The Financial Timescale

The World Bank has warned that Malawi's new government-to-government (G-2-G) fuel procurement arrangement may not be the best solution to the country's fuel shortages. This approach, where the government buys fuel directly from another country, can lead to fixed prices that are significantly higher than global prices. World Bank Malawi's government has already started implementing this arrangement, with the state-owned National Oil Company of Malawi (Nocma) as the sole importer. However, the World Bank notes that this could put pressure on the Reserve Bank of Malawi to provide foreign exchange from its limited reserves. The bank also points out that Malawi's legislation exempts these transactions from oversight mechanisms, which could lead to problems. While the new arrangement may provide temporary relief from fuel shortages, it doesn't address the underlying issues of price distortions and foreign-exchange constraints. In fact, the World Bank says that Malawi'...

The launch of a night market in Blantyre has ignited widespread enthusiasm among residents, who see it as a beacon of economic growth and entrepreneurial spirit. By extending trading hours into the night, the Blantyre City Council has unlocked a new realm of possibilities for local traders, vendors, and consumers alike. For Stain Jali, a Ndirande resident, the night market represents a game-changing opportunity for the community. "This initiative is a clear indication that economic activities will continue to thrive, as people now have the flexibility to engage in business at their convenience," he exclaimed. The night market is poised to have a profound impact on the local economy, boosting trade and improving the livelihoods of vendors who rely on daily sales to support their families. With extended business hours, traders will enjoy increased opportunities to sell their goods, while consumers will appreciate the convenience of shopping beyond traditional daytime market hou...

Financial literacy is a crucial component in achieving Malawi's development goals, says Mlenga. By equipping individuals and communities with the necessary financial knowledge and skills, the country can experience significant economic growth, poverty reduction, and a more stable future. In essence, financial literacy is the key to unlocking prosperity for Malawians. By understanding how to manage finances effectively, individuals can make informed decisions about their money, invest in their futures, and break the cycle of poverty. Mlenga emphasizes that financial literacy is not just a personal benefit, but also a vital tool for national development. As more Malawians become financially literate, the country can expect to see a surge in economic activity, job creation, and innovation. Ultimately, financial literacy has the power to transform lives, communities, and the nation as a whole. By prioritizing financial education, Malawi can build a brighter, more prosperous future for ...

Malawi's Ministry of Finance and Economic Affairs has acknowledged that the country's social protection programs are facing significant challenges due to increasing economic shocks. Despite these challenges, the programs have continued to provide a vital lifeline to the ultra-poor, helping to cushion them from the scourge of poverty. The ministry's analysis of Social Support and Poverty Reduction Programmes reveals that the increasing number and intensity of shocks, including macro-economic instability, extreme weather phenomena, and climate-related disasters, threaten the progress made in reducing poverty. However, the government remains committed to implementing programs such as the Social Cash Transfer Programme (SCTP), Climate Smart Enhanced Public Works Programme, and Savings and Loan Groups, among others. To address the rising cost of living, the Treasury has approved a 71% increase in the average transfer per household under the SCTP, from K8,701 to K14,919 per month...

The Nacala Development Management Committee (NDMC) meeting in Lilongwe presents a crucial opportunity for Malawi, Zambia, and Tanzania to advance regional trade and address key barriers. Secretary for Transport and Public Works David Mzandu emphasized the need to build on the progress made since the signing of the Nacala Development Corridor Agreement, the Tripartite Road Transport Agreement, and the Tripartite Rail Transport Agreement. Notable achievements include the harmonization of trade and transport regulations, collaboration to establish an Nacala Development Committee secretariat in Maputo, Mozambique, and efforts to enhance trade efficiency, reduce costs, and promote economic competitiveness among member states. However, challenges persist, including bureaucratic delays, inconsistent customs procedures, and infrastructure gaps, which hinder the seamless movement of goods along the corridor. The meeting also aims to discuss the sustainability of the corridor beyond donor suppor...

Development economist Dalitso Kabambe has sounded the alarm on Malawi's growing wealth gap, warning that without urgent interventions, the divide between the rich and the poor will continue to widen. Kabambe, who serves as UTM Party president and former Reserve Bank of Malawi Governor, emphasized that the current minimum wage of K90,000 is grossly inadequate, leaving low-wage earners struggling to afford basic necessities like food, shelter, and healthcare. The economic challenges facing Malawi are multifaceted, with rising prices, hyperinflation, and a depreciating currency eroding the purchasing power of the Malawian kwacha. As a result, many families are forced to resort to consuming unsafe or unregulated foods, while others struggle to access credit due to rising interest rates. The situation is further exacerbated by job insecurity, increased operational costs, and stagnant wages. Recent data from the Centre for Social Concern (CfSC) reveals a 12.9% increase in the cost of liv...

 Dwasco Sacco Limited is on a mission to instill a saving culture in the youth of Nkhotakota District, empowering them to become economically independent. The organization's chief executive officer, Treza Malata, spearheaded a youth savings account campaign at Kasasa Private School, aiming to educate young minds on the importance of financial literacy. Malata emphasized that financial literacy is a vital life skill, often lacking in adults, which can lead to poor financial management. By imparting this knowledge to the youth, Dwasco Sacco aims to cultivate a saving culture that will benefit them throughout their lives. The campaign is part of the organization's financial inclusion principle, which seeks to promote economic empowerment among communities. Malata revealed plans to extend the initiative to other schools and communities, ensuring that more young people benefit from this vital education. The school's head teacher, Godfrey Munthali, welcomed the initiative, recogn...

Standard Bank Plc has made a significant contribution to Malawi's economy, injecting over MK320 billion in the form of taxes, agriculture, and infrastructure investments. According to Chief Executive Phillip Madinga, this investment underscores the bank's commitment to driving national growth and making a positive impact on the economy and environment. Agriculture emerged as the largest beneficiary, receiving MK96 billion in investment facilities, followed by taxes to the government (MK78 billion), infrastructure development facilities (MK47 billion), and the manufacturing sector (MK46 billion). These investments are expected to have a multiplier effect on the economy, creating jobs and stimulating growth. Madinga emphasized Standard Bank's commitment to sustainable financing and partnering with clients to create shared value. The bank is also proactively managing environmental, social, and governance (ESG) risks associated with its operations and those of its clients. Some...

Malawi's Minister of Trade and Industry, Vitumbiko Mumba, has blown the whistle on a sinister plot by cartels to manipulate the economy for their own selfish interests. These unscrupulous businessmen aimed to artificially inflate the US dollar exchange rate to K10,000 by the end of March, with the ultimate goal of scapegoating the Chakwera-led government for the economic chaos. The minister's revelation comes on the heels of a series of business premises inspections conducted by the Ministry of Trade and Industry, in collaboration with the Competition and Fair Trading Commission (CFTC) and the Malawi Bureau of Standards (MBS). These inspections uncovered a web of malpractices, including: Price-fixing: Cooking oil manufacturing companies were found to be illegally pressuring other producers to increase prices using unorthodox means. Hoarding: Essential commodities like sugar were being stockpiled with the intention of selling them at inflated prices. Illegal exportation: Goods w...

Malawi's water boards are losing billions of kwacha due to non-revenue water (NRW), a phenomenon where treated water is lost or unaccounted for. The latest government report reveals that NRW averaged 35.3% in 2024, resulting in lost revenue of between K66 billion and K70 billion. The report highlights that none of the five water boards met the internationally recommended level of 25% NRW, with some registering as high as 50%. The Blantyre Water Board (BWB) recorded the highest NRW at 50%, followed by the Lilongwe Water Board (LWB) at 35.8%. The main causes of NRW include physical leakages, aging pipes, poor maintenance, and inaccurate billing and meter readings. The report notes that other boards are implementing measures to reduce NRW, such as the District Metered Area Management System. Financial expert Brian Kampanje warns that NRW has severe consequences, including forcing water boards to rely on few customers who are charged higher tariffs. This defeats the notion that water i...

The African Development Bank (AfDB) is championing a new approach to infrastructure development in Africa, emphasizing the need for innovative technical assistance (TA) to drive sustainable economic transformation. At the Finance in Common Summit in Cape Town, AfDB Vice President Solomon Quaynor called for a shift towards accelerating the development of bankable green infrastructure projects, with a focus on speed, scale, and sustainability. Quaynor emphasized that Africa cannot afford to sustain decade-long infrastructure development timelines and must prioritize green infrastructure project preparation and development. He highlighted the importance of creating a contestable market for successful bankable infrastructure developments, accelerating project development timelines, and strengthening infrastructure development and asset managers. The AfDB is working to bridge Africa's infrastructure gap by leveraging technical assistance to drive sustainable economic transformation. The...

The Lilongwe Water Board (LWB) has made a significant stride towards ensuring a reliable water supply to its catchment area by planting 6,000 seedlings at the Nzalanyama forest. This ambitious project aims to protect the Malingunde Dam and provide a sustainable water source for residents in Lilongwe and surrounding areas. At the heart of this initiative is the recognition that the Nzalanyama forest, which serves as a water catchment area for Lilongwe, has faced significant deforestation challenges in the past. However, through collaborative efforts between the LWB, government agencies, and local communities, the forest is being restored, and its ecosystem protected. The project's primary focus is not just tree planting, but rather providing a sustainable water supply to communities surrounding Malingunde and Bunda. As emphasized by the Principal Secretary in the Ministry of Water and Sanitation, Elias Chimulambe, the dam's water should benefit not only Lilongwe residents but al...

Malawi's Ministry of Finance and Economic Affairs has unveiled a bold plan to finance recurrent expenditure through domestic revenue, rather than debt, over the next three years. This move aims to ensure that debt is utilized for capital investments that drive growth and yield returns to the economy. The country's recurrent expenditures have been rising, alongside fiscal deficits, amidst a narrowing fiscal space. For instance, recurrent expenditure increased from K1.68 trillion in the 2020/21 fiscal year to a projected K6.04 trillion in the 2025/26 fiscal year. Meanwhile, fiscal deficit soared from K825 billion to a projected K2.7 trillion. Experts have expressed mixed views on the feasibility of this plan. Public finance management consultant Dalitso Kubalasa emphasized the need for significant revenue generation, stringent expenditure management, and vigilant debt oversight. Economist Milward Tobias stressed the importance of competent political leadership in achieving this g...

Malawi's truck drivers have brought cargo movement to a grinding halt, demanding action on security concerns in Mozambique where they've been targeted by armed robbers. The strike has raised concerns among manufacturers and economists, who warn of a potential ripple effect on the national economy. Gloria Zimba, chairperson of the Manufacturers Association of Malawi (MAM), emphasizes the country's reliance on road transport for hauling raw materials and finished products. "Any disruption in this supply chain will lead to price increases, as raw materials become scarce and production costs rise," she explains. Bertha Bangara-Chikadza, president of the Economics Association of Malawi (Ecama), echoes these concerns, noting that the strike could interrupt the supply of goods, leading to temporary scarcity and price fluctuations. "In the short term, profit margins could be affected for businesses that rely on exports," she warns. The strike's impact on the...

 _Sowing the Seeds of Financial Literacy: M The Reserve Bank of Malawi (RBM) has launched Global Money Week, a campaign aimed at empowering young people with financial literacy skills. The initiative, held at Bangwe Community Day Secondary School in Blantyre, emphasizes the importance of adopting a saving culture from an early age. RBM Chief Examiner Madalitso Chamba highlighted the progress made in promoting financial literacy among young people. She stressed that targeting children with financial literacy programs is crucial, as it helps them develop strong saving habits that will benefit them throughout their lives. Students at the launch acknowledged the significance of financial literacy, recognizing that it enables them to make informed financial decisions. This year's Global Money Week theme, "Think Before You Follow, Wise Money Tomorrow," serves as a reminder to young people to think critically about their financial choices.

Malawi's government has imposed a ban on importing certain goods to safeguard local industries. The move aims to conserve foreign exchange and promote local manufacturing. However, experts argue that the ban may not address the underlying issues facing local producers, such as lack of competitiveness and capacity constraints. Some critics warn that the ban could lead to shortages, price increases, and disruptions to supply chains. Others suggest that the government should focus on making local industries more competitive and efficient rather than relying on protectionist measures. The ban has sparked a debate about the best way to support local industries and promote economic growth. While the government sees the ban as a necessary measure to protect local industries, others argue that it may ultimately do more harm than good.

  The average cost of living for an average family of six in urban and peri-urban areas has increased by 12.9 percent to K694 653 as prices for most basic necessities continue to rise.  This is on account of rising food prices, according to data compiled by Centre for Social Concern (CfSC). Women sell various items at a market to survive the tough economic environment In December, the average cost of living was at K615 138. The rising cost of living, which paints a grim picture, according to CfSC economic governance officer Agness Nyirongo  has mainly been driven by steep increases in the prices of maize, tomatoes and sugar. This, she said, is suffocating families, particularly those already teetering on the edge of poverty. Said Nyirongo: “For a Malawian family, struggling to make ends meet on a meagre income, these price hikes represent more than just numbers. “They represent hunger, missed meals, and the reality that tomorrow’s meal may be out of reach.” According to N...

Ghana's government has taken a bold step to ease economic hardship by removing several taxes introduced during the COVID-19 era. The decision, outlined in the 2025 budget, aims to provide financial relief to citizens and businesses struggling with rising inflation and currency depreciation. The eliminated taxes, labeled as "nuisance taxes," include a 1% levy on mobile money transactions, a value-added tax (VAT) on motor vehicle insurance, a 10% tax on lottery winnings, an emissions levy on vehicles and industries, and a 1.5% tax on unprocessed gold from small-scale miners. Finance Minister Cassiel Ato Forson assured lawmakers that alternative strategies are being developed to enhance tax collection without increasing the fiscal burden on citizens. The government plans to amend the Revenue Administration Act to generate additional revenue, amounting to 0.3% of GDP. To compensate for the lost revenue, the government will reinstate road tolls this year as part of an infrastr...

Malawi's foreign exchange reserves have received a much-needed boost, increasing by 7.47% to $570.6 million in January. This development has brought a sigh of relief to entrepreneurs, particularly small-scale ones, who have been struggling to access foreign exchange. The improvement in forex reserves is attributed to a rise in exports, particularly tobacco, tea, macadamia nuts, and rubber, which grew by 33.7% to $86.4 million. This increase, coupled with a marginal 1.3% rise in imports, has helped narrow the trade deficit from $250.3 million in December 2024 to $187.2 million. However, despite this modest improvement, Malawi's forex challenges persist. The country's forex reserves remain below the recommended 3.9 months of import cover, and the trade gap remains wider than the same period last year. Local businesses have expressed concerns about the limited foreign exchange reserves, which have constrained their ability to import goods. Chindikani Investments founder Martha...

  Gladys Ganda, Chairperson of the Parliamentary Budget and Finance Committee, has strongly criticized the 3.2% economic projections outlined by Minister of Finance Simplex Chithyola Banda in his Budget Statement. Ganda likened the projections to a "whitewashed tomb" - outwardly appealing but inwardly flawed. Speaking in Parliament on March 17, 2025, Ganda condemned the government's economic policies, which she believes have led to persistent borrowing, overspending, and inflationary pressure. Malawi's inflation rate currently stands at 32.3%, with a budget deficit forecasted at MK2.473 trillion and a national debt of MK16.19 trillion. Ganda emphasized the need for a more strategic approach to resource allocation, focusing on initiatives that yield tangible results. She also expressed concern over the recent volatility in foreign financing, particularly the withdrawal of funding by donors like USAID. However, Ganda welcomed some of the government's tax measures, s...

Malawi's fuel supply is secure, thanks to the Malawi Energy Regulatory Authority's (Mera) efforts to ensure a steady importation of fuel stocks. Mera has assured the public that there's no need to worry about fuel shortages, as importers are loading fuel from various ports, including Beira in Mozambique, Dar es Salaam in Tanzania, and Tanga in Tanzania. The government is also working hard to establish a reliable fuel supply chain. A team led by Ministry of Energy Principal Secretary Alfonso Chikuni is negotiating with fuel suppliers in the United Arab Emirates (UAE) to secure a government-to-government (G2G) arrangement. These discussions aim to establish a stable fuel supply cooperation between Malawi and the UAE. In fact, Malawi has already benefited from a similar G2G arrangement with Kenya, which resulted in the procurement of 40,000 metric tonnes of diesel and petrol. The first tanker arrived at Songwe Border on January 4, 2025, and another vessel is expected to dock a...

  Malawi's Minister of Trade, Vitumbiko Mumba, has taken a bold stance against unfair treatment of local businesses. During a visit to Mach Milk Company in Blantyre, Mumba expressed outrage over the challenges faced by the company, including being forced to pay K500,000 to Sana at Ginnery Corner to stock their products ¹. Mumba emphasized the importance of supporting local companies, stating that they reduce imports and produce high-quality products. He condemned the unfair treatment of Mach Milk Company, particularly by Sana, and demanded a refund with interest and inflation consideration. The Minister's actions demonstrate his commitment to promoting local businesses and ensuring a level playing field. He has also directed his office to address issues with ESCOM and the Malawi Revenue Authority (MRA) to support Small and Medium Enterprises (SMEs). Mach Milk Company's Managing Director, Madalitso Phiri, welcomed the government's intervention, citing the challenges of o...

 Illovo Sugar Malawi has sparked outrage with its decision to hike sugar prices by 15% to MK3,000 per kilogram, despite the country's economic crisis. The company's Acting CEO, Jimmy Mpunga, justified the increase, citing high inflation and the depreciation of the Malawi Kwacha. However, the Consumers Association of Malawi (CAMA) has slammed the decision, accusing Illovo of insensitivity and the Ministry of Trade of approving the price hike without considering the impact on consumers. CAMA Executive Director, John Kapito, questioned the ministry's wisdom in allowing traders to sell sugar at higher prices when they had bought it at lower prices. Kapito also pointed out that Illovo is not currently producing sugar, and the price hike only benefits traders who are hoarding sugar. He appealed to the Competition an d Fair Trade Commission (CFTC) to inform consumers which sugar Illovo has increased in price, considering they are out of season. The price hike has come under fire, ...

Malawi's 2025-26 National Budget has been tabled in Parliament, with a total expenditure of K8 trillion. The proposed fiscal plan aims to stabilize the economy, which has been struggling with slow growth, high inflation, and a growing debt portfolio. The budget projects economic growth to increase by 3.4% from the previous year's 1.8%, with domestic revenue targeting K4.44 trillion. However, the budget also reveals a significant deficit of K2.47 trillion, which will be financed through borrowing from domestic and foreign markets. The interest on debt will take up K2.17 trillion of the recurrent expenditures, an equivalent of 49.2% of domestic revenues. This is an increase from K1.46 trillion in the fiscal year ending on March 31, 2025. Total public debt stood at K16.19 trillion, an equivalent of 86.4% of GDP, comprising K7.39 trillion in external debt and K8.79 trillion in domestic debt as of September 2024. The government plans to borrow K2.33 trillion from the domestic market...

MultiChoice Malawi has announced a significant price increase for its GOtv and DStv packages, effective April 1, 2025. The price hike is expected to put additional financial pressure on consumers. The GOtv Supa+ package will now cost K59,500, up from K49,500. The GOtv Supa package has increased from K35,500 to K42,500, while the GOtv Lite package will now cost K5,500, up from K4,500. On the DStv platform, the Premium package has increased from K115,000 to K138,000. The Compact Plus package has risen from K76,000 to K90,000, while the DStv Kufewa package now costs K13,800, up from K11,500. This price hike comes less than a year after the company's last increase in August 2024. With the cost of living already high in Malawi, these increases may force some customers to reconsider their entertainment choices. MultiChoice Malawi has justified the price increases as necessary for maintaining service quality. However, subscribers will now have to weigh the cost of their entertainment choi...

Malawi's fuel pricing controversy has taken a new turn, with the Department of Road Traffic and Safety Services (DRTSS) questioning the government's decision to keep fuel prices artificially low. This move has resulted in a significant revenue shortfall for the DRTSS, with a whopping K10.2 billion missed revenue target in the 2023/24 financial year. The issue began when President Lazarus Chakwera rejected the Malawi Energy Regulatory Authority's (Mera) proposal to increase fuel prices, citing concerns about inflation. However, this decision has had unintended consequences, including a decline in the DRTSS's revenue collection. According to the 2025 Annual Economic Report, the DRTSS collected only K7.89 billion as of November 2024, a mere 65% of the projected K12.1 billion. Experts warn that artificially low fuel prices will drain Malawi's forex reserves and boost fuel demand, exacerbating forex scarcity. Catholic University economics lecturer Derrick Thomo suggests ...

Malawi's government has taken a bold step to revitalize the country's economy by introducing a cheaper dollar scheme. This innovative approach aims to stabilize the foreign exchange market, which has been plagued by shortages and skyrocketing prices. By making dollars more accessible and affordable, the government is directly addressing the needs of key sectors, such as agriculture, manufacturing, and tourism. This strategic move is expected to have a ripple effect, boosting economic growth, creating jobs, and increasing competitiveness. The initial results are promising, with the dollar's value plummeting from K5,000 to K3,000 over the weekend. This significant drop is a clear indication that the government's intervention is working, and the foreign exchange market is slowly returning to normal. Moreover, the cheaper dollar scheme is also expected to curb the thriving black market, where dollars were being sold at exorbitant rates. By providing a legitimate and afforda...