Despite the economic downturn which has resulted in fuel and forex scarcity in the country, Finca Malawi has registered a MK4.1 billion profit after tax in 2025, up from MK1.2 billion in 2024 representing 226 percent profit.

The Company’s Chief Executive Officer (CEO) Charles Anderson Bello revealed this in Blantyre during a media briefing where he said that the company has also registered a deposit book growth of MK17.8 billion representing 76 percent growth.

Bello attributed the growth to a move by the company to reduce the interest rate and the confidence that the customers have toward the company.

“Yes there are problems within the market which has also impacted our customers. There is acute shortage of forex which is a driver for our customers to do business especially for those who do cross-border business but what we have seen is that we did reduce our interest rate to cushion our customers and this has resulted in the number of our customers growing.

“Overall, it’s more of the confidence that customers have on finca, we are flexible and if customers are in distress we are able to talk to them and restructure their loans,” said Bello.

He further explained that the company has also created products that resonates well with the customers hence the growth.

In 2025, the company also registered a loan book expansion to MK39.3 billion representing 61 percent growth and Interest income jumped to MK24.1 billion representing 49 percent growth.

The company’s asset grew to MK48 billion representing 42 percent growth.

FINCA Malawi has since promised to come up with more affordable products to customers across the country.

Despite the economic downturn the country is going through as a result of forex scarcity, CDH Investment Bank has registered a remarkable increase in profit after tax by 120 percent for the half year ended 30 June 2025.

In a statement made available to this publication, the bank’s profit has jumped to MK18.3 billion from K8.3 billion recorded during the same period in 2024.

The bank has attributed the rise to the expansion of the average interest-earning assets, with notable increases across the customer loans and advances portfolios and coupled with improved fixed income trading activities and margins.

It is said that the strong performance was driven by significant growth in both net interest income and non-interest income, which rose by 56% and 171% respectively.

“Total assets grew by 60%, from K476.8 billion in June 2024 to K764.0 billion in June 2025.

“This was largely driven by a 71% increase in financial assets at fair value through profit or loss, a 68% rise in investments in fixed income securities at amortized cost, and a 32% increase in loans and advances to customers. These gains were supported by a 58% growth in investment funds and an 80% increase in customer deposits,” reads in part the statement.

The bank also reported a customer loans-to-deposits ratio of 51%, while the total loans-to-funding base ratio was 77%.

Added the statement: “Liquidity levels remained strong, highlighted by a Liquidity Coverage ratio of 205%. Shareholders’ equity increased by 68% to K54 billion. The strengthened capital position was driven by higher retained earnings and effective risk-weighted assets management, resulting in a Capital Adequacy Ratio of 24% and Tier 1 Ratio of 24%.”

Commenting on the statement CDH Investment Bank Chief Executive Officer and Managing Director Thoko Mkavea said the bank’s strategic focus will remain strengthening investment in staff development to build a future-ready workforce.
“The bank will maintain a cautious yet proactive approach, prioritising robust risk management and operational excellence.

“Its strategic focus will remain strengthening investment in staff development to build a future-ready workforce, expanding digital banking and fintech capabilities to enhance customer experience while deepening client relationships through customized financial solutions, its forte in the financial services sector in Malawi”, he said.

CDH Investment bank opened for business in Malawi on 2nd April 2012 following the successful conversion from Continental Discount House Limited (CDH) which had operated in the financial sector for 14 years since August 1998.

The Blantyre Synod of the Church of Central African Presbytery (CCAP) has blasted the government of President Dr. Lazarus Chakwera over numerous challenges locking the country.

In a Pastoral letter released and signed by Blantyre Synod general secretary Anderson Juma and synod moderator Humphreys Zgambo, the church claim that Maize scarcity and fuel crisis has negatively affected the lives of many Malawians

“We have observed that life for the majority of Malawians is being threatened by the looming hunger due to non-availability of maize stocks in Admarc [Agricultural Development and Marketing Corporation] depots. While the government continues to paint a rosy picture of the situation, we have observed, through our research, that on the ground the hunger situation has reached alarming levels,” the letter reads in part.

The synod also says it is not amused with forex supply and other economic challenges.

“We have observed, with concern, the continued and unresolved economic challenges manifested in the rising prices of basic commodities due to, among other factors, scarcity of forex,” added the letter.

Below is the Pastoral letter;

By Our reporter

Some financial experts have expressed their dissatisfaction and worries on how government is handling issues of fuel shortages in the country describing it as a joke.

The development follows the outcome of the Wednesday’s government presser on fuel shortages.

Government said the problem is due to low fuel supply which has been affected by forex shortages and that the M1 road around Chiweta was impassable for trucks.

“For ten days, suppliers stopped ferrying fuel because government failed to pay them. But we have disbursed some cash and we are about to obtain a $100 million facility from the Arab Bank for Economic Development in Africa for the same,” said Moses Kunkuyu who is government spokesperson.

However, a renowned financial expert as well as fuel consultant, Dr. Paul Gadama and a Mzuzu based financial analyst, Jackson Caesar-Msiska said number of the solutions that government have been providing have failed the country miserably.

According to them, the short term solutions for example have been the same and unfruitful.

Gadama said government is acting as it not aware that fuel scarcity is driving up transportation costs, food prices and business expenses which are contributing to sharp rise in inflation.

“The impassable of M1 road around Chiweta is an old song, so is the forex shortages. Soon you will hear the same song. We are just stuck as a country as far as fuel issues are concerned,” said Gadama.

Gadama said government need to negotiate with oil exporting countries, potentially entering forward agricultural contracts for next year’s produce.

“By offering future agricultural output in exchange for fuel, Malawi could secure critical fuel supplies without putting additional strain on the country’s already depleted foreign exchange reserve. This strategic approach would also help ensure a steady income stream for future, addressing both immediate shortage and the forex issue simultaneously,” he said.

He further urged government to prioritize forex allocation for fuel importers in collaboration with financial institutions.

“Additionally, a reduction in foreign travel by high ranking officials could help to preserve forex as these trips often lead to an influx of currency into the black market, further distortion the value of Malawi Kwacha,” he added.

Apart from that, Gadama said government should encourage private sector investment in fuel storage and refining facilities.

On long term solutions, Gadama said that Malawi should diversify its export base by moving beyond reliance on tobacco but focusing on agriculture, mining and manufacturing in order to boost forex reserve.

“Government must also invest in public transport infrastructure. Expand bus and train network would significantly reduce fuel demand. Apart from that, government should also promote electric vehicles,” he disclosed.

Msika on his said government should stop relying on loans.

But Minister of Information who is also government spokesperson said they’re doing everything to eliminate the problem through short and long term measures.

The current fuel shortages is expected to end this weekend according to government.

By Steven Godfrey Mkweteza

The country’s oldest sugar producer, Illovo sugar Malawi plc has assured the consumers in the country that the sugar scarcity problem will end in April this year once it has resumed production.

Managing director for the company Lekani Katandula made the assurance in Blantyre when the company was disseminating results of the half year performance to its shareholders.

“Our production for the year dropped due to economic shocks such as devaluation, forex issues, high cost of production and cyclones among others. This resulted into scarcity of sugar in the year, hence the price increases, “he said.

Katandula said over the years the company has been producing hundred and seventy tonnes of sugar for the year but now the production has dropped to around 77 percent.

“We are anticipating the production to be increased once we resume production in April this year. We are confident with the improved economic fundamentals now which has resulted into availability of forex and power. However, our threat is in the current weather conditions the country is country facing, “he said.

According to Katandula, high levels of smuggling of sugar into other neighbouring countries had also resulted in sugar scarcity in the country.

Katandula noted that the low cost of sugar in the country as s compared to the neighbouring countries necessitated the high levels of smuggling.

Among others, Katandula revealed plans to venture into cotton production as a diversification initiative
“We want to remain resilient by venturing into programs that will support our sugar production in times of economic shocks. This will help to reduce the forex challenges as we will be exporting to other countries,” he said.

However, the managing director also disclosed that the company has paused its power generation project due to some other challenges.

Illovo sugar group operates in seven countries and has a total of 34,000 hectares in its nchalo and Dwangwa estates.

Minister of Information and Digitalisation Moses Kunkuyu has told journalists in Lilongwe that fuel shortage is going to normalise by Wednesday next week as the country has started receiving more supplies from today.

According to Kunkuyu forex challenges in the country disrupted fuel procurement which has affected the flow of fuel to Malawi.

The Information Minister further said since January, fuel reserves in the country dropped to about 20 percent as the scarcity of forex forced the country to procure from the available resources.

Kunkuyu said 495 thousand litres of fuel have arrived in the country and more tankers are on their way from Beira in Mozambique and Daresalaam in Tanzania.

The minister explained that a team of fuel stakeholders officials went to negotiate on the mode of payment since the country is still struggling to get forex.

There are many people in modern reality who want to obtain financial freedom and escape 9 to 5 job lifestyle. One of the options is forex trading. It is possible for anyone to experience success in the currency markets – regardless of their budget size or level of knowledge.

Let’s figure out what you have to do in order to start your journey in the world of forex – from choosing a reliable broker like HFM to an effective strategy in order to achieve financial freedom through forex.

What is forex trading?
The Forex market is an immense force in the global financial system, boasting a daily trading volume of astounding proportions – more than $5 trillion. It includes individuals, banks, corporations, and governments that trade currencies for a variety of reasons, such as international trade, tourism, and investment.

Respectively, forex trading (also known as currency trading) is the act of buying and selling currencies with the aim of making a profit from fluctuations in exchange rates. Forex trading involves the exchange of one currency for another at an agreed exchange rate, and it is a global, decentralized market that operates 24 hours a day, 5 days a week.

How to start forex trading?
Despite the doubts of many beginners, getting started in trading does not have to be complicated. Just follow some simple steps below and success can soon be yours.

1. Start from principles
To become a successful trader, it is essential to understand the fundamentals such as supply and demand. Exploring educational resources like reading materials, videos, and podcasts can equip you with all the necessary tools that will make trading easier in real-time. Moreover, practicing on demo accounts provides an opportunity to gain valuable experience before entering live markets.

2. Choose a reliable broker
Choosing a reliable and experienced broker is key to successful trading in today’s market, which can be daunting with so many scams around. To make sure you get the best out of your trades, consider these aspects when selecting one:
1. license availability
2. leverage
3. competitive trading conditions
4. a range of instruments
5. platforms on offer
3. Choose a trading platform
While making a decision, consider factors such as charts and signals offered, security level, or user-friendliness before selecting one that meets your individual needs.

4. Choose a trading strategy
Trading strategies are essential for any trader in the Forex market, as they provide a clear plan of action that can be implemented when conditions change. Choosing your strategy carefully will ensure you have an edge over other traders and give yourself a better chance at success.

5. Manage the risks
Having a clear understanding of your ‘’risk money’’ – the amount you can afford to lose without compromising your lifestyle – is an essential part of smart forex trading. To protect against potential losses, take reasonable precautions when trading and managing risks in order to minimize any negative impact on earnings.

Conclusion
By now, you should have gained a better understanding of how forex trading works and how to get started. Trading in forex can also build a strong foundation for financial freedom and offer traders plenty of options to diversify their portfolios. If you are ready to take on the challenge, it’s time to start learning the basics of forex trading today.

Forex, also referred to as FX, is the foreign exchange market on which currencies are bought and sold. It is the largest global market and is completely decentralized with no central regulatory body in charge. Instead, each country has its own regulatory bodies that oversee its own trading systems, making and enforcing its own rules and regulations.

Until the advent of the internet, the foreign exchange market was largely presided over by banks and other large financial institutions. This meant that individuals were reliant on third parties to convert currencies on their behalf, attracting relatively poor rates and paying the fees and costs associated with each transaction.

However, since the proliferation of the internet, individuals now have the ability to track currency values and manage forex trading accounts themselves. Because the forex market doesn’t rely on third parties such as clearing houses and brokerages, the costs of completing transactions are relatively low, making the forex market an attractive prospect to new investors.

The international appeal of forex trading

For those that like to keep up with international events, the forex market can be a profitable choice as it allows traders the opportunity to capitalize on their knowledge of global news. Although research is always important, anyone who already has an understanding of the economic forces that drive change could make money in forex.

The nature of the foreign exchange market means that many of the things that affect a currency’s performance come under the heading of national and international news. Big events will often provoke fluctuations in currency value, including:

• General elections
• Legislative changes
• Civil unrest
• Changes to heads of state
• Discovery of natural resources
• Hosting international events
• The performance of the tourism market

Traders all over the world make predictions about currencies’ performance, and the marketplace is open twenty-four hours a day, Monday to Friday, so it’s possible to take advantage of breaking news, wherever it’s happening in the world.

Forex trading around the world

Because each country regulates its own forex industry, the rules about how forex is treated for tax purposes vary significantly. In South Africa, individuals that make a profit on forex trading are required to declare it on their usual tax return.

If you are a South African taxpayer that wants to trade in forex, then you will pay tax on your profits at the rate that applies based on your total income. Residents are taxed based on where they reside rather than where the income is generated, and this means that all forex income should be declared.

Do you want to know which broker is best for a ZAR account? Check reviews and pick one that scores highly in the areas that are most important to you, whether that’s low fees, handling cryptocurrencies, or excellent customer service.

While most countries treat forex incomes as taxable like South Africa, there are some that do not impose any capital gains tax on profits generated from foreign exchange trading. These include:

• New Zealand
• Switzerland
• Honk Kong
• Oman
• Brunei
• United Arab Emirates
• Belgium
• Malaysia
• Belize
• Bahamas

Is tax on forex income fair?

While some countries do not tax their citizens’ forex income, there are plenty of arguments in favor of the South African approach to taxation. The ubiquity of forex income taxation suggests that most countries treat forex trading like any other income-generating activity and tax it accordingly.

However, some argue that to treat forex investment profits as taxable should mean that losses are deductible, which they are not in most cases. This inconsistent approach could potentially be contested in court, as in countries such as the UK where spread betting is explicitly tax-free but revolves around identical mechanisms to the forex market.

Trading forex in South Africa

Forex traders in South Africa can take advantage of the relatively volatile market and the opportunities that offers. Because of the fast pace and high liquidity of the forex market, traders with limited budgets can still get a piece of the action, and it’s possible to cash out at any time.

Whether you want to make some money in addition to your regular job, or you want to change careers and trade full time, it is important to do your research into the foreign exchange market. Because things can change quickly, you need a system that you can trust, so make sure that you choose a broker who can give you the level of service that suits you.

Traders that are completely new to the market can view historic market data and gain useful insight from the ability to keep an eye on global events and move quickly when they spot an opportunity.

Kenyan Airways has suspended ticket issuance authority in the Malawi market with immediate effect.

According to a statement issued by the Kenya Airways, this is due to increasing foreign currency repatriation difficulties experienced in the country.

“Kenya Airways regret to inform our Trade Partners that Kenya Airways has suspended ticket issuance authority in the Malawi market,” read part of the statement.

The statement continued that ticketing Authority for all agents (including KQ CTOs and ATOs) in Malawi shall be withdrawn until further notice.

This comes barely a day after Ethiopian Airlines did the same.

Malawians who buy Japanese cars on the internet can now have all the reason to smile after it has been revealed that Be Forward, a leading Japanese Car Exporter Company is planning to open its offices in the country following the deal signed by Malawi government.

The deal will help Malawians not to be affected by forex scarcity as they will be allowed to buying the cars using the local currency.

The deal was enhanced by Malawi Ambassador to Japan Reuben Ngwenya.

Ngwenya disclosed the news during his recent visit to the country and thanked the Company for its interest.

“Malawians import over 600 cars from Be Forward on monthly basis and we rarely receive complaints, unlike other car dealers,” said Ngwenya.

Ngwenya said that a deal was struck for the company to open an office, preferably in Lilongwe.
“This would help Malawians to pay for their cars in local currency and alleviate the burden of forex issues.

“The office would also enable that cars bought are delivered to Lilongwe by Be Forward staff,” adding that “this would be a cheaper delivery service than going to Tanzania as per current practice, “said the Ambassador.

Although other Malawians are happy with the new development, some cars dealers in the country have expressed worry over the coming in of the company saying, it will robe them off the business as many Malawians will be rushing to the new Company because of cheap prices.

Meanwhile a new website where you can purchase used cars has been established in Malawi and running on this Facebook Page here.

Visit the page for more information http://www.cars265.com/

Fiscal police have today gone on a crackdown on forex parallel markets, weeks after donors froze their aid and a day after the IMF issued a statement that the nation is in a financial crisis.

Information gathered indicates that police have went on a full crackdown right from the capital city on all people that are involved in forex trading.

Commentators have predicted that the police clampdown on the parallel selling of forex signals the tough times ahead as predicted by the Minister of Finance and Reserve Bank of Malawi governor after the freezing of aid.

Under the reign of Bingu wa Mutharika, the same happened as there was a scarce shortage of forex which eventually translated into a shortage of almost everything.

Banks/Forex Bureaus are buying the US Dollar at MK320, Others at MK315 but when they want to sell to you, they are selling it at MK390 or MK385. Why the difference? Akungofuna kuwabera alimi afodya basi. Mtengo wogulitsira ndi wogulira sukuyenera kumasiyana kwambiri choncho

In 1995, in a speech at the United Nations World Women’s conference held in Beijing, China, renowned author and eminent speaker on African affairs, Wangari Maathai observes, “Africa has suffered from lack of enlightened leadership and a bad style of political and economic guidance. While African leaders could have excused themselves for being unable to protect their people from the exploits of colonial empires in the l9th and 20th centuries, they can hardly escape blame for allowing neo-colonial exploitation which continues to reduce many of their people into paupers in their own countries.

“During the past three decades, Africa suffered lack of visionary and altruistic leaders committed to the welfare of their own people. “

Invariably, the reason why African leaders have got away with this scathing indictment is that they have managed carefully to spin their economic development stories in the eyes of their people.

In public relations, spin is a form of propaganda, achieved through providing an interpretation of an event to persuade public opinion in favor or against a certain organization or public figure. Traditional public relations relies heavily on creative presentation of the facts, “spin” and often implies disingenuous, deceptive and/or highly manipulative tactics.

Recently in Malawi, in the face of severe economic hardship and an ominous economic growth prognosis for the foreseeable future, The Malawi Chamber of Commerce and Industry (MCCCI) was quoted as claiming that the economic reforms that critics have been against are actually the necessary cure for the country.

“So far the reforms have already brought fuel back to filling stations and foreign exchange is back. As a matter of fact reliable sources indicate that the demand for fuel has already dropped from a high of US$30 million per month when fuel prices were artificially controlled to about US$23 million per month now due the automatic pricing mechanism, another reform measure.

“This is an important efficiency measure of the reforms. One now cannot just decide to drive out without a justification! In addition government is not going creating another liability to oil importers. Remember that government owes about K24 billion (the amount may be slightly lower now) because of accumulation of shortfalls arising from controlled fuel prices,” said MCCI’s Chancellor Kaferapanjira, a well-known government sympathizer.

Mr Kaferapanjira was in fact dancing to the political drum by presenting the facts in a manner that favored the government- an old trick in the spin-doctor’s book.

Although it cannot be disputed that the reforms were necessary, the spin regarding their impact ought to be obvious. Surely a much thorough study would be needed in order to determine whether the so called fuel and forex availability are not just a result of the fact that they are now very expensive and Malawians cannot afford them.

Kaferapanjira’s economics is suspect because in order to come to the conclusion he was preaching, the government has tampered with so many macroeconomic variables (on the money supply side). The truth of the matter is that there is still a pathetic fiscal management team that is unable to put out coherent ideas to move Malawi out of its excess consumption of foreign goods. In essence what the monetary authorities have been doing so far is to say “since we cant produce, then we must not eat” which is in sharp contrast to the policy regime that has been replaced which was “we will eat whatever we want but we will not produce”. The fact of the matter is that forex will always be available if its price is raised beyond reach and is too expensive to obtain. Likewise fuel.

In any case, the much-touted foreign exchange is not as much as presented. To put this in context, the Malawian situation cannot even be described as hand to mouth but rather, IMF’s hand to Malawian Mouth. Hence the bigger picture is that we are far from being out of a very vulnerable situation. In the long term, Malawi will continue borrowing and accepting all conditions from our lenders because we have no choice and the only one to have benefited will be President Joyce Banda and her supporters. Having to borrow from Botswana a meager US $10 million speaks volumes about the real success of Banda’s so called successful reforms.

As pointed out, during the Mutharika administration, Malawi was experiencing the very opposite of this situation, which was also problematic. While Malawians enjoyed an unprecedented level of welfare, particularly in the first period, this was primarily due to heavy subsidies on imports as a consequence of the fixed and over-valued currency. During the Mutharika administration, basic welfare indicators such as per capita income, infant mortality rates and use of health services increased significantly. Of course while dancing to the tune of donors, there was no problem in covering this excess demand for imports, but the situation was exposed when relations soured. Hence balancing these two extremes in a manner that reduces misery and leads to economic stability is the essence of astute macroeconomic and financial management. In short, Malawi’s problem, a problem in most of the developing world, is that it cannot produce what its consumes, and the traditional agricultural and the relatively underdeveloped mining sectors cannot generate the necessary export revenues to cover the consumption of basic imports. This is nothing new to the Malawi leadership but the puzzle remains why is the Government ignoring reforms on the production (supply) side of the economy?

The answer rests in the fact that such reforms will conflict with political interests. In Malawi, politicians see government coffers as personal money reserves and are unwilling to let anything drain their “sacred pot”. And to support their paymasters, the government spinners then have to deliberately use simple indicators like fuel and forex to show progress just because there was a fuel and forex crisis before Mutharika’s death. They will ignore all other economic indicators such as high inflation and high bank lending rates, and a worsening level of welfare. With the devaluation and floatation of the kwacha, and the subsequent inflation, what is being ignored is that real disposable incomes at the household level have been reduced tremendously and people can hardly afford even basic commodities. All this is in the background that over 70% of the Malawi population lives on less than 1.5 dollars a day. Thus although the old forex and fuel story is irrelevant in the present period, it is the story that the government will continue to spin to the common man even though it is that same common man that is staging strikes and protests demanding higher pay. Is it not then surprising it is only the government and its sympathizers who see progress and not anybody else?

Although some perceptive African visionaries such the late Bingu wa Mutharika have stated that Africa knows its problems and their solutions, and that we have simple problems that simply require simple but consistent solutions, selfishness and greed are the main culprits and enemies of Africa’s economic growth prospects.

For instance, Malawi is a land-locked country. In Malawi, former president Bakili Muluzi was happy to let go to waste the railway line linking Malawi to Mozambique because he stood personally to gain from road transportation. In setting up the Railway line, Hastings Kamuzu Banda had understood that the railway was the lifeline for industrialization for a land-locked country like Malawi. The selfish pulverization of the rail service meant that Malawi’s 15 million now people have to be supplied by road direct from South Africa or Tanzania. In Malawi, fuel, which used to come in great volumes by rail, now has to come on trucks (each track requiring its own supplies), fertilizer and other imports also must come on trucks, and for the Malawian industry, bulky raw materials have to come by road.

What connects all this to government spin and to the observations by Wangari Maathai is the fact that to the government, the story of this sad state of affairs is told as economic growth, and that in the background the key road transporters in each government are people that support the government and pay premiums into the bank accounts of the leadership. The leaders are then happy to watch this level of greed that is in the process costing lives (yes the shorter life expectancies that are a consequence of our underdevelopment), and spin with impunity stories of economic achievement. The so-called reforms that the Malawi government and its sympathizers are applauding are simply instructions from IMF. They were followed to the letter, and are now being rewarded with loans that are far too meager to solve the problems. President Banda’s administration has not articulated any holistic reforms that will take Malawi out of the economic mess. To be sure, the little forex that the IMF has given is being used to buy luxury cars, to finance presidential globetrotting and on many other extravagant things. The Malawian situation is quite simply not sustainable. Already, SMEs are closing shops and some are surviving by charging goods in Dollars and Rands, further punishing consumers.

Spinning the stories economic growth for political advantage at the expense of the people is a problem across Africa. African governments engage government sympathizing economists and so called experts to spin economic stories for political advantage, and with no other aim than to deceive their own people and remain in power. It is an abuse of democracy and indeed an immorality of the highest order. The Malawi Chamber of Commerce needed to appreciate the fact that what is obtaining in Malawi is a case of “reforms” that should have been simultaneously pursued alongside supply side reforms.

With the kind of self-serving policies the Malawi Government is pursuing, what is happening is a tuning down of the Malawian economy to a level of misery which, with clever spinning, the government hopes will soon be accepted by the people to the point that it can claim that Malawi is “an improved” state. – By Z. Allan Ntata

Yes if those hopes were making fuel available with prices that go up every fortnight.

Yes if those hopes were making forex available with the Malawi money reaching 40% devaluation rate.

Yes if those hopes included interfering with drug procurement leaving Malawians dying of curable diseases.

Yes if those hopes included embracing the IMF at the expense of the poor of the poorest.

Yes if those hopes included her internal & international thoughtless traveling spending when maize is being rationed and people spending days on a line to get the little rationed maize.

Yes if those hopes included about 80 thousand metric tones of maize going missing unexplained from the National Food Reserve Agency & 60,000 tones going bad in silos.

Yes if that includes the president taking trips abroad when civil servants, nurses & doctors included went on strike.

If there is any hope left for Malawi, it is that 2014 are elections coming up. My biggest regret is the picture she has painted for aspiring women leaders.

To the west world she’s an angel, to us, the people she’s leading, only God knows we can’t wait for 2014 elections. It’s been the longest year ever & we still have a long way to go. – By Doreen Jessica, Responding to the BBC Debate, April 5, 2013.

Malawi Government has depleted the K1.1 billion (about $3.06 million) budget for compensations in the 2012/13 fiscal year.

According to a payment schedule we have seen, K1 624 125 983.87 (about $4.5 million) had been paid in compensations by February end this year against the budgeted K1 129 839 325 (about $3.14 million). The Ministry of Finance has confirmed these figures.

This means that by mid-year, government had overspent this vote by K500 million (about $1.39 million).

We have also established that by the end of this financial year, over K7 billion (about $19.4 million) is expected to be paid on compensations—money enough to put 87 500 HIV-positive people on ARVs for 12 months.

These payouts—including the K7 billion total —only concerns breach of contract cases with individuals and companies outside government as well as human rights violations such as unlawful arrests.

The figure, therefore, excludes the hundreds of millions government agreed to pay public officers that the Joyce Banda administration fired illegally and whose payments Finance Minister Dr Ken Lipenga last week said Capital Hill has stopped because they will be challenged in court.

Government has since asked Attorney General Anthony Kamanga to renegotiate compensations to former public servants such as former Admarc chief Charles Matabwa (K82 million), former Anti-Corruption Bureau director Alex Nampota (K70 million), former Reserve Bank of Malawi governor Dr Perks Ligoya (K49 million), former MBC head Bright Malopa (K40 million) and former Malawi Revenue Authority commissioner general Lloyd Muhara (K25 million).

According to the payment schedule we have seen, government is expected to pay out K7 154 559 550.38 by the end of the 2012/13 fiscal year to over 30 companies and individuals deemed to have been wronged by the State.

Treasury spokesperson Nations Msowoya confirmed the figures, including a remainder of K5.5 billion meant to be paid by the end of the fiscal year. He said the Ministry of Finance is not sure where government will get the money to clear the balance.

In an interview on Wednesday, he said: “We have nowhere to get the money if nothing comes from the current midterm budget review process.”

“If anything, they will be paid in the next fiscal year,” Msowoya said.

Asked how government can avoid these payouts in the age of austerity, Msowoya said “doing a thorough job would help”.

“There should be proper exit and appraisal clauses in these contracts. That would help a lot,” he said.

What K7 billion can do

Malawi, a donor-dependent nation, still has most of its essential services free or subsidised for its citizens.

According to documents we have seen, government pays K2 670 for a 2kg bag of legume seed— which cost K 3 170 on commercial market—to allow poor farmers buy it at K500 under the Farm Input Subsidy Programme (Fisp).

Therefore, by saving K7 billion paid out in compensations, government might have subsidised legume seed for 2 621 729 poor farming families.

In Health, spokesperson Henry Chimbali said it costs $200 (K80 000) for government to put one HIV-positive person on ARVs for 12 months.

With K7 billion, government would potentially have prolonged 87 500 lives in 12 months.

In the transport sector, figures at Treasury show that it costs about $800 000 (K3.2 billion) at present K400 exchange rate, to build a kilometre of M1-like highway.

On the other hand, Roads Authority (RA) publicist Portia Kajanga said it costs K4.1 million to gravel a rural road on the minimum.

So, with K7 billion, government would be able to grave and make passable roads to a length of 1 556km. The longest distance between Malawi towns is Nsanje to Chitipa at 1 083km.

Controversial payments

While a number of individuals may have been or will have to be rightfully paid for wrongs inflicted on them by government, some payouts are controversial.

For example, government is compensating Glens Waterways with K900 million for breach of contract.

In 2008, government terminated a 20-year long concession to run the country’s water transport system with Glens Waterways after six years of operation because, according to director of Marine Services Leston Makuzula, the concessionaire had breached the contract.

But Glens Waterways owner, business tycoon Kassam Okhai, sued government for the move, also citing breach of contract.

Glens also claimed they had purchased land meant to be developed into a port at Ngala in Nkhata Bay and other places which required compensation.

Initially, they demanded K3 billion, which was rejected by the government’s Compensations Committee. The committee pushed the ball back to the Ministry of Justice to renegotiate, hence the K900 million.

But Makuzula thinks that the company was in more breach of contract because they had not managed to do a number of agreed items.

“In the concession, there were obligations for both parties. Key among them was the issue of maintenance of assets and investment into the subsector which was not done by the concessionaire,” he said.

“After a review, it was found that the obligations were not being met. In brief, the concessionaire was not operating according to conditions of the concession,” he added.

Glens Waterways also left debts which, in the new concession entered into with Malawi Lake Services Company, will have to be sorted out by the Malawi Government.

The water transport management concession was in March 2012 given to Malawi Lake Services Company owned by Mota Engil for a 35-year long agreement based on the similar conditions as Glens Waterways.

But Glens Waterways lawyer Mauya Msuku brushed aside any argument that the company was not performing, arguing that “at the start of the 20-year concession [in 2002], Glens found only one vessel running, but there were 10 running when government terminated the contract.”

He added that his client has made “massive investment” and “it will be surprising to hear any more arguments because to us, this is a closed matter.”

During the court hearing, government, through office of the Attorney General, brought five witnesses who all failed to prove any wrongdoing on the part of Glens, according to the lawyer.

So far, Msowoya confirmed that Glens has already been paid K350 million, leaving a remainder of K550 million.

Glens Waterways is second of the top three supposed victims of government misconduct in terms of awarded damages.

Topping the list is Deco—the company stopped from constructing the New Parliament Building when Malawi switched diplomatic ties from Taiwan to China. It was awarded about K2.9 billion.

On third position is Victoria Forex Bureau who sued for loss of business after Reserve Bank of Malawi closed down private forex businesses. They have already been paid K840 million. – Weekend Nation

As this year’s tobacco selling season starts this Monday, March 11, regulator Tobacco Control Commission -TCC- says production for the green gold has doubled this year.

This is according to the second assessment results the commission issued over the week end and that the increase is attributed to good prices the leaf attracted in the previous marketing season.

Commencement of the market offers hope to the forex starved southern African country as the green gold remains the country’s major forex earner.

“Last year the country produced about 62 million kilograms of tobacco but this year we are looking at doubling to 130 million kilograms. For flue cured tobacco, last year we sold about 12 million and this year we have produced between 16 and 17 million kilograms,” said Dr Bruce Munthali in an interview.

He said production of the dark fire cured tobacco is also reported to have gone up from 2 million kilograms to over 4 million kilograms.

The TCC Chief expressed optimism that average earnings from the green leaf are in turn likely to go up compared to last year.

“Buyers are more than ready to offer competitive prices on the market this year. In that case we expect effective competition from buyers,” hinted Dr Munthali.

Most recent statistics indicate that tobacco accounts for about 13 percent of the national economy

The family-based criminal syndicate known as the Mafia that originated in southern Italy in mid 19th century had a very interesting expression to describe the various levies on businesses that they criminally imposed in return for protection: We have to wet our beaks.

I was reminded of the expression this week when I saw the exchange of words between President Joyce Banda and some MPs over their demand to be paid fuel allowances worth K10 million each dating back to 2009.

While the President’s argument that government cannot afford the colossal sums involved in this madness because of the rotten economic situation should make sense, it cannot hold water in the eyes of many Malawians as she has not shown leadership in preaching and practising austerity herself.

As one MP argued, this seeking of public sympathy can only resonate with the President’s own supporters on the government gravy train, not the rest of us.

What is happening is that MPs simply want to “wet their beaks”, seeing how others, including the President, herself, are having the ride of their time while poor Malawians continue bearing the full brunt of their reckless policies.

How can the President, for example, justify blowing K34 million to go to a country that few Malawians would recognise on the map of Africa? In whose benefit was her trip to Equatorial Guinea whose only value was completing the quorum for a talk shop with South America?

Worse still, while the State House operatives were eager to lie to Malawians that the razzmatazz was fully paid for by that country, my Weekend Nation once again exposed the crookedness to the public when it was tipped off by some noble Malawians showing that actually the jolly ride cost the public purse a cool K34 million in the much-needed foreign currency.

Coming at a time when the country is reeling from lack of forex and drugs and civil servants crying for better pay that even forced school children to try to march to Sanjika to demand their right to education, this is a stinker that exposes the kind of leadership that we have in Malawi.

But in the President’s wisdom, Malawians should be grateful and stop worrying about the K34 million she blew because she struck a deal with her counterpart in Equatorial Guinea that the country should export tomatoes.

The English have a hackneyed saying that the proof of the pudding is in the eating. Malawians should only believe in this cover-up when exporters tell us that they have exported the tomatoes and forex has been banked.

I have serious difficulties in believing something that the President herself doubted when she told the nation the obvious fact that there are no direct flights between Equatorial Guinea and Malawi to transport the tomato, a highly perishable product.

It was merely a justification for blowing colossal sums of money at a time some Malawians can hardly afford a bar of Maluwa soap or a proverbial pinch of salt due to the poor economic policies adopted by the People’s Party administration in the name of reforming the economy.

As for MPs demands, they are simply following the lead from the President. They, too, want to “wet their beaks” in the pot of money coming from poor people’s tax. They do not see why they should be excluded from this jamboree and loot of the public purse when their colleagues are enjoying the free ride.

But our politicians must know that Malawians are not drooling idiots. The signs of a frustrated population are there for all to see. When you have strikes with children marching to the State House, forging of presidential resignation letters and people willing to expose the State House, you better watch your step.

Banda and her government better take heed. They can do better than cover a K34 million lie with tomato.

Over-expenditure in government has been blamed for worsening the depreciation of the Malawi kwacha whose rollercoaster fall saw it slipping to a record K395 to one United States dollar yesterday in various banks in the country.

Meanwhile, the Consumers Association of Malawi (Cama) has blamed President Joyce Banda’s frequent travels for the excessive expenditure in government.

The kwacha, which just two weeks ago was trading at an average of K370, was by the start of business yesterday selling at K395 at National Bank of Malawi while the Malawi Savings Bank was offering the green buck at K391.67.

Financial Market Dealers Association (Fimda) President Alfred Nhlema said yesterday while expected excessive demand of foreign currency over the lean period was the main reason for the sharp fall of kwacha, increased government expenditure was worsening the situation.

“We have noted that there is little fiscal restraint on the part of the authorities,” said Nhlema, adding: “The continued increase in government expenditure is exerting pressure on demand of foreign currency, thereby defeating the whole purpose of a tightened monetary policy stance.”

He said the situation requires a balancing act between fiscal and monetary discipline for the country to achieve a stable economy.

Nhlema said the market appreciates the authorities’ tight monetary stance.

However, Nhlema said a reasonable fall in the currency is usually expected at this time of which falls within the traditional lean period where export proceeds are at their lowest and import demand is normally at its peak.

He said the fall in the kwacha was also anticipated given that the central bank does not have sufficient reserves to intervene in the market to influence the price as it happens in other countries where the exchange rate is supported by weekly auctions.

He, however, predicted that the exchange rate will experience less pressure between the months of April and September 2013 due to an influx of tobacco dollars.

Nhlema said the kwacha is expected to stabilise up to May 2014 due to increased donor inflows for the support and running of the tripartite elections.

“That said, the economy needs to work on moving from a predominantly importing country to a predominantly exporting country to arrest this worrying occurrence in the long term,” said Nhlema.

Cama Executive Director John Kapito said yesterday President Joyce Banda’s frequent travels was one of the reasons government was spending excessively, thereby exerting more pressure on the country’s currency.

This is a very sad development as the continued floatation of the kwacha has not proven to be a solution to Malawi’s economic challenges,” said Kapito.

Ministry of Finance Spokesperson Nations Msowoya said he needed time to consult his superiors before commenting on the story.

Reserve Bank of Malawi governor Charles Chuka last year told reporters that he could not see that kwacha falling to as much as K400 to the dollar as it would be difficult to attract demand at that rate of an exchange rate.

“I know some people are predicting that the kwacha will fall to as much as K400 or K500 to the US [United States] dollar. But look, who can afford to buy US dollars at that price? I would say nobody. Not even companies. So even the forex trader would have to limit the price adjustment or else, they would have nobody to buy their forex,” said Chuka.