Tags: Economic

SMEs source of economic growth—Smedi

Small and Medium Enterprises Development Institute (Smedi) has described small-scale businesses as the engine for the country’s economic growth, saying they drive economy through tax contribution. “People running small-scale businesses are the engine for economic development. Even developed countries look up to small-scale businesses as a source of economic growth,” said Smedi director of business…

APM spells out plan for economic healing

President Peter Mutharika says his government hopes to urgently heal Malawi’s economic woes by reducing public expenditure, guaranteeing the independence of the Reserve Bank of Malawi, strengthening public financial management systems and ensuring a restoration of donor confidence. Mutharika unveiled his four-point economic governance plan when he presided over the launch of Malawi’s Investments Compendium…

Malawi makes case for PPP in energy sector

Malawi has said energy, being a critical sector in economic development, requires Public Private Partnership (PPP) model to ensure its sustainability. All over the world, experts say the PPP model of economic development has helped in areas of infrastructure development, among others, and that the energy sector could also take that route to develop. Minister of…

Businesses severely bleeding—Ecama

Renowned business and leadership consultant Henry Kachaje on Tuesday described the prevailing business environment as hostile, saying if the situation persists, most businesses will close shop for good. “The business environment is not good, to be honest. Inflation rate is still very high and bank lending rates are also high and these are key economic indicators for…

Malawi economy woes bother Goodall Gondwe

Malawi’s Finance, Economic Planning and Development Minister Goodall Gondwe has said the country’s economy is passing through ‘turbulent times’, citing a sharp fall in the kwacha against other major currencies, huge amount of domestic borrowing and uncertainty over the resumption of budget support. In an interview in Lilongwe, Gondwe, however, sounded confident that the economy…

IMF team in town, tackle economy woes

A team from the International Monetary Fund (IMF) headquarters in Washington DC, USA, is in Malawi for two weeks to hold a series of discussions with various stakeholders on the economy. During its tour, the team will meet government officials, representatives of the business community, civil society organisations and Malawi’s development partners on recent macroeconomic…

Chuka’s speaks on depreciating kwacha

In recent weeks, the local currency, the kwacha, has continued to show signs of ceding to major international currencies, notably the United States dollar. The depreciation of the kwacha or weakening in the value of the local currency is happening soon after the country has just closed its marketing season for tobacco, touted as the…

Govt invests $2.4m in micro-finance institutions

Ministry of Industry and Trade and the African Development Bank (AfDB) have invested $2.4 million (about K1 billion) to boost micro-finance institutions in the country under the financial innovation grant scheme. The ministry’s procurement specialist, Wesley Mwamadi, told Business Review last week the concept behind financial innovation grant is to woo commercial banks and micro-finance…

Chuka says fiscal indiscipline frustrating economy

Reserve Bank of Malawi (RBM) Governor Charles Chuka has warned that continued over borrowing and general lack of fiscal discipline is hurting the country’s efforts to curb inflation and reduce interest rates. “Government’s continued commitment to restoring fiscal prudence and efficiency in expenditure is key to macroeconomic stability and continuation of the IMF [International Monetary…

NGO calls for improved funding in Malawi mining sector

Malawi’s booming mining sector should result in increased funding, particularly to the Department of Mines, to enhance the development of institutional capacity, Citizen for Justice (CFJ), a non-governmental organisation (NGO) working in the sector, has said. The NGO says an influx of mining, oil and gas companies demands that authorities should do more to take…

Realising the economic and potential of Cassava

They persisted in becoming risk takers. They initially invested in agribusiness whose business prospects of recouping their initial outlay and working capital as well as getting the just rewards for their toil looked unpromising. From such humble beginning in 2009 blended with viable business strategies, they are reaping the benefits. They are now failing to…

Nowergian diplomat cautions Malawion development

Malawi has been urged to halt the “zigzag” development pattern because it has tended to negatively affect pro-poor development gains due to detrimental economic policy changes brought about by various political parties in power. Former Norwegian ambassador Asbjorn Eidhammer, speaking in an exclusive interview with The Nation in Lilongwe on Friday just before his return…

KUM suspension will not affect economy—IMF

Global multilateral lender, the International Monetary Fund (IMF), has allayed fears that the suspension of Kayelekera Uranium Mine (KUM) in Karonga will suppress Malawi’s economic growth in 2014. The Bretton Woods institution has also backed the decision by the Australian miner to have the mine suspended until uranium prices rebound on the international market arguing…

Reflecting on Malawi’s 50 years of post-independence gains and losses

Introduction This week Malawi celebrated 50 years of independence. During these 50 years there have been episodes of progress punctuated by tragedies of missed opportunities and inconsistent policy development and implementation. It is now an opportune time to reflect on the last 50 years and learn from the past, to understand the present and shape…

Aid and economic independence for Malawi

In developed countries there are occasional grumbles about much of their money going down rat-holes into the hands of corrupt leaders in developing countries. A popular phrase is donor-fatigue. In developing countries there are occasional grumbles about economic-dependence compromising both political-independence and national-sovereignty. The popular phrases are tied-aid and neo-imperialism. Others claim that foreign-aid encourages…

Banks ready to support Mtalimanja rice project

Mtalimanja Rice Project chief executive officer Richard Kamchacha has disclosed that three commercial banks have shown interest to fund the organisation after being impressed with the progress so far made at the rice scheme. According to Kamchacha, the banks that have shown interest include National Bank and Standard Bank while Malawi Savings Bank (MSB) already…

CCJP faults Malawi minerals policy

The Catholic Commission for Justice and Peace (CCJP), an arm of the Episcopal Conference of Malawi (ECM), yesterday outlined weaknesses surrounding Malawi’s Mines and Minerals Policy guiding the country’s mining sector. The commission, which is implementing a two-year extractive project called Tonse Tipindule alongside other faith-based organisations, also said the policy has a number of…