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, Regional

Commonwealth dates Malawian legislators on budget scrutiny

Dorica Mtenje

LILONGWE-(MaraviPost)-Malawi Members of Parliament (MPs) in partnership with Commonwealth Parliamentary Association (CPA) on Saturday engaged on budget scrutiny training workshop which also incorporated oversight roles.

Speaking during the opening ceremony of the workshop, Deputy Speaker of Parliament, Madalitso Kazombo said he expected MPs to share their insights, experiences, and best practices in this field during the engagement.

The workshop which had a panel of experts from the UK House of Commons, and the Scottish Parliament as well as local experts from the Malawi Economic Justice Network (MEJN) was an opportunity for MPs to attain more experience in oversight and budget scrutiny.

Kazombo said, “the workshop seeks to strengthen its understanding of the importance of the budget process to members and parliamentary staff as well as help them to learn best practice from around the Commonwealth.”

Kazombo explained that the budget which is often referred to as the financial blueprint of a nation’s economy, is also a cornerstone of governance as It determines how public resources are allocated.

“Parliamentary oversight of the budget is not merely a formality as it is a crucial mechanism for upholding the principles of good governance and safeguarding the interests of citizens,” He said.

The Deputy Speaker added the workshop will empower the people by fulfilling the mandate of parliamentarians as representatives of the people by ensuring that their voices are heard and needs are reflected in the national budget.

He therefore encourage each participant to actively participate in the seminar and engage critically to enhance their knowledge and strengthen their capacities and reaffirm their commitment to the principles of democratic governance.

In his remarks, Programs Manager for commonwealth, Clive Barker said some of the areas that will be tackled were responsibilities of both staffs and parliamentarians on how they can engage the other organizations on budget scrutiny.

Barker said the Significant of other stakeholders is to ensure the scrutiny budget project is successful.

Business

Airtel Malawi reduces data, voices bundle volumes over Kwacha further depreciation

Ufulu

LILONGWE-(MaraviPost)-The country’s a leading mobile telecommunications provider Airtel Malawi has reduced volume of voice and data bundles following further depreciation of local currency, Kwacha.

A brief statement issued on Friday, April 5, 2024, said the second restructuring of its Voice, Data bundle, and SMS portfolios, effective April 10.

“The benefits in bundles will be reduced; effectively increasing the average price for Voice bundles by 15%, Data bundles by 23%, and SMS by 20%. Additionally, some bundles will be discontinued.

“The changes have been necessitated by the cumulative loss of value of the Malawi Kwacha by 71% since June 2023, alongside rise in General/Commercial electricity tariffs by 65% (18% in September 2023 and 40.2% in November 2023), as well as the rise in diesel prices by 42.4%,” reads part of the statement.

Airtel adds, “The rise in local and dollar-based expenses due to the above major economic changes have significantly impacted our overall operational costs.

“It is imperative that we adjust our prices to remain sustainable, continue investing and assure continued quality service delivery to our valued customers”.

The company explains further, “To share the burden of the pain with our customers, the cumulative price increases from December to date remain much lower than the impact of cost increase on our operations.

“All these changes have been approved by our regulator MACRA. Refer below outline of the revised Voice, Data and SMS portfolios”.

The voice and data bundles adjustment comes after Malawi Kwacha was devalued by 3% that is now traded at MK1,750 against US dollar.

Business, Malawi

EIU foresees Malawi kwacha depreciating further: Dr. Kabambe vindicated again

Ufulu


BLANTYRE-(MaraviPost)-The global think tank, Economist Intelligence Unit (EIU), a research and analysis division of the Economist Group, discloses that the Malawi kwacha (local currency) is expected to depreciate further until it catches the spread between the formal and informal market exchange rates.

In its analysis quoted in the Nico Asset Managers Monthly Economic Report for February 2024, the firm says bi-monthly exchange rate auctions the Reserve Bank of Malawi (RBM) holds with authorised dealer banks will gradually shift towards a market-led exchange rate.

The EIU further forecasts that the currency will continue falling until it reaches its equilibrium of MK2, 480 to dollar in 2028.

Reads the report in part: “As a result, the spread between the formal exchange rate at MK1, 751 to a dollar and the informal market exchange rate of K2 090 to a dollar continues to narrow.

“Liquidity has compelled the RBM to shift towards flexibility which is expected to allow the kwacha to gradually reach its fair value. The currency is expected to depreciate further to better reflect demand and supply.”

Commenting on the EIU forecast, Financial Market Dealers Association of Malawi president Leslie Fatch said on Wednesday that the recent three percent depreciation of the kwacha signals continued pressure on the local unit due to a backlog on import bills coupled with the limited foreign exchange supply.

He said the bi-monthly foreign exchange auctions are a sustainable tool of aligning the kwacha with the market forces.

“We have to highlight that the introduction of the forex auctions provide a mechanism for flexibility which would allow the exchange rate to move in response to market forces.

“In the event that supply is lower than demand, we would see the rate depreciating while in the event that the supply happens to outweigh demand, the mechanism allows for the exchange rate to appreciate,” Fatch said.

Economics Association of Malawi acting president Bertha Bangara-Chikadza told the paper that the projected direction of the kwacha will exert extra pressure on inflation considering that Malawi is a net importer.

“As a predominantly importing country, depreciation exacerbates imported or cost push inflation. As a result, despite easing food prices, non-food inflation may dampen the inflation outlook in the near-term,” she said.

Meanwhile, the EIU has warned that the continued depreciation of the kwacha will increase business costs by making imports of raw materials and capital goods more expensive in addition to making businesses’ external obligations unbearable to settlers.

This comes barely five months after former RBM Governor Dr. Dalitso Kabambe told the nation in November 2023 after 44% kwacha devaluation that the local currency will continue to depreciate as Malawi export remains static.

On March 18, 2024, RBM devalued the kwacha by 3%.

RBM said the minimum selling price of the kwacha against the dollar will be at MK1, 751.

Before the auction, the kwacha was trading at MK1, 700 against the dollar. But the black-market continues to rattle the local currency trading at MK2, 500 to a dollar.

This is what Dr. Kabambe predicted, “Looking at the timing, this must be a prior conditionality for ECF. Since MK1,700/$ is still below the market equilibrium, we should anticipate further depreciations.

“Furthermore, this devaluation is just as reckless as the previous one given that fundamentals of the monetary policy stance remains helpless and fiscal consolidation is nonexistent”.

He added, “Mark my words, there will be no recovery from the macroeconomic meltdown. It will only make the suffering experienced by Malawians worse, as prices of basic goods and services such as fuel, fertilizer and food items, will soar”.

President Lazarus Chakwera Tonse Alliance government has failed to govern and unable to fix ailing economy four years in power.

Source: Nation Online

AMA, Business

Multilateral Development Banks launch joint tool to assess country Electronic Government Procurement (eGP) Systems

MaraviPost

ABIDJAN, Côte d’Ivoire, 2 April 2024 -/African Media Agency(AMA)/-The heads of procurement of the Multilateral Development Banks (MDBs) have collaboratively developed a comprehensive and user-friendly tool for assessing electronic government procurement (e-GP) systems of partner countries.

The tool, specifically designed for considering the procurement of goods, works or service contracts financed by MDBs through e-GP systems, aims to determine whether e-GP systems meet the minimum requirements set by MDBs for their effective use.

This assessment tool conducts a thorough review of procurement policies, procedures, and practices to ensure compliance and enables MDBs to evaluate whether e-GP systems fulfill the necessary criteria or if additional measures are required. For broader reform initiatives, this tool is ideally complemented by the MAPS e-GP supplementary module.(link is external)

The effective utilization of e-GP systems is critical for enhancing transparency, credibility, and efficiency of procurement processes.  By consolidating procurement-related data and offering comprehensive insights, e-GP systems empower decision-makers in project preparation and delivery.

Distributed by African Media Agency (AMA) on behalf of African Development Bank.

The post Multilateral Development Banks launch joint tool to assess country Electronic Government Procurement (eGP) Systems appeared first on African Media Agency.

Source : African Media Agency (AMA)

Business

TNM brings innovation to curb mobile money fraud

Ufulu

.…..Introduces Sim Swap Exemption Feature on Mpamba

BLANTYRE-(MaraviPost)-TNM Plc, Malawi’s pioneering mobile network and ICT services provider has unveiled a Sim swap security initiative which is designed to protect customers from mobile money fraud.

The new measure gives TNM customers the ability to permanently opt their numbers from being swapped at agent points.

Head of Brand and Marketing Madalitso Jonazi said that the initiative is significant as it enhances customer security in the drive for financial inclusion and growth of the digital money economy.

“At TNM we are glad to see a remarkable increase in the usage of our Mpamba mobile money platform. Millions of customers are using Mpamba, therefore, we have enhanced features to ensure that customers are well secured on the platform. This is a positive development in the drive for financial inclusion in the country,” he said.

Jonazi said digital money fraudsters have been a stumbling block in the growth of mobile money usage.

He further said that fraudsters tactically swap numbers and get access to people’s digital money platforms and steal funds.

“Despite our investment in various digital finance technologies, we are still facing a digital money fraud challenge. Therefore, we believe the new feature will alleviate the challenge that our customers face,” said Jonazi.

TNM customer can access the transformative feature through USSD code and TNM Smart App.

“To access the feature, our customers need to dial *7777# and follow the instructions to exempt their sim cards from being swapped and safeguard their numbers permanently from any exploitation. The innovative service is also available on the TNM Smart App,” said Jonazi.

TNM has made an assurance of more innovations around Mpamba platform to maximize security of customers and motivate the usage of digital transactions.

Business

FDH Bank Plc profit-after-tax up by 55% to MK35 bn

Ufulu

BLANTYRE-(MaraviPost)-Listed FDH Bank has seen a rise in its profit-after-tax by 55% from MK22.932 billion to MK35.467 billion in the year ending December 31, 2023. 

According to the financial performance report which the Bank has released and signed by the its Board Chairperson, Charity Mseka, Managing Director Noel Mkulichi, Head of Finance Richard Chipezaani, and Chairperson of Finance and Audit Committee of the Board, Ulemu Katunga, several factors including digital transactions contributed to the immense growth.

“Net Interest Income has gone up by 60% on the back of the increase in the Loan book and other interest-bearing assets, while Interest expense has gone down by 2% despite the growth of the Bank’s deposits by 35% as a result of the Bank’s improved deposit mix.”

“Non-interest income increased by 33% mainly due to the picking up of business as more customers embrace transacting on digital platforms. International trade and local business transaction volumes also picked up in line with the Bank’s strategy. The increase in net interest income and non-interest income resulted in total income growth of 47%,” reads the report in part.

While celebrating the feat, the Bank however indicates that the operating expenses grew by 42% year on year as a result of substantial investment made on the Bank’s delivery channels and the high inflation which was also fueled by the depreciation of the Kwacha.

“The Bank continues to put more focus on effective cost management as we continue to bring down the cost to income ratio. There was a decrease in net impairment charges due to the decrease in Expected Credit losses (ECL) and the increased bad debt recoveries as the Bank is putting more effort in reducing Non-Performing Loans (NPLs) and bad debts recovery processes,” reads further the report.

FDH Bank’s total assets grew by 30% from December 2022 mainly emanating from the increase in Loan book by 23% and Government Securities by 32% in line with the Bank’s strategy to grow interest earning assets.

On dividends, the report states that the Board of Directors recommended a final dividend of K7.039 billion (K1.02 per share) in respect of 2023 profits to be approved at the Bank’s 17th Annual General Meeting.

“This will bring the total dividends to be paid from the 2023 profits to MK22.635bn (representing MK3.22 per share),” the report indicates. 

The Malawi Stock Exchange listed Bank has however projected a mixed outlook for 2024 due to continued foreign exchange shortages from the widening trade deficit gap and slow GDP growth, while at the same time expects economic growth at 3.2% from 2.6% in the previous year due to large-scale mega-farm output and anticipated high growth in construction, manufacturing, information and communication, and accommodation and food services.

“However, it is yet to be determined what level of impact the drought caused by the El-nino weather will have on the country’s growth prospects. Annual inflation is anticipated to average 27.19% this year (2023: 27.75%), with the local currency continuing to depreciate against the major trading currencies as a result of a significant negative trade balance,” reads the statement.

The Bank however says it will continue to implement the strategic objectives running from 2024 to 2026, which focus on Customer experience, Operational efficiency, People development and Innovation, leveraging on the Bank’s market position, widest distribution network, effective digital platforms, brand equity, and strong financial performance.

Business

Chakwera dates tobacco industry players ahead of 2024 marketing season

Ufulu

LILONGWE-(MaraviPost)-President Lazarus Chakwera has appealed to players in the tobacco industry to put their egos aside and work on finding solutions whenever there are challenges.

Chakwera expressed his sentiments on Wednesday, April 3, 2024 when he met Tobacco Processors Association and Ministry of Agriculture officials at Kamuzu Palace in Lilongwe.

According to the State House press office, the President emphasised that sanity will only prevail if all stakeholders work together for all to benefit.

On his part, Tobacco Processors Association chairperson Limbani Kakhome said the grouping want the issue of illegal cross-border tobacco trading addressed, stressing that it is one of the major setbacks facing the industry.

Minister of Agriculture Sam Kawale said the government is working on curbing illegal cross-border tobacco trading.

This comes as tobacco marketing season for 2024 is expected to be opened in all auction floors this month.

Business, Malawi

Chakwera Tonse Govt sustains 40.9% electricity tariff hike suspension

Ufulu

LILONGWE-(MaraviPost)-President Lazarus Chakwera’s Tonse Alliance government through the Ministry of Energy has sustained a suspension of a 40.9 percent electricity tariff adjustment.

The ministry’s energy officer, Austin Theu told Zodiak Online on Tuesday that, “The December 2023 directive is still in force. Official communication from the government will be provided in due course”.

Last year, the Malawi Energy Regulatory Authority (MERA) approved the Electricity Supply Corporation of Malawi’s (ESCOM’s) tariff revision.

But on December 1, 2023, the ministry suspended the tariffs until April 1, 2024.

Meanwhile, a social commentator, Caesar Kondowe, while commending the government for the decision, believes it will be a long-term move to save citizens currently facing high inflation on basic needs.

Currently, the Chakwera Tonse Alliance government is failing to fix the ailing economy which is being characterized by high living, inflation, shortages of forex, sugar, drugs, and food crisis, among others.

Business

Atsogo Estate Agents registers 97% customer satisfaction mark

Ufulu

BLANTYRE-(MaraviPost)-Real estate consultants, Atsogo Estate Agents, have registered a 97 percent customer satisfaction mark in a recent survey the company conducted.

Among others, Atsogo Estate Agents is involved in advertising properties for sale and rent as well as providing expert advice on all sorts of issues to do with real estate.

Atsogo Estate Agents managing director, Mathews Kapanda, said a week-long opinion poll upped on their website www.atsogo.mw indicated that most of their customers were happy with what they were doing.

“We are, actually, not surprised with the results of the poll. Our expertise and professionalism is undoubted, and we try to work round the clock to meet our clients’ needs,” said Kapanda.

According to him, much as his company was established not long ago, they have been able to attract clients both in and outside Malawi.

“Even expatriates who have come to this country have been able to appreciate our services because with us satisfaction is guaranteed,” said Kapanda.

A former client, Augustine Msowoya from Blantyre, said he always recommends Atsogo Estate Agents to others.

“I was not able to find a responsible agent when my family wanted to buy a house for ourselves after a long stint abroad. They came in handy and I got a comfortable residence in Nyambadwe. To-date I recommend this estate agent to others,” said Msowoya.

Business

Malawi Irish Consortium on GBV for women’s economic independence

Maravi Post Reporter

LILONGWE-(MaraviPost)-The Malawi Irish Consortium on Gender Based Violence (MICGBV) has emphasized the need for women to be economically independent if the GBV is to eradicated.

The Consortium Chairperson Lucy Mwangi observes that gender disparities in the country’s informal settlements continue affecting women’s progress in the attainment of their economic independence.

Mwangi said if women are economically empowered cases of of domestic violence particularly those with disabilities will be eased.

She made the observation on Thursday, March 29, 2024, at Chinsapo in Lilongwe during the consortium’s International Women’s Day celebration, a chat with grassroots women.

Malawi and the global community observed International Women’s Month this March and the Chinsapo event attracted the informal women sector from some parts of the central region to showcase their economic empowerment activities.

“We are here to celebrate achievements of women in the informal sector. Local women have made strides in economic empowerment that cases of GBV have eased as women are able to support their families without always relying on men to survive.

“Many women are into various businesses for survival including tailoring, manure making, farming and among others. Women with disabilities have also joined the race of economic independence hence the consortium has supported them tailoring machines,” said Mwangi.

She added, “Women living with disabilities are especially vulnerable to poverty, and hence as a way of supporting the creation of sustainable income-generating activities, and to boost their livelihoods, MICGBV in partnership with Malawi Council for the Handicap MACOHA has supported five women in launching their income generating activity in their pre-selected choice of entrepreneurship.

“Each of the women got a start-up kit in sewing business. By accessing economic opportunities, these women will build livelihoods that will support their long-term recovery from violence, thus overcoming financial dependence on others, which In turn will free them from the risk of violence associated with economic vulnerability and gender inequality”.

Lilongwe district Council gender officer Gertrude Simwaka hailed the organizations for amplifying their efforts in the district to bridge the gender gap.

Simwaka observed that cases of GBV have been reduced as many women are engaged on economic activities that support their families.

In her testimony, Chinsapo’s Federation group member Agnes Mchecheta lauded, “Since 2021, my family has not struggled with daily incomes as proceeds from biogas business have enabled me to venture into other businesses including food, clothing and among others”.

During the event, the consortium donated startup kits such as sawing machines to women with disabilities.

The Malawi Irish Consortium on Gender Based Violence (MICGBV) was set up in 2014.

Its membership is diverse, representing humanitarian development, human rights, advocacy, and gender-focused organizations.

Currently, the Malawi Irish Consortium on Gender-Based Violence (MICGBV) comprises six member organizations including ActionAid Malawi, Concern Worldwide, Irish Rule of Law, Oxfam in Malawi, Self-Help Africa-United Purpose, and Trócaire with support from and in close collaboration with the Embassy of Ireland in Malawi.

The MICGBV hosted a chat with grassroots women in commemoration of IWD as a way to educate them about economic empowerment; power of visioning; and bring awareness on forms of GBV.

MICGBV also used the platform to discuss and hear from the women themselves on the prevalent challenges faced by women and girls in the economic empowerment landscape in Malawi and make recommendations for post-IWD priorities for investment in women’s economic empowerment in Malawi.