In recognition of the role of agents in promoting mobile money transfers and helping to strengthen financial inclusion in the country, Malawi’s integrated mobile network and ICT service provider TNM has dished out K1.2 million to Mpamba agents across the country in its ongoing “Katamu Katamu” promotion. Continue reading TNM dishes out K1.2 million in “Katamu Katamu” Mpamba agent promo
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.
VP Chilima calls for youth inclusion on financial entrepreneurship: Local Bank ready for bankable projects
LILONGWE-(MaraviPost) – Insufficient financial capital, coupled with unpalatable products market, and inflexible legal framework, are said to be setbacks for youth entrepreneurship growth in Malawi. This was noted at a forum that was held in Lilongwe, under the theme, “Youth entrepreneurship; Creating opportunities to build mother Malawi.” Continue reading VP Chilima calls for youth inclusion on financial entrepreneurship: Local Bank ready for bankable projects
Malawi’s central bank rates cut excite economists; good for investments and triggers economic growth
LILONGWE-(MaraviPost)- Economic experts and general public have welcomed the Reserve Bank of Malawi’s (RBM)’s decision to reduce bank rates from 24 percent to 22% and they described the move as a recipe for attracting good investments in the country.
The RBM through its Monitory Policy Committee (MPC), on Friday revised downwards the rates at which commercial banks were borrowing from the central bank, following the meeting the committee had to review the recent global and domestic economic developments.
In a statement released and made available to The Maravi Post, the central bank’s MPC decision looked into the disinflation process in the recent past and inflation outlook, hence reduced the Policy Rate (PR) by 2 percentage points to 22 %, and maintain Liquidity Reserve Requirement (LRR) at 7.5%.
According to RBM Global economic growth, estimates at 3.1 % in 2016, is projected to reach 3.4 % in 2017 saying the pickup in global activity, is driven by developments in emerging and developing economies.
The committee observed that the domestic front, economic growth is projected to rebound to between 4 and 5 percent in 2017 from 2.7 percent in 2016, on the back of favorable weather conditions, and stable macroeconomic environments.
The MPC further added that inflation has been declining since August 2016. Headline inflation fell to 16.1 % in February 2017 from 37.9 % in February 2013 and compared with 23.4 % in February 2016.
The sustained deceleration in non-food inflation from a peak of 42.8 % in March 2013 to 14.6 percent in February 2017, reflected a consistent tight monetary policy stance.
Concurrently, inflation developments benefited from the drop in food inflation from 38.2% in February 2013 to 17.5 % in February 2017, driven by timely response to the recent humanitarian crisis and the improved outlook for food supply in 2017.
Given the sharp drop in inflation, RBM projections have now been adjusted downwards from 16.1 % to 14.2 % by June 2017, reflecting seasonal improvement in food supply, stability of the exchange rate, and low international oil prices.
The outlook for inflation in the second half of the year will depend on fiscal out turn for 2016/17 and developments in the foreign exchange market.
The Reserve Bank of Malawi (the Bank), has continued to implement a tight monetary policy stance, resulting in money supply growth slowing down from 30 percent in June 2016 to 15 percent in December 2016. This kept monetary expansion in line with nominal GDP growth in 2016 of about 19 %, an indication that inflationary pressures are under control.
The MPC however, recognizes that continued economic recovery over the medium- to long-term horizon, depends on sustained macroeconomic stability and addressing underlying structural constraints.
“Net government domestic borrowing as at end December 2016 amounted to K565.7 billion (13.3 percent of GDP), compared to K448.5 billion (12.8 percent of GDP) recorded during the similar month last fiscal year. Liquidity conditions in the banking system remained tight, as evidenced by the interbank rate being kept close to the Policy Rate.
“The Bank continued to withdraw liquidity injected from government operations. All-type Treasury bill average yield settled at 25.0 percent as at end-February 2017, following convergence of yields across tenure. Official foreign exchange reserves in February 2017 stood at US$593.01 million, or US$44.11 million above the same month last year. The Bank maintained foreign exchange reserves around 3 months of imports over the period,” reads the central bank’s MPC statement signed by Governor Charles Chuka who is also its chairperson.
In reacting to the rate cut, Gilbert Kachamba, Head of Economics department at Catholic University, said the development was good for encouraging investments and would ultimately trigger economic growth.
Kachamba therefore, expects the commercial banks to respond to the changes accordingly that the general public should also benefit from the cut.
Economic fundamentals seemingly pointing at the right direction with the recent stabilization of the local currency, the Malawi Kwacha and inflation rates decrease.
Intercape bus lines awards disciplined Malawian staff; assures quality travel services
LILONGWE-(MaraviPost)- Intercape, an intercity passenger transport service provider, over the weekend awarded its long-serving, dedicated and disciplined Malawian workers in a bid to raise morale among its workforce.
The bus line, that operates in several African countries, awarded its employees as part of its five years celebrations of operating in Malawi.
Established in 1979, the coach service decorated 27 Malawian workers with certificates plus monthly salary increment for motivation.
Since its operation in Malawi in 2010, Intercape absorbed former Shire Bus lines employees into its labor force to boost its business across the SADC region. It has 100 local employees.
In an exclusive interview with The Maravi Post after awarding employees, Anthony Nlongo, Intercape Country Manager lauded Malawian workers for their hard working spirited, and discipline they’ve demonstrated in the five years the bus line has operated in the country.
One of the awardees, Elizabeth Nyirenda Chalamba, expressed gratitude for the company’s gesture saying she will continue serving customers well for the growth of the coach line.
Chalamba said the certificates, and the salary increment, will motivate the employees to work with extra passion and dedication.
India commits US$10 billion to Africa’s developmental projects: As Malawi’s pigeon peas in high demand
LILONGWE-(MaraviPost)-Malawi is set to benefit from the Indian government commitment of US$10 billion to finance development projects in Africa.
The commitment follows the 12th CII-Export-Import (EXIM) Bank Conclave on India-Africa Project Partnership hosted last week in that country’s Delhi.
India’s President Shri Pranab Mukherjee opened the edition that attracted over 450 international delegations from over 37 African countries including King Mswati of Swaziland, Ruhakana Rugunda, Rugunda, Prime Minister and Leader of Government Business, Republic of Uganda and 32 ministerial delegations.
Malawi Foreign and International Cooperation Affairs Minister, Francis Kasaira, led the Malawi delegations to the conference.
The Malawi Minister broke the news in interview with The Maravi Post that US$10 billion was an opportunity for the nation to make use of which had the potential for investments.
Kasaira said the funds allocated to African countries including Malawi, will directly benefit the country with focuses on big investments on energy, youth developments, and agro-processing among others.
The foreign affairs minister also said Malawi will critically analyze all the serious and huge project proposal before submission to India for approval.
He added that the during the meeting, many stakeholders expressed great interest for Malawi’s pigeon peas saying India was a potential market for the crop.
“The meeting gave Malawi the opportunity to appreciate what’s at stake for us to benefit from this funding committed to African countries. We are planning to have big and regional projects, especially on energy, agro-processing and youth development.
“We are therefore appealing to our farmers and agro-dealers to embark on value added products, including pigeon peas which is in high demand in India. The market is already there. The nation has to organize itself for this opportunity”, said Kasaira.
Malawi-India business meet’ aftermath: Govt introduces tax holidays for huge energy investors
LILONGWE-(MaraviPost)-In a bid to unlock serious and huge investments in the energy sector, the Malawi government intends to introduce tax holidays for those vying for business ventures in the country.
The promissory bid comes amid the energy crisis that is besetting the country, particularly the unstoppable blackouts that has been paralyzing business ventures for almost a year.
The tax incentives announcement was made by the Ministry of Industry, Trade and Tourism. It comes on the heels of the Malawi Investment and Trade Centre (MITC) successful hosting of the first ever Malawi-India business meet on or Friday, March 17 in the capital Lilongwe.
The forum attracted over 250 business men and women drawn locally and from Indian. It focused on energy, agro-processing, irrigation, health, and manufacturing sectors.
The business meet aimed at cementing and providing an indicative opportunity for economic empowerment between local traders and their counterparts from India, to tap business management skills from each other.
The Minister of Natural Resources, Energy and Mining Bright Msaka Msaka, told the gathering that with the lowering of the country’s inflation rate pegged at 18.2 per cent, it was necessary for government to introduce tax incentives in the energy sector so as to attract more foreign investors into the country.
Msaka disclosed that the tax incentives will be in the form of tax holidays, duty-free on energy sector equipment, among others.
The Energy Minister added that the Malawi Revenue Authority (MRA) is working on modalities for the implementation of the initiatives in its next national fiscal plan.
“We have made our case clear that the serious investors in the energy sector, should come in with their resources as some tax incentives are put forward for them. Huge energy investments will attract tax holidays for particular years.
“The energy sector is the backbone of economic development for any nation. This is the reason we are leaving no stone unturned so as to avert the energy crisis as we depend on hydro power to generate the much needed electricity,” Msaka said.
Echoing on the same, Joseph Mwanamveka, Trade Minister assured investors of total security when wanting to venture into business in the country.
In his remarks, Suresh Kumar Menon, Indian High Commissioner to Malawi expressed gratitude over the meeting with the launched of Indian Business Handbook that contains various businesses happening in both two nations.
Indian Commissioner Menon assured total commitment on his country to support for Indian companies to participate in its growth and development.
According to the International Trade Centre (ITC) Malawi’s exports to India rose from US$31,740,000 in 2014 to US$67, 552,000 in 2015 representing 6.3 per cent of Malawi’s exports.
On the other hand, Malawi’s import from India declined from US$243,177, 000 in 2014 to US$177, 752, 000 in 2015, leaving Malawi-India gap at –US4110, 202, 000 in 2015.
Malawian Airlines all-female flight land in Dar es Salaam
A Malawian Airlines flight exclusively operated and supported by women has landed in Tanzania’s commercial capital Dar es Salaam from Blantyre, as shown in these shots taken by a BBC Swahili colleague Munira Hussein.
Women were in charge of every single aspect of the flight operation, from cockpit to cabin, check-in to customer care, and air traffic control to ground handling.
The aim of the flight, the first of its kind for the for the national carrier, was to encourage young girls and women who aspire to pursue careers in aviation but are under the impression that it is a male-dominated industry.
Malawian Airlines is owned by the Malawi Government (51%) and Ethiopian Airlines (49%).
Meanwhile in other East Africa aviation news, UK Foreign Secretary Boris Johnson was snapped by the BBC’s Emmanuel Igunza getting to grips with an Ethiopian Airlines flight simulator on a visit to Addis Ababa:
CFTC warns MASM, local radio stations over misleading and false adverts
BLANTYRE-(MaraviPost)-The Competition and Fair Trading Commission (CFTC) this week issued a strong warning to the Medical Aid Society of Malawi (MASM), and some local radio stations for allegedly broadcasting false and misleading adverts.
The warning comes amid concerns that the commission received from members of the public. They allege that consumers have been charged shortfalls on medical expense and consultation fees; this is despite MASM’s claims that there would be no shortfalls payable by its members.
Continue reading CFTC warns MASM, local radio stations over misleading and false adverts
2016 Malawi Investment Forum attracts $26m, and 30 private and public sector arrangements
LILONGWE-(MaraviPost)- The Malawi Investment Forum (MIF) which the country hosted last year (2016), was an outstanding gamble to pursue, considering the huge public and privates investment deals that it generating. These will greatly foster the nation’s economic growth.
In its MIF 2016 summary report released on March 2, 2017 and made available to The Maravi Post, the Ministry of Industry, Trade and Tourism through the Malawi Investment and Trade Centre (MITC), lauded the success of the forum because it sealed 10 public and 20 private sector investment deals.
The forum also helped Malawi accrue US$ 26,305,000 through product-based exhibitions that were showcased locally and internationally.
The forum overshot its target by signing 11 public sectors Memorandum of Understanding (MoUs) to work together toward the implementation of the respective projects, and defined the possible parameters of their working relationship including development of a 1,500 cubic metre storage facility for LPG gases; a 100,000 cubic metre storage facility for Petroleum products. Furthermore, Nedebe is to construct four Government office buildings at Capital Hill in Lilongwe on a turn-key basis; construction of 2,500 houses spread across Mzuzu, Lilongwe, Zomba and Blantyre. This housing project will be implemented through the Malawi Housing Corporation (MHC).
Other public investment deals are that MOTA Engil plans to establish a coal-fired plant for electricity production in Malawi, while the Lake Malawi water project to Lilongwe and Innosoft Solutions is planning to invest in e-government solutions in Malawi in the areas of National Data Center, Smart City System, ICT Consultancy, E-Government, E-judiciary, E-procurement, E-health, E-education, E-Parliament, and Cyber Security.
The private sector agreements, included CDH International Bank which met with Shire Cotton Spinners; the National Association of Small Farmers (NASFAM) and Sir Hackson Processors met with an international company and agreed to collaborate on an agro-processing project; TBEA Deyang and Bucow Investments have come to an understanding to pursue a 50-50 venture.
“70 local companies and 10 foreign companies exhibited at the MIF2016. The exhibition was also patronized by over 20 importers from the region, Dubai and India and 30 SMEs. The notable foreign exhibitors included Rolls Royce Limited, Engen South Africa, GIBB South Africa, Group Five, Green Heart of United Kingdom and 4 Indian companies namely Ahmed Raza Foods Industries, Forlink Ventures Pvt. Ltd.Surat, Gujarat, India, TRSR FZE and Anaya Overseas, reads the report in part signed by Cliff Chiunda and Clement Kumbemba Secretary for Industry, Trade & Tourism and MITC CEO respectively.
“The major trade deals struck during the exhibition amounted to US$26million and includes,” the report cited.
Following the success of the two investment forums in 2015 and 2016, Malawi is also expected to host another forum this year and is scheduled for November.
Malawi women to learn how to make ceramic jewelry in Kenya
There is potential that Malawian women could travel to Kenya to learn how to make jewelry and pottery from clay for exports. Malawi’s First Lady Madame Dr Gertrude Mutharika, made this announcement on Monday in Nairobi, Kenya, after touring Kazuri, a centre where women make jewelry, and pottery by hand. The women then sell their wares to countries such the United States of America, Australia, among others.
The First Lady said she was impressed with the work the women are doing and she promised that when she returns home, she will discuss with relevant stakeholders to facilitate the tour for Malawi women.
According to Madame Mutharika, African women are very talented, optimistic, and have the potential to improve their livelihood and their families through handiwork.
“It usually does not require huge sums of money to begin a business, but if you put your mind to it, there is a high chance that you will come up with something big,’’ Madame Mutharika said.
She said visited the Kazuri centre after she noted that single mothers and less privileged rural women are the ones working with just clay, but producing high quality jewelry that is being exported and generating money for their families.
The First Lady has since committed to ensuring that the innovation the Kenyan women have is shared with their colleagues in Malawi.
The Kazuri centre was established in 1975 and specializes in making beads and pottery from clay, dug from Mount Kilimanjaro.