AGP Executive Report

Commonwealth Games spotlight: England’s Georgia Hunter Bell wins women’s 800m gold as athletics and other finals roll into day eight. Business & trade: National Bank of Malawi (NBM) plc chips in K24 million to sponsor branded bags for the CPA Africa Region Conference, backing Malawi’s continental visibility. Macro-economy watch: Malawi’s new Pressure Index (MPI) hits 78, signalling rising macro-economic stress amid global uncertainty. Power sector: EScom says its 20MW battery energy storage system is cutting loadshedding by 10MW–12MW during peak demand. Tax compliance for entertainment: MRA, COSOMA, MCB and Musicians Union tighten rules—payments to foreign artists for performances in Malawi face 15% withholding tax. Agriculture finance & inputs: Experts warn agriculture faces a K7tn financing gap, while government reports over 600 fake fertilizer bags seized. Governance & rights: Activist Sylvester Namiwa remains in custody after arrest, with MPs and civil society pressing for due process and release.

Tobacco Trade Shock: Agriculture Minister Rozza Fatchi Mbilizi says government will move fast to reopen the long-closed Kabwafu Auction Floors after MPs raised how the closure has left communities—especially women—struggling, including costly trips to Mzuzu to sell tobacco. Budget & Aid: Finance Minister Joseph Mwanamvekha tells Parliament Malawi’s 2026/27 budget is “safe” despite the UK’s planned 90% aid cut, though NGOs are expected to feel the biggest hit. Road Costs in Mzuzu: Mzuzu City Council confirms new road user fees from 10 August at three entry checkpoints, with revenue earmarked for road maintenance—likely to spark debate among motorists and operators. Power & Water Infrastructure: Malawi seeks about K350bn to complete the Salima–Lilongwe Water Supply Project by June 2027, while the government also pushes utility-scale battery storage to strengthen power supply. Digital Payments: Airtel Money’s Tola promotion has paid out K330m with one draw left before the grand finale on 5 August. Anti-Trafficking Push: Homeland Security and Gender officials warn that traffickers are increasingly using smartphones, social media, and fake job offers to target women and children. Governance & Accountability: Civil rights activist Sylvester Namiwa is arrested after calls for accountability and a lifestyle audit, as political figures trade accusations over alleged funding and Cabinet inclusion. Mining & Investment Watch: Lindian Resources advances rare earths work at Kangankunde in Malawi, while AuKing ramps up deeper drilling at its Tundulu rare earths project.

Banking & Rates: Malawi’s bankers’ association says high interest rates are still scaring borrowers, even as banks hold excess liquidity, with lending rates sitting about 5–7 points above the RBM reference rate. Banking Profits: Despite the squeeze, banks paid record K265.3bn dividends in 2025 as profits jumped and non-performing loans fell. Public Finance & Accountability: Parliament approved US$130m (about K229bn) in World Bank IDA grants to improve local governance and boost export value chains, but MPs warn money won’t fix the forex crisis without cutting bureaucracy. Local Government Watch: PAC flagged K2.9bn in council financial irregularities, including unpaid deductions, arrears and payments outside approved systems. Water Infrastructure: Malawi targets June 2027 to finish the Salima–Lilongwe water project, still needing about $200m (K350bn). Trade & Tax: MRA raised carbon tax on imported vehicles by engine size, pushing up costs for larger-engine cars. Governance & Legal Tension: Civil rights activist Sylvester Namiwa was arrested after wealth- and accountability-related claims against Lands Minister Chimwemwe Chipungu. Crime & Migration: Ethiopia extradited a suspected trafficking kingpin from Malawi to face trial over alleged exploitation of Ethiopian migrants. Agribusiness: AfricaRice and AATF signed a five-year pact to lift rice productivity in Malawi and across 32 countries. Business Regulation: FDH Bank, Standard Bank and Modern Dry Cleaners sought stay orders after competition and consumer protection penalties. SACCO Shutdown: Malawi shut down Tipindule Community SACCO for failing capital and liquidity requirements.

Health & Research: Experts urged African countries to invest in genomics and precision medicine to tackle rising non-communicable diseases, warning of a “silent health crisis” as NCD deaths are projected to outpace communicable diseases by 2030. Governance & Delivery: Malawi’s Industrialization minister Simoni Itaye told MBS and SMEDCO to stop “symbolic” reforms and deliver measurable results with quarterly monitoring. Aid & Forex Relief: Parliament approved US$130m (MK229bn) in IDA grants, including US$50m for export value chains and US$80m for service delivery, as Malawi battles persistent foreign exchange shortages. Telecoms: TNM reported a turnaround with 2025 profit after tax up 112% to MK21.27bn, while warning FX constraints still complicate network investment and pricing. Energy & Power: Malawi began major utility-scale battery storage to strengthen solar power reliability amid ongoing power woes. Roads: Work has started on the Lilongwe–Blantyre M1 road rehabilitation (K100bn), with contractors mobilising and diversions underway. Public Accountability: A governance row deepened as CDEDI’s Sylvester Namiwa admitted he has “no evidence” for allegations against Lands minister Chimwemwe Chipungu, daring him to sue. Business & Trade: Government called for private sector investment in youth innovators to keep Malawi 2063 on track.

Human Trafficking: Malawi marks World Day Against Trafficking in Persons as reports highlight how recruiters lure citizens abroad with promises of decent work, only for victims to face forced labour, withheld wages and passport confiscation. Forex & Grants: Parliament clears two IDA grants totalling US$130m aimed at boosting export value chains and strengthening local service delivery—timed for Malawi’s ongoing foreign exchange squeeze. Telecoms Profit: TNM posts record 2025 profit of MK21.27bn (+112%) as debt eases, while reiterating network expansion plans despite FX shortages. Power Stability: ESCOM commissions a 20MW/40MWh utility-scale battery storage system in Lilongwe to improve grid reliability, with more battery projects planned. Roads & Trade: Work begins on the Lilongwe–Blantyre M1 Road rehabilitation (K100bn), while Malawi’s export push also includes a US$50m programme expected to support about 100 firms. Governance & Tobacco: A CDEDI boss admits he has “no evidence” in a libel row with the Lands Minister, and tobacco farmers demand clarity on whether to continue or shift crops as markets shrink. Digital Skills: Government and CEE roll out coding clubs, training 3,600 learners to build a digitally skilled workforce.

Electricity & rural access: Energy Minister Jean Mathanga says Malawi is scaling up rural electrification under MAREP (moving from Phase 9 to 10) and ASCENT, while also pushing generation projects via EGENCO to meet rising demand. Tax & revenue drive: The Reserve Bank of Malawi cut 2026 growth to 2.8% (from 3.8%), while Malawi Revenue Authority reported Q1 2026/27 collections of K1.398tn, with penalties and the new Money Transfer Levy beating targets. Trade & smuggling pressure: MRA warns smuggling is worsening due to porous borders and a surge in motorcycle riders used to move contraband, citing limited staffing. Agribusiness & food security: Morocco’s OCP will support Malawi to set up a local fertilizer facility by 2028 to reduce import dependence. Transport & logistics: Government signed an MoU with a Chinese firm to expand Lake Malawi’s fleet and upgrade Chipoka port, aiming to lower the cost of moving goods. Business & investment: ICON Properties says it will self-fund its development pipeline and has no immediate plans for new capital, while exploring student accommodation. Governance & courts: Parliament heatedly disputed repatriation spending from South Africa (K24bn claim vs K9bn government figure), and the High Court set a week for talks in a disputed house sale case. Youth & innovation: Labour Minister Joel Chigona urged businesses to back youth-led innovation as Malawi 2063’s private-sector engine. Sports (business angle): Nigeria’s Super Falcons received promised rewards ahead of WAFCON, and NSC announced a $5,000 goal bonus for each group-stage strike.

WAFCON Rewards: Nigeria’s Super Falcons received promised 2025 WAFCON rewards in Rabat, including $100,000 per player and three-bedroom houses, ahead of their 2026 title defence against Malawi. Visa Shock for Malawi: The US will stop routine visa processing at Lilongwe from Aug 1, 2026, redirecting applicants to regional hubs like Nairobi—raising fresh concerns about Malawi’s preparedness and travel/business friction. Parliament Clash on Repatriation Costs: MPs sparred after Government rejected claims it spent K24bn on repatriating Malawians from South Africa, saying the figure is K9bn so far. Power & Investment: Malawi switched on its first utility-scale battery energy storage system (20MW) to stabilise supply amid El Niño risks, while Energy Minister outlined rural electrification push via MAREP/ASCENT. Tax & Smuggling: MRA says collections hit K1.398tn in Q1 2026/27, with K15.5bn from penalties, but warns smuggling is worsening due to porous borders and motorcycle smuggling. Economy Watch: RBM cut 2026 growth forecast to 2.8% from 3.8%, citing slower recovery and ongoing vulnerabilities. Property Dispute: High Court gave parties seven days to negotiate in a house sale injunction case involving Chaudhary Azhar Mahmood and defendants including Karim Batatawala. Local Development Push: Minister Ben Phiri defended decentralisation and CDF/devolved funding progress, saying councils are implementing as planned. Business Spotlight: ICON Properties says it will self-fund its development pipeline for 2–3 years and is exploring student accommodation as dividends rise.

Inflation Watch: Malawi’s headline inflation eased to 21.1% in June from 23.4% in May, driven by falling food prices, while non-food inflation stayed sticky at 32.1%, keeping pressure on costs. Food Security: Admarc says it will hold about 22,500MT of maize to cushion households against possible El Niño shortages, even as it continues selling stock gradually. Transport & Infrastructure: The Roads Fund Administration reports collecting K73.3bn from the road maintenance levy and K1.77bn from toll-gates between April and June, citing higher toll revenue. Donor Outlook: Finance Minister Joseph Mwanamvekha says Malawi will still receive donor support despite UK aid cuts, pointing to funding commitments from the World Bank and AfDB. Legal & Governance: A court challenge questions the appointment of Fostino Maele as DPP, arguing there was no vacancy when he was appointed. Health & Finance: A K7.5bn medical supplies refund dispute between CMST and SADM is still dragging through mediation, raising concerns for medicine supply and public trust. Energy: ESCOM has switched on Malawi’s first utility-scale solar battery storage system to stabilise power and cut blackouts. Digital Connectivity: TNM assures customers that MACRA-ordered refunds for unprocedural data price hikes are underway and on track.

Banking & Markets: National Bank of Malawi (NBM) plc has approved a K92bn dividend for 2025 after profit after tax jumped 95% to K197.97bn, signalling a strong turnaround despite a tough operating environment. Energy & Infrastructure: Malawi has switched on its first utility-scale solar battery storage system outside South Africa and Namibia — a 20MW facility meant to cut blackouts and stabilise power as El Niño threatens hydropower flows. Telecom Regulation: TNM says MACRA-directed refunds for unprocedurally raised data bundle prices are already underway and on track to complete by July 31. Social Protection & Philanthropy: Canva co-founders Melanie Perkins and Cliff Obrecht are funding another $150m in unconditional cash transfers in Malawi through GiveDirectly, expanding a programme now seen as a major poverty-reduction test. Trade & Transport: Malawi is looking to benefit from lake transport as an MoU targets modern vessels, ports and ferry upgrades on Lake Malawi, while Tanzania’s Mtwara Port upgrades are boosting regional fuel and cargo flows. Governance & Accountability: A rights group has challenged why Second Vice President Enoch Chihana chaired Cabinet while First VP Jane Ansah was absent, raising questions about legality and process. US-Malawi Relations: The US is suspending routine visa processing at its Lilongwe embassy from 1 August, pushing applicants to Nairobi and adding cost and delays.

Trade & Customs Capacity: The WCO, under the EU-WCO Rules of Origin Africa Programme, is training freight forwarders on origin determination to help SMEs use preferential tariffs correctly and improve compliance across the region. Regional Logistics Push: Tanzania is upgrading roads, rail, ports and airports to position itself as a logistics hub, including rehabilitation of Mbamba Bay Port in Nyasa District to boost trade links for Malawi and Mozambique. Transport & Fleet Updates: Pangolin Logistics has taken delivery of ten new DAF trucks to strengthen cross-border bulk commodity hauling between South Africa and Mozambique. Energy & Industry Shift: UN ECA says green industrialisation in Southern Africa needs stronger institutions, skills and coordinated policy-making to move beyond raw-material supply. Finance & Markets: Malawi’s tax authority says tax penalties surged to K15.5bn in Q1 2026/27, driven by audit findings and faster e-invoicing uptake. Investment & Inclusion: Misalico renews a push for Malawians to buy listed shares from as little as K17, targeting financial literacy beyond big cities. Health & Community Support: Vice President Jane Ansah launched a fundraising drive aiming to raise K80m for palliative care through the Ndimoyo Trust. Cross-Border Migration Pressure: South Africa’s anti-migrant enforcement and raids continue to disrupt labour and trade, with reports of unlawful searches and reduced processing at Musina repatriation operations. Sports & Business Spotlight: Airtel Malawi opened a new one-stop shop in Lilongwe’s Area 10, expanding access to Airtel Money and digital services for traders and businesses.

Regional Diplomacy & Education: Tanzania marked World Kiswahili Language Day 2026 in Lilongwe, highlighting Kiswahili’s role in unity, trade and diplomacy, with Mzumbe–UNIMA links and Kiswahili taught at UNIMA. Politics & Public Finance: An MCP MP, Salima North’s Maxwell Mnjema, demanded the DPP cut its Constituency Development Fund pledge from K5bn to K500m, arguing the original promise is unaffordable. Capital Markets & Inclusion: Misalico urged Malawians to buy Malawi Stock Exchange shares, saying investment can start from as little as K17, with outreach planned in Likoma and Mzuzu. Tax & Compliance: Malawi Revenue Authority reported K15.5bn in tax penalties in Q1 2026/27, driven by inaccurate returns and audit findings, alongside rapid e-invoicing uptake. Infrastructure & Cashflow: Payment delays threaten the second phase of the M1 road rehab, with EIB saying funds will only be released once first-phase conditions are met. Currency & Payments: RBM expects to spend about K69.8bn replacing damaged banknotes, as cash dependence persists; economists push faster digital payments. Healthcare Fundraising: Vice President Dr Jane Ansah launched the Ndimoyo Palliative Care Trust drive targeting K80m for medicines and equipment for chronic illness patients. Sports & Business Spotlight: WAFCON 2026 opens in Morocco with Malawi among debutants, while Nigeria’s Super Falcons received houses and $100,000 each ahead of the tournament.

Public Procurement Crackdown: Malawi has frozen payments on more than 1,000 government contracts and ordered a forensic review of deals signed between Sept 2023 and Sept 2025, with the Attorney General saying the aim is compliance and protection of public money. Central Banking Watch: G7 central banks meet as oil hovers near US$100, raising fresh inflation fears and pushing markets to price possible rate moves later this year. Cash Strain & Digital Push: Malawi’s cash economy is getting costlier, with the RBM projecting about K69.8bn to replace worn and damaged banknotes, while economists urge faster digital payments to cut the burden. Stock Market Drive: Misalico is urging Malawians to buy shares on the Malawi Stock Exchange, saying investing can start from as little as K17. South Africa Migration Shock: Reports show xenophobic unrest is driving foreign workers out, threatening farm labour supply and cross-border trade even as some Zimbabweans keep travelling legally for business. WAFCON Build-up: Nigeria’s Super Falcons open their title defence in Morocco against Malawi, with players also reporting a hotel cash theft incident ahead of the tournament. Local Business: House of Meats opened a new Area 10 Lilongwe outlet to expand access to Go Fresh products and create jobs. Health Fundraising: Vice President Jane Ansah launched a drive to raise K80m for palliative care through the Ndimoyo Trust.

WAFCON Focus: Malawi’s Faith Chinzimu is among ESPN’s “unheralded” WAFCON 2026 stars to watch as the tournament kicks off in Morocco, with Malawi set to face Nigeria in the opening match. Cross-Border Trade & Migration: South Africa’s crackdown on illegal immigration is spilling into business, with transporters warning enforcement against foreign drivers—especially on the DRC route—could disrupt lucrative cross-border logistics. Governance & Elections: Malawi’s Electoral Integrity Project score rose from 59 (2025) to 69 (2026), with Malawi named among countries showing the biggest improvements after the 2025 General Election. Banking & Payments: Reserve Bank data shows Malawi’s cash strain is rising, with RBM expecting about K69.8bn to replace worn-out banknotes, while economists push faster digital payments to cut costs. Tax & Compliance: Malawi Revenue Authority collected K15.5bn in tax penalties in Q1 2026/27, far above its K4.2bn target, as e-invoicing expands. Infrastructure & Finance: Payment delays are threatening the second phase of the M1 Road rehab, putting €58.4m (about K115.7bn) at risk until first-phase conditions are met. Telecoms Expansion: Airtel Malawi opened a new one-stop shop in Lilongwe’s Area 10 and says it plans to invest up to K60bn in network expansion. Corporate News: Old Mutual urged stronger government-private sector collaboration to unlock investment and economic recovery.

Cash & Currency: Malawi’s cash-heavy economy is getting more expensive as the Reserve Bank of Malawi expects to spend about K69.8bn this year replacing worn and damaged banknotes, up from K50.6bn in 2025—economists say faster digital payments and lower cash handling could ease the pressure. Telecom Competition: Government is preparing to invite bids for a third mobile operator after earlier licences were revoked for failing to build networks, a move aimed at cutting high call and data costs. Roads Funding: Toll fees rose to K1.77bn (April–June 2026), up 56% year-on-year, with the Roads Authority saying the money is being channelled into road rehabilitation, including key stretches on the M1. Mining & Revenue: Malawi Revenue Authority says mineral royalties are boosting collections, with K28.4bn raised in the first quarter of 2026–27 and projections of continued growth as E-invoicing gains momentum. Governance & Courts: Fiscal Police stormed Malawi Electoral Commission headquarters in a financial mismanagement probe, while the High Court dismissed East Bridge Estate’s bid to appeal—clearing the way for government’s move to sell disputed tobacco. Migration & Business Risk: South Africa’s anti-migrant crackdown is putting cross-border transport and trade at risk, with business groups warning that xenophobia can deter investment and disrupt regional commerce. Sports & Business Tie-ins: NBM and other sponsors are pushing WAFCON-linked promotions and travel perks, as Nigeria’s Super Falcons gear up in Morocco amid reports of theft from players’ hotel rooms.

Telecom Competition: Malawi is preparing to invite bids for a third mobile operator after earlier licences collapsed, with MPs pushing for global brands to cut call and data costs and improve network quality. Tax & Revenue: The Malawi Revenue Authority says mineral royalties are starting to flow, helping it beat targets in the 2026/27 first quarter, while it also reports progress on Electronic Invoicing System registration. Pensions: NBM Pension Administration says it holds K100 billion in unclaimed pension funds, renewing pressure for faster outreach and claims processing. Food Security: A $68m World Food Programme funding gap threatens Malawi’s hunger relief and school feeding, with operations at risk from September if shortfalls persist. Court & Trade: Malawi’s High Court dismissed East Bridge Estate’s bid in a tobacco dispute, clearing the way for government action over disputed stocks. Governance & Spending: Parliament’s sitting has been extended to August 7 as lawmakers tackle a packed agenda, including public finance and migration-related scrutiny. Business Integrity: The Malawi Bureau of Standards warns poverty is driving a “weak quality culture,” with consumers pushed toward inferior goods. Migration Fallout: South Africa condemns attacks on immigrants as Malawians and other nationals await repatriation, highlighting ongoing economic and diplomatic strain.

Women’s Football & Sponsorship: National Bank of Malawi (NBM) plc has flown three Malawians to the Women’s Africa Cup of Nations in Morocco under its “Wa ku Wafcon” promotion, boosting local fan support as the tournament starts with World Cup qualification and a record prize on the line. Consumer Protection: Malawi Bureau of Standards says poverty is pushing buyers toward cheaper, substandard goods, while some producers lower quality to match low prices—urging stronger reporting and enforcement. Tax Administration: Malawi Revenue Authority reports progress on Electronic Invoicing System (EIS) registration, with 8,428 businesses enrolled toward a 9,000 target, citing improved compliance and transparency. Business & Payments: Airtel Money’s Tola promotion is nearing its MK50m grand prize, after MK300m was disbursed to 3,030 winners in ten weeks. Governance & Oversight: Fresh controversy surrounds the Amaryllis Hotel transaction, with account freezes reportedly lifted and withdrawals continuing months after public outcry. Energy & Water: Petroleum Importers Limited (PIL) commissioned a K17m solar water system for a Dedza school, linking clean water to better learning and lower disease risk. Digital Finance & Gambling: MAGLA warns Malawians to stop treating gambling as income as households under pressure risk draining savings on betting apps.