AGP Executive Report

Rare Earths: Lindian says Kangankunde’s ore stockpile is ahead of schedule, with plant construction continuing and first concentrate targeted by year-end. The project could attract investment, while Malawi is seeking more local processing. Fuel and Forex: Lilongwe motorists are waiting days for petrol as shortages disrupt travel and business. UTM leader Dalitso Kabambe is calling for an open debate on forex access and its impact on households and firms. Gold: State-owned Mamico plans to begin mining and processing gold next year, alongside formal buying operations aimed at curbing smuggling and boosting forex earnings. Agriculture: Fertiliser stocks stand at about 148,000 tonnes against annual needs of up to 475,000 tonnes, raising concern ahead of planting. The Anti-Corruption Bureau has also halted ADMARC’s proposed K2.97 billion tarpaulin deal pending scrutiny. Economic Outlook: Malawi’s IMF talks and currency policy remain under close debate as businesses face worsening operating conditions and rising costs.

Fuel Crunch: Lilongwe motorists are queuing for up to three days, with some sleeping in their cars. The shortage is disrupting commutes, deliveries and customer traffic as the crisis enters its second week. Gold and Forex: Mamico plans to start buying gold at three centres, backed by initial financing from NBS and FDH banks. It still needs Reserve Bank approval and an offtake agreement; the state company says formal buying could curb smuggling and keep more export earnings in Malawi. Farm Inputs: Fertiliser stocks stand at about 148,000 tonnes against annual needs of up to 475,000 tonnes, leaving a deficit of more than 300,000 tonnes. Malawi has also committed US$1 million to a seed investment plan, but AGRA warns that strong policies are not translating into adequate supply for farmers. Public Procurement: The ACB has stopped ADMARC’s proposed K2.97 billion purchase of 100 tarpaulins pending scrutiny, amid questions over the reported K29.67 million cost per unit. Mining Investment: Rare-earth extraction has begun at Kangankunde, with the government seeking more local processing to boost revenue and attract investment.

Fuel and Forex: Fuel shortages have left motorists queuing for days, disrupted travel and pushed up transport costs, adding pressure on businesses already struggling to secure foreign exchange. Farm Inputs: Malawi faces a fertiliser shortfall of more than 300,000 tonnes: stocks stand at about 148,000 tonnes against annual needs of up to 475,000, while a bag of urea has climbed to K210,000. Gold Trade: State-owned Mamico says it is ready to buy gold through formal trading centres but needs K85 billion to start and K300 billion a year; a formal market could curb smuggling and bring more forex into the economy. Mining Investment: Rare-earth extraction has begun at Kangankunde, with the government urging local processing to capture more value. Economic Outlook: IMF talks have advanced, but forex and energy constraints continue to weigh on firms. Government says it will not devalue the kwacha, while industry leaders warn that exchange-rate pressures need addressing.

Gold Trade: Malawi’s planned gold trading centres could help retain more mineral value at home. MAMICO says three centres are ready, but it needs K85 billion to start buying and K300 billion annually; operations await an RBM off-take agreement. A survey identified more than 100 mining sites in 26 districts. Public Finances: The High Court has frozen K90.125 billion in accounts linked to the Amaryllis Hotel purchase while legal proceedings continue. Power Investment: ESCOM signed connection agreements for a 50MW solar plant in Mzimba and a 75MW thermal project in Salima, potential additions to a grid strained by blackouts. Business Conditions: Industry leaders say forex shortages, unreliable power and fuel scarcity are eroding recent inflation gains and worsening the operating environment.

Business Pressures: Industry leaders say forex shortages, unreliable power and fuel scarcity worsened Malawi’s business climate in the third quarter, eroding gains from easing inflation. MCCCI is urging progress on an IMF lending programme and exchange-rate reforms. Fuel Crunch: Shortages have entered a second week, disrupting transport and businesses; CAMA says black-market prices have reached K20,000 a litre as NOCMA seeks bids for 440,000 tonnes of fuel. Gold & Forex: Malawi loses an estimated $100 million a year to gold smuggling, says state miner Mamico, which plans trading centres to buy directly from small-scale miners and channel gold to the Reserve Bank. Power Investment: ESCOM signed connection deals for a 50MW solar plant in Mzimba and a 75MW thermal project in Salima, adding to efforts to ease power shortages that constrain industry. Public Accountability: The Anti-Corruption Bureau has blocked ADMARC’s proposed K3 billion contract for 100 tarpaulins while it investigates suspected corruption; the move does not establish wrongdoing.

Public Procurement: The Anti-Corruption Bureau has blocked ADMARC’s proposed K3 billion contract for 100 tarpaulins while it investigates suspected corruption; the move is not a finding of wrongdoing. Separately, the government says the World Bank approved a US$13.9 million reallocation to buy maize from Zambia, with funds transferred directly to Zambia. Fuel Crisis: Shortages have entered a second week, disrupting transport and businesses. CAMA says black-market fuel is selling for K15,000–K20,000 a litre, while NOCMA seeks bids for 440,000 tonnes of fuel. IMF and Accountability: Economist James Kadyampakeni has urged the IMF to make measurable anti-corruption measures central to any support for Malawi. Government says kwacha devaluation is not part of IMF talks, and the Fund has cited progress towards a possible new lending programme. Foreign Exchange: Banks bought US$45.6 million from customers in August, down 48.5% from June, while selling more than they purchased—suggesting improved headline forex conditions have yet to ensure reliable supply to businesses. Mining: Kayelekera produced 332,000 pounds of uranium in its first year, below its planned ramp-up, citing plant and sulphuric-acid supply problems; the operator says performance is improving.

Kwacha and IMF: Government says devaluation is not part of negotiations with the IMF, whose recent mission noted progress towards policies for a possible new lending programme. Credit Rating: Economist Chifipa Mhango says an active sovereign rating could improve Malawi’s visibility to investors and borrowing conditions; the country’s last Fitch rating expired in 2007. Business Pressures: Fuel scarcity is raising transport costs and disrupting event planning, while businesses in Phalombe say weeks without power are hurting trade and forcing some to rely on costly generators. Mining: Kayelekera produced 332,000 pounds of uranium in its first year, below its ramp-up target, after plant and sulphuric acid supply problems; the operator says performance is improving. Road Funding: Road levy arrears have fallen to about K173 billion, but delayed remittances have weakened maintenance funding and left contractors waiting for payment.

Road Funding: Road levy arrears have fallen to K173 billion, but delayed payments have already weakened maintenance and contractor payments. Separately, the Roads Authority plans to award K587.1 billion in contracts to rehabilitate the Chiweta–Karonga road. Power Supply: Phalombe businesses say weeks-long outages are forcing them to rely on costly generators and cutting incomes; a study also found 90% of surveyed small firms had experienced power interruptions. Sovereign Finance: Malawi has advanced debt-restructuring talks with commercial creditors, while economists urge the government to sustain reforms to secure an IMF programme. The IMF says progress has been made, but no deal is final and further fiscal and monetary tightening could weigh on recovery. Fuel Crunch: Shortages continue to push up transport costs and strain households, workers and businesses, prompting the trade union federation to demand urgent action. Investment Climate: Malawi lacks an active sovereign rating from major global agencies, which analysts say could limit investor insight into the country’s credit risk.

Fuel Crisis: The Malawi Congress of Trade Unions is urging immediate action to restore fuel supplies, warning shortages are squeezing workers, businesses and households and could drive up prices. IMF Talks: Recent negotiations made progress towards a new lending programme, but no deal was reached. The IMF called for continued fiscal consolidation and tighter monetary policy, prompting economists to warn that further tightening could weigh on investment and recovery. Roads: The Roads Authority intends to award K587.1 billion in contracts to Unik Construction and China Civil Engineering to rehabilitate the Chiweta–Karonga section of the M1, a key route for fuel and goods from Tanzania. Markets: The Malawi Stock Exchange lost K1.3 trillion in value in the third quarter, with its year-to-date return falling to minus 16.72 percent amid economic and policy uncertainty. Agrifood Investment: Government is calling on businesses to invest in farming, processing and value chains to boost exports and reduce reliance on imported food products. Debt Pressure: The World Bank warns that high financing needs and debt-servicing costs in Malawi and other African economies could constrain public investment and social spending.

Agrifood Investment: Government is urging businesses to invest in farming and processing to boost value addition, farmer incomes and exports. Climate and Food Security: Researchers warn drought, heat and erratic rain can slash bean harvests by up to 78%, putting smallholder livelihoods and food supplies at risk. Public Spending: Parliament’s watchdog is questioning the use of nearly US$13.9 million from Blantyre Water Board for maize imports from Zambia, arguing the funds could have strengthened water services. Fuel Pressures: Shortages continue to disrupt transport and businesses, while former energy minister Ibrahim Matola says government-to-government purchasing offers a more predictable supply. IMF Talks: The Fund says Malawi has made progress on reforms for a possible new lending programme, but fresh financing is not yet approved. Industrialisation: Government says preparations are advancing for the delayed Magwero industrial park, projected to generate US$600 million in annual exports, and is seeking greater local private-sector participation.

IMF Talks: The IMF says its Malawi staff visit made progress toward a new Extended Credit Facility, citing reforms to tighten fiscal discipline, cut debt pressure and improve market functioning, though a final policy package and financing decision are still being finalised. Fuel Crisis & Costs: Malawi’s fuel shortage continues to bite hard—transport fares have jumped sharply, queues persist, and black-market petrol is reportedly fetching up to MWK20,000 per litre; in a related crackdown, Zambian police arrested 19 Malawians over alleged petrol smuggling. Banking & Payments: National Bank of Malawi has apologised after a card system upgrade left customers unable to withdraw or pay, saying the issue has been fixed after intermittent disruptions. Regional Finance Regulation: Reserve Bank of Malawi Governor George Partridge urged stronger SADC cooperation to regulate cross-border non-bank finance and better protect savers. Trade & Growth: Experts warn Malawi’s AfCFTA gains depend on tackling structural gaps and boosting investment and competitiveness, while the Malawi business community calls for careful management of production volumes and implementation. Governance & Spending: Malawi Local Government Association says councils are being forced to fund monitoring linked to Constituency Development Fund processes, after Parliament and stakeholders dipped into the CDF allocation. Business & Sports: Airtel Malawi rewarded the Scorchers with 5G routers and data after their maiden WAFCON final run, while Standard Bank Malawi backed Blue Eagles with K250m.

Fuel Crisis Hits Commuters: Malawi’s worsening fuel shortage is pushing bus fares up sharply, with some routes doubling as passengers queue, hitch rides or turn to black market petrol reportedly selling up to MWK20,000 per litre. IMF Verdict Looms: Malawi awaits an IMF assessment on talks for a new Extended Credit Facility, with officials hoping for a positive outcome as fuel and forex pressures mount. RBM Pushes Non-Bank Finance: Reserve Bank of Malawi Governor George Partridge urged stronger regional regulation to unlock growth from pensions, insurance and other non-bank financial institutions. Digital Payments Race: Airtel Money plans a virtual card in Kenya to enable international online payments from mobile wallets, aiming to rival M-Pesa GlobalPay. ADMARC Tarpaulin Scandal: Questions are growing over ADMARC’s K2.97 billion deal for 100 tarpaulins, with demands for answers over pricing and political links. Tax Justice Tribunal Ready: Malawi’s Revenue Appeals Tribunal begins training ahead of handling tax disputes worth over K12 billion. Public Health & Medicines: Health officials say medicine shortages are a crisis, citing forex constraints and supplier debt, while government explores boosting local drug production.

Fuel crisis hits households and business: Bus fares in Malawi have doubled on some routes as commuters hitch rides and skip meals amid fuel queues, with minibus operators warning unstable pricing as drivers chase scarce petrol. Forex reform push: UDF president Atupele Muluzi says Malawi’s shortages of fuel, medicine and jobs are rooted in forex, calling for exchange-rate liberalisation backed by foreign currency inflows. Football sponsorship and league momentum: Standard Bank Malawi signs a K250m one-year sponsorship with Blue Eagles FC, while the FDH Bank Premiership second round resumes with a tight top-four race and relegation battles. Business support for manufacturers: SMEDCO opens applications for a January 2027 intake at its Phalombe Manufacturing & Value Addition Academy, promising training plus access to business loans for successful trainees. Pensions market milestone: Pro Veritas becomes Malawi’s first licensed Pension Advisor after RBM licensing, expanding independent advisory services for pension funds and members. Climate and land pressure: CEPA warns land degradation is cutting Malawi’s economic growth by up to 7% and urges restoration of forests and degraded land. Tobacco traceability: The Tobacco Commission’s Know Your Grower (KYG) initiative aims to improve export competitiveness by building a traceable grower database.

SMEDCO & SMEs: SMEDCO has opened applications for its Phalombe Manufacturing & Value Addition Academy, offering a 3-month hands-on January 2027 intake and promising access to business loans and mentoring for successful trainees. Pensions & Regulation: Reserve Bank of Malawi has licensed Pro Veritas as the first pension adviser in the country, expanding independent advisory services for pension and provident funds. El Niño Preparedness: DoDMA unveiled a K488bn national El Niño Preparedness Plan, but says only K163.7bn is secured, leaving a K324.8bn funding gap, with food security the biggest line item. Forex, Fuel & Economy: President Peter Mutharika, marking his first year back in office, said progress is real but recovery will be painful, with forex still the toughest issue and fuel shortages tied to import constraints. Energy Infrastructure Watch: Environmentalist Ian Bartlett questioned whether the US$1.5bn Mpatamanga hydropower project can work economically under Malawi’s foreign-exchange environment. Business & Compliance: Airtel Money committed to curb money laundering and terrorism financing under an IFC deal tied to a planned London Stock Exchange listing. Sports & Sponsorship: Standard Bank sealed a K250m sponsorship deal with Blue Eagles, while the FDH Bank Premiership second round kicks off with top-of-table clashes. Education & Equity: Former minister Vitumbiko Mumba launched a student stipend fund arguing tertiary education in public universities must be publicly funded to cut inequality.

Forex & recovery focus: President Peter Mutharika says foreign exchange is his toughest priority, admitting forex stabilisation remains a major hurdle even as his administration reports progress on food, fuel, fertiliser and recovery; he says talks with the IMF and World Bank on reviving the Extended Credit Facility could unlock resources. Fuel & energy pressure: Malawi’s diesel crisis is linked to global refined-product supply strain, with the G7 agreeing to release oil and fuel volumes—yet Malawi’s forex constraints keep the risk high; meanwhile EGENCO says Nkula B Unit 6 (20MW) is back in maintenance after repairs sent to South Africa, expected to return by end-October. Governance scorecard: Independent audits rate Mutharika’s first year “Satisfactory” at 62.2%, praising health and governance restraint, but flagging a weaker economy and ongoing power, forex and debt pressures. Health supply squeeze: Parliament and health officials warn medicine shortages are deepening as theft and supplier debt disrupt deliveries, with some drugs allegedly diverted into markets. Agribusiness support: SMEDCO is buying surplus tomatoes to curb losses and post-harvest waste, while farmers call for sustainable markets and affordable financing. Housing delivery shift: Malawi Housing Corporation says it is moving from eviction-style enforcement to community engagement, partnerships and transparency via digital systems. Sports & business tech: FAM rolls out online e-ticketing to cut gate fraud, while MTN Zambia appoints a chief consumer officer—signals of continued telecom customer-focus.

Power & Energy: EGENCO has started restoring Nkula B Hydropower Station Unit 6 after a five-week outage, following the arrival of a critical shaft from South Africa; repairs are expected to finish by end-October to bring back 20MW to the grid. Fuel & Forex: An economic read of Malawi’s fuel queues points to foreign-exchange scarcity as the key vulnerability, even as global energy shocks continue to bite. Health & Corruption in Supply Chains: Parliament is hearing that medicine theft is driving hospital shortages, with officials linking missing drugs to diversion and noting CMST debt to international suppliers. Food Security: El Niño risks worsening food insecurity, with warnings that households are increasingly unable to afford food even where availability exists. Governance & Accountability: Independent assessments of President Arthur Peter Mutharika’s first year rate the administration “Satisfactory” (62.2%), praising health gains and governance restraint while flagging weaker economic delivery and ongoing power and forex pain. Housing & Urban Renewal: Malawi Housing Corporation says its new housing drive is built on urban renewal, partnerships, and transparency, citing community-first redevelopment approaches. Agribusiness: Tomato farmers are calling for sustainable markets as SMEDCO buys surplus tomatoes to curb losses and preserve for later release. Digital & Sports Business: FAM rolls out e-ticketing via SAS FAM Tickets to reduce gate fraud and improve revenue control. Public Services Under Strain: Blantyre Water Board repairs a vandalised 600mm pipeline after taps ran dry for days, warning restoration will be gradual. Aid & Policy Pressure: UK aid cuts to Malawi are drawing alarm, with development groups warning the reductions will hit vulnerable communities hardest.