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Malawi's High Court has made a landmark ruling that gives businesses the freedom to adjust prices in response to rising production costs. This decision has far-reaching implications for businesses and consumers alike. In a nutshell, the court ruled in favor of Bakers Pride and Kingsmeal Limited, two companies that were previously barred from increasing prices by the Competition and Fair Trading Commission (CFTC). The CFTC had argued that price hikes would harm consumers, but the court disagreed, stating that businesses have the right to adjust prices to reflect changes in production costs. This ruling is significant, especially considering Malawi's current economic conditions. With an inflation rate of 28.5% as of January 2025, businesses are facing increasing pressure to maintain profitability. The court's decision acknowledges this reality and gives businesses the flexibility to respond to changing market conditions. The impact of this ruling will be felt across various s...

Malawi's Reserve Bank has reaffirmed its commitment to tackling the illicit foreign exchange market, citing its devastating impact on inflation. To regulate the forex market, the RBM has introduced annual license renewals for financial institutions, ensuring they operate within the law. A toll-free line has also been launched, encouraging citizens to report illicit forex trading. The RBM's efforts are part of a broader strategy to promote economic stability and combat inflationary pressures. By curbing illicit forex trading, the central bank aims to mitigate the inflationary impact and create a more stable economic environment. To further address forex challenges, the government has tabled a motion in Parliament seeking to grant the RBM authority to implement new Exchange Control Regulations. These regulations would introduce more robust mechanisms for monitoring and controlling foreign exchange movements. The move has been welcomed by economists and stakeholders, who view the ...

Malawi's inflation rate has soared to 28.5%, leaving many low-income consumers struggling to survive. The prices of basic necessities, such as maize, cooking oil, and bread, have skyrocketed, making it impossible for many to make ends meet. For James, a primary school teacher, life has become unmanageable. Despite earning a gross salary of K285,000, he can barely afford to buy a bag of maize, pay rent, and purchase a few basic items. The situation is dire, with many Malawians facing a daily struggle to survive. Economists warn that the rapid increase in prices could trigger social and moral decay, as people desperate to survive turn to unscrupulous means. The situation is worsening by the day, with speculation and price instability fueling the crisis. To address the crisis, economists recommend that the government review the minimum wage in line with inflation, implement targeted subsidies for essential goods, and strengthen monetary policies to stabilize prices and improve local f...

In a bid to promote transparency and accountability, the National Local Government Finance Committee (NLGFC) has embarked on a nationwide budget review exercise for district, municipal, and city councils. Mangochi District Council has taken center stage, presenting its 2025/2026 budget proposal, which prioritizes infrastructure development in key sectors. The council's proposed budget of K8.1 billion, comprising K7.8 billion from central government transfers and K306 million from locally generated revenue, has been hailed as a model of transparency and fiscal responsibility. Acting District Commissioner Davie Chigwenembe attributed the council's financial prudence to its commitment to good governance and accountability. "We are proud to present a budget that reflects our council's dedication to serving the people of Mangochi," Chigwenembe said. "Our focus on infrastructure development in agriculture, education, and health sectors will have a direct impact on ...

Malawi's Reserve Bank has made significant changes to the country's foreign exchange regulations, aiming to stimulate economic growth. The removal of the 30% forex surrender requirement for exporters is a major move, expected to increase export earnings and boost foreign exchange reserves. According to RBM Governor Mac Donald Mafuta Mwale, this change will enable exporters to retain more of their foreign exchange earnings, increasing their competitiveness in the global market. Additionally, non-exporting recipients will now surrender only 25% of their total receipts, making more foreign exchange available for use in the economy. NGOs, previously required to surrender 70% of their forex receipts, will also benefit from the changes. The surrender will now be effective at the time of use, rather than at the point of receipt. The RBM has also introduced changes to forex trading licenses, aiming to increase transparency and accountability. Furthermore, a tip-off anonymous platform h...

Malawi to Construct Railway Line to Tanzania, Boosting Trade and Economy The Ministry of Transport has announced plans to construct a railway line from Chilumba in Karonga District to Mbeya in Tanzania. This development will connect Malawi to the Tanzania-Zambia Railway Authority (Tazara) railway line, revolutionizing cargo transportation in the country. According to Minister of Transport, Jacob Hara, the railway line will branch off at Mbeya, where Malawi has its cargo centre facilities. The government aims to connect the railway line to Chilumba port, easing the transportation of cargo to Malawi. The current struggle to bring enough fuel into the country is largely due to inadequate tankers to haul the commodity from Tanzania. The Tazara railway line will provide Malawi with a vital connection to the regional railway network, enhancing trade and promoting economic growth and development. The construction of the railway line is expected to commence soon, with the government working to...

The United States' decision to freeze aid to Malawi will have severe consequences on the country's economy and service delivery. Atupele Muluzi, president of the United Democratic Front (UDF), emphasized that Malawi relies heavily on foreign aid, generating only $1 billion annually despite requiring $3.2 billion.¹ The US provided over $350 million in aid to Malawi each year, accounting for more than 13% of the country's 2024-25 National Budget. This aid played a crucial role in supporting healthcare, with over half of the country's healthcare spending coming from foreign donors, primarily the US. Muluzi urged the government to adopt a mindset change, promoting socioeconomic growth and self-reliance. He also stressed the need to combat corruption and stabilize the economy to mitigate the effects of the aid freeze. Related story : Trump freezes aid to Africa 🌍 😑

The National Product Magazine Mid-Year Awards 2025 are poised to be a groundbreaking celebration of business excellence across Malawi, Zambia, Zimbabwe, and Mozambique. With a strong emphasis on local industries, this year's awards are themed "Connecting Industries, Fueling Exports: Enhancing Malawi's Forex Reserves through Agriculture, Manufacturing, and Transport. Slated to take place on June 14, 2025, in Lilongwe, the event will also mark a significant milestone – the 115th issue celebration of National Product Magazine. According to Arthur Chinyamula, Managing Director of National Product Magazine, the awards will primarily focus on Malawian businesses, which will account for 70% of the nominations, while also acknowledging outstanding companies from neighboring countries. Chinyamula emphasized the importance of collaboration among key industries, stating, "We want Malawi to be an exporting nation... Agriculture provides raw materials for manufacturers, and transp...

 In a heartening tale of self-reliance and determination, 27-year-old Waness Kumwenda, a talented tailor from Mpherembe Trading Centre, is inspiring fellow youth to embrace vocational skills. Kumwenda's journey to success was facilitated by the Adventist Relief Agency (ADRA) under the Green Jobs for Adolescents and Youth project, which equipped her with the necessary skills to launch her own tailoring and design business. Kumwenda's story is a testament to the project's impact, which has empowered numerous young people to become financially independent. The initiative, funded by Save the Children and implemented by ADRA in partnership with TEVET and other organizations, aims to enhance the employability and entrepreneurship of young people. ADRA's Project Coordinator, Beatrice Banda, highlighted the project's positive outcomes, noting that many youths trained under the program have started their own businesses and are now self-sufficient. The project's success h...