Treasury firm on domestic revenue

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…

‘Reference rate could decline further’

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…

H1 budget deficit  Jumps to k165.7bn

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…

MBS regional accreditation to enhance trade—officials

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…

Ecam faults treasury  On funding priorities

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…

Banks cautious, but say will open

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…

RBM maintains policy rate at 13.5%

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…

New firm dangles shares, seeks 500 000 investors

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…

Growth risks still persist—NICO asset

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…

New investment firm targets rural wealth potential

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…

RBM commends Airtel listing

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…

MSE traded value drops 4%—report

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,…

IMF outlines budget risks

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 call for economic diversification from raw produce

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…

Banker outlines consolidation risks

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…

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