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.

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.

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

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

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.

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.

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

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?

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.

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.

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

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.

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

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.

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)