Malawi kwacha rallies against dollar | The Times Group

Malawi kwacha rallies against dollar | The Times Group: The Malawi kwacha continued on its recovery path last week, appreciating against the dollar— moving from K774 to the green buck to K758.9 as at close of business Tuesday.

Business | The Times Group

Business | The Times Group: By Chimwemwe Mangazi: The International Monetary Fund (IMF) has said the five percent inflation rate target for Malawi is attainable in the medium term if the country does not slacken on the... Read more

IMF backs Reserve Bank of Malawi’s 5% inflation target | The Times Group

IMF backs Reserve Bank of Malawi’s 5% inflation target | The Times Group: The International Monetary Fund (IMF) has said the five percent inflation rate target for Malawi is attainable in the medium term if the country does not slacken on the economic gains registered in the recent past.

Reserve Bank of Malawi (RBM), recently, set an ambition to achieve an inflation target of five percent by the first quarter of 2021.

Expert decries low non-tax revenue – The Nation Online

Expert decries low non-tax revenue – The Nation Online: Expert decries low non-tax revenue
Dumbani Mzale July 26, 2019 0 Comments
The declining trend in non-tax revenue is a reflection that the country’s economic landscape remains volatile, a Blantyre-based tax analyst has said.

Tax analyst Emmanuel Kaluluma, who is senior tax consultant at EK Tax Consultants, said this in reaction to an analysis by the World Bank report which shows that non-tax revenue as a percentage of gross domestic product (GDP) has been dwindling since 2016/17 fiscal year.

Market dealers see kwacha recovering – The Nation Online

Market dealers see kwacha recovering – The Nation Online: The kwacha has started gaining ground against the dollar and is steadily appreciating, now trading at K770, according to Financial Market Dealers Association (Fimda).

The kwacha has started appreciating from a three-year low of K778 to a dollar.

In an e-mail response yesterday, Fimda president Patricia Hamisi attributed the gain to the reversal of the underlying factors that caused the depreciation.

Sovereign Metals Ltd produces ultra-high ‘5-Nines’ purity graphite from Malawi project

Sovereign Metals Ltd produces ultra-high ‘5-Nines’ purity graphite from Malawi project: Sovereign Metals Ltd (ASX:SVM) has produced some of the highest purity graphite in the world, using a loss on ignition process to assess the suitability of mine gate graphite concentrates from its Malingunde project in Malawi.

The achieved purity highlights the potential for Sovereign to enter the lithium-ion battery sector as well as high-tech and speciality markets, including the nuclear sector.

Key infrastructure boosts Sovereign Malawi rutile play | Business News

Multi-commodity developer, Sovereign Metals, could significantly lower capital and operating costs for its projects located in Malawi by accessing a newly upgraded rail network corridor to a deep-water port in Nacala, Mozambique, about 750km to the east.

The company is developing its exciting rutile and graphite projects within a huge land-holding in Malawi and access to the Nacala Logistics Corridor, or “NLC”, opens up export opportunities for the sought-after mineral commodities.

Sovereign has an existing memorandum of understanding in place with Central East African Railways for rail freight, port access and port handling services for concentrates from its Malingunde graphite project in Malawi, with a binding agreement currently in the works.

Treasury reviewing double taxation pacts – The Nation Online

Treasury reviewing double taxation pacts – The Nation Online: Treasury reviewing double taxation pacts
Steve Chilundu July 17, 2019 0 Comments
Ministry of Finance, Economic Planning and Development says it is reviewing old double taxation agreements with other countries.

This follows concerns from tax justice campaigners who say that double taxation agreements Malawi signed with other countries compel multinationals to use them for tax avoidance.

�The campaigners, supported by ActionAid and partners, interested in fair and progressive taxation regime, have argued that Malawi has weak taxation frameworks whose loopholes are providing opportunities for tax avoidance

Current account deficit narrows – The Nation Online

Current account deficit narrows – The Nation Online: Malawi’s current account deficit is expected to take a knock from an estimated 18.20 percent of gross domestic product in 2018 to 15.20 percent in 2020, as import growth falters, investment advisory firm Nico Asset Managers has said.

The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports.

RBM warns treasury on rising public debt – The Nation Online

RBM warns treasury on rising public debt – The Nation Online: R

eserve Bank of Malawi (RBM) Governor Dalitso Kabambe has advised Treasury to rein in on both domestic and external borrowing, warning that there is insufficient room for further borrowing.

The governor’s pronouncement comes on the back of figures showing� public debt at $4.3 billion (K3.2 trillion) or 68 percent of gross domestic product (GDP) with domestic debt at $2.2 billion (K1.6 trillion) or 34.9 percent of GDP and external debt at $2.1 billion (K1.5 trillion) or 33 percent of GD

PCL prepares subsidiaries for potential listing – The Nation Online

#PCL prepares subsidiaries for potential listing – The Nation Online: Press Corporation plc (PCL) says it is preparing some of its businesses for potential listing on the #Malawi Stock Exchange (MSE).

PCL group chief executive officer George Partridge said this during the dual-listed conglomerate’s 2018 Annual General Meeting (AGM) in Blantyre on Thursday afternoon

Economists decry low investment levels – The Nation Online

Economists decry low investment levels – The Nation Online: Economists decry low investment levels
Grace Phiri July 20, 2019 0 Comments
The Economics Association of Malawi (Ecama) has decried the country’s low levels of investments which it say is below the Sub-saharan Region (SSR)’s 20 percent average.

Published figures from the International Monetary Fund (IMF) World Economic Outlook (WEO) indicate that Malawi has one of the lowest rates of total investment in SSA, with the average rate standing at 14.9 percent of gross domestic product (GDP) from 2000 to 2017

‘Malawi ready for industrialisation’ – The Nation Online

‘Malawi ready for industrialisation’ – The Nation Online: The projects to be financed include the international airport, a holiday resort at Cape Maclear and a logistics park in Mangochi, rehabilitation of Liwonde Dry Port and rail lines along the Nacala Corridor, construction and rehabilitation of M5 Road as well as industrial parks in Blantyre and Lilongwe.

Minister of Finance, Economic Planning and Development Joseph Mwanamvekha signed the MoU on behalf of� the Malawi Government while Afreximbank president Benedict Oramah signed on behalf of the bank.

Press Corporation Limited set for growth | The Times Group

Press Corporation Limited set for growth | The Times Group: hairperson of Malawi Stock Exchange-listed Press Corporation Limited (PCL), Patrick Khembo, has said the conglomerate has set a good platform for growth and is bound to grow in 2019 if conditions are favourable.

This came out at the company’s annual general meeting (AGM) held Thursday in Blantyre, where some minority shareholders expressed worry over the performance of the company.

Malawi: Minister Ben Phiri Commissions Construction of Khonjeni Road in Thyolo - allAfrica.com

Malawi: Minister Ben Phiri Commissions Construction of Khonjeni Road in Thyolo - allAfrica.com: Minister of Local Government and Rural Development Ben Malunga Phiri, on Sunday presided over the ground breaking for the commencement of the construction of the road from Thyolo Boma to Khonjeni in Thyolo Central Constituency, in which he is also its Member of Parliament.

Assurance from construction crew Inspection of road Minister Phiri (2nd from left) with the contractors

At cost of K917,481,976.03, to be constructed by China Railway 20 (CR20) Bureau Group Corporation, the 6km project is expected to be completed by April 2020.

Trump may just have saved Malawi uranium Industry

Uranium demand is the big winner as US President rejects import cap - Stockhead: US President Donald Trump has rejected a cap on uranium imports, bringing the long-running (and very disruptive) Section 232 investigation to a close for now.

The investigation was sparked by two domestic companies calling for limits on the amount of uranium that US nuclear plants sourced from overseas, citing national security concerns.

The US currently imports about 93 per cent of its commercial uranium, compared to 85.8 per cent in 2009.

MW among top African exporters - The Nation Online

MW among top African exporters - The Nation Online: Malawi’s progress towards regional integration is yielding with the country� ranked among top-ten lead intra-Africa exporters.

According to latest figures from the United Nations Commission for Trade and Development (Unctad) Economic Development in Africa Report,� at 38.3 percent, Malawi is the 10th leading intra-Africa exporter with Zimbabwe, Uganda, Togo Senegal, Djibouti, Lesotho and Kenya having the larger share

MV Chambo set to boost trade—officials - The Nation Online

MV Chambo set to boost trade—officials - The Nation Online: The newly-launched� Marine Vessel (MV) Chambo on Lake Malawi is expected to boost trade between Malawi and Mozambique apart from reducing mobility challenges for people on Likoma and Chizumulu islands, officials from the two countries have said.

Speaking last week during the commissioning of the vessel at Nkhata Bay Jetty in Nkhata Bay, Mozambique High Commissioner Jose Maria Zita said MV Chambo will ease travel and promote business and access to social facilities.

Embracing technology to boost horticulture | The Times Group

Embracing technology to boost horticulture | The Times Group: In Mndolera Extension Planning Area (EPA), a group of selected small-scale horticulture farmers is experimenting with drip irrigation technology as a measure to build resilience to climate change while boosting production.

Afreximbank president to visit Malawi next week - The Nation Online

Afreximbank president to visit Malawi next week - The Nation Online: African Export-Import Bank (Afreximbank) president Benedict Oramah is scheduled to visit Malawi next Wednesday to sign a memorandum of understanding (MoU) with the Malawi Government on the implementation of projects in the next five years.

Ministry of Industry, Trade and Tourism deputy director Silas Sindi said this on Wednesday during an executive meeting at Blantyre District Council.

He said the projects include the construction of Matindi Industrial Park in Blantyre, an international airport and a five-star hotel in Mangochi, an industrial park at Area 55 in Lilongwe and Liwonde Dry Port.

Tama faults strict tobacco regulations - The Nation Online

Tama faults strict tobacco regulations - The Nation Online: Tobacco growers has faulted strict regulatory measures and tax increases on the leaf and its products, saying they are affecting demand for the crop.

Tobacco Association of Malawi (Tama) president Abiel Banda said in a statement on Tuesday that strict regulatory measures create strong incentives for illegal tobacco marketing which undermines the initial scope of tobacco control.

Two oil exploration firms relinquish licences - The Nation Online

Two oil exploration firms relinquish licences - The Nation Online: Two oil exploration firms relinquish licences
Grace Phiri July 10, 2019 0 Comments
Two oil exploration firms, Efora Company, formerly Sac Oil, and Pacific Oil Limited have relinquished ownership of their licensed blocks one and six, respectively, a move government says will not affect operations.

‘Political situation to smother economy’ | The Times Group

‘Political situation to smother economy’ | The Times Group: Economic analysts have said post-election demonstrations are slowly hurting the fragile economy.

Since Malawi went to the polls on May 21 this year, civil society groups under Human Rights Defenders Coalition have organised two rounds of demonstrations with the third round set to take place later.

The demonstrations have seen businesses closing before time as they attempt to stay away from the protesters.

Tea Prices Dwindle

Tea Prices Dwindle: Malawi’s second largest foreign exchange earner, tea continues fetching low on both local and international markets.

Chief Executive Officer for the Tea Association of Malawi Beyan Munthali has attributed this to high production of tea by Asian and East African countries.

"At international market, the price has gone down by 70 cents while locally at Limbe Auction floors it is down by 40 cents," said Munthali.

He said a lot of tea lies in warehouses as the market remains poor.

Mbeya, Dar es Salaam ports to cut costs by 30% - The Nation Online

Mbeya, Dar es Salaam ports to cut costs by 30% - The Nation Online: Local hauliers using Mbeya and Dar es Salaam ports in Tanzania are expected to enjoy between 25 and 30 percent reduction in transport costs thanks to improved efficiency and effectiveness of cargo handling at the two ports.

The development follows discussions between representatives from Malawi and Tanzania cargo handling institutions who have agreed to revitalise and increase cargo volumes transported through Mbeya Dry Port and Dar es Salaam Port.

Malawi targets $300m market at China Expo | The Times Group

Malawi targets $300m market at China Expo | The Times Group: Malawi has reiterated its ambitious target of generating over $300 million worth of export orders and market at the 2019 International Horticultural Expo underway in Beijing, China.

The exhibition started on April 29 and will run to October 7 2019.

On Wednesday, Malawi was offered a spot to sell its culture and heritage to other exhibitors through what is called Malawi Day.

Egenco strategic plan sets ambitious targets | The Times Group

Egenco strategic plan sets ambitious targets | The Times Group: Energy Generation Company (Egenco), a State-run firm established to generate power, has unveiled a 15-year ambitious strategic plan which targets increasing installed electricity capacity to 1,687.5 Megawatts (MW) by 2033.

This comes as less than 12 percent of the population has access to electricity with an installed capacity 367.37MW.

Malawian firms consistently cite weaknesses in the electricity sector as one of the major obstacles to doing business.

Mkango Granted New 869 km(2) Exclusive Prospecting Licence in Malawi TSX Venture Exchange:MKA

Mkango Granted New 869 km(2) Exclusive Prospecting Licence in Malawi TSX Venture Exchange:MKA: LONDON and VANCOUVER, British Columbia, July 04, 2019 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango"), is pleased to announce that it has been granted a new Exclusive Prospecting License (EPL0544/19) (the "Mchinji" license) in Mchinji district, central Malawi.

 The Mchinji licence covers an area of 868.69 km2 and is adjacent to licences with known mineral potential including the Company’s Chimimbe Hill nickel-cobalt licence to the south.

Mkango will evaluate all historical data over the Mchinji licence area for exploration targets in the context of geophysical data produced by a countrywide airborne survey completed by the World Bank in 2016.

 Exploration will focus on nickel-cobalt, gold, base metals, and graphite.

The evaluation of the licence will be funded from the Company's existing working capital.

Malawi looks to shed image of Africa's poor relation -

Malawi looks to shed image of Africa's poor relation -: Malawi's economy has rebounded from the drought years of 2015 and 2016, with increased productivity, lower inflation and a reduction in the current account deficit. Now the country hopes foreign investment rather than aid can make its growth predictions a reality.�Jason Mitchell reports.

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Malawi’s economy expanded at a slightly disappointing 4% in 2018 but the country’s central bank predicts it will surge by up to 7% annually during the next few years, on the back of improved electricity generation, better irrigation infrastructure and greater access to finance.

Minister pledges economic stability - The Nation Online

Minister pledges economic stability - The Nation Online: Minister of Finance, Economic Planning and Development Joseph Mwanamvekha says his immediate task will be to sustain the stability of the economy while laying a strong foundation for high economic growth rates.

In an interview on Friday in Lilongwe after presenting the K511.3 billion four-month provisional budget, the minister said under his watch, he envisages lowering interest rates further while also ensuring the creation of jobs, mostly for the youth who are graduating from various colleges.

Tobacco rakes in $99.4 million | The Times Group

Tobacco rakes in $99.4 million | The Times Group: Malawi has realised $99.4 million from tobacco, the country’s top export crop, since trading of the green gold commenced nine weeks.

Our Comment on the New Kayelekera deal

The sale by Paladin of Kayelekera to Hylea Metals may be good news for the mining industry in Malawi. Paladin hasn’t given any impression it has plans for Kayelekera other than waiting for prices of uranium to hit US$60. It is now around US$24, an improvement over the rock bottom prices following the Japanese nuclear power plant disaster.  Paladin’s focus has been on restarting its flagship Langer Heinrich uranium asset in Namibia. Selling Kayelekera, will,  according to Paladin CEO Scott Sullivan, release cash resources which will allow the company to concentrate on Langer Heinrich.

Hylea Managing Director Simon Andrew said the acquisition was an "excellent" opportunity for the company: “Kayelekera is a world-class uranium asset … and represents an opportunity to use the past production information to re-engineer certain mining and processing processes to reduce the overall Capex and Opex of the operations," he said. "We are optimistic about the global uranium market and the outlook for firmer pricing.

We have heard from Hylea and Paladin but virtually nothing from the government. The government should use this opportunity to renegotiate the deal, especially around royalties and tax holidays.

What Kayelekera needs now is to lower its unit costs which make mining profitable only at US60 when other operators are profitable at $40, Some of the costs can be reduced by connecting the mine to the national electricity grid. However,  some of the costs have to do with a strange model used by Paladin to rely on very expensive expatriates who were flown up and down from Namibia.. In the new negotiation with the government, the government should insist that its support on infrastructure will be contingent on a serious programme of training local and recruiting and training local engineers.

Other questions need to answer. For what will Paladin be receiving a 3.5 per cent royalty? It does not own the “land”. Moreover, Paladin had argued against such royalty would make the mining unprofitable. The royalty should go to the Malawi government.

AfDB pumps K27bn for Nacala Corridor project - The Nation Online

AfDB pumps K27bn for Nacala Corridor project - The Nation Online: AfDB pumps K27bn for Nacala Corridor project
Steve Chilundu June 29, 2019 0 Comments
The African Development Bank (AfDB) on Wednesday granted Malawi $37 million (about K27 billion) financial support for the completion of phase V of the Nacala Corridor project in the country.

Once completed the project is expected to, among other things, improve transport infrastructure in the country that remains a concern for private sector’s doing business in the country.

Pension assets grow | The Times Group

Pension assets grow | The Times Group: Pension assets went up by 34.6 percent in 2018 to close the year at K716.5 billion, Reserve Bank of Malawi (RBM) figures show.

In its 2018 Financial Institutions Supervision Annual Report issued last week, RBM attributes the rise to a growth in investment income and substantial growth in contributions following the registration of the Public Service Pension Fund.