MRA foils sugar smuggling in Mwanza

Public tax collector Malawi Revenue Authority (MRA) on Monday seized 487 bales of smuggled sugar concealed in five truckloads of salt that were being imported through Mwanza Border.  In a statement made available to Business News on Wednesday, the MRA observed that besides depriving government of revenue for public expenditure, smuggling distorts market prices, thereby…

Firm weigh in on interest capping law

Investment and property portfolio management firm Alliance Capital Limited (ACL) has said the debate on interest rate capping should not be dismissed outright on account of unintended consequences experienced in some countries. In its 2018 Annual Economic Report, ACL says the decision as whether to cap or not to cap interest rates should be informed…

New dawn for exporters

The Malawi Revenue Authority (MRA) will from next month introduce some changes in the processing and management of export clearances to facilitate export trade.  MRA Commissioner General Tom Malata said in a published statement that the changes are aimed at improving efficiency in the processing and management of export clearances. He, however, cautioned exporters and…

MRA touts border reforms

Malawi Revenue Authority (MRA) says it is fostering a level playing field for businesses by ensuring timely delivery of raw materials and facilitating legitimate business in the country’s border posts. MRA Commissioner General Tom Gray Malata said this in Mwanza on Friday during the commemoration of the International Customs Day held under the theme: Smart…

Rich, poor gap continues to widen—Oxfam

The world’s 26 richest people now own the same wealth as the poorest half of humanity, with inequality spiralling out of control, international non-profit organisation Oxfam has said. In its report, titled Public Good or Private Wealth published on Monday, Oxfam warned that the massive wealth disparity was stoking popular anger and threatening democracies as…

RBM beats 2018 inflation target

Malawi’s annual headline inflation rate for 2018 was recorded at 9.2 percent, which is below the Reserve Bank of Malawi (RBM) projected target of 9.3 percent, published figures from the National Statistical Office have shown. The inflation rate, as measured by the Consumer Price Index (CPI), shows that the December 2018 inflation rate declined to…

IMF delves into population boom

The International Monetary Fund (IMF) has said while a young and dynamic population can help economic development by generating an abundant pool of labour, a population boom could hinder efforts of improving the well-being of the population. In a written response to a questionnaire on Monday, IMF resident representative Jack Ree said global experience show…

Treasury posts k54.5bn deficit in November

Treasury has recorded a K54.5 billion deficit in November, despite posting a 3.5 percent revenue increase. Available figures from the Reserve Bank of Malawi (RBM) indicate that in the five-month period to November 2018, Treasury has posted three deficits and two surpluses. At the start of this financial year in July, Treasury posted a K13.5…

World Bank country economist Priscilla Kandoole has cautioned on the shifting trends in domestic financing which has seen the composition of domestic financing shifting from the Reserve Bank of Malawi (RBM) to commercial banks and non-bank sectors. She observed that while net credit from RBM substantially declined in 2018, thereby supporting the achievement of broader…

Are reduced pump prices inflationary?

While the fuel price reduction impact will not be felt by everyone, it could bring down inflation in the short to medium term, the Reserve Bank of Malawi (RBM) has said. In an interview with Business News yesterday, RBM spokesperson Mbane Ngwira said the developments in fuel prices are in line with MPC’s earlier projections.…

Icon properties  Raises k14.7bn

Icon Properties Limited has raised K14.7 billion through an initial public offering (IPO), issuance of shares for the first time to the public by a company through the primary market. In its published media statement, the property firm says it has raised the amount through the sale of 1.68 billion shares at K8.75 per share…

Tax reforms costing businesses

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says some of the tax reforms government introduced are adding a cost to businesses and leading to loss of revenue by the tax collector. MCCCI chief executive officer Chancellor Kaferapanjira told Business News on Sunday that this is because reforms introduced during the presentation of…

Mkango Resources gets licence extension for Malawi project

Mkango Resources Limited, a Canadian-based mineral and exploration company, has been awarded a two-year licence renewal for exclusive prospecting. The company, whose primary business is exploration for rare earth elements and associated minerals in the country, has since confirmed this in a press statement. Last month, the company said it has started the updating mineral…

Interventions needed to narrow gender gap

Chancellor College Economics professor Ben Kaluwa says narrowing the gender gap will require policy intervention. Kaluwa said this yesterday in reaction to the study findings by the World Economic Forum (WEF) on the widening gender gap in the country over the past decade. Kaluwa faulted poor economic orientation which he said dwells much on the…

Industry stance on interest capping irks consumers

Consumers Association of Malawi (Cama) has expressed dissatisfaction with the business community for taking a stance against the capping of interest rates on loans from lending institutions. Cama executive director John Kapito said on Friday beneficiaries of the proposed law  will be members of the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) who…