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…

IMF takes stock of economy

The international Monetary Fund (IMF) has described 2018 economic performance as a jumble, adding 2019 could prove to be challenging with elections around the corner. In a written response to a questionnaire on Thursday, IMF resident representative Jack Ree said the country’s track record suggests that this year will be challenging when election cycle is…

CfSC weighs in on inflation targets

The Centre for Social Concern (CfSC) has called for a review of the Consumer Price Index (CPI), which measures changes in the price level of market basket of consumer goods and services. CfSC economic governance programmes officer Lucky Mfungwe said this yesterday on the backdrop of RBM maintaining its inflation targets set out in the…

2018 inflation fortunes

Since August 2017, the country achieved a milestone by registering a single digit inflation at 9.3 percent, which was largely driven by the reduction in food prices, particularly maize.  This meant that prices were increasing at a decreasing rate, giving consumers more purchasing power and more value for their money than in previous years. The…

World Bank hails financial sector reforms

The World Bank has commended the Reserve Bank of Malawi (RBM) for it modest improvements in the financial sector following efforts aimed at increasing access to finance. The bank’s country economist Priscilla Kandoole says in the bank’s latest Malawi Economic Report the RBM is developing new instruments intended to strengthen the regulatory framework and to…

2018: Growth revised downwards again

Yet again, Malawi revised downwards economic growth projections. This has been the case in the past three years. Ministry of Finance, Economic Planning and Development revised downwards the 2017 and 2018 growth projections to an average of four and 4.5 percent, respectively from the initial 6.4 percent and six percent, on account of poor agricultural…

Imports continue to grow at a low rate

Malawi’s imports continued to grow although at a low rate, with figures from the World Bank indicating a strong growth of imports of vehicles and fertilisers. Recently published World Bank figures indicate that in 2017, vehicles and fertilisers grew by 28 percent and 26 percent, respectively. Petrol imports, on the other hand, increased by nine…

World bank tips Malawi on growth

Despite decades of development efforts and significant foreign aid, Malawi’s weak and volatile economic growth performance has persisted mainly due to governance, institutions and policies over the long run, the World Bank has said. In its December 2018 Systematic Country Diagnostic: Breaking the Cycle of Low Growth and Slow Poverty Reduction, the bank says with…