AGP Executive Report

ESCOM Governance & Power Security: A leaked “No Objection” ESCOM procurement letter has sparked debate, but legal and governance voices warn Malawians not to jump to corruption conclusions without full procurement review. In parallel, ESCOM and police stepped up anti-vandalism drives in Lumbadzi, Dowa, while another crackdown in Lunzu, Blantyre uncovered an illegal aluminium pot factory using vandalised ESCOM conductors. Child Health Fundraising: Sparc Systems and Beit-CURE launched an MK400 million campaign to clear a surgical backlog for 256 children needing corrective orthopedic operations. FX & Currency Policy: MCCCI urged government to move toward exchange rate unification, arguing Malawi’s multiple rates are worsening FX shortages and distortions—though economists fear it could fuel devaluation shocks. Fuel & State Role: NOCMA defended its fuel import mandate amid criticism from CDEDI that it has drifted into oil marketing. Maize & Food Security: Maize prices are easing as harvest progresses, but FEWS NET warns overall supply still falls short of national needs. Durban Repatriation Crisis: Malawi’s Home Affairs is scaling up processing for displaced Malawians at Sherwood Hall, with numbers reportedly rising to about 6,000 and calls to urgently secure buses and more staff. Digital & Telecom Investment: MACRA praised TNM’s network quality upgrades, while Airtel Africa Foundation released its inaugural annual report, committing US$6.2m across education, financial inclusion, digital inclusion and sustainability. Business & Markets: Admarc delays are leaving cotton farmers in limbo, and Portland Cement Company was fined MK188.8m by Blantyre Water Board for illegal water connections.

Albinism Rights: Human Rights Watch and the African Albinism Network report shows people with albinism in Malawi still face fear, stigma and barriers to school, jobs, health care and social protection, urging stronger action on discrimination and the National Action Plan. Migration & Xenophobia Spillover: As xenophobic violence in South Africa continues, thousands of Malawians are waiting for buses home from Durban, while Nigeria repatriated the first batch of 262–268 nationals to Lagos; the crisis is also driving wider regional concern over undocumented migration and social cohesion. Poverty Pressure: An Afrobarometer survey says 8 in 10 Malawians are in severe poverty, with most reporting difficult living conditions and low confidence in the economy’s direction. Fuel Prices & Governance: CDEDI renews calls for action against alleged cartels in fuel, forex and procurement, warning that without reforms Malawi’s National Economic Recovery Plan risks becoming a “wish-list.” Digital Push: Malawi’s ICT ministry says it is working with Huawei on a USD 180m plan for a one-stop citizen portal and national broadband network. Health Tech: Malawi hospitals are piloting an AI monitoring system (IMPALA) aimed at reducing child mortality by alerting staff to patient deterioration earlier. Business & Trade: A PCB-Malawi Police operation in Mzuzu arrested an agro-dealer over alleged illegal pesticide sales, including expired stock and forged labels. Microfinance for Women: WorldWise Microfinance launched a Malawi program with a local NGO to expand microloans for women farmers and support community-led resilience. Sports & Consumer Activations: Coca-Cola Malawi rolls out a nationwide Sangalala ndi Coca-Cola campaign ahead of the FIFA World Cup 2026.

Poverty Pressure: An Afrobarometer survey says 8 in 10 Malawians are in severe poverty, with 77% saying the economy is performing poorly and 76% believing Malawi is heading in the wrong direction, as households report unemployment and rising living costs. Fuel Costs Clash: CDEDI is demanding fuel price cuts, blaming cartels across the fuel supply chain, forex handling and procurement, and accusing NOCMA of drifting from its strategic reserve mandate. Child Health Tech: Malawi hospitals are using an AI monitoring system (IMPALA) to spot patient deterioration early, aiming to cut child mortality in low-resource settings. ICT Push: Malawi’s ICT ministry says it is working with Huawei on a USD 180m plan for a one-stop citizen portal and a national broadband network. Corruption Case Twist: Malawi’s State has moved to withdraw criminal proceedings against Chinese national Lin Yunhua after a DPP directive, following ACB action over alleged prison privileges. Pesticides Crackdown: PCB and police arrested a Mzuzu agro-dealer over alleged sale of illegal pesticides, including a forged label and decanting into unlabelled containers. Maize Outlook: FEWS NET expects an average 2025/26 maize harvest, but still below national needs, leaving a deficit. Albinism Rights: HRW urged VP Jane Ansah to fully fund Malawi’s National Action Plan on Albinism, saying protection must go beyond attacks to education, jobs and social inclusion. Regional Migration Shock: Xenophobic violence in South Africa continues to drive repatriations, with the first batch of Nigerians arriving in Lagos and displaced Malawians seeking shelter in Durban.

Digital Finance Push: National Bank of Malawi (NBM) says digital banking is at the centre of its growth strategy, citing strong performance of Mo626 Digital+ and calling for a review of transaction levies that could push customers back to cash. Gold for Forex: Export Development Fund (EDF) earmarks K400 billion for gold purchases, already buying 352kg in three months, as it moves to formalise trading and curb illegal buyers. Governance in Procurement: A court dispute over ESCOM’s transformer and metering procurement is back in focus, with PPDA decisions and alleged Presidency involvement raising fresh questions on how contracts are awarded. Anti-Corruption Under Fire: Civil society groups have criticised the ACB and DPP for discontinuing a corruption case involving a Chinese national, warning it could erode trust in Malawi’s fight against corruption. Tobacco Trade Ruling: Malawi’s High Court set aside an ACB restriction notice affecting Limbe Leaf Tobacco, clearing the way for East Bridge to access its tobacco stocks. Migration Fallout (South Africa): Malawians displaced by xenophobic violence in Durban are being processed by Home Affairs officials, while Malawi continues repatriation efforts and calls for structured support for returnees. Women in Agriculture: A new push highlights how women do most farm work but face land and credit gaps, tying the issue to the International Year of the Woman Farmer. Business & Jobs: An industrialisation report says Malawi’s manufacturing output has inched up, but job creation remains weak, with finance, infrastructure and skills still holding back progress. SME Financing: Smedco plans to set up a microfinance institution under the new MSMEs Act to expand support for small businesses.

Digital Finance Push: National Bank of Malawi (NBM) says digital banking is at the centre of its growth strategy, highlighting Mo626 Digital+ awards and warning that proposed transaction levies could push customers back to cash. Forex & Enforcement: MPs have challenged the Reserve Bank of Malawi (RBM) over forex leakages, with the central bank preparing to prosecute exporters that fail to reconcile proceeds. Banking & Inclusion: NBM also rolled out more support under its Mo Excellence scholarship programme, awarding 57 needy university students K1.7m each. Regional Trade Facilitation: Zimbabwe is modernising border posts to decongest crossings and streamline trade with Malawi and Mozambique, aiming to improve ease of doing business. Migration Shock in South Africa: Malawians displaced by xenophobic anti-illegal immigration protests in Durban are being processed by Home Affairs at Sherwood Hall, while asylum seekers are urged to collect appeal notices; Malawi is also coordinating repatriations. Business Climate & Jobs: An AfDB industrialisation index shows Malawi’s industrial gains are modest, but manufacturing employment is falling—raising concerns about job creation. SME Support: Smedco plans to set up a microfinance institution under the new MSMEs Act to expand technical and financial support for small businesses. Governance & Compliance: PPDA has halted Escom’s K8.1bn bid over procurement evaluation concerns, adding pressure on public spending discipline. Women in Agriculture: Malawi’s co-ops and farmers mark the International Year of the Woman Farmer, spotlighting land and credit gaps that keep women from scaling production.

IMF Talks: An IMF mission has arrived in Malawi for discussions on a possible new Extended Credit Facility, focusing on macroeconomic stability, fiscal policy and reforms after the last programme fell off amid inflation, FX shortages and weak growth. Forex & Prices: Ifpri says narrowing Malawi’s official–parallel exchange rate spread may not be as inflationary as feared because many imports are already priced at informal rates, though it could still lift some costs. Repatriation Funding: Malawi says it needs over K1 billion to repatriate more than 3,000 citizens stranded in South Africa amid xenophobia-linked displacement, with returnees also set to access government-backed loan programmes. Regional Trade: Zimbabwe, Malawi and Mozambique launched a drive to cut bottlenecks on transport corridors, blaming border delays, inconsistent rules and infrastructure gaps for higher business costs. Public Finance Oversight: SADC is pushing a model law on public funds management to strengthen parliamentary accountability and improve how state resources are used. Digital Fraud: Rwanda’s suspected digital fraud rate fell in 2025, but a new report warns criminals are shifting to identity and account-creation fraud—relevant as Malawi expands digital services. Governance Backlog: Malawi’s Independent Complaints Commission says most complaints against the police remain unresolved due to staff, equipment and funding shortages. Youth & Enterprise Loans: Government has released councilors’ loan and enterprise support funding via LGFC and MEDEF to boost small businesses and local development. Mining Update: AuKing has started maiden drilling at Malawi’s Tundulu rare earths project, testing a larger carbonatite system after new surveys. Sports & Trade in Goods: Football Association of Malawi says it has identified a counterfeit jersey supply network in Tanzania and warns sellers of arrests and prosecution.

Humanitarian squeeze in Malawi’s Dzaleka camp: UN WFP cash support for refugees is shrinking fast, with one mother saying her monthly assistance has fallen from about $100 to $7, raising fears of a full stop by end-June. South Africa xenophobia fallout hits Malawi’s economy: Malawi says it needs over K1bn (about R9.5m) to repatriate more than 3,000 citizens; 150 have already returned, with government promising loan support to help them restart businesses. Regional trade costs under pressure: Zimbabwe, Malawi and Mozambique met in Harare to tackle bottlenecks on transport corridors, citing border delays, fragmented rules and infrastructure gaps that are inflating business costs. IMF talks on Malawi’s stability: An IMF mission is in-country to discuss a possible new Extended Credit Facility, focusing on fiscal policy, reforms, reserves and debt sustainability. Forex and inflation debate: Ifpri says narrowing Malawi’s official-parallel currency spread may not be as inflationary as feared because many imports are already priced at parallel rates. Governance and justice backlog: Malawi’s Independent Complaints Commission reports 324 police-related complaints still pending since 2020, with chronic shortages of staff, equipment and funding. Consumer protection crackdown: CFTC fines Standard Bank and FDH Bank for unfair practices, including undisclosed loan/insurance changes and improper deductions. SADC climate funding push: Malawi hosts SADC talks to build a unified Loss and Damage Fund position, arguing disasters are eroding development gains and budgets.

Rare Earths & Mining: AuKing Mining says it has kicked off a maiden ~10,000m combined arms drill campaign at its Tundulu rare earths project in Malawi, as investors watch for scale-up signals. Education & Finance: National Bank of Malawi (NBM) plc awarded scholarships to 57 needy students under its Mo Excellence programme, including four at Mzuzu University, with each beneficiary receiving K1.7 million plus support packages. Power & Blackouts: EGENCO warned Malawians to brace for more outages as the 20MW Nkula B unit stays offline, with spare parts expected in the second week of June. Consumer & Competition Watch: Malawi’s CFTC fined Standard Bank MK100 million and FDH Bank MK200 million over misleading and unfair conduct tied to loan and Keyman insurance practices, ordering refunds in some cases. Governance & Courts: The MEC headquarters relocation fight continues to draw attention, with Karonga MPs urging lawmakers to focus on local roads, hospitals and schools rather than the legal battle. South Africa Migration Spillover: Malawi continues repatriating citizens affected by xenophobic tensions, with 150 Malawians returning after evacuation from camps in the Western Cape.

South Africa Immigration Crackdown: President Cyril Ramaphosa has pledged tougher action against undocumented migrants after anti-foreigner protests and xenophobic violence, including stricter border enforcement, faster deportation processes, biometric identity registration, and prosecutions for employers who hire undocumented workers—while warning citizens not to take the law into their own hands. Malawi Repatriation: Malawi says 150 citizens displaced in South Africa are being repatriated under a voluntary programme, with returnees travelling via Zimbabwe and Mozambique and processed on arrival in Blantyre. Labour Costs & Enforcement: South Africa’s labour ministry plans fines of up to R100,000 per undocumented worker and plans to recruit 10,000 labour inspectors, raising compliance pressure for businesses operating with foreign workers. Power & Business Continuity: Malawi faces continued electricity rationing as Nkula B Hydro’s 20MW unit remains offline for repairs and delayed spare parts, threatening supply for households and industry. Judiciary Delays: Parliament’s Legal Affairs Committee is pushing for action over prolonged judgement delays, warning that late rulings can undermine justice and business certainty. Environment & Energy Transition: Malawi is urged to accelerate a shift away from biomass and tackle land degradation, with environmental losses estimated at about 7% of GDP annually.

Banking Integration: Old Mutual’s OM Bank says its integration with Old Mutual Finance is on track, lifting customers to 473,000 and retail deposits to R541m in the first quarter, as migration of money accounts boosts transactional activity. Migration & Jobs: South Africa’s President Cyril Ramaphosa announced a crackdown on illegal migration, including jailing employers of undocumented workers, faster deportation courts, and biometric registration—while warning citizens not to take vigilante action as xenophobic protests intensify and some Malawians are repatriated. Health Innovation: Africa CDC welcomed approval of Coartem Baby, a malaria treatment designed for newborns and infants under 5kg, trialled across eight countries including Malawi, with rollout expected soon. Business & Regulation: Malawi’s MEPA faces fresh investor anger over alleged delays in approving ESIA reports, with claims of bottlenecks affecting local mining and manufacturing projects. Agribusiness & Community Tensions: In Chikwawa, villagers and landowners gave PressCane-linked communities and the KAMA cooperative short deadlines amid disputes over compensation and alleged encroachment on ancestral farmland. Recognition for Local Industry: Malawi’s manufacturers and service providers impressed at the National Product Magazine Mid-Year Awards, with government urging a push toward export-led growth.

MEPA Under Fire: Malawi’s Environment Protection Authority is accused of stalling ESIA approvals for local investors—reportedly sitting on reports for months or even two years—while some foreign firms allegedly operate without approved environmental clearance. Land Rights Clash: In Chikwawa, villagers have given the KAMA Cane Growers Cooperative three days to vacate ancestral farmland, alleging illegal occupation and intimidation tied to the PressCane-linked sugarcane project. Tax Relief Pressure: A new Afrobarometer survey finds 72% of Malawians cannot afford legal costs, highlighting how weak access to justice can worsen business and household disputes. Social Protection Squeeze: Malawi’s 2026/27 budget cuts social protection allocations from K217bn to K123bn, threatening support for about 3.5 million beneficiaries. Regional Banking Move: FDH Bank says it has acquired a controlling stake in Ecobank Mozambique, aiming to grow trade finance and forex inflows across Southern Africa. Digital Push: Sparc Systems unveils a roadmap to scale Malawi’s ICT exports across Africa, as ICTAM recognises the firm for innovation and infrastructure. Football & Business Spotlight: Malawi’s Flames face fresh scrutiny after a loss to Ethiopia, while ERFA launches the 2026/27 Durata Premier Division with sponsorship rising to K36m—showing how sports funding links to local enterprise growth.

IMF Support: The IMF says it is stepping up financial support for Ethiopia, The Gambia and Burkina Faso, and is in accelerated talks with Malawi on a new assistance programme to cushion fallout from the US–Israel–Iran conflict. Electoral Governance: Malawi’s High Court has temporarily halted the relocation of the Malawi Electoral Commission (MEC) from Lilongwe to Blantyre, setting up a major constitutional fight over executive authority and institutional independence. Regional Migration: Despite rising anti-immigrant rhetoric and repatriation talk, IOM and UNHCR say there’s no sign of a large-scale exodus of foreign nationals from South Africa, with countries like Nigeria and Ghana planning returns. Food Safety & Enforcement: Malawi Bureau of Standards destroyed about 300 bales of expired soya chunks and fined a Blantyre wholesaler K2 million after routine market surveillance. Banking Expansion: FDH Bank confirmed it has acquired a controlling stake in Ecobank Mozambique, aiming to grow trade finance and forex inflows across Southern Africa. Digital Economy Push: Sparc Systems unveiled plans to scale Malawi’s ICT exports across Africa, citing growth in ICT services exports. Environment Alarm: A new state of the environment report warns Malawi is on a “Pendapenda” path—consuming natural capital faster than it can replenish, with forests, soils and climate shocks worsening.

MEC Relocation Blocked: Malawi’s High Court has temporarily halted the Malawi Electoral Commission’s planned move from Lilongwe to Blantyre, granting MCP and three MPs an injunction and allowing a judicial review to proceed, while the Attorney General signals he will challenge the ruling. National Recovery Plan Scrutiny: Economists warn the proposed National Economic Recovery Plan may fall short, citing gaps in export diversification, forex generation, public spending management and implementation capacity. VAT Revenue Debate: MRA’s VAT decline claims are being questioned, with analysts pushing for clearer “before-and-after” context on whether electronic invoicing is truly delivering sustained gains. Banking & Rates: Commercial banks cut the reference lending rate to 20.4% for June, while FDH Bank signals cautious regional expansion after reporting strong performance and moves into Mozambique. Digital Push: Sparc Systems and other ICT players are pitching Malawi’s cloud, cybersecurity and AI ambitions, with calls for tax incentives and export support to scale ICT services. Environment Under Pressure: A government environment report warns Malawi is consuming natural capital faster than it can replenish it, raising risks for food security and growth. PressCane Compensation Row: Chikwawa villagers and civil society demand a stop to PressCane vinasse payout disclosures, alleging short-changes and payments as low as MK1,171.85. US Visa Tensions: Malawi challenges proposed US visa restrictions, warning they could disrupt education, healthcare and business travel ties.

Banking Expansion: Standard Bank says it wants to become the largest bank in East Africa by 2030, targeting 2 million clients and doubling earnings across Kenya, Uganda, Tanzania, Ethiopia, South Sudan and Malawi. Humanitarian Logistics: DHL Group launched the DHL Academy of Humanitarian Logistics in Sub-Saharan Africa, offering free training to help aid groups cut delays and improve readiness. Health Costs Abroad: A travel-insurance warning for British travellers highlights how overseas medical emergencies can run into tens of thousands of pounds, with reported insurer payouts tied to countries including Malawi. Environment & Food Security: Malawi’s 2026 State of the Environment report warns the country is on a “Pendapenda” path—shrinking forests, degraded soils and climate shocks threatening growth and maize output. Insurance & Innovation: UGI donated K15m to MUBAS for its research and innovation conference, linking new tech like AI claims handling to better service. Trade & Transport Pressure: Transport costs are squeezing firms as operators say fuel, maintenance, FX and compliance costs rise faster than haulage rates. Local Dispute: Chikwawa villagers demand a halt to PressCane vinasse compensation, alleging underpayment and continued operations despite grievances. Regional Politics: South Africa’s xenophobic violence is driving evacuations and sheltering of migrants, with envoys planned to manage diplomatic fallout. Governance & Elections: A court blocks MEC relocation from Lilongwe to Blantyre, dealing MCP a legal win. Critical Minerals: Chilwa Minerals expands niobium at Nakombe, while AuKing reports a larger-than-expected Tundulu rare earth system and new drill targets. US Visa Uncertainty: Malawi warns tightening US visa rules could hit students, patients and business links as Washington restructures visa processing. Medicines Tariffs Debate: Government’s up-to-25% import tariffs on selected medicines sparks concern they may raise drug prices even as officials argue for local production.

US Visa Shock for Malawi: Foreign Affairs Minister George Chaponda warns tightening US visa rules are already hitting Malawians seeking study, medical care and business travel, as Washington weighs cutting visa-processing missions across Africa. Health Funding Boost: The US pledged up to $792m (about K1.4tn) for Malawi’s health sector over five years, a major vote of confidence for service delivery. Rates Ease for Borrowers: Malawi’s reference lending rate fell to 20.4% in June, down from 25.2% in January, offering hope of gradually cheaper credit. Medicines Tariff Debate: Government’s new up-to-25% import tariffs on selected medicines aims to push local production, but critics fear higher drug prices. NERP Under Fire: Civil society groups (NAP, MEJN) urge the government to turn the National Economic Recovery Plan into real action with financing realism and stronger safeguards. Forex Worries: CCJP warns Malawi is becoming used to the foreign exchange crisis, with supply disruptions and rising costs. Refugee Pressure: Dzaleka camp is operating at over five times capacity, with a $90m gap blocking relocation plans. ESCOM Vandalism Fight: Zomba communities and police intercepted vandals targeting ESCOM equipment, highlighting local protection efforts. Critical Minerals Momentum: Chilwa Minerals expands niobium at Nakombe, while AuKing maps a larger Tundulu rare-earth system and moves toward a major drilling push. Governance & Justice: Judicial Service Commission appoints Justice Dr Michael Charles Mtambo as Acting High Court Judge; CCJP says Malawi is stuck in recurring national crises. Regional Instability: Xenophobic violence in South Africa is driving Malawians and other migrants into shelters and repatriation talks, prompting calls for diplomatic action.

Critical Minerals Push: ASX-listed Chilwa Minerals says drilling at Nakombe in southern Malawi confirmed niobium mineralisation, with MPYDD015 returning 22m at 0.228% Nb₂O₅ (lab assays pending), strengthening the case for a larger system. Rare Earths Expansion: AuKing Mining reports airborne LiDAR and magnetic work at its Tundulu project shows a much bigger carbonatite complex than earlier drilling indicated, and it is mobilising for a 10,000m reverse circulation and diamond programme while licence-transfer paperwork is reviewed by Malawi’s MMRA. Fertiliser Factory Still Stalled: Malawi’s Dowa fertiliser plant by Napoleon Dzombe remains idle as MEPA approval is still pending, with the regulator saying it must assess environmental concerns before granting a licence. IMF Support Watch: The IMF says it is stepping up funding for several African countries and is in accelerated talks with Malawi on a new financial assistance programme amid war-related shocks to energy and fertiliser supply chains. Social Protection Cuts: Malawi’s social protection budget for 2026/27 drops from K217bn to K123bn, hitting about one million beneficiaries and reducing key programmes like social cash transfers and public works. Regional Finance: FDH Bank says its Mozambique expansion via a controlling stake in Ecobank Mozambique is aimed at boosting trade finance and cross-border banking across Southern Africa. Digital Economy Boost: Datacom Malawi donates MK10m to support the ICT Association of Malawi’s ICT 2026 expo, urging stronger industry collaboration for digital transformation. Diplomatic Cost-Cutting: Government reduces diplomatic staff in foreign missions by 54, from 193 to 139, to cut salary and operating costs. Trade Policy Shock: The US proposes new forced-labour tariffs of 10%–12.5% on dozens of trading partners, a move likely to ripple through import costs and supply chains.