Tag Archives: CAMA

Business, Malawi

“Chakwera’s government over borrowing escalating Malawi’s inflation”-CAMA

Dorica Mtenje

LILONGWE-(MaraviPost)-The Consumers Association of Malawi (CAMA) has urged Malawians to advocate for a reduction in the government’s excessive borrowing and to address issues of financial mismanagement, including corruption, theft, and unnecessary spending, which are negatively affecting ordinary citizens.

CAMA Executive Director John Kapito told The Maravi Post that the ongoing rise in the cost of living reflects the current economic situation, where inflation has surged due to heavy government spending and borrowing from both domestic and international financial markets.

“Failure to invest in production, particularly in essential food production like maize, will lead to persistently high living costs for consumers. As long as we cannot manage and control inflation, the situation will only worsen.

“The country is essentially broke and bankrupt, making it impossible for the government to provide any relief measures for consumers. Such measures would only aggravate the situation through further borrowing and increase inflation,” says Kapito.

He emphasized that it is unrealistic for consumers to expect any relief from the government, given its current financial status, despite numerous attempts to advise the government to operate within its fiscal limits.

Kapito pointed out that the government is currently implementing an International Monetary Fund (IMF) Extended Credit Facility (ECF) program, which requires strict financial discipline.

He, however, expressed concern that this program seems to fail in enforcing the necessary fiscal prudence and imposes unjust demands for currency devaluation.

Meanwhile, Malawians are facing daily increases in the prices of goods as the Kwacha continues to lose value. Recently, the Minister of Finance announced an increase in the 2024-2025 mid-year budget review from MK5.99 trillion to MK6.04 trillion, resulting in a deficit of MK1.46 trillion.

Several economic experts have warned about the current regime’s excessive borrowing, which has also led to fuel scarcity, among other issues.

Business

CAMA wants Govt to probe on cooking oil price hike

Dorica Mtenje

LILONGWE-(MaraviPost)-Consumer Association of Malawi (CAMA) called upon the ministry of trade to investigate the cooking oil price increase.

CAMA Executive Director John Kapito told The Maravi Post in an interview on Tuesday, July 8, 2024 that the trade ministry needs to investigate and inform consumers on cooking price increase despite many strategies government had announced last year.

Kapito said government announced the opening up to many traders specifically supporting local traders to go into production of cooking oil.

“We believe that opening up of local traders last year would control unnecessary and unexplainable price increases on cooking oil,” said Kapito.

He adds that Increases of cooking oil are coming at a time when consumers are increasingly facing economic challenges and the consumer body is monitoring the market to understand the reasons behind these unfortunate increases both traders and government .

He further said government must understand that consumers are now tired with these never ending unexplained price increases which do not correspond with their incomes.

In his remarks competition and Fair Trade Commission ( CFTC)Public Relations Officer , Innocent Helema said they have observed that cooking oil scarcity on the market have taken sellers advantage to raise prices somehow.

Helema said CFTC will conduct price monitoring exercise from next week across the country to ascertain such allegations of price increases for basic goods and services including cooking oil.

“We will take to task anyone found to be violating the Competition and Fair Trading Act (CFTA)as excessive pricing is one such violation provided for in the CFTA 2024 which can attract such penalties.”said Helema.

He however said Traders must be aware that the Competition and Fair Trading Act (CFTA) of 2024, which entered into force on 1st July, 2024, provides for stiffer penalties which can be up to 10 percent of annual turnover .

Meanwhile several shops have hiked 2 litre bottle of cooking oil from MK7500 to MK10, 000.

Business

CAMA urges Chakwera Govt to remove fuel levy

Maravi Post Reporter

By Chrissy Nkumba

LILONGWE (MaraviPost)-A call has gone out to the government to remove some levies on fuel that contribute high cost of the commodity

Consumers Association of Malawi (CAMA) statement which is made available to The Maravi Post indicates the increase of fuel prices in Malawi since December last year of which Malawi Energy Regulatory Authority (MERA) decided to hold increases for reasons better known by themselves.

This was despite the law or regulations demanding MERA to adjust prices of fuel once they are above or below five percent threshold.

According to the statement signed by CAMA Executive Director John Kapito, failure to adjust fuel prices has resulted In the depletion of the price stabilization fund (PSF) resulting in the huge losses by the oil marketers.

Kapito observes that both diesel and petrol prices have gone up by an average of 25% which is huge to be affected at once.

He added that the move will be one of the biggest that will affect consumers who are ready experiencing serious economic challenges and high cost of living.

“The only reason MERA and government are reluctant to increase prices of fuel is based on political persuasion rather than economical and the implications of such poor judgement is retrogressive to both economy and consumers,” Kapito said.

The statement also states that during political Campaign the current leadership promised to have reduced prices during its tenure which is unfortunately not working they had wished but they have advised the government to move from dreams to reality and do necessary things that can help the economy of Malawi grow.

“The current and suffers badly from decision making and that has a huge cost on running government affairs and no wonder Malawi are experiencing economic challenges due to lack of good political and Economic, the question that’s consumers are asking is where is the leader.

“Has Malawi government gone so bankrupt with ideas that it can differentiate between bad and good? We repeat remove the levies and adjust fuel prices in Malawi as Malawians cant afford a negative price stabilization fund( PSF), “he said

Meanwhile they have repeated that holding the prices of fuel will hurt the Consumers more than implementing them.

Business, Lifestyle, Malawi

Nation Bank of Malawi’ Super-normal profits questioned as customers angry with exorbitant E-service fees

Maravi Post Reporter

By Thandie Chadzandiyani

LILONGWE-(MaraviPost)-Super-normal profits of National Bank, at a time progress has stalled in other sectors in the economy due to the pandemic have attracted the attention of Consumers Association of Malawi (CAMA) which they  have seen faults in Banks.

National Bank of Malawi (NBM) being one of the suspected banks has registered a group profit after-tax of MK22.45 billion from K17.16 billion in 2019, representing an increase of 31 percent in the year ended December 31 2020.

In a statement jointly signed by board chairperson George Partridge, chief executive officer Macfussy Kawawa, chief finance officer Masauko Katsala and board member Dorothy Ngwira, the bank said there was significant growth in non-interest income of 17 percent while net interest and investment income grew by nine percent.

Reads the statement in part: “Overall net revenue grew by 12 percent. The bank continued to control expenses within inflation. Operating expenses increased by seven percent while impairment losses reduced by 45 percent.

“Customer deposits increased by 27 percent year-on-year while the bank’s loan book grew by six percent largely on account of the Covid-19 pandemic.”

During the year, the bank also announced that it entered into negotiations to further acquire 24 percent stake in Akiba Commercial Bank (ACB) in Tanzania after completing the acquisition of a 51 percent controlling stake towards the end of the year 2020.

The bank’s board of directors have recommended to pay a final dividend of MK8 billion, up from MK4.3 billion paid last year, making a total dividend of K13 billion in respect of 2020 profits.

This represents MK27.84 per ordinary share, up from MK17.78 per share in 2019.

Reads the statement: “The bank paid an interim dividend of MK2.5 billion in September 2020 [2019: MK2.5 billion] and a second interim dividend amounting to MK2.5 billion on 31 March 2021 [2019: MK1.5 billion].

National Bank of Malawi (NBM) customers have been complaining over monthly deduction of MK1, 200 E-service fee which is too exorbitant compared to the said service.

E-service fee continues deduction continues to anger customers amid economic hardships due to Covid-19 spike.

“Why should the bank keep on deducting such amount of money for just Mo626 when all in any transaction when bank charge also for service. This bank is milking for a thin cow. These services could be lessened for the poor. No wonder have made such profits while us customers are relinquishing in dare poverty,” worried the bank customer in Chikwawa Nchalo.

Another customer in Mzuzu chipped in, “The bank deducts my account E-service fee despite not using the platform. This is stealing from us”.

Malawi

Mzuzu residents bemoan power outage on Christmas day

Richard Kayenda
Mzuzu residents bemoan power outage on Christmas day

Mzuzu-(MaraviPost)—Residents in the Northern Region City of Mzuzu have bemoaned day long black out in the city and almost the whole region on the Christmas day.

The day which fell on Friday started on a promising note in terms of electricity but alas! At around 7 o’clock in the morning load shedding showed its ugly face and it persisted almost throughout the day.

A snapshot survey which Maravi Post conducted in some townships of the city revealed that most residents were angry and disappointed with Electricity Supply Corporation of Malawi (Escom) for not providing them with power on a day they had to celebrate the birth of Jesus Christ.

One Tuntufye Ng’ambi who stays in Chimaliro Township said it was disturbing to see that there was no power on Christmas day.

“Imagine I went to church with hope that I would dance to songs sung by our praise team using sound equipment; only to be informed that they would not be able to play the equipment because of power failure. Government has to do something serious about this situation as per their promises during the campaign period,” ranted Ng’ambi.

Her sentiments were echoed by Chimwemwe Zulu, a Chibavi Township resident who said on Christmas day, he enjoys watching Christian films; especially those that chronicle the birth of Jesus Christ, but he would not be able to do so as there was load shedding throughout the day and the region.

 Zulu expressed: “You see, on a day like this one, most us like to just stay at home and enjoy ourselves by watching firms of Jesus Christ, but now, there is no power since morning and we have no idea what time it will come back. This is very unfair.

“ Is it because the top government officials do not experience black outs like we, the commoners, do? They would have a heart to work on this problem once and for all.”

Other residents at townships like Luwinga, Zolozolo, Ekwendeni and Area 4 were only seen gallivanting along the streets with no any hope of power resumption the soonest.

On Wednesday this week, Consumers Association of Malawi (Cama) took a swipe at Electricity Generation Company (Egenco) for announcing that it would be unable to provide reliable electricity to Malawians during the Christmas and New Year festivity.

 In a press statement, Cama said: “Consumers are tired and angry with poor service delivery excuses by EGENCO and Consumers for a long time have questioned whether there is any supervision and monitoring of parastatals like EGENCO which continues to disappoint its Consumers and embarrass Government for its failure to deliver better services.

“We are, therefore, appealing to Government to stop treating EGENCO with kid gloves and ensure that the current public sector reforms are adding value to the operations of this key parastatal.”

Unreliability of electricity in Malawi is a serious challenge, which has on innumerable occasions scared foreign investors away.

However, the current Tonse government promised to put this incessant problem to sleep once voted into power.

 Malawians are yet to start enjoying the fruits of the promise.

Malawi

Zambia maize saga: Cama sets its own probe, findings ready in two weeks

Maravi Post correspondent

LILONGWE-(MaraviPost)-The country’s Consumers Association of Malawi (Cama) is in the verge of conducting its own probe into the maize procurement saga in a bid to authenticate the President Peter Mutharika’s commission of inquiry on the same.

Cama’s independent probe on the maize scam comes barely a week after Mutharika instituted an investigation which has attracted criticism from some quarters of the society over its composition as civil society organizations are excluded in the commission.

George Chaponda
Chaponda: At the center of Zambia maize scam

The consumer body’s Executive Director John Kapito to Nation on Sunday that the initiative aims at down playing speculation go by the media and other quarter of the society.

Kapito disclosed that his organization’s findings will be made available to the general public in two weeks time.

He hinted that investigations will touch on all players who were involved in the procurement process that the truth on the matter been known to the public.

“We have been following with kin interest in the current issue surrounding the maize procurement from other organisations in Zambia where sources of the purchase and prices is not clear as there are different names of the sources of supplier.

“We have started our own investigations into the matter. We want to be natural, and we will make public our findings in two weeks time. Cama doesn’t want to speculate or go by what the media and other quarters are saying about the matter plans also to prove the inquiry”, said Kapito.

Apart from Presidential inquiry, the Anti-Corruption Bureau also disclosed a week ago that was ready with is own probe on the maize scam.

Since the revelations started, executive arm of government has not been forthcoming with explanations in what transpired on the whole saga only last week President Mutharika established the commission on the same.

Minister Chaponda, who gave a ministerial statement in last Parliament sitting on the saga’s procurement, has been refusing to resign arguing that his hands were free and that those wanting him to leave the office were doing it out jealousy.

Admarc however still insists that it’s buying the staple grain from Zambia Cooperative Federation (ZCF), a government agency; documents show that Admarc may have used a private Zambia company that may be more expensive than if the deal were government to government.

The Country’s grain marketer has reportedly paid US$34.5 million (MK26 billion) for the maize, which is US$13 million (MK9.5 billion) more than the US$21.5 million (MK15 billion) it could have paid had it bought the maize from Zambia government.