Escom sets ambitious power generation plan | The Times Group

Escom sets ambitious power generation plan | The Times Group: Electricity Supply Corporation of Malawi (Escom) has set an ambitious plan of increasing national electrification rate to 30 percent of the country’s population in the next 10 years.

Illovo makes K8.1bn profit in six months - The Nation Online

Illovo makes K8.1bn profit in six months - The Nation Online: Malawi) plc has reported a jump in profit to K8.1 billion in the six months ended February 28 2019 from K7 billion despite a drop in revenue.

Extracts from unaudited financial statements published yesterday show that revenue for the Malawi Stock Exchange (MSE)-listed sugar manufacturer dropped by K3.8 billion to K62.4 billion from K66.2 billion during the same period last year.

Malawi’s exports up by 9% in 2018 | The Times Group

Malawi’s exports up by 9% in 2018 | The Times Group: Malawi’s exports up by 9% in 2018
Posted By: Tom Sangalaon: May 24, 2019In: BusinessNo Comments
By Chimwemwe Mangazi:

Malawi’s exports grew by nine percent in 2018 after recording an export value of $975. 084 million (about K731.313 billion) when compared to the $889.104 million (about K668. 828 billion) recorded in 2017, latest figures from Trade Map have shown.

Trends from the past five years, however, show that 2018 is the only year that the country has recovered from a downward spiral of the exports where the figures kept on declining year-on-year.

The 2018 figure is 31 percent shy of the $1. 420 billion (about K1.064 trillion) recorded in 2013.

Mera hits at IPPs - The Nation Online

Mera hits at IPPs - The Nation Online: Malawi Energy Regulatory Authority (Mera) has threatened to revoke licences for independent power producers (IPPs) who fail to roll out during their specified period, saying the delay may affect further investments in the energy sector.

Mera chief executive officer Collins Magalasi said in an interview that failing to roll out in time could either prolong reliance on diesel-powered electricity or affect government policy of getting rid of blackouts by 2020.

“Aggreko generators were given two years after which they were supposed to pack and go so that we can accommodate IPPs by January 2021. This means that prices of electricity could go down as well but IPPs are yet to roll out despite signing power purchase agreements [PPAs].

Malawi: German Firm to Install Floating Solar Panels On Lake Malawi for Energy Generation - AllAfrica

Malawi: German Firm to Install Floating Solar Panels On Lake Malawi for Energy Generation - AllAfrica: One of the independent power producers (IPPs) that have signed power purchase agreements with Electricity Supply Corporation of Malawi (ESCOM), German firm Droege Energy, intends to install floating solar power panels on the Lake Malawi at Monkey Bay in Mangochi to generate power to be linked onto the ESCOM grid.

EGENCO's CEO Liabunya signing the PPA with Chiwaya QUANTLEL's CEO Fields displays his PPA in company of ESCOM's CEO Dr. Chiwaya The top table chaired by Mpinganjira (centre)

This was disclosed at the signing ceremony of 14 power purchase agreements (PPAs) involving ESCOM, Malawi Energy Regulatory Authority (MERA) and three other IPPs held on Monday at Mount Soche Hotel in Blantyre.

Inflation rate drops to 9.1% - The Nation Online

Inflation rate drops to 9.1% - The Nation Online: Inflation rate drops to 9.1%
Grace Phiri May 20, 2019 0 Comments
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Inflation rate for April 2019 eased by 0.2 percentage points to 9.1 percent, a development monetary authorities say signifies that the country is on course to achieve a five percent inflation rate target in the medium-term.

Published figures from National Statistical Office (NSO) show that at 9.1 percent, April inflation rate is lower than the 9.7 percent recorded during the same period last year.

Food and non-food inflation during the month was recorded at 13.8 and 5.4 percent, respectively, according to NSO.

Cear first quarter profit drops 52% - The Nation Online

Cear first quarter profit drops 52% - The Nation Online: Cear first quarter profit drops 52%
Grace Phiri May 20, 2019 0 Comments
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Central East African Railways (Cear) has posted a 52 percent decline in profit to $2.1 million (about K1.6 billion) in the first quarter of this year, a situation company officials say is due to an unmet target for cargo.

Speaking to journalists in Blantyre on Friday, Cear finance manager Christina Chithila said the profit declined from $4.4 million (about K3.3 billion) achieved in the first quarter of 2018.

Import cover hits 3.83 months - The Nation Online

Import cover hits 3.83 months - The Nation Online: Import cover hits 3.83 months
Grace Phiri May 17, 2019 0 Comments
Malawi’s gross foreign exchange reserves —a combination of official and private sector reserves— inched upwards to 3.83 months of import in March, recovering from the previous month’s fall.

According to Reserve Bank of Malawi’s (RBM) second Monetary Policy

Banks react to policy rate cut | The Times Group

Banks react to policy rate cut | The Times Group: By William Kumwembe:


Kabambe

Commercial banks in the country have started lowering their base lending rates in reaction to the Reserve Bank of Malawi’s (RBM) recent downward revision of the policy rate.

As we went to press, two of the country’s 11 commercial banks, Standard Bank and MyBucks Banking Corporation, had announced to have restructured their interest rates.

MyBuck’s maximum lending interest rate to its borrowers will be 25.5 percent, down from 26.6 percent according to a statement issued Wednesday.

The bank says the specific interest rate applicable to individual borrowers will depend on perceived credit risks associated with the individual borrowers, as well as specific categories of credit facilities.

In a separate statement, Standard Bank announced that it has adjusted its Base Lending Rate from 14.9 percent to 13.9 percent.

The bank has revised its Maximum Lending Rate from 25.9 percent to 24.9 percent, saying that rates for savings, call and fixed deposits would remain unchanged.

OUR COMMENTS on Mkango Mining Plans

OUR COMMENTS on Mkango Mining Plans 

In June 2017 it was headlined that Canada's Mkango Resources would start mining rare earth in Malawi in 2020  READ HERE In 2018 we were informed that the feasibility study would be completed in 2019. Early this year we heard, Talaxis will invest a further £7 million (about K6.6 billion)  to fund the completion of the feasibility study for Songwe, which will be the main focus for 2019, Upon receiving the Talaxis money the company reported that the feasibility study for Songwe, which is currently underway and expected to be completed in 2020. which had been the initial date for starting the mining.  And this month we have been informed that the mining will start in 2024 READ MORE.

The explanation provided is: “We need two years to conduct definitive feasibility studies to be 100 per cent sure of what’s in the ground and how to extract it. After analysing the findings, we will compile a document to be used to raise funding for the project before we can start constructing the mine”.  

Mkango does not seem to be in a particular hurry.

And for a company have another exploration licence – Thambani, the pace and the schedules they are working do not help us in planning for our future on this vital resource.

For more than a decade now a major rare earth resource at Kangakunde has been held up one south Africa mineral explorer, Mr. Michael Saner, asking US100 million dollar. Apparently, he has relented and was joining up with another Australian company to get started. Y=There is apparently some disagreed over ownership or  something (READ HERE)and, once again, the countries are being held at ransom.

We have heard no sounds of protest from the government.

We believe the government should insist on harder timelines for such projects.

Manufacturing sector continues to stagnate - The Nation Online

Manufacturing sector continues to stagnate - The Nation Online: Manufacturing sector continues to stagnate
Grace Phiri May 16, 2019 0 Comments
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Malawi has over the past 30 years failed to make headway in the manufacturing sector, leaving analysts wondering whether the promotion of import substitution, industrialisation and agricultural exports is yielding results.

A United Nations Industrial Development Organisation (Unido) report dubbed 2018 Competitiveness and Industrial Development has ranked Malawi 134th competitive and industrial country out of 150, slipping by two steps from last year.

Treasury in K73.1bn third quarter deficit - The Nation Online

Treasury in K73.1bn third quarter deficit - The Nation Online: Treasury in K73.1bn third quarter deficit
Grace Phiri May 13, 2019 0 Comments
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Treasury has recorded a deficit of K73.1 billion in the third quarter (January-March) of this financial year, figures from the Reserve Bank of Malawi (RBM) show.

This deficit is, however, a decline compared to the deficit registered in the first quarter (July to September) and second quarter’s (October to December) of K90.8 billion and K28.2 billion, respectively.

Tobacco rakes in $18 million | The Times Group

Tobacco rakes in $18 million | The Times Group: obacco rakes in $18 million
Posted By: Tom Sangalaon: May 14, 2019In: BusinessNo Comments
By Chimwemwe Mangazi:

Revenue from Malawi’s major forex earner, tobacco, reached $18,082,247.78 at the close of second week of sales on Friday, figures from AHL Group show.

The earnings have increased from the $7,348,108.13 realised during the first week of trading, thanks to improved prices buyers are offering for the green gold.

Agriculture to grow by 3.9% | The Times Group

Agriculture to grow by 3.9% | The Times Group: Agriculture to grow by 3.9%
Posted By: Tom Sangalaon: May 15, 2019In: BusinessNo Comments
By William Kumwembe:

Main driver of Malawi economy, agriculture, is expected to rebound to 3.9 percent this year, up from 0.9 percent in 2019, the second Monetary Policy Report for 2019 has shown.

The estimate is slightly higher than the 2 percent growth projection the Reserve Bank of Malawi (RBM) made at the end of the first Monetary Policy Committee meeting in January.

The rebound in agriculture, coupled with stability in electricity supply, is said propel the economy to 5 percent up from the anticipated four percent in 2018

Government credit up by K81.6 billion | The Times Group

Government credit up by K81.6 billion | The Times Group: Government credit up by K81.6 billion
Posted By: Tom Sangalaon: May 14, 2019In: BusinessNo Comments
By William Kumwembe:

Net credit to the central government went up by K81.6 billion to K547.4 billion in March 2019, figures from the Reserve Bank (RBM) of Malawi show.

RBM March 2019 Monthly Economic Review shows that government’s net borrowing from the central bank increased by K62.0 billion to K144.5 billion.

Similarly, central government net credit from commercial banks increased by K19.6 billion to K402.8 billion on account of a K26.6 billion Treasury notes uptake by the commercial banks.

In the month under review, Treasury bills (TBs) amounting to K3.8 billion matured, reducing the outstanding stock of the TBs held by commercial banks to K215.1 billion.

“Further, government deposits with the commercial banks r

Mkango rare earth mine to open in 2024 - The Nation Online

Mkango rare earth mine to open in 2024 - The Nation Online: Mkango rare earth mine to open in 2024
James Chavula May 13, 2019 0 Comments
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Mkango Resources Limited, a mining firm exploring rare earths at Songwe Hills in Phalombe, has unveiled plans to start extracting the minerals by 2024.

The Australian Stock Exchange (ASX)-listed mining firm, has been exploring the prospects of extracting the minerals used in making mobile phones and computer accessories since 2010, forcing hillside communities to ask: When should we expect mining to begin?

The firm’s environmental manager Bradley Thornton gave a blow-by-blow countdown at a meeting with locals in Phalombe on Friday and there was a reason worth the five-year wait.

“We conducted a pre-feasibility study to determine if there is something to look at and the exploration showed what we have in the hills is worthy of further investments.

IMF engages Treasury on missed target - The Nation Online

IMF engages Treasury on missed target - The Nation Online: The International Monetary Fund (IMF) says it is still discussing with fiscal authorities on the target of primary balance—fiscal balance excluding interest payments—missed in the first half of the 2018/19 financial year.

IMF resident representative Jack Ree said in an interview yesterday that the discussions are focusing on corrective measures on the unmet target of the three-year $112 million (about K82 billion) Extended Credit Facility (ECF) programme

British Government sent �4.5 billion to Malawi - but it's now 'poorer than it was when we started' | Daily Mail Online

British Government sent �4.5 billion to Malawi - but it's now 'poorer than it was when we started' | Daily Mail Online: A failure of our foreign aid policy: MP says British Government has sent �4.5 billion to Malawi - but it's now 'poorer than it was when we started'
Rory Stewart pointed to Malawi as example of UK's foreign aid policy failure
Struggling Southern African nation was for years a darling of the aid industry
Western donors froze aid after politicians stole millions in 'cashgate’ scandal

Banks yet to react to policy rate cut | The Times Group

Banks yet to react to policy rate cut | The Times Group: Commercial banks in the country are yet to lower their base lending rates, a week after the Reserve Bank of Malawi (RBM) affected a policy rate cut.

Borrowers from commercial banks and other micro finance institutions expected to heave a sigh of relief following the slash in the policy rate — a key driver of interest rates on loans — last week.

Private sector credit grew by 11% in 2018 | The Times Group

Private sector credit grew by 11% in 2018 | The Times Group: Credit extended to the private sector went up by 11.5 percent in 2018, the Reserve Bank of Malawi (RBM) indicates.

Figures contained in the 2018 RBM Annual Report issued on Tuesday show that the figure is compared to 0.4 percent growth of private sector credit recorded in 2017.

In real terms, private sector credit grew by 1.6 percent in 2018 compared to a contraction of 6.7 percent in 2017.

“The grow

Malawi to earn K110bn from graphite mine - The Nation Online

Malawi to earn K110bn from graphite mine - The Nation Online: Treasury is set to earn $150 million (about K110 billion) tax revenue once mining at Sovereign Metals Limited-owned Malingunde Graphite Mine in Lilongwe starts, a report has indicated.

The draft Environmental Social Impact Assessment (Esia) Report shows that the project will generate revenue in the form of taxes and royalties.

Mkango's Will Dawes updates as Songwe Hill advances towards production decision

Mkango's Will Dawes updates as Songwe Hill advances towards production decision: Mkango's Will Dawes updates as Songwe Hill advances towards production decision
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09:40 08 May 2019
Will Dawes, chief executive of Mkango Resources Ltd’s (LON:MKA), caught up with Proactive London's Andrew Scott to discuss progress at its flagship Songwe Hill rare earth project in Malawi.

Commodities trader Talaxis has committed �12mln at the project level, with a view to supporting further exploration and to hitting certain development milestones.

That investment as it stands will net out at a 49% interest for Talaxis once the project is taken through the bankable feasibility stage.

$MKA Mkango's Will Dawes updates as Songwe Hill advances towards production decision http://tinyurl.com/y4xlur9m  via @proactive_UK @MkangoResources #MKA #brighterir #AndrewScottTV #CapitalNetwork1

Tobacco rejection rate hits 40 percent - The Nation Online

Tobacco rejection rate hits 40 percent - The Nation Online: Tobacco rejection rate hits 40 percent
Martha Chirambo May 7, 2019 0 Comments
The Mzuzu Auction Floors opened yesterday with a 39.2 percent rejection rate, a development that has prompted growers to ask government to intervene.

At 39.2 percent, the rejection rate is 19 percent higher than the acceptable rate of 20 percent and below.

Malawi President Mutharika stops tobacco companies from� growing crop - The Maravi Post

Malawi President Mutharika stops tobacco companies from� growing crop - The Maravi Post: By Vincent Khonje

Companies that buy tobacco� will no longer be allowed to grow the cash crop from the� next growing season, President Peter Mutharika said on Saturday.

Mutharika brought the� good news to tobacco farmers on his whistle stop tour to the North.

World Bank commits over K88 billion towards Cyclone Idai recovery in Malawi - The Maravi Post

World Bank commits over K88 billion towards Cyclone Idai recovery in Malawi - The Maravi Post: Written by� McCarthy Mwalwimba

Lilongwe, May 3, 2019:�The World Bank on Friday announced that it has mobilised US$120 million (over K88.1 billion) in new resources to help people in the country affected by the assessed impact of Cyclone Idai.

In a statement released in Maputo, Mozambique where the cyclone hit most, the bank says it has mobilised over half a billion dollars in new resources to help people in Mozambique, Malawi, and Zimbabwe.

Reserve Bank of Malawi cuts rate to 13.5 % | The Times Group

Reserve Bank of Malawi cuts rate to 13.5 % | The Times Group: Borrowers from commercial banks and other micro-finance institutions should heave a sigh of relief following a slash in policy rate — a key driver of interest rates on loans— by the Reserve Bank of Malawi (RBM).

At the end of the second Monetary Policy Committee (MPC) meeting Friday, MPC Chairperson and RBM Governor Dalitso Kabambe announced the policy rate slash from 14.5 to 13.5 percent.

300MW Kam'mwamba coal-fired power project in Malawi underway

300MW Kam'mwamba coal-fired power project in Malawi underway: Construction works on the 300MW coal-fired power project Malawi is underway. This is according to Ambassador of the People’s Republic of China Liu Hongyang.

“Kam’mwamba Coal-field Power Project is still alive and there, what we are doing is that we are doing some visibility studies on some infrastructure like roads, railways systems and other things to enable easy transportation of coal as well as distribution,” said Hongyang.

RBM sees policy rate down to 11% - The Nation Online

RBM sees policy rate down to 11% - The Nation Online: RBM sees policy rate down to 11%
Nation Online May 2, 2019 0 Comments
Reserve Bank of Malawi (RBM) says it is eyeing a decline in policy rate to 11 percent in the short-term on account of continued decline in inflation and sustained economic gains.

RBM Governor Dalisto Kabambe said this on Tuesday in Blantyre on the sidelines of the official opening of a symposium on investments in infrastructure through pension funds.

Our Comments On Pensions

The Reserve Bank is to be congratulated for taking the initiative of organizing a symposium to rethink the allocation of pension funds which are now more than one billions dollars worth. Pension funds have grown dramatically in Malawi and carefully allocated, they can significantly contribute to the growth of the economy.  Thus far the funds have been misallocated, being placed into short-term equities.  And in terms of infrastructure, the choice has been shopping malls, a wasteful practice encouraged by South African pensions funds such as Old Mutual.

In other parts of the world pension funds have been used to build railways, electrification, providing office space, housing, etc. We just have to look at the case of Singapore to see how we can go.

There is something perverse about Malawi sitting on huge amounts of money and apparently have no clue what to with the money.

Pension assets now at K757 billion | The Times Group

Pension assets now at K757 billion | The Times Group: Pension assets now at K757 billion
Posted By: Tom Sangalaon: May 01, 2019In: NationalNo Comments
By William Kumwmbe:


JIYA—We need to work more

Pension assets have grown from K74.8 billion in 2011 to K757.4 billion in March 2019, figures from the Reserve Bank of Malawi (RBM) show.

At this level, pension assets are now at around 14.4 percent of Gross Domestic Product, growing at 30 percent annually.

Government ponders lifting maize export ban - The Nation Online

Government ponders lifting maize export ban - The Nation Online: Government ponders lifting maize export ban
Grace Phiri April 30, 2019 0 Comments
Maize traders say lifting maize export ban now that farm-gate price of K180 per kilogramme (kg) has been released would be counterproductive.

The views by Grain Traders and Processors Association follow sentiments by Minister of Agriculture, Irrigation and Water Development Joseph Mwanamvekha on Saturday that lifting maize export ban, imposed two years ago, is an option government is looking at in the wake of a projected 355 000 metric tonnes (MT) maize surplus this year.

MetalNRG to acquire 75% interest in Thambani uranium licence

MetalNRG to acquire 75% interest in Thambani uranium licence: MetalNRG to acquire 75% interest in Thambani uranium licence
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MetalNRG has signed an agreement to acquire up to a 75% interest in Mkango Resources’ Thambani exclusive prospecting licence in Malawi.

Under the non-binding heads of terms agreement, MetalNRG will invest up to $2m on exploration to earn the interest.

The agreement terms outline that MetalNRG and Mkango will enter into a binding definitive agreement on or before the 30 June.

Mkango Resources Ltd well-funded through deal with Talaxis

Mkango Resources Ltd well-funded through deal with Talaxis: Malawi-focused Mkango Resources Ltd (LON:MKA) closed 2018 with cash of US$2.4mln, a figure boosted by its collaboration with Noble Group division Talaxis.

Since then, the junior has received a further US$9mln from Talaxis following completion of a technical report on the Songwe Hill rare earth project.

Through that investment, Talaxis increased its stake in Lancaster Exploration, the holder of the licence for Songwe in Malawi, to 49%; Mkango holds the remaining 51%.

Mkango posted a loss of US$7.2mln in 2018 as it ramped up spending on a feasibility study at Songwe Hill that will be finished next year.

Once that is published, Talaxis has the option to take a further 26% of the project in return for arranging the finance to take it through to production.