The Financial Timescale

 The National Working Group on Trade Policy believes the government's recent attempts to control commodity prices are a clear indication of failed economic management. According to Frederick Changaya, the group's chairperson, the move by the Competition and Fair Trading Commission (CFTC) to stop nine companies from raising prices is misguided. Instead, Changaya argues that the pricing trends are a reflection of runaway inflation, exacerbated by a severe foreign exchange shortage. Changaya warns that imposing price controls could lead to businesses incurring losses, as the government is not controlling the cost of running businesses, particularly when it comes to foreign exchange. He emphasizes that it's unfair to control the output side of businesses while leaving the input side liberalized. Changaya also highlights the uncertainty of exchange rates, making it challenging for businesses to operate. To address these challenges, Changaya advocates for crafting responsive mone...

CFTC  The Competition and Fair Trading Commission (CFTC) has taken swift action against 11 companies in Malawi, accusing them of price gouging and unfair business practices. Nine farm input distribution companies and two poultry feed manufacturers have been issued interim orders, effective immediately, prohibiting them from increasing prices or hoarding supplies until further notice. The companies in question include Export Trading Group, Farmers World, Malawi Fertilizer Company, and seven others, as well as CP Feeds and Proto Feeds, the two poultry feed manufacturers. According to Lloyds Vincent Nkhoma, CFTC Chief Executive Officer, the Commission is empowered by the Competition and Fair Trading Act to issue interim orders when it suspects unfair business practices. Failure to comply with these orders will result in criminal prosecution. The CFTC encourages consumers to report any suspected violations of the Act, seeing this move as a significant step in protecting the public inte...

 NBS Bank plc has secured a significant investment of $5 million from EDFI Management Company (EDFI MC), a Belgium-based impact asset manager. This strategic investment is part of the EU-funded Agriculture Financing Initiative AgriFI, aiming to support the diversification of Malawi's agricultural sector and contribute to the country's economic development. According to Kwanele Ngwenya, CEO of NBS Bank plc, this investment will enhance the bank's support for agricultural businesses and smallholder farmers, providing them with necessary resources and financing to expand processing capacity, improve productivity, and livelihoods. The bank is pursuing an ecosystem approach, focusing on key agricultural value chains, such as tea and macadamia, to drive sustainable growth in the region. EDFI MC CEO Rodrigo Madrazo emphasized the investment's impact on smallholder farmers, stating that it will enhance productivity and livelihoods while driving sustainable growth. OACPS Expert ...

 The Reserve Bank of Malawi (RBM) has a plan to help the country's economy grow. Right now, the government is borrowing too much money, which makes it hard for private businesses to get loans. The RBM wants to change this by teaching people about credit reporting and asset-based lending. This means that people can use their movable assets, like cars or livestock, to get loans from banks. The RBM hopes that this will help businesses grow and produce more goods, which can be sold abroad. This will bring in more money and help the country's economy. The RBM is working with the International Finance Corporation (IFC) to make this happen. They are running a campaign to teach people about financial literacy, which means understanding how to manage money and make smart financial decisions. The RBM's governor, MacDonald Mafuta-Mwale, is optimistic that this plan will work. He says Reserve Bank of Malawi that credit reporting will help people get loans from banks, and that using m...