Faced with the less-than-expected revenue collection in the first-half of the 2019/20 financial year, Treasury has unveiled new measures and polices aimed at enhancing revenue collection. During the second half of the current fiscal year, total revenue and grants have been projected at K926.9 billion out of which K802.9 billion is domestic revenue and K124.0…
Commercial bank’s reference rate may moderate to about or below 12 percent in the short-term due to the continued lower Treasury bill yields (T-bill), Nico Asset Managers has projected. Presently, on average, all-type Treasury bill yields are declining with data showing in January they stood at 8.52 percent from 12.79 percent in January 2019. The…
Lack of clarity of some taxation laws are leading to misinterpretation of texts of some provisions in the Taxation Act, a tax analyst has observed. The analyst, Misheck Msiska, said this in view of a public notice issued by Malawi Revenue Authority (MRA) on the tax status of ecclesiastical, charitable and educational institutions where the…
Treasury has recorded a deficit of K165.7 billion or about four percent of gross domestic product (GDP) in the first half (H1) of this fiscal year, figures from the Reserve Bank of Malawi (RBM) show. At K165.7 billion half-year deficit or 9.7 percent of the K1.7 trillion 2019/20 National Budget, the development means Treasury has…
Stock prices of some counters in the banking and real estate sectors have picked up in anticipation of positive year-end earnings, a stockbroking firm has said. An analysis by Cedar Capital Limited shows that four counters—National Bank of Malawi (NBM) plc and NBS Bank plc, Mpico Limited plc and Icon Properties plc—have registered highest share…
Officials have touted the accreditation of Malawi Bureau of Standards (MBS) by Southern African Development Community Accreditation Services (Sadcas) in the management system certification as a move that will help enhance trade and quality of services. The scheme under which MBS has been accredited is internationally recognised, meaning that MBS is now competent to certify…
Employers Consultative Association of Malawi (Ecam), a representative body of employers, has faulted Treasury for concentrating on non-developmental sectors in its funding criteria, calling for the rebalancing of its funding pattern. In a statement signed by Ecam president George Khaki ahead of the Mid-Year Budget Review Meeting of Parliament, which starts today in Lilongwe, Ecam…
A composition of private sector credit compiled by the Reserve Bank of Malawi (RBM) shows growth in credit to electricity, gas and water by 101.8 percent a development economists describe as a stepping stone towards meaningful development. According to data provided by the RBM in 2019, private sector credit grew by 21.3 percent, compared to…
Commercial banks in the country have indicated that they will open for business today despite the tension brought about by the judgement the Constitutional Court is set to deliver today in the presidential election nullification petition case. In separate interviews yesterday, six out of the country’s eight banks said they would open for business, but…
As calls for the liberalisation of the Single African Air Transport Market (SAATM) rage on, airline operators and experts in the country have thrown their weight behind the call, saying the development is crucial in as far as incentivising the aviation industry is concerned. The liberalisation of just between a few African countries is estimated…
The Reserve Bank of Malawi (RBM) has maintained the policy rate at 13.5 percent, a move done in view of medium-term inflation outlook. RBM Governor, Dalitso Kabambe, announced this on today after a two-day meeting of the Monetary Policy Committee (MPC). The adopted policy stance is deemed adequately tight to deal with emerging risks while…
Malawians have a rare opportunity to own part of Rural Development Investment Initiative Trust (Rudevit), a firm geared to spearhead economic development by exploiting the wealth potential of the rural areas through investments. The firm’s offer presents a diversified investment portfolio to Malawians by offering members an opportunity to invest in untapped markets in a…
Commercial banks seemingly faced liquidity challenges in the just ended year, resorting to access funds through Lombard Facility from the Reserve Bank of Malawi (RBM). Figures contained in the Nico Asset Managers annual report show that in 2019, banks borrowed K11.15 billion per day at an average rate of 13.9 percent, up from K5.85 billion…
Investment advisory firm Nico Asset Managers has warned that economic growth risks still persist due to internal and external shocks. In its 2019 Annual Economic Report released on Wednesday, the firm says Malawi has faced various economic shocks in the past two years which have impacted on gross domestic prduct (GDP), the broadest measure of…
Newly formed investment firm, Rural Development Investment Initiative Trust (Rudevit) says it is geared to spearhead economic development by exploiting the wealth potential of the rural areas through investments. In a statement, the firm’s interim chairperson Hastings Bofomo Nyirenda said Rudevit will help to turn the economic history of the country. “Citizens have joined in…
Reserve Bank of Malawi (RBM) says Airtel Malawi listing presents a rare investment opportunity in the telecommunications sectors. Airtel is offering 2.2 billion shares at K12.69 per share on the Malawi Stock Exchange (MSE), allowing the public, for the first time, to own part of the telecommunications firm. The company’s offer represents Malawi’s largest initial…
Malawi Stock Exchange (MSE) raised K46.3 billion in 2019, which is 4.7 percent down from K46.8 billion the year before, despite an increase in traded volumes, the market’s annual performance report shows. Market analysts have attributed the drop in the market’s traded value to low and unattractive share prices in the year. The 14-counter MSE,…
The International Monetary Fund (IMF) says the K1.7 trillion 2019/20 National Budget, which largely attempts to thrive on revenue, could be constrained with fiscal risks arising from revenue shortfalls, unforeseen domestic and global shocks. The IMF’s remarks come a few days after the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) and Economics Association…
Employers Consultative Association of Malawi (Ecam) has added weight to calls for investments in sectors other than agriculture which has been persistently underperforming in recent years, denting the country’s economic growth. Ecam, an apex body which represents employer interests, said as part of medium-term plans, it wants to work with government and other stakeholders in…
Investment banker and strategist Misheck Esau says the country’s financial sector could face major cultural and organisational issues in the ongoing bank consolidation drive. He said this in the context of the current banks consolidation in which large and stable banks are growing steadily while small and inefficient banks are being swallowed up by the…
