AGP Executive Report

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.

Energy & Water Reliability: EGENCO has started restoring the 20MW Nkula B Unit 6 after a five-week breakdown, with completion targeted for end-October to bring back generation to the national grid. Fuel, Forex & Public Pressure: Political voices are urging President Mutharika to break his silence as electricity disruptions, water shortages and fuel scarcity bite households and businesses, while UTM’s Dalitso Kabambe calls for a transparent audit of forex allocations. Aid & Budget Shock: New analysis of UK FCDO spending shows humanitarian and education reach in Malawi, but warns UK aid cuts could drop Malawi’s support to £5m by 2028-29, prompting calls for reversal. Health & Local Industry: Government has directed CMST to prioritise locally manufactured medicines to ease shortages, citing Malawi’s capacity to produce over 40 products and the need to reduce forex dependence. Governance & Compliance: Malawi’s sports regulator has tightened measures for non-compliant associations after training and compliance assessments, while ECD Week highlights funding gaps and calls for more partner support. Tourism Investment: Malawi says it is still searching for an investor for the Golden Sands Hotel at Cape Maclear, with environmental and heritage requirements in the Lake Malawi National Park shaping the process.

Forex & fuel squeeze: UTM president Dalitso Kabambe is calling for an independent audit of Malawi’s foreign-exchange allocations, saying shortages are hurting businesses, hospitals and public institutions while prices rise and opportunities shrink. Public services hit by vandalism: Blantyre Water Board repaired a vandalised 600mm pipeline after three days of dry taps, warning supply restoration will be gradual. Early childhood funding pressure: Government says ECD centres lack basic learning materials and is urging partners to fill gaps; only a small share of caregivers receive allowances. Health procurement push: Malawi has directed CMST to prioritise locally manufactured medicines to reduce reliance on imports amid forex constraints. Tourism regulation: Stakeholders say operationalising the Malawi Tourism Authority should improve standards and speed up licensing and inspections to attract investment. Business & investment bottlenecks: Government says it has not yet secured an investor for the Golden Sands Hotel at Cape Maclear due to environmental and heritage requirements. Sports governance & match-day revenue: Sports Council has tightened measures on non-compliant associations, while Kamuzu Stadium in Blantyre will stay closed for elite matches this season, threatening gate income. Regional policy watch: The US expanded a visa bond programme to 50 countries; Malawi’s forex and fuel crisis remains the backdrop for many local economic stories.

Fuel & Forex Pressure: Malawi’s fuel shortages are being blamed on a deeper foreign-exchange squeeze, with NOCMA seeking alternative payment terms and currencies for refined petroleum imports to keep supplies moving. Banking Reality Check: A new look at Malawi’s savings shows service fees can wipe out interest gains, leaving small savers losing value as inflation runs high. Health Supply Push: Government has directed CMST to prioritise locally manufactured medicines to reduce forex dependence and ease persistent drug shortages in public facilities. Tourism Regulation: Stakeholders say operationalising the Malawi Tourism Authority could improve standards and speed up licensing and inspections, unlocking more private investment. State Firms Accountability: CfSC urges measurable performance conditions on SoE bailouts, warning that weak public firms create fiscal risks and crowd out spending on health, education and infrastructure. Sports & Money Controls: SULOM is exploring e-ticketing pilots to improve match-day accountability, while sports associations face tighter compliance rules. Governance & Politics: Campaign finance concerns grow as Malawi lacks clear campaign spending limits and tracking powers, leaving voters with limited visibility on election spending. Energy & Public Order: ESCOM reports stiff jail terms for vandalising power infrastructure, as the country battles reliability and theft risks.

Fuel crisis pressure: Economist Dr Ben Dzolowere has lashed out at Energy Minister Jean Mathanga, saying Malawi’s fuel shortages could unravel recent economic gains as transport costs rise and queues deepen. Power sector crackdown: ESCOM says two men caught vandalising power infrastructure were jailed for 10 years each for possessing aluminium conductor wire worth about K1 million. Digital crime response: Police and MACRA are partnering to tackle the surge in technology-enabled crimes, with the police saying 40–60% of cases now involve electronic elements. Agri-food investment push: Malawi will host a National Agrifood Systems Investment Symposium in Lilongwe to unlock private sector funding and partnerships for value chain transformation. Transport costs plan: Government is intensifying plans for a new north-bound railway to connect Malawi to the Tanzania–Zambia network, starting with a feasibility study. Banking and health support: NBS Bank sponsored the Chiwanja Ch’a Yao Festival (K15m) and donated about K103m in beds and cancer medication to QECH’s paediatric cancer ward. Sports business: Mighty Wanderers and its president donated K10m to SWAM ahead of its AGM, while ticket discounts are being promoted for Malawi Scorchers’ Olympic qualifier against Zimbabwe.

Court Ruling on Tax Tech: Malawi’s High Court refused to halt the Malawi Revenue Authority’s Electronic Invoicing System rollout, clearing the way for the VAT online invoicing regime after a businessman sought a suspension through judicial review. Transport Costs Push Rail Ambitions: Government says Malawi is moving ahead with plans for a new north-bound railway linking to the Tanzania–Zambia network to cut transport costs, with feasibility work backed by the African Development Bank. Digital Economy & Consumer Watch: TNM faced fresh backlash over mobile data bundles “running out” faster than expected; the telecom says systems are monitored and advises customers to check usage and data-saving settings as MACRA investigates deductions and billing accuracy. Mining Value-Addition Drive: Malawi is consulting on draft Value Addition Regulations and Mines and Minerals Act amendments, with officials urging miners to process locally to boost revenue and jobs. Local Business & Community: NBS Bank donated K103.8m to QECH’s pediatric cancer ward for beds and medication, while Illovo Sugar Malawi backed an inter-security agencies sports festival with K5m. Sports & Media Support: Mighty Wanderers and its president donated K10m to SWAM ahead of its AGM, backing sports journalism.

Helicopter tragedy and regional business links: Zimbabwean billionaire Wicknell Chivayo and his wife Lucy Muteke were killed in a helicopter crash near Marondera, with investigations ongoing and no survivors reported. The death has reignited scrutiny of his wealth and high-profile ties across the region, including Malawi. Telecom consumer pressure: TNM says it is monitoring and auditing data-bundle deductions after complaints that bundles run out faster than expected; MACRA is investigating whether charging and billing match actual usage. Energy and forex strain: Malawi’s energy sector is being squeezed by foreign exchange shortages, worsening fuel imports and contributing to prolonged power interruptions. Local development funding concerns: Civil society groups warn Constituency Development Fund disbursements are too slow against a K1.3 trillion earmark, urging a clear, time-bound roadmap for councils. Mining policy push: Malawi is consulting on value addition regulations and Mines and Minerals Act amendments, with officials arguing value addition before export can boost revenue and jobs. Migration management: 50 Ethiopian nationals were repatriated from Malawi with EU support and IOM logistics, as authorities work to decongest correctional facilities. Infrastructure updates: Mzuzu City Council rolls out K8.087bn road rehabilitation projects, while contractors warn fuel shortages could delay RCDF works. Corporate support for health: NBS Bank invests K103.8m in specialty beds and cancer medication for QECH’s pediatric cancer ward.

Telecom Consumer Watch: TNM says it’s responding to complaints that mobile data bundles are being exhausted faster than expected, with MACRA now investigating TNM and Airtel’s charging and billing systems; TNM advises customers to check usage via customer care or official channels. Energy & Forex Pressure: Malawi’s fuel shortage is worsening, with diesel scarce and queues returning as the crisis is framed as a forex problem driving illegal roadside prices. Rare Earths Investment: Lindian powers up grid supply at its Kangankunde rare earths project ahead of schedule, de-risking production as ore stockpiles build for processing. Health Research for Growth: Education minister Msaka urges KUHeS researchers to treat health science as an economic engine, pushing multidisciplinary innovation that can translate into policy. Banking Payments Shift: RBM and the Bankers Association announce cheques will be phased out, with no new cheque books and processing ending March 11, 2027. Business & Capital Markets: Chilwa Minerals prices a US$3.5m Nasdaq-bound offering of ADSs, funding exploration and general corporate needs. Legal/Regulation: Court rules MACRA unlawfully dismissed former DG Daud Suleman for procedural flaws, raising compensation risks for the regulator. Food Security: A monitor warns Malawi’s food insecurity remains under pressure, with crisis-or-worse levels affecting about 22% and risks rising into Oct 2026–Jan 2027.

Fuel & payments shift: The Reserve Bank of Malawi and Bankers Association of Malawi have set a March 11, 2027 deadline to phase out cheques, with banks stopping processing after that date and urging customers to move to faster payment channels. Food security pressure: A new Food Security Monitor warns 1.94 million Malawians face crisis or worse hunger, with risks of deterioration from October 2026 to January 2027 as maize, fertiliser and diesel costs squeeze purchasing power. Forex and debt crunch: The World Bank is pushing Malawi toward exchange-rate unification, recommending fiscal and monetary tightening first and stabilising the parallel market, as RBM tightens forex controls. Public finance & service delivery: Government has cleared major fuel importer under-recoveries and levy arrears after restoring the Automatic Pricing Mechanism, while city and municipal councils are warned not to miss October Constituency Development Fund procurement deadlines. Business & jobs: CDH Investment Bank donated K5m to IPMM’s Oct 21–23 conference on building Malawi’s green and digital economy, and LUANAR’s new professor urged stronger youth participation in economic development through innovation and technology. Security investment: Creck Hardware handed over a K380m police unit in Msundwe to improve local security after years without a fully functional facility.

Forex & Education: Education Minister Bright Msaka challenged universities to attract more international students and earn foreign exchange through teaching, pointing to Zambia as a model and urging faster implementation of public sector reforms. HIV Funding Reset: Malawi resolved a Global Fund GC8 impasse on who will manage and implement programmes, with World Vision staying as grant manager while ActionAid will implement, after NAC-led talks. Local Government Cashflow: City and municipal councils were warned they risk missing the October Constituency Development Fund procurement deadline, after delays already cost some councils earlier disbursements. Fuel Market Relief: Government cleared fuel importer under-recoveries (K205.4bn) and statutory levies arrears (K103.29bn) after restoring the automatic pricing mechanism, cutting under-recoveries and recovering levy arrears. Debt & Climate Push at UN: Malawi’s UNGA representative George Chaponda called for immediate, comprehensive debt relief and predictable climate financing, citing debt stock at about 90.9% of GDP. Exchange Rate Shake-up: The World Bank urged Malawi to tighten fiscal and monetary policy to prepare for exchange-rate unification and stabilise the parallel market, as RBM tightens forex controls. Mining Certainty for Investors: Lindian Resources says Kangankunde rare earths remains on track for first production late 2026, with government reiterating its in-country beneficiation plan is unaffected by a raw-minerals export order. Agribusiness & Inputs: Cotton Council outlined 2026/27 recovery plans focused on timely seed distribution and input mobilisation, while RUDEVIT ramped up local organic fertiliser production in Blantyre. Social & Business Moves: Malawi Housing Corporation reported its first profitable quarter since 2019, and Airtel Malawi posted strong revenue growth but profit hit by FX losses.

Mines & Minerals Reform: Malawi says its review of the Mines and Minerals Act is on track to modernise rules and close gaps, aiming for “greater benefits” from mineral wealth without scrapping the 2023 framework. Fertiliser Supply Boost: RUDEVIT, backed by NBM Development Bank, has started full-scale production of granulated organic fertiliser in Chileka, targeting about 60 bags per hour to cut import reliance. Payments Shake-up: The Reserve Bank confirms cheques will be phased out for good on 11 March 2027, with banks stopping processing after the 29 Sept 2026 clearing deadline. Mobile Data Scrutiny: MACRA is investigating reports of unusually rapid depletion of TNM and Airtel Malawi data bundles, asking affected users to submit details. Forex & Fuel Pressure: Diesel shortages have returned with long queues and a parallel market, as FX scarcity continues to choke import financing. Digital Learning Partnership: Helios Towers and UNICEF plan to expand school connectivity and digital learning in Malawi and other African countries. Trade & Diplomacy: Kazakhstan and Malawi formalised diplomatic ties, with wheat export talks on the table and Malawi pitching tea, coffee and macadamias. Business Performance: Airtel Malawi’s revenue rose 33.8% in H1 2026, but profit was hit by FX losses; Continental Holdings also reported profit more than doubling. Governance & Compliance: Malawi’s ATI law compliance remains low, with only 40% of MDAs meeting requirements, prompting calls for better record systems and faster responses. Roads: Chiweta–Karonga road rehabilitation awards are awaiting approvals, with construction targeted for November 2026.

Electricity Market Reform: A two-part push argues Malawi needs more than “available power” and must focus on reliable delivery—making network capacity visible, enabling neutral access, and improving settlement and delivery costs. Corporate Earnings: Zimre Holdings reports a 15% profit jump to US$10.74m in the half-year to June 2026, driven by regional expansion under its “Great Africa Trek” strategy. Debt Pressure & Policy Focus: An African debt justice network warns Malawi’s debt distress won’t ease just by landing a new IMF deal, urging fiscal consolidation, better public finance management, stronger exports and forex generation. Tax Incentives Debate: A taxation expert says Malawi’s tax incentives lack strategic direction, pointing to VAT exemption losses and urging tighter targeting to support growth and exports. Fertiliser Production Boost: Rudevit begins full-scale granulated organic fertiliser output in Blantyre, backed by NBM Development Bank financing, aiming to cut import reliance. Banking Friction: National Bank customers complain of ATM debits without cash and slow reversals, raising fresh trust concerns. Payment System Shift: Malawi moves to phase out cheques—no new cheque books, with processing ending March 11, 2027—pushing internet/mobile banking and mobile money. UN Call for Action: Foreign Minister George Chaponda tells the UN to shift from speeches to delivery on debt, climate finance and governance reforms. Digital & Transport Security: A Malawian entrepreneur launches Pita-Go, a ride-hailing and delivery platform using real-time tracking to curb motorcycle taxi robberies. Investment Signals: Germany’s Africa Business Association plans a Malawi delegation next year, with mining a key focus.