Tag Archives: Ralph Tseka

Business, Environment, Malawi

Malawi Govt out of slumber amid foreign traders invasion on local gold mines

Lloyd M’bwana

LILONGWE-(MaraviPost)-Malawi government is out of slumber to contain foreign traders invasion on Artisanal and Small-scale Miners (ASMs) in gold mines across the country.

Ministry of Mines through Reserve Bank of Malawi (RBM) is currently buying gold in ASMs as mandated by central bank laws.

Despite the intervention, local gold miners are unhappy with low cost of buying gold while foreigners including Mozambicans offer higher prices.

Local gold mine at Traditional Authority (T.A) Mazengera

The visit at Kulangala gold mine, Traditional Authority (T.A) Mazangera in Lilongwe rural revealed how local miners are being ripped off hard work in processing the mineral while getting peanuts upon sales.

Joseph Ashan told The Maravi Post that Mozambicans are offering better prices of MK48,000 per gram than RBM’s MK40,000 per/g.

Ashan complained that despite forming cooperative in September 2020, there has no any support from government as promised.

“We are selling our gold to Mozambicans who offers good prices than Malawian buyers. This is contrary to what we were promised after forming cooperative. These foreigners are reaping us heavily that the time government will come in, no single gold is to be available.

“Currently, the cooperative isn’t running as established as individuals are own their own due to capital constraints for quality equipment purchase that our gold be fetching high prices. We want enough resources to establish outstanding cooperative gold mine,” he appeals.

According to Ashan, MK5 million will be enough to buy equipment for the cooperative’s operations saying gold mine deposits are very refined and powdery of 90%.

Local gold miners in dire need of financial support

When contacted on low prices RBM is offering to local gold miners, Central Bank Spokesperson Ralph Tseka disputed the claims saying his institution was inline with the buying power price.

Tseka disclosed that the bank was still assessing the gold mine markets coupled with quality products before full scale of buying.

“The bank has just joined the market of buying gold from locals a few months ago. We are currently assessing the market before we full roll out for buying. We want quality products.

“Its a responsibility of mines department and trade ministry that cooperatives are functional well for production of quality gold. The bank has enough funds to buy gold from locals, ” assures Tseka.

Perekezi ASM consultants however says, “RBM need to compete effectively with the foreign buyers to buy more gold otherwise a lot of gold will continue to be smuggled out of the country”.

Minister of Mines Albert Mbawala acknowledged local gold miners challenges but assured them of technical and financial support.

Mbawala assured the nation of swift government intervention to contain foreigners on in local gold mines saying the ministry is engaging the law enforcers, relevant departments to address the matter.

The minister disclosed that mines department will roll out intensive training to local gold miners coupled with soft loans from central bank

Natural Resources Justice Network (NRJN) official Kennedy Rashid says Civil Society Organisations (CSOs) in mining sector expect the current President Lazarus Chakwera’s Tonse government to revolve the industry with vigor for maximum revenue collection.

Rashid therefore urges authorities to support local gold miners with resources that they benefit from proceeds.

Since 2020, 32 gold mine cooperatives have been registered that out of that only 16 have been given license for full operation.

Malawi’s Mining sector is still in infant stage as it contributes 1% to Gross Domestic Product (GDP) that if fully developed will generate 10% revenue.

Business

Malawi central bank dates business journalists

Maravi Post Reporter


By Chikondi Manjawira

BLANTYRE-(MaraviPost)-Reserve Bank of Malawi (RBM interacted with members of Association of Business Journalists (ABJ) in Blantyre as one way of strengthening its relationship with the media practitioners in regards to dissemination of economic and financial matters

RBM’s spokesperson, Ralph Tseka said that the Central bank believes that the media is a strategic stakeholder, therefore periodic meetings are important to cement partnership with the media.

According to Tseka, RBM wishes to enhance its collaborative efforts in engaging the media in order to gunner support of its vision as an institution of excellence that promotes price and financial stability.

“The bank also hosts journalists to capacity building forums from time to time to ensure that the media is well equipped in economic and financial issues. It is the Bank’s hope that our engagement with the media will assist in ensuring that the general public gets the relevant information timely and accurately,” said Tseka.

ABJ’s General Secretary, Gregory Gondwe applauded RBM for organizing such a meeting where journalists get to understand different issues, policies about the functions of the Central bank.

The Bank continues to uphold its values of Transparency, Integrity, Professionalism, Innovation, Teamwork and Efficiency.

In support of the Banks overall mission and mandate, the Bank developed a communication strategy which is aimed at enhancing the Bank’s image.

Business, Lifestyle, Malawi

Chakwera’s doomed Canaan! Helpless to contain Malawi’s Kwacha value loss

Maravi Post Reporter
Reserve Bank of Malawi

LILONGWE-(MaraviPost)-President Lazarus Chakwera’s Tonse administration is helpless to contain the gripping of Malawi’s Kwacha as it continues to lose value against major trading currencies including the United States (US) Dollar and British Pound on account of low exports.

In the first half of 2021, the local unit lost substantial ground against currencies such as the US dollar, British Pound, Euro and Rand.

Figures sourced from the Reserve Bank of Malawi (RBM) show that, in July 2021, the Kwacha was trading at MK815 to a dollar from MK806 in June and MK1,92 against the Pound from MK1,190 the previous month.

However, in the month under review, the local currency gained value against the Euro, trading at MK1,038 from MK1,040 in June, whereas the Rand was trading at MK60 from MK62 in the preceding month of June.

The Kwacha has been depreciating hastily albeit this being the peak of selling season for tobacco, Malawi’s major export earner.

This far, the commodity has raked in about $183.7 million from sales of about 112.7 million kilogrammes (kg) up from US$152 million realised during the same time last year after selling 99.9 million kg.

RBM spokesperson Ralph Tseka told The Daily Times that market forces were at play.

“Being a market-determined exchange rate, that is why [for example], the US dollar has actually been depreciating, meaning that there has been more demand than supply of the foreign exchange in the market.

“It means the price, in this case the exchange rate, reacts. That is why there is depreciation. As a market determined exchange, it will follow the forces of demand and supply,” Tseka said.

He added that revenue from tobacco sales has been used to meet obligations by tobacco merchants as they pre-finance for next season’s production.

Economics Association of Malawi Executive Director Frank Chikuta, however, said the tobacco revenue remained key in bringing stability to the foreign exchange market.

Just a year Chakwera in power inflation has been high pushing basic commodities prices up including cooking oil, electricity, water, soap, sugar, fuel, fertilizers and among others.