate a number of issues on the operations of the Ofid in Malawi.

The discussions centred on the review of the current portfolio by Ofid in Malawi, and also explored new opportunities for cooperation in different

Malawi, world bank Sign k127bn energy deals – The Nation Online

Malawi, world bank Sign k127bn energy deals – The Nation Online: Malawi and the International Development Association (IDA), an arm of the World Bank Group, on Friday signed two financing agreements worth K127 billion towards the country’s power sector. The signing ceremony for the two agreements, namely the Malawi Electricity Access Project and the Mozambique-Malawi Interconnector Project, took place at the World Bank Headquarters in Washington D.C, United States of America (USA), on the sidelines of the 2019 annual meetings of the World Bank Group and the International Monetary Fund

Sunday, October 20, 2019

Whatever happened to Kanyika Niobium Project?


Last year Global Metals mining licence in Kanyika was renewed..
In January 2019 there was the report that Globe Metals had finalised the  Kanyika Niobium Project feasibility study revision and was waiting for changes to the mining law and approval of its development plan Read here

According to the most recent company's quarterly, June report Read hear; the company is still waiting for feedback and the approval of its development plan.

How come it takes such a long time for the government to respond?

Saturday, October 19, 2019

Hope for businesses as rand stabilise – The Nation Online

Hope for businesses as rand stabilise – The Nation Online: The stability of the South African rand recorded in the past three months presents an opportunity for the country’s businesses to thrive, analysts have said.

South African rand, which has been fluctuating since end last year, has seemingly stabilised from July to date.

Reserve Bank of Malawi (RBM) figures show between August last year to July, the rand has been trading between K50 and K58 to the kwacha before it stabilised to trade at K48 from July to date.

Planning Commission revives sector working groups – The Nation Online

Planning Commission revives sector working groups – The Nation Online: National Planning Commission (NPC) has reconstituted Sector Working Groups (SWGs) which were established in 2008 but have been inactive.

The Malawi Government established SWGs to implement its National Development Strategy (NDS) to ensure domestication of regional and global commitments

Malawi agro exports share shrinks—WTO – The Nation Online

Malawi agro exports share shrinks—WTO – The Nation Online: Malawi’s agricultural exports on the global market have over the eight-year period declined by 4.8 percent, published figures from World Trade Organisation (WTO) show.

The figures show that during the same period, imports quickened by 2.2 percent.

Monday, October 14, 2019

Our comments on the Salima-Lilongwe water project



Judging by the Attorney General's warning this week See,  there is apparently some dilly-dallying by the government over the Salima-Lilongwe water project. The AG’s concern is about contractual obligations which could turn out to be costly should they not be honoured. But there is another more significant argument: The sheer urgency of getting the project moving if Malawi’s development is not to be strangled by lack of water. Our three major cities are all faced with serious threats if we do not embark on new investment in water immediately See. One can hope that we have learned something from the electricity debacle following the dilly-dallying over the Caborra Bassa interconnection.

AG cautions on Khato deal – The Nation Online

AG cautions on Khato deal – The Nation Online: Attorney General (AG) Kalekeni Kaphale has urged caution on the Lilongwe-Salima Water Project and advised the Secretary to Treasury (ST) and Lilongwe Water Board (LWB) to immediately engage the contractor, Khato Civils, on financing.

In a legal opinion dated October 3 2019 on the matter which we have seen, the AG stresses that government should engage Khato Civils in a bid to expedite the identification of a financier to reach financial closure of the project.

Govt revenue declines – The Nation Online

Govt revenue declines – The Nation Online: Treasury has for the second month running in the 2019/20 financial year posted a decline in revenues, Reserve Bank of Malawi (RBM) figures show.

According to the August 2019 Monthly Economic Report, total revenues in the month under review declined by K10.8 billion to K86.4 billion, following another decline of K35.5 billion recorded in theprevious month.

Matindi Industrial Park to affect 4 group village heads – The Nation Online

Matindi Industrial Park to affect 4 group village heads – The Nation Online: Construction of the government planned Matindi Industrial Park in Blantyre will affect four group village heads (GVHs)under Senior Chief Kapeni.

Speaking during a third community meeting with chiefs on Friday, Blantyre district commissioner (DC) Bennet Nkasala said a preliminary survey by the lands office shows about 100 hectares will be required for the park, thereby affecting GVHs Jameson I, Jameson II, Mponda and Undani.

Thursday, October 10, 2019

Reserve Bank of Malawi upbeat on private sector credit growth - The Times Group Malawi

Reserve Bank of Malawi upbeat on private sector credit growth - The Times Group Malawi: The Reserve Bank of Malawi (RBM) has expressed confidence that the recent pick-up in the economy coupled with declining interest rates would see continued growth of private sector credit.

This, the central bank say, would result in growth of the private sector and the creation of jobs opportunities.

Real private sector credit growth was recorded at 10.9 percent in July 2019, after mostly being negative since 2012

Malawi gets K9.6 billion for fisheries project | Malawi 24 - Malawi news

Malawi gets K9.6 billion for fisheries project | Malawi 24 - Malawi news: The African Development Bank Group (AfDB) has approved $13.2 million (about K9.6 billion) funds for a fisheries and aquaculture development project which will directly benefit 20,000 Malawians around the lakeshore and inland areas.

New Ellicott Dredger for Malawi - Dredging Today

New Ellicott Dredger for Malawi - Dredging Today: Ellicott Dredges, a Baltimore, MD, based manufacturer of cutter suction dredgers and dredge equipment, has successfully delivered a portable cutter suction dredger (CSD) to their customer in Malawi, southeastern Africa.

In 2018, the Millennium Challenge Account of Malawi (MCA-M) awarded Ellicott Dredges a tendered contract to supply an Ellicott Series 1270 Dragon dredger

Tuesday, October 8, 2019

Malawi Scraps 1% Withholding Tax on Mobile-Money Transactions - Bloomberg

Malawi Scraps 1% Withholding Tax on Mobile-Money Transactions - Bloomberg: Malawi abandoned plans to introduce a 1% withholding tax on mobile-money transactions after criticism from the country’s main operator, lawmakers and a consumer-rights organization.

Hylea acquisition provides leverage to next uranium cycle

Hylea acquisition provides leverage to next uranium cycle: Hylea Metals Ltd (ASX:HCO) has come a long way in the last three months, having changed direction with the acquisition of a 65% stake in a high-grade uranium project in Africa.

This mine has an established resource and has previously delivered strong production.

It would appear that the investment community has realised the potential of this asset with Sachem Cove Specialty Opportunities Fund LP emerging as a substantial holder on Monday with a stake of 5.15%.

Malawi: Mwanamvekha Withdraws 1 Percent Mobile Money Tax - As Tnm Raises Concerns - allAfrica.com

Malawi: Mwanamvekha Withdraws 1 Percent Mobile Money Tax - As Tnm Raises Concerns - allAfrica.com: Minister of Finance, Economic Planning and Development Joseph Mwanamvekha has bowed down to public pressure and announced withdraw of the proposed one percent withholding tax on non-bank mobile money transactions.

Mwanamvekha made the announcement in his 2019/20 Budget Debate winding up statement in Parliament in Lilongwe on Monday evening.

Saturday, October 5, 2019

Trade balance to widen in 2019 – The Nation Online

Trade balance to widen in 2019 – The Nation Online: Trade balance to widen in 2019

Malawi’s trade balance—the difference between the value of a country’s imports and its exports— is projected to worsen by 16.4 percent� this year, figures from the latest Annual Economic Report show.

This is in contrast to an improved trade balance which the country recorded last year to $1.42 billion (about K1 trillion) from $1.31 billion (about K 970 billion

‘Income per person could decline by 21%’ – The Nation Online

‘Income per person could decline by 21%’ – The Nation Online: The International Food Policy Research Institute (IFPRI) says total income per person could decline by 21 percent if no advances in yield potential are taken up on-farm or if no further closure occurs in yield gaps.

According to a study titled Effect of Changes in Population Density and Crop Productivity on Farm Households in Malawi by Adam Komarek and Siwa Msangi, IFPRI observes that potential exists to attain modest gains for households if rural population growth slows, yield potential increases, and yield gaps close.

Trade balance to widen in 2019 – The Nation Online

Trade balance to widen in 2019 – The Nation Online: Trade balance to widen in 2019

Malawi’s trade balance—the difference between the value of a country’s imports and its exports— is projected to worsen by 16.4 percent� this year, figures from the latest Annual Economic Report show.

This is in contrast to an improved trade balance which the country recorded last year to $1.42 billion (about K1 trillion) from $1.31 billion (about K 970 billion

Dry towns sitting on water vaults – The Nation Online

Dry towns sitting on water vaults – The Nation Online: A rush to the rivers below the country’s drying towns bares new promising groundwater levels, our Staff Writer JAMES CHAVULA writes.

When taps in Balaka town run dry a year ago, residents endured lengthy queues for trickles from water bowsers and boreholes where lofty stacks of buckets became familiar sigh

Thursday, October 3, 2019

Nine countries join U.S. strategic minerals initiative | Financial Post

Nine countries join U.S. strategic minerals initiative | Financial Post: Nine countries join U.S. strategic minerals initiative

Reuters
September 26, 2019
The United States on Thursday said nine countries have joined its initiative to help discover and develop reserves of minerals used to make electric vehicles, part of an effort to cut the world’s reliance on China for the high-tech materials.

Secretary of State Mike Pompeo on Thursday met with foreign ministers from the nine countries on the sidelines of the United Nations General Assembly in New York.

Tuesday, October 1, 2019

Treasury sees fiscal pressure on budget – The Nation Online

Treasury sees fiscal pressure on budget – The Nation Online: Ministry of Finance, Economic Planning and Development says statutory expenditures, especially salary and wages, interest payments and domestic debt, could exert pressure on the 2019/20 National Budget.

The 2019 Economic Fiscal Policy Statement published by Ministry of Finance, Economic Planning and Development says that over the years, statutory expenditures have exerted pressure on the budget, with the growth translating into under-provision for operational expenses for ministries, departments and agencies (MDAs)

Monday, September 30, 2019

Macadamia nuts farmers get K3bn boost from IFC – The Nation Online

Macadamia nuts farmers get K3bn boost from IFC – The Nation Online: macadamia nuts farmers in Malawi are expected to get a $4 million (about K3 billion) boost for their farming business through Global Tea and Commodities Limited project.

The money, which will come from the World Bank’s private sector financing arm, International Finance Corporation (IFC), seeks to help expand macadamia nuts processing operations in Malawi, the world’s seventh largest producer of the cro

‘Scale up investment in energy sector’ – The Nation Online

‘Scale up investment in energy sector’ – The Nation Online: Scale up investment in energy sector’
Orama Chiphwanya September 28, 2019 0 Comments
Malawi Institution of Engineers (MIE) has expressed concern over the slow rate of increasing power generation and heavy reliance on the Shire River for hydro-power generation, citing this as a draw-back to the economic growth.

In its analysis of the 2019/20 National Budget, the engineers’ body said there is direct correlation between power supply and economic development; hence, government should allocate more funds towards support and for the� implementation of budding and existing power projects.�

Friday, September 27, 2019

Malawi: Mozambique Says Issue of Malawi Nsanje Inland Port a Closed Affair | South Africa Today - Africa

Malawi: Mozambique Says Issue of Malawi Nsanje Inland Port a Closed Affair | South Africa Today - Africa: An influential newspaper in Mozambique has described as a closed affair the issue of Nsanje Inland Port.



Nsanje Port dream crumbles Noticias newspaper says Maputo is not in talks with Lilongwe on Nsanje port

The Portuguese language Noticias newspaper says Maputo is not in talks with Lilongwe and has nothing to talk to Malawi about the port in Nsanje.

Thursday, September 26, 2019

Pigeon peas export market falters – The Nation Online

Pigeon peas export market falters – The Nation Online: Ministry of Industry, Trade and Tourism� says it is working on facilitating the absorption of pigeon peas through investments in value addition as they await to secure a quota from the Indian market.

The ministry’s spokesperson Mayeso Msokera said in a written response on Tuesday that the Indian Government has not been forthcoming because it has sufficient quantities of the crop from last season.

Tobacco rakes in K174 billion - The Times Group Malawi

Tobacco rakes in K174 billion - The Times Group Malawi: With a day before this year’s tobacco selling season closes, Malawi has so far realised $232.26 million (about K174 billion) from sales of the green gold.

The proceeds are from the sale of about 160.87 million kilogrammes (kgs) of all tobacco types from all the country’s tobacco floors.

Monday, September 23, 2019

Inflation surge to 9.5% - The Times Group Malawi

Inflation surge to 9.5% - The Times Group Malawi: Malawi’s headline inflation inched up again in August but this time around only by 0.2 percentage points to stand at 9.5 percent as food prices continued biting hard.

This comes after another 0.3 percentage points rise in inflation in July 2019, a development the Reserve Bank of Malawi (RBM) then rated as surprising.

Energy sector hails K42 billion project - The Times Group Malawi

Energy sector hails K42 billion project - The Times Group Malawi: Players in the energy sector have hailed the K42.1 billion ($57 million) Malawi-Mozambique Power Interconnection Project saying it would enable the country ease its age-old power challenges.

World Bank Board of Executive Directors nodded to the project last week.

Proposed 1% mobile money tax causes stir – The Nation Online

Proposed 1% mobile money tax causes stir – The Nation Online: he proposed one percent withholding tax on non-bank mobile money transactions threatens the financial inclusion agenda as the cost of the service will likely rise.

Law lecturer at University of Malawi’s Chancellor College Sunduzwayo Madise, who has written a number of papers on mobile money, argued that instead of using mobile money services to empower the rural masses and the unbanked or under-banked, the tax will now disempower them.

Rugged roads of Mzimba – The Nation Online

Rugged roads of Mzimba – The Nation Online: Mbalachanda and Euthini residents in Mzimba are forced to commute at night to beat time-wasting bumps on the abandoned M1, our Staff Reporter JOHN CHIRWA writes.

It is a chilly Monday morning at Mbalachanda Trading Centre in Mzimba. Silhouettes of people waiting to catch a bus to Mzuzu City can be seen loitering in the dark.

Among them, a trio—apparently a husband and his two wives—has braved the biting weather all the way from Chikweyeye Village to the buzzing trading centre in Mzimba North West.

Parastatals liquidity position worsening – The Nation Online

Parastatals liquidity position worsening – The Nation Online: The build-up of trade debtors has worsened the liquidity position of most parastatals, a situation that has impacted on their working capital, a government annual report has shown.

The situation, which was most prevalent among the water boards and other trading parastatals, forced many of them to turn to banks for overdrafts to cushion their cash flows while others resorted to deferring payment of tax obligations, pensions and other trade payables.

World Bank approves K42bn for MW-Moz power project – The Nation Online

World Bank approves K42bn for MW-Moz power project – The Nation Online: The World Bank Group board of executive directors has approved $57 million (about K42 billion) towards the Malawi-Mozambique Regional Interconnector Project.

The project is designed to interconnect Mozambique and Malawi transmission systems to enable both countries to engage in bilateral and regional power trade in the Southern African Power Pool (Sapp).

Sovereign identifies more rutile targets in Africa | Business News

Sovereign identifies more rutile targets in Africa | Business News: erth-based African multi-commodity developer, Sovereign Metals, has successfully identified six new highly promising rutile targets across its Malawi ground holdings in Africa.

The company has been on a systematic campaign to explore for rutile mineralisation since receiving some very encouraging preliminary metallurgical test work results at its Wofiira rutile prospect.

Sovereign successfully recovered a concentrated ore product that contained 96% titanium dioxide at a recovered grade of 1.1% rutile at Wofiira, a result that is on par with many of the world’s leading rutile producers.




Mkango Resources invests in rare earth magnets recycler

Mkango Resources invests in rare earth magnets recycler: Mkango Resources invests in rare earth magnets recycler

Wednesday, September 18, 2019

Malawi economy to grow 4.5% in 2019 -IMF - Reuters

Malawi economy to grow 4.5% in 2019 -IMF - Reuters: Malawi economy to grow 4.5% in 2019 -IMF
2 MIN READ

LILONGWE, Sept 18 (Reuters) - Malawi’s economy is likely to expand by 4.5% this year, the International Monetary Fund (IMF) said late on Tuesday, boosted by improved agricultural production and the rebuilding of infrastructure damaged by Cyclone Idai.

The growth projection is down slightly from the fund’s March forecast of a 5% expansion to gross domestic product. Earlier in September the finance ministry said growth would advance 5%, up from 4% growth in 2018.

Monday, September 16, 2019

Lending rates hit 38-year low - The Times Group Malawi

Lending rates hit 38-year low - The Times Group Malawi: Malawi’s lending rates by commercial banks have sunk to a 38- year low, figures from the Reserve Bank of Malawi (RBM) indicate.

Following introduction of reference rate, cost of borrowing stands at 13.4 percent as at September 1 before risk is factored in.

Saturday, September 14, 2019

Government borrows K1 trillion in 5 years - The Times Group Malawi

Government borrows K1 trillion in 5 years - The Times Group Malawi: Government has borrowed about K1.009 trillion since 2014 when Democratic Progressive Party (DPP) bounced back into power, Malawi News investigations have revealed.

The investigations have revealed that, in the past five years, Parliament has passed a total of 36 loan authorisation bills, giving a go-ahead to government to borrow the money.

Friday, September 13, 2019

Paladin remains optimistic about uranium market potential

Paladin remains optimistic about uranium market potential: JOHANNESBURG (miningweekly.com) – ASX-listed uranium miner Paladin Energy’s two mines in Namibia and Malawi remain under care and maintenance to preserve resource and shareholder value in the current low uranium price environment; however, the company is positive that uranium demand will pick up in the near future.

#Simbi Phiris struggles :: Evil cooks good pasta -The construction mafia and corrupt politicians seized our Parliament

Mmegi Blogs :: Evil cooks good pasta -The construction mafia and corrupt politicians seized our Parliament: Evil cooks good pasta -The construction mafia and corrupt politicians seized our Parliament

I was reading former FBI Director, James Comey’s Book, “A Higher Loyalty”, the other day. He makes reference to an encounter with one of the most dangerous mafia he had gone to interview at a safe house in Italy and how ordinary the man looked

The Explorers: Force's Jason Brewer on that 2400g/t silver hit at Tshimapala - Stockhead

The Explorers: Force's Jason Brewer on that 2400g/t silver hit at Tshimapala - Stockhead: he silver and lead grades at Force Commodities’ (ASX:4CE) recently acquired Tshimpala project in Malawi are truly ridiculous.

In 2018, assays on a 100-tonne bulk sample returned 60 per cent lead and 765 grams per tonne (g/t) silver.

Then last week, Force reported 2411g/t silver and 60 per cent lead from a grab sample which looks like this:

Wednesday, September 11, 2019

IMF team in today for Extended Credit Facility review - The Times Group Malawi

IMF team in today for Extended Credit Facility review - The Times Group Malawi: An International Monetary Fund (IMF) Mission team arrives in the country today for review of its $112.3 million (K85 billion) Extended Credit Facility (ECF) programme.

Minister of Finance and Economic Development, Josephy Mwanamvekha told Parliament Monday, when presenting his inaugural full budget, that the Treasury was upbeat of positive outcome from the review.

Among other things, the IMF mission team will meet top government officials.

The ECF-supported programme is aimed at entrenching macroeconomic stability and fostering higher, more inclusive, and resilient growth.

Ulendo extends to Blantyre route - The Times Group Malawi

Ulendo extends to Blantyre route - The Times Group Malawi: Barely three months after launching its Lilongwe-Mzuzu – Likoma Island route, Ulendo Airlink has announced that it is extending its services to Blantyre.

A press statement says, starting from September 23 2019, Ulendo Airlink is set to introduce flights between Lilongwe and Blantyre.

Ulendo Airlink Chief Executive Officer, Rob McConaghy, says the addition of Blantyre to Ulendo’s domestic network was designed to offer comprehensive air services to all key destinations in the country.

Tuesday, September 10, 2019

Malawi: Mwanamvekha Unveils K1.7 Trillion 2019/20 Malawi Budget - Key Points At-a-Glance - allAfrica.com

Malawi: Mwanamvekha Unveils K1.7 Trillion 2019/20 Malawi Budget - Key Points At-a-Glance - allAfrica.com: Joseph Mwanamvekha has delivered his first Budget as Minister of Finance, Economic Planning and Development. The 2019/2020 budget is pegged at K1.7 trillion up from K1.4 trillion in the 2018/2019 budget. These are the key points of what he has said.

Mwanamvekha with the black box in Parliament which has been a common feature on Budget day for decade

Malawi: Mwanamvekha Says Govt to Curb Illicit Foreign Exchange, Issue Diaspora Bond - allAfrica.com

Malawi: Mwanamvekha Says Govt to Curb Illicit Foreign Exchange, Issue Diaspora Bond - allAfrica.com: Minister of Finance, Economic Planning and Development Joseph Mwanamvekha on Monday presented a 2019/20 budget in Lilongwe which many have described as an "inspiring" fiscal plan as he projected that Gross Domestic Product (GDP) will expand by 5% in 2019 and by 7% in 2020.

Finance minister Mwanamvekha presenting the budget: Malawi's economy to grow 5% in 2019, 7% in 2020

Monday, September 9, 2019

Mkango Resources Appoints SENET As Songwe Hill... | Morningstar

Mkango Resources Appoints SENET As Songwe Hill... | Morningstar: NewsMkango Resources Appoints SENET As Songwe Hill Project Manager(Alliance News) - Rare earths development company Mkango Resources Ltd said Monday it has ...
Alliance News9 September, 2019 | 12:56PM
(Alliance News) - Rare earths development company Mkango Resources Ltd said Monday it has appointed SENET as lead engineer and project manager for completing the feasibility study for the Songwe Hill project in Malawi.

SENET is a project management and engineering firm, which is part of diversified engineering, project delivery group DRA Global.

SENET's appointment is said to be another key milestone for completing the feasibility study and developing the project.

Friday, September 6, 2019

Perth’s Force To Let Key Contracts This Month For New Open-Pit Lead-Silver Mine In Malawi

Perth’s Force To Let Key Contracts This Month For New Open-Pit Lead-Silver Mine In Malawi: APerth company which has already pre-sold to a major Swiss global trading house its entire high grade lead-silver entitlement from a mine yet to be built in Africa, says it expects to finalise the key exploration, mining and beneficiation contracts for the mine by the end of this month.

Speaking on the third and final day of the Paydirt 2019 Africa Downunder mining conference in Perth, Force Commodities Managing Director, Mr Jason Brewer, said the key project milestones would also coincide with a start to a new onsite drill program at the Company’s 51%-owned 1,400km� Tshimpala base metals project in Malaw

Coal power plant critical for electricity tariffs—Mera – The Nation Online

Coal power plant critical for electricity tariffs—Mera – The Nation Online: Malawi Energy Regulatory Authority (Mera) has advised Electricity Generation Company Malawi Limited (Egenco) to speed up the building Kamwamba Coal Plant, saying the delay could affect electricity tariffs in the medium-term.

Mera chief executive officer Collins Magalsi said in an interview on Wednesday at the construction site of Tedzani IV Power Plant after Minister of Natural Resources, Energy and Mining BintonyKutsaira toured Phombeya Power Sub-station in Balaka, Kamwamba in Neno and NkulaA Hydropower Plant.

Thursday, September 5, 2019

Savings rate remains unchanged at 4.58% – The Nation Online

Savings rate remains unchanged at 4.58% – The Nation Online: The reduction in policy rate in May this year by 100 basis points to 13.5 percent is yet to impact the commercial bank’s savings rate, it has been established.

The savings rate has been maintained at 4.58 percent since the first quarter when the policy rate fell by another 100 basis points to 14.5 percent.

Exports up 28% in second quarter - The Times Group Malawi

Exports up 28% in second quarter - The Times Group Malawi: Malawi’s exports rose by 28 percent in the second quarter of 2019 to hit $316.6 million fuelled by a jump in sugar exports, figures from the Reserve Bank of Malawi (RBM) indicate.

Election challenges dampen PCL profit – The Nation Online

Election challenges dampen PCL profit – The Nation Online: Dual-listed conglomerate Press Corporation plc has posted a 52 percent drop in first half profit after-tax to K11.1 billion from last year’s K23 billion largely due to pre and post-election challenges.

In the summary of unaudited financial results for the period ended June 30 2019 published on Monday, PCL said as a result of the “challenges and uncertainties in the business environment posed by a general election year” and the aftermath, the group did not reach its full potential and registered an eight percent revenue growth.

Grand Business Park creates jobs for youths – The Nation Online

Grand Business Park creates jobs for youths – The Nation Online: The Grand Business Park, which is under construction in Lilongwe, has created job opportunities for the youth, including graduates from community technical colleges, Minister of Lands, Housing and Urban Development has said.

Monday, September 2, 2019

Invest in business ideas with potential— Reserve Bank of Malawi - The Times Group Malawi

Invest in business ideas with potential— Reserve Bank of Malawi - The Times Group Malawi: NGWENYA— Commercial banks are ready to
invest in loans
With seven recessions that have affected rain-fed agriculture in Malawi’s 55 years of independence, Reserve Bank of Malawi Governor Dalitso Kabambe believes that banking commercial banks’ hopes solely in investments in the agriculture sector is akin to putting all eggs in one basket.

It is a tricky situation, but one fraught with opportunities for investments in other sectors of the economy, Kabambe told delegates to the Institute of Bankers (IoB) fourth annual general meeting held under the theme ‘Financial Sector Synergies: A Catalyst for Financial Inclusion’ held on Friday and Saturday in Mangochi Distric

Sunday, September 1, 2019

Low tea prices worry Malawi growers – The Nation Online

Low tea prices worry Malawi growers – The Nation Online: The Tea Association of Malawi (Taml) has expressed concern over continued low tea prices that buyers are offering at its Limbe market, fearing it may affect growers revenue and its contribution to the economy.

Taml chief executive officer Beyani Munthali on Tuesday said on average—as of this month (August)—the prices per kilogramme (kg) of tea is $1.25 (about K925) compared to last year’s $1.95 (about K1 443)

Saturday, August 31, 2019

Toshiba pledges to support geothermal ambitions in Malawi, Africa | Think GeoEnergy - Geothermal Energy News

Toshiba pledges to support geothermal ambitions in Malawi, Africa | Think GeoEnergy - Geothermal Energy News: As reported locally, in the context of this week’s 7th Tokyo International Conference on African Development (TICAD7), co-hosted by the United Nations, United Nations Development Programme (UNDP), World Bank and African Union Commission (AUC), Toshiba has pledged to support geothermal energy development in Malawi.

This is part of a previous MOU signed between Toshibia and Malawi, we reported on, on cooperation for geothermal development in the country. Now the company will be offering a scholarship to a Malawian student�to study geothermal energy and hydro power in Japan.

Friday, August 30, 2019

Rugged roads of Mzimba – The Nation Online

Rugged roads of Mzimba – The Nation Online: Mbalachanda and Euthini residents in Mzimba are forced to commute at night to beat time-wasting bumps on the abandoned M1, our Staff Reporter JOHN CHIRWA writes.

It is a chilly Monday morning at Mbalachanda Trading Centre in Mzimba. Silhouettes of people waiting to catch a bus to Mzuzu City can be seen loitering in the dark.

Among them, a trio—apparently a husband and his two wives—has braved the biting weather all the way from Chikweyeye Village to the buzzing trading centre in Mzimba North West.

Savings rate remains unchanged at 4.58% – The Nation Online

Savings rate remains unchanged at 4.58% – The Nation Online: The reduction in policy rate in May this year by 100 basis points to 13.5 percent is yet to impact the commercial bank’s savings rate, it has been established.

The savings rate has been maintained at 4.58 percent since the first quarter when the policy rate fell by another 100 basis points to 14.5 percent.

RBM spokesperson Mbane Ngwira in an interview on Monday explained that maintaining the savings rate effectively reduces the spread between savings and lending rates.

AfDB tips Malawi on economic growth – The Nation Online

AfDB tips Malawi on economic growth – The Nation Online: he African Development Bank (AfDB) says Malawi needs to scale up its public investment by 100 percent to $1.2 billion (about K912 billion) to double its per capita income.

At about $1.2 billion, this is about 65 percent of the 2018/19 National Budget of K1.4 trillion and about 21 percent of gross domestic product (GDP).

In its paper titled A DGE Model for Growth and Development Planning: Malawi, the pan-African bank said increased investment will enable the country to boost the average income earned per person from less than $500 (about K370 000) to about $1 000 (K740 000).

Tuesday, August 27, 2019

Our Comments on Textile Industry


Here is a hair-raising story. A Chinese Company has set up a large textile factory in Salima, and they are ready to begin producing. But there is one hiccup - Electricity. The company is begging the company to connect the factor to national greed.  https://malawifinancialmirror.blogspot.com/2019/08/china-africa-appeals-for-government.html
A few months ago, we commented on the fate of large projects in Malawi – why their execution lasts so long. https://malawifinancialmirror.blogspot.com/2019/03/our-guest-comment-mismanaging-large.html.  Big projects are awfully managed in Malawi. One explanation is that our bureaucrats have no interests in projects in which there are no kickbacks and workshops. So dossiers of such project lie in the shelves unattended.
Back to the Salima textile project. We have known that the project will need electricity and cotton. There seem to be no plans by the government to connect the plant to the national grid. The company needs 40,000 tons of cottons, but our production has fallen from a high of 100,000 to 10,000 tons.
Properly managed, the textile industry, with its many upstream and downstream linkages, can spearhead a dynamic export sector. However, for this to happen, we need a governments agency that oversees the projects. We have the MITC (Malawi Investment and Trade Corporation, which is supposed to be the one-stop link between investors and national governments authorities. It does not seem to be going much for the moment.

China-Africa appeals for government support – The Nation Online

China-Africa appeals for government support – The Nation Online: China-Africa, the largest Chinese investment firm in Malawi, says its $80 million (about K60 billion) textile project in Salima urgently needs government intervention to start production.

Speaking in an exclusive interview on Tuesday, Malawi Cotton Company (MCC) general manager Shi Jingran said they are ready to roll out textile production in Salima, but electricity supply remains a challenge.

Wednesday, August 21, 2019

Our Comment - On Pension Fund


CAN SOMEBODY STOP THE MADNESS? 
According to James Mhura, the CEO of Old Mutual Unit Trust, the trust  has approved a proposal by its shareholders to start offshore investments, which is the keeping of money in a jurisdiction other than one’s country. Apparently, there is no objections from the Reserve Bank.
Pension money is serious money and it is usually the largest amount of savings in most countries. It is also “patient” money which can be used for long term investments.  For countries like Malaysia and Singapore such funds were the backbone of the economy,  with Central Providence Fund (CPF) accounting for 50 per of national savings in Singapore   Until quite recently, these  most  successful pension schemes in the developing counters  did not allow investments in foreign securities. Only recently has Singapore permitted investment abroad and this only when the pension funds are huge.  Instead, they massively invested the funds domestically. Temasek, the CPF’commercial arm owns and manages a net portfolio of $308 billion[ (as of 31 March 2018). Temasek owns the iconic Singapore Airlines.
The restrictions on investing abroad not only force these funds to invest locally,  but also the ban on investing abroad is aimed at discouraging capital flight which will by unrestricted foreign investment institutionalize capital flight and deny domestic investors from benefitting from savings of the nation.
In South Africa, Old Mutual, which had thrived under apartheid, was allowed by Thambo Mbeki to move its headquarters to England. The consequence was massive haemorrhaging of the South African economy. Much of what is called foreign investments into South is simply round-tripping by these pensions fund- domiciles in London but freely extracting economic surplus from South Africa.
Malawi implemented the new Pensions Act of 2010 which, among other things, made pensions mandatory to all employees to build national savings. The fund has grown from  K59.5 billion in 2010 to 700 billion in 2019. With an estimated value of One billion dollars, the Malawi pension is only 17 per cent of GDP and we have allowed ourselves the leisure of sharing our puny savings with the rest of the world.
Apparently, our pension fund is run by people who haven’t the slighted idea as to what to invest in Malawi. How else can only explain the fact that these people have yet to find one decent example of transformative investment in Malawi?
It is quite sad  that the Governor of the Reserve Bank who has been talking  much sense lately about pensions in Malawi has allowed this to happen under his watch. .


Old Mutual Unit Trust ventures into offshore investment – The Nation Online

Old Mutual Unit Trust ventures into offshore investment – The Nation Online: Old Mutual Unit Trust ventures into offshore investment
Brian Itai August 21, 2019 0 Comments
Old Mutual Unit Trust has approved a proposal by its shareholders to start offshore investments, which is the keeping of money in a jurisdiction other than one’s country.

Speaking at the trust’s annual general meeting in Blantyre on Monday, the firm’s managing director James Mhura said the proposal followed requests from unit holders to benefit from its global reach by tapping from much larger markets outside Malawi.