Category Archives: Business

The Maravi Post is a leading source for reliable Business news and analysis on Business. Top African Business like  Dangote  Group in Nigeria, Mulli Brothers in Malawi

The 10 Greatest Living Business Leaders In Africa Today
  • Sheikh Mohammed Al-Amoudi, Ethiopian.
  • Raymond Ackerman, South African.
  • Aliko Dangote, Nigerian.
  • Manu Chandaria, Kenyan.
  • Onsi Sawiris, Egyptian.
  • Brian Joffe, South African.
  • Strive Masiyiwa, Zimbabwean.
  • Wale Tinubu, Nigerian.
Business

External dependence in Malawi: From dustbins to development

Burnett Munthali

By Burnett Munthali

Malawi’s reliance on external aid and donations extends beyond major infrastructure projects to even the most basic necessities, such as dustbins. This phenomenon underscores a broader issue of dependence on foreign assistance for various aspects of development and daily life.

It is noteworthy how deeply ingrained the culture of dependency on external support has become in Malawi. The reliance on foreign countries for essential items like dustbins highlights a systemic issue where even basic infrastructure needs are met through donations rather than domestic production or government procurement. This dependence reflects a broader pattern where external aid often fills gaps that should ideally be addressed by local resources and initiatives.

The sight of donated dustbins in places like Mchesi slum and other areas in Lilongwe can be seen as a symbol of a larger problem. It is a reflection of a national challenge where basic services and amenities are often sourced from outside rather than through domestic means. This reliance can be perceived as a failure to develop self-sufficiency and an indication that local systems are not sufficiently robust to manage even fundamental needs.

There is a call for Malawians to engage in critical thinking about the country’s approach to development and aid. The focus should shift from reliance on external donations to fostering self-reliance and building local capacity. This involves not only improving domestic production and procurement systems but also encouraging innovative solutions and local entrepreneurship.

To address these issues, Malawi needs to strengthen its institutional frameworks and create environments that support local businesses and production. Investing in local industries, enhancing government efficiency, and developing sustainable infrastructure can reduce dependence on foreign aid. Additionally, fostering a culture of self-sufficiency and critical thinking among the populace will help in building a more resilient and independent nation.

In summary, while donations and external aid play a significant role in supporting Malawi, the focus must shift towards building local capacity and reducing dependency. By fostering self-reliance and improving local infrastructure, Malawi can move towards a more sustainable and independent future.

Business

NBS Bank plc to pay out MK13bn dividend

MaraviPost

BLANTYRE-(MaraviPost)-Malawi Stock Exchange listed NBS Bank says it will pay its shareholders a total dividend of MK13.21 billion representing K4.54 per share in respect of 2023 profits.

This represents a 37.8 percent increase from the K3.30 dividend per share distributed in the year 2022 after realising K9.60 billion total dividend. 

The total profit-after-tax for the year 2023 was K29.38 billion from K18.9 billion in 2022 despite numerous challenges, including devaluation of the Kwacha.  

Speaking at the NBS Bank plc’s 20th Annual General Meeting (AGM) in Blantyre on Friday, the Bank’s Board Chairman Vizenge Kumwenda said the ‘Caring Bank’ had an outstanding year as evidenced by the growth in profit by 55 percent.

“That was an excellent result especially if you consider the environment we operated in.  In a highly inflationary environment, we had high interest rates, a shortage of foreign exchange, and logistical issues for people to do business. It was a very tough year.”

“So, with all that, we are happy to register the performance we have registered. Also, the shareholders, going by how the meeting has gone, are happy to have gotten a good dividend and the share price increased by 238 percent. That talks to the appreciation that investors are happy with the Bank’s performance,” said Kumwenda.  

Kumwenda also added that the Bank has started on a good note in the first half of 2024 January to June where they expect their performance to be over 160 percent of what was achieved last year.

He is however optimistic that the second half performance will surpass the first six months of the year. 

“The environment is still very challenging but we have confidence in our management and team that despite the challenges the second half should be equally good,” said Kumwenda.

Shareholder Frank Harawa, who is also General Secretary of the Minority Shareholders Association applauded NBS Bank Plc for the good performance.

“As shareholders, we are happy with the company’s performance and impressive capital appreciation. The issue of dividend payout is excellent as well,” said Harawa.

NBS Bank plc’s share price increased from K34 in the year 2022 to K114.90 by the year ending 31st December 2023. 

Business

Credible Investments Limited aids MK2 million towards Triephornia Mpinganjira’s business capital project

MaraviPost

LILONGWE-(MaraviPost)-The country’s Credible Investments Limited (CIL) has announced its partnership with Dr Triephornia Mpinganjira’s ‘Kuthandiza Omwe Alibe Kuthekera Kupita Kutsogolo’ Project.

In a press statement issued on Monday, July 29, 2024, signed by CIL Executive Director Abbas Nasser says,

“In this partnership, we have released an additional MK2 million to the project, pushing the project to MK20 million. This means that instead of having 18 winners, the project will now have 20 winners.

Nasser adds: “Our core value at Credible Investment Limited is to advance in innovation and economic growth for a better Malawi. We believe not only in entrepreneurship as a catalyst for economic development but also for entrepreneurship. Malawi has great potential, and it begins with small-scale businesses.

“This is the reason is we would like to partner with this great initiative for the betterment of Malawian citizens.”

With its factory based in Njewa in Lilongwe, CIL is a registered cigarette producing company and started its operations in March 2022.

In response, Mpinganjira has hailed CIL for coming, saying the support is an endorsement of her project.

The grand finale of the project will be held at Bingu International Convention Centre (BICC) in the capital Lilongwe on August 30, 2024 where 16 winners will be unveiled.

Business, Development

New Lingadzi Rotary President Kakhome appeals for more support

MaraviPost

LILONGWE-(MaraviPost)-The newly elected President of Lilongwe Lingadzi Rotary Club Limbani Kakhome has appealed to fellow Rotarians to work hard towards restoring Malawi’s glory through their charitable community works.

He was speaking during his official inauguration as President of the club on Saturday. He succeeds immediate past President Giorgia Prizzon.

Kakhome said Malawi is stalked by a series of cyclic of socio-economic and environmental challenges with trickle-down effects on Lilongwe, the administrative capital where Lingadzi Rotary Club operates.

“Our city Lilongwe bears the brunt of the country’s socio-economic challenges, and the scars of environmental decadence. To salvage the welfare of our communities and save both city and country, we as Rotarians can only act responsibly and swiftly,” he said.

He urged Rotarians under Lilongwe-Lingadzi to evoke the spirit of fellowship, integrity and diversity in driving Lilongwe city towards a brighter, more interconnected world.

“For us Rotarians, embracing the spirit of service and fellowship means acting responsibly to respond to the challenges that affect our society,” Kakhome said.

Kakhome is a seasoned marketer and commercial strategist currently working for tobacco company JTI Leaf Malawi as Director of Corporate Affairs and Communication.

He brings over 20 years wealth of expertise to his new role having worked in commercial operations at multinational companies in Malawi, Ethiopia and Switzerland. Some of the companies Kakhome has worked for include Coca Cola/Carlsberg and Celtel (now Airtel).

He added that his personal experiences, including the loss of his wife to Breast Cancer in 2023, added to his passion to make a meaningful impact in his community.

“Her passing reinforced in me the importance of living a life of purpose and service to others,” he said, adding; “I am dedicated to honouring her legacy through my work with Lilongwe-Lingadzi Rotary Club, and fostering community development by promoting socially and environmentally responsible causes.”

As new Lilongwe-Lingadzi President, Kakhome’s priorities will include increasing membership, supporting local charities, promoting community development projects, and advocating for gender causes.

Business

Standard Bank up with new platform for economic growth conversations

MaraviPost

LILONGWE-(MaraviPost)-The Standard Bank has set up a new platform for growth conversations, through the platform, business captains, policymakers and other business experts will be coming together periodically to discuss issues that would contribute to the country’s economic growth.

The platform will also contribute to the realisation of the Malawi 2063 blueprint.

Standard Bank Chief Executive Officer Phillip Madinga said navigating today’s global challenges requires committed and purpose-driven leadership and foresight hence the launch of the platform.

“The growth conversations platform goes a long way in demonstrating that we as Standard Bank are more than just a bank. We are willing to do more to contribute to holistic and sustainable growth.

“By bringing together stakeholders from various sectors, we can share knowledge, expertise, and resources to drive meaningful change,” said Madinga.

In his remarks, National Planning Commission Director General Thomas Munthali commended Standard Bank for initiating the growth conversations platform saying it will play a big role in the country’s growth.

“These platforms allow us to reflect on interventions that can help us bring restoration of our country’s economy and how we can embrace sustainability. This brings to the fore pressing issues of climate change, environmental degradation, and social inequality.

“These challenges require collective action, and we must work together to build a sustainable and resilient future. So I applaud Standard Bank for their leadership and vision in convening this platform,” said Munthali.

Munthali observes that similar platforms convened by Standard Bank have yielded tangible results in the past.

He adds, “For instance, we have seen significant reforms in the energy sector like coming in of independent power producers in green energy like solar, improvements in the business licensing and fast-tracking of one-stop border posts; revising of the Mines and Minerals Act; relaxing of the Visa entry restrictions, an issue this forum had been discussing since 2022. This is just to mention a few”.

The launch attracted participants from government agencies, business captains and among others.

Business, Development

The challenges facing small businesses and employees in Malawi

Burnett Munthali

By Burnett Munthali

The disparity between the rich and poor in Malawi is stark and has been a longstanding issue. As highlighted by Steve Kauka of the Politics Platform, the divide is apparent with a segment of the population living in luxury, sending their children to prestigious schools abroad, and buying expensive goods. In contrast, many Malawians face severe hardship, including inadequate clothing, poor hygiene, and lack of access to basic necessities.

Reserve Bank wilson Banda
Wilson Banda at Reserve Bank

The vast gap between the wealthy and the impoverished in Malawi raises fundamental questions about responsibility and solutions. Addressing this gap involves both systemic and individual efforts. While government policies, economic reforms, and social programs play crucial roles in reducing inequality, individual businesses and NGOs also have a part to play in fostering social responsibility and inclusive growth.

Efforts to balance this equation require a multifaceted approach. Mechanisms such as progressive taxation, social safety nets, and investments in education and health can help uplift the poor. However, for these mechanisms to be effective, there must be strong and transparent governance to ensure resources are used effectively and reach those in need.

While luck can play a role in individual success, systemic factors often have a more substantial impact on wealth distribution. Structural issues such as inadequate infrastructure, poor economic policies, and corruption can perpetuate poverty and limit opportunities for upward mobility. Addressing these systemic factors is crucial to breaking the cycle of poverty.

Despite the significant wealth gap, the business environment in Malawi also presents severe challenges. Entrepreneurs and established businesspeople are struggling due to unfavorable conditions. Issues such as bureaucratic inefficiencies, lack of infrastructure, and economic instability have made business operations increasingly difficult. A businessman of Asian origin noted that under previous administrations, he could sell a container of goods within a month or two. Today, under the current MCP government, it takes him a year and six months to achieve the same result.

Many businesses have left Malawi for neighboring countries like Zambia, Tanzania, and Mozambique due to these deteriorating conditions. The decline in business environment quality is a critical issue that affects not only the business community but also the broader economy and job creation.

In conclusion, while the gap between the rich and the poor is a significant issue, the deteriorating business environment also presents substantial challenges that affect everyone, not just the economically disadvantaged. Addressing these challenges requires a comprehensive approach that includes improving governance, enhancing business conditions, and implementing effective social policies. Only through such multifaceted efforts can Malawi hope to bridge the wealth gap and create a more equitable and thriving economy.

Business, Malawi

Malawi Govt grants Lotus, Lancaster mining licence for Kayelekera, Songwe Hill

Dorica Mtenje

By Dorica Mtenje

LILONGWE-(MaraviPost)-Malawi plans to revamp the operation of the Kayelekera and Songwe hill mining process following signed agreement with Lotus Resources Limited and Lancaster Exploration.

After signing the agreement, Minister of Mining, Monica Chang’anamuno said the revamping of mining will strengthen Malawi’s economy by creating jobs and generating revenue through taxes and loyalties.

Chang’anamuno said the project will generate much-needed forex and stimulate local economic activities in general.

She said, “Lotus is expected to create 450 direct jobs and 200 indirect jobs of up to 200 workers and the anticipated revenue of 1.6 million per year in dividends and US$20 million in royalties annually and other taxes with only the uranium pegged at 65 pounds”.

The Minister added, “Songwe project will create over 1200 jobs during the 18-year mine life and 10000 indirect jobs with the anticipated revenue at U$120.6 million per annum in the form of royalties dividends, and other taxes.

“Let me applaud the media for following up on the status of negotiations of mining development, this has helped the country to keep on putting the mining sector first”.

In his remarks, Managing Director for Lancaster Exploration Alexander Lemon said the company is looking forward to the next stage of the project upon delighted with the agreement.

Concurring with Lemon, Lotus managing Director, Bedin Beth said the project will help the country to restore Kayelekera mining.

Minister of Finance, Simplex Chithyola said the agreement is a guiding principle for mining work in this country.

Chithyola said the agreement will meet the Agriculture, Tourism, and mining (ATM) strategy which is powered by President Lazarus Chakwera.

Business, Malawi

World Bank prescribes dual approach to tame Malawi’s soaring inflation

Maravi Post Author

By Twink Jones Gadama

BLANTYRE-(MaraviPost)-Malawi is grappling with a severe inflation crisis, with prices escalating rapidly, prompting the World Bank to recommend a two-pronged approach to mitigate the situation.

The Bretton Woods institution suggests addressing supply-side constraints, particularly in the agriculture sector, and controlling the growth of money supply to rein in inflation.

In its latest Malawi Economic Monitor report, the World Bank notes that supply-side constraints are driving inflation, with the agriculture sector being a significant contributor.

The report observes that food inflation, which dropped from a peak of 44.9% in January to 41.5% in June, will continue to exert pressure on prices in the short to medium term.

To address this, the World Bank recommends that the government tackle food supply issues through timely purchases of grain for strategic reserves or imports.

Additionally, the report cautions that the rapid growth of money supply has the potential to worsen inflationary pressures in the short to medium term.

The World Bank’s assertions come as the Reserve Bank of Malawi’s tight monetary policy has failed to contain inflation.

Despite raising the policy rate by 1,400 basis points since 2020, inflation remains above 30%, nearly six times the desired 5% mark.

Economists agree that money supply growth will exacerbate inflationary pressures.

“High money supply exerts inflationary pressure on both the demand and supply sides,” said Economics Association of Malawi acting president Bertha Bangara-Chikadza.

However, some experts argue that the World Bank’s suggestions may not be entirely effective in the Malawian context.

“The success of these measures depends on various factors specific to the Malawi economy, including exogenous shocks affecting the agriculture sector,” said Bangara-Chikadza.

Others believe that addressing supply-side factors can ease shortages and controlling money supply growth can manage demand-pull inflation.

“However, its success relies heavily on proper implementation and government management amid external pressures,” said Catholic University of Malawi economics lecturer Derrick Thomo.

To boost productivity in the agriculture sector, experts recommend promoting irrigation to mitigate climate shocks and improving soil health through integrated soil fertility management.

“We should also revamp our extension service to reduce the farmer-to-extension worker ratio,” said Mwapata Institute executive director William Chadza.

As the Reserve Bank of Malawi’s Monetary Policy Committee meets to deliberate on the economic performance and decide on the direction of the policy rate, the World Bank’s recommendations offer a timely intervention.

With inflation remaining stubbornly high, it is crucial for policymakers to adopt a multi-faceted approach to address the root causes of inflation and restore economic stability.

Business, Malawi

Chakwera launches MK350bn NEEF phase II

Malawi News Agency (MANA)

By Mary Makhiringa

BALAKA-(MANA)-President Lazarus Chakwera on Thursday, July 25, 2024 launched the second phase of the National Economic Empowerment Fund (NEEF) at a function held in Balaka District.

Speaking when he presided over the MK100 billion loan disbursement milestone event, Chakwera disclosed that one year into his term of office, he went in Parliament and disclosed that he has three things that he wants to do to turn Malawi’s economy around.

“There were three things that I said I will do and these were, job creation, wealth creation and food security. I am very glad to witness this function where NEEF has surpassed the target in cash disbursement to Malawians who have been in acute poverty,” he said.

He said: “I always feel bad to see people especially the youth in acute poverty, it is encouraging to see all these positive stories from beneficiaries of the K100 billion milestone that we are celebrating today.”

Chakwera, therefore, asked authorities to avoid prioritizing their relations only to benefit from the programme, instead advised that consideration should go to all regardless of status so that the nation could move from poverty to prosperity.

Board Chairperson for NEEF, Jephta Mtema outlined the successful journey that NEEF has taken over the years.

Mtema attributed the success to collaboration from various stakeholders which include funding from shareholders, who he said have contributed K103 billion.

“We cannot talk of NEEF’s success without mentioning the clients who have been taking loans for business and repaying on time. So far, we have 175, 000 clients who in turn have recruited 350, 000 Malawians creating the much needed jobs,” he said.

Mtema, therefore, thanked the collaboration that NEEF has created with various partners such as the World Bank, Malawi University of Science and Technology, TEVETA as well as commercial banks such as NBS, National and Standard who have helped in taking the organization to greater heights.

“Although we have achieved this milestone, we also have faced serious challenges which include clients failing in entrepreneurship, political interference and corruption by company staff,” he said.

Member of Parliament for Balaka Central East, Bertha Ndebere called for inclusion of people with disabilities to access the NEEF services so that they are also uplifted.

Ndebere also appealed to President Chakwera to consider rehabilitating the Chingeni – Liwonde Road which is in bad shape.

Business, Regional

Airtel Africa customer base grows to 155.4 million

Lloyd M’bwana

LAGOS-(MaraviPost)-The leading smartphone telecommunication Airtel Africa’s customer base has grown to 155.4 million representing 8.6% in the just ended second quarter of 2024.

In the company’s financial report for quarter ended 30 June, issued on Friday, July 26, 2024, data customer penetration continues to rise, driving a 13.4% increase in data customers to 64.4 million.

“Data usage per customer increased by 25.1% to 6.2 GBs, with smartphone penetration increasing 4.7% to reach 41.7%,” reads the statement in part signed by Airtel Africa Chief Executive Officer Sunil Taldar.

“Mobile money subscriber growth of 14.9% reflects our continued investment into distribution to support increased
financial inclusion across our markets. Transaction value increased by 28.7% in constant currency with annualised
transaction value of $120bn in reported currency.

“Data ARPU growth of 9.6% and mobile money ARPU growth of 8.8% in constant currency continued to support
overall ARPU’s which increased 9.3% YoY,” reads the report.

Taldar adds, “Customer experience remains core to our strategy with sustained network investment driving increased capacity
and coverage. Data capacity across our network has increased by 33% with the rollout of almost 3,000 sites and
over 5,600 kms of fibre.

“Launched a comprehensive cost efficiency programme to identify specific cost reduction initiatives across the
Group. Steps taken include the optimisation of network utilisation and design, introducing energy saving initiatives
to reduce network costs and the renegotiation of key contracts, whilst ensuring future growth ambitions remain
protected. We anticipate the full benefit of this programme to accrue over the year ahead”.