Standard Bank says its profit for the half year ended June 30 2013 is expected to be more than 30 percent higher than the prior year. In the half year ended June 2012, the bank saw its after-tax profit increasing by 54 percent to K4.3 billion from K1.6 billion in 2011. In a trading statement…

Ethiopian invests $20m in Malawi Airlines

Ethiopian Airlines Limited, a strategic equity partner in the national flag carrier with 49 percent stake, has invested $20 million (K6.9 billion) and requested change of name to Malawian Airlines Limited, which has been granted. Government, which has approved the negotiated deal awaiting signing by the two parties, will invest about $10.2 million (K3.5 billion)…

Budget delicate balance on MDGS II, ERP, NES

The K630 billion ($1.5bn 2013/14 budget has endeavoured to strike a balance between poverty reduction and private sector growth, in line with the Economic Recovery Plan (ERP) and the second generation Malawi Growth and Development Strategy (MGDS II). But economic experts have cautioned that as a ‘transitional and recovery-based budget’, it may be too soon…

MRA impounds goods worth K40m

The Malawi Revenue Authority (MRA) on Tuesday impounded a truck loaded with copper wires and copper scraps worth more than K40 million at Kaporo in Karonga. MRA deputy director corporate affairs Steven Kapoloma said the goods were intercepted following a tip-off about a vehicle carrying animal hides that had concealed copper wires. “A physical check…

Malawi legislation to curb govt borrowing

Malawi Government, reeling from the K170.6 billion (about $426.5m) domestic debt in the 2012/13 fiscal year, is mulling on a new legislation to limit borrowing from the Reserve Bank of Malawi (RBM) to 10 percent of domestic revenue from the current 20 percent. Treasury, smarting from accusations of insatiable appetite for domestic borrowing, argues this…

PCL delves into solar energy generation

  Dual-listed Malawi conglomerate Press Corporation Limited (PCL) has unveiled plans that will see the group seriously delving into solar energy generation being piloted at one of its subsidiaries, Carlsberg Malawi Limited. PCL board chairperson Clement Chilingulo told Business News on the sidelines of the Malawi Stock Exchange (MSE) and London Stock Exchange (LSE)—listed group’s 29th annual…

Cotton trade transforms farmers’ lives

Aumel Jamu was once a vibrant trader plying his business inside Balaka Market. However, a misfortune befell him when, in the early hours of one Thursday morning in November 2012, the market was gutted by fire. Jamu, who comes from Kandengwe Village, T/A Nsamala in Balaka, was one of the many traders who had their goods completely…

EU, Malawi trade deficit widens

Despite the 27-member European Union (EU) bloc being Malawi’s major export destination, the country is still failing to satisfy the lucrative market with imports surpassing exports by a wide margin, creating a negative trade balance. According to the latest National Statistical Office (NSO) trade brief for the period July to December 2012, Malawi exported goods…

FedEx to acquire business operations in Malawi

FedEx Corp. (NYSE: FDX) has completed the first stage of a strategic acquisition by signing agreements to buy the businesses operated by its current service provider Supaswift (Pty) Limited in Malawi and four other countries, including Mozambique, South Africa, Swaziland and Zambia. The firm is also in discussions to acquire Supaswift’s businesses in Botswana and…

Firm to set up textile plant

The Malawi Cotton Company Limited (MCCL), a Balaka-based Chinese-owned cotton ginner, has unveiled plans to open a multi-million kwacha textile mill to add value to the country’s cotton, a development that will fill the gap in the textile industry. The company’s agriculture manager Trueman Kachale said on Friday the textile plant will create more job…

Flexible credit terms to boost SMEs

The newly-enacted Personal Property Security law will enhance the rights and obligations of both lending institutions and borrowers, the Bankers Association of Malawi (BAM), a grouping of 12 local commercial banks, has said. Parliament last week enacted the Personal Property Security Bill (PPSB) into law which Minister of Industry and Trade Sosten Gwengwe believes will…

Cotton price jumps 195% above minimum

Cotton farmers continue to smile all the way to the bank as the buying price for the commodity in all the markets except Karonga, has jumped more than 195 percent above the government set minimum price. Government through the Ministry of Agriculture and Food Security set the minimum farm-gate price for cotton, one of the…