RBM explains weak private sector credit

The Reserve Bank of Malawi (RBM) has attributed softening private sector credit to a weak macroeconomic environment and increasing public sector financing requirements. In its March 2018 monetary policy report published on Friday, the central bank noted that private sector credit is responding to the relatively less tight interest rate position following previous policy rate…

Arrears threatens fiscal position—IMF

The International Monetary Fund (IMF) has said continued accumulation of private sector arrears by government puts the government at a weak fiscal position thereby threatening its ability to service debt. In its March 2018 Policy Paper on macroeconomic developments and prospects in low-income developing countries—2018, IMF says this is contributing to the rising stress levels…

MCCCI for incentives on diversification

  The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has said there is need to introduce new incentives if the country is to make strides in its diversification drive. In an interview on Tuesday, MCCCI chief executive officer Chancellor Kaferapanjira said introducing incentives and consulting stakeholders before implementing government policies would help encourage…

Borrowers struggle to service bank loans

Despite improved economic environment characterised by declining inflation and interest rates, borrowers  in 2017 struggled to service their loans, according to financial statements of some commercial banks for the year ended December 31 2017. In its published financial results for the period under review, listed National Bank of Malawi (NBM) plc indicated that the maize…

Two listed firms post good results

  Shareholders of two of the 13 Malawi Stock Exchange (MSE)-listed companies are expected to reap benefits on dividends, thanks to better than expected profits they have posted, an analyst has said. This follows published financial statements for three companies, namely TNM plc and Sunbird Tourism Limited plc, whose profits have more than doubled. In…

RBM maintains bank rate at 16%

The Reserve Bank of Malawi (RBM) yesterday resolved to maintain the policy rate—also known as the bank rate—at 16 percent to consolidate possible build-up of inflation risks and ensure inflation rate remains in single digit. The central bank’s Monetary Policy Committee (MPC) made the decision after a two-day Macro-economic Conditions Review Meeting in Mzuzu. This…

Investors inject k330bn for ‘varsity hostels

  Investors expected to construct hostels with  a bed capacity of 24 980 in the country’s public universities plan to invest $450 million (K330 billion) for the project, The Nation has learnt. The investors—Old Mutual Investment Group  (Omig) and M&M Developments and Infrastructure—have atleast two and six years, respectively to complete construction of the hostels,…

MSE share volume, value drops in Jan

The Malawi Stock Exchange (MSE) has in the month of January recorded a decline in both volume and value of shares traded due to relatively low valued shares which exchanged hands during the period. According to a published January 2018 monthly economic review, a total of 36.5 million shares earning K1 318.0 million were traded…

  The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has asked government to work on improving the business environment in the 2018/19 National Budget in the wake of dwindling investment projections. In his presentation at the 2018/19 pre-budget meeting in Blantyre on Tuesday, MCCCI private-public dialogue manager Hope Chavula said projections for the…

Icam eyes K100 000 tax free band

  The Institute of Charted Accountants in Malawi (Icam) has urged government to consider increasing further the tax- free bracket for employees from the current K30 000 to K50 000. Speaking during the 2018/19 pre-budget consultation meeting in Blantyre on Tuesday organised by Ministry of Finance, Economic Planning and Development, Icam economic and taxation committee…

Savings rate jumps to 2.6%, says RBM

  Economists have said the 2.6 percent rise in the average savings rate will help spur the country’s savings rate, which stands at a paltry 2.9 percent. Reserve Bank of  Malawi (RBM) statistics indicate that the country’s average savings rate has soared to an average of 8.4 percent from an average of 5.8 percent recorded…

Treasury mulls over sports levy

  Ministry of Finance, Economic Planning and Development has said while a levy on sports would help sports development, introducing the same requires that government identifies its target and services to be offered. The ministry’s Principal Secretary Ben Botolo said this in Blantyre on Tuesday in response to a request by a sports promotion firm…

MCCCI calls for tax reduction

  The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has asked Treasury to consider reducing and rationising taxes to boost businesses’ productive capacity. Speaking yesterday in Blantyre at the start of the 2018/19 pre-budget consultation meetings presided over by Secretary to theTreasury Ben Botolo, MCCCI private-public partnership manager Hope Chavula said the move…

Economic growth revised down to 4.5%

  The Ministry of Finance, Economic Planning and Development has revised downwards 2017 and 2018 growth projections to an average of four and 4.5 percent, respectively. Initially, Treasury had projected 2017 growth prospects at 6.4 percent while initial projections for 2018 were pegged at six percent In an interview yesterday, Secretary to the Treasury Ben…

Treasury outlines 2018/19 budget

  Treasury has given an outline of the forthcoming 2018/19 National Budget projected at between K960 billion and K1 trillion that it will focus more on youths with emphasis on employment and training. Secretary to the Treasury (ST) Ben Botolo gave the hint during the launch of the 2018/19 Pre-budget Consultations Meetings in Blantyre yesterday.…

Mitc to list 20 projects

  Malawi Investment and Trade Centre (Mitc) will this year only compile 20 bankable projects to be presented during 2018 Malawi Investment Forum (MIF) slated for June to accommodate projects not taken up from the previous compendiums. In 2016, the compendium had 118 bankable projects in various sectors, including energy, mining, agriculture, manufacturing, media and…