Goodall upbeat on growth despite power outages

  Minister of Finance, Economic Planning and Development Goodall Gondwe is upbeat about the country registering an economic growth of over five percent despite acknowledging the possible threat to the same created by extended power outages. In an interview yesterday, Gondwe said while nobody is denying the fact that the power outages are crippling production,…

Malawi registers modest export growth

Malawi merchandise export trade of agricultural products has registered a modest growth of 6.5 percent between 2005 to 2016, figures from the World Trade Organisation (WTO) have shown. During the year under review, LDC exports of goods and services decreased by 6 percent in 2016, while it dropped further from 0.97 percent to 0.94 percent…

Malawi Energy Regulatory Authority explains levies on generators

Malawi Energy Regulatory Authority (Mera) has come out in defence of levies charged on the generators that industries are buying and using to counter the existing electricity challenges. In his presentation during commemoration of 2017 the World Standards Day, Malawi Telecommunications Limited (MTL) head of innovation Kondwani Masiye said while gensets are subjected to Malawi…

No trade yet for K20 billion bond

  The K20 billion ($27 million) two-year fixed coupon bond which the central bank issued in August to refinance debt is yet to register any trading activity, two weeks after listing on the Malawi Stock Exchange (MSE). In an interview with Business Review on Tuesday, MSE operations manager Esnat Chilije said although the Treasury note…

Less malawians qualify  For mortgage—report

  Less than one percent of Malawians qualify for a mortgage—a debt instrument secured by the collateral of specified real estate property that the borrower is obliged to pay back—as lenders target salaried individuals and businespeople. This is according to the 2017 Centre for Affordable Housing Finance in Africa (CAHF), a non-profit organisation that promotes…

The rising external debt

  Malawi’s external debt stock has risen to 20 percent of the gross domestic product (GDP) as at June 2017 from 11 percent after Indebted Poor Countries’ Initiative (Hipc) completion point in August, figures from the Ministry of Finance, Economic Planning and Development has shown. Prior to Hipc, the external debt to GDP ratio was…

Malawi savings rate at 2.9%—Firm

Investment portfolio firm, Alliance Capital Limited has said though individual savings are not considerable enough for investment, it is important that the economy gets reorganised to woo resources from all avenues to improve the country’s rate of savings. The country’s saving rate currently stands at 2.9 percent. In its published weekly market review on Wednesday,…

MCCCI faults policy on falling export trade

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) has faulted government policies for the country’s dwindling export trade which it says has made businesses lose competition to countries in the region. MCCCI president Carl Chokotho said in a written response to a questionnaire on Wednesday while a needs assessments which would display business…

New airline rolls out in January

  Two years after FastJet winged out the Malawi market, Lakestar Express Limited—a Malawian-owned budget airline—has invested $7 million (about K5.1 billion) to start operating domestic flights by January. After 10 months of operation, the airline plans to expand its footprint in the region, according to its chief executive officer Allain Chidzanja. In January this…

Inflation drop firmer, says IMF

The International Monetary Fund (IMF) yesterday expressed delight at the continued drop in inflation rate, saying it provides assurance that the Reserve Bank of Malawi (RBM) has a  good grip on the economy’s direction. Malawi’s inflation as measured by the Consumer Price Index (CPI) declined further by 0.9 percentage points to 8.4 percent in September…

Malawi underutilises IMF’s e-GDDS—official

Government agencies are underutilising the International Monetary Fund’s (IMF) Enhanced General Data Dissemination System (e-GDDS), a year after the platform went live, it has been learnt. E-GDDS, a one-stop publication for important macroeconomic data available on the dissemination standards bulletin board for IMF, is an evolutionary system reflecting changing needs of data users from time…

September inflation rate down to 8.4%

  Malawi’s headline inflation rate for September 2017 has dropped by 0.9 percentage points to 8.4 percent buoyed by continued decline in prices of food, particularly maize, according to National Statistical Office (NSO) . The inflation rate has dropped from 9.3 percent in August, which was the first time to hit a single digit in…

Cama lashes out at Escom, Egenco

Consumers Association of Malawi (Cama) has expressed concern on the continued blackouts that have affected the lives of consumers and disrupted economic and social activity in the country. In an interview on Wednesday, Cama executive director John Kapito said as a consequence, most industries, are no longer able to produce goods and services. He also…

FMB Capital completes Barclays acquisition

Malawi Stock Exchange (MSE)-listed and Mauritius-based FMB Capital Holdings (FMBCH) plc has announced the successful acquisition of a majority stake in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for Barclays Bank of Zimbabwe Limited (BBZ) from Barclays Bank plc (BBPLC). The transaction was concluded after fulfilment of all Zimbabwean statutory and regulatory requirements, according…

Ray of hope on  Pigeon peas market

Two months after the Indian government imposed an import cap on pigeon peas (nandolo), the Malawi Investment and Trade Centre (Mitc) has turned to United Kingdom and United Arab Emirates for the crop’s market. Mitc chief executive officer Clement Kumbemba said in an interview yesterday that the one-stop trade platform is working on getting best…

Power purchase disagreements  stall 100MW power project

Disagreements over power purchase agreement (PPA) between an Independent Power Producer (IPP) and Electricity Supply Corporation of Malawi (Escom) has stalled plans to establish a 100 megawatts (MW) kinetic energy project. This is despite the convener of the project worth 240 million euros (about K270  billion), Mkaka Construction Company, signing a memorandum of understanding (MoU)…

Malawi’s inflation rate below Comesa average

Malawi has for the past 10 months managed to stay below the Comesa inflation rate, a situation economic analysts say improves the country’s business environment. The Common Market for Eastern and Southern Africa (Comesa) Harmonised Consumer Price Index (HCPI) released on Sunday shows that Malawi’s inflation rate has eased from 21.7 percent in January to…

Tobacco growers give lukewarm response

Tobacco Control Commission (TCC) has extended growers’ registrations for the 2017/18 growing season to meet the international trade requirements of 170 million kilogrammes (kg) following a lukewarm response from growers. The exercise, which was expected to end in September, has been extended until when registered growers’ quotas meet the required demand. As of Tuesday, only…