LILONGWE-(MaraviPost)-International Monetary Fund (IMF) Director for Africa Abebe Selassie has assured President Peter Mutharika’s Democratic Progressive Party (DPP) led-government that the organisation will support Malawi in bailing out on numerous crises including forex.
Selassie told the news conference after meeting Mutharika at Mtunthama State Lodge in the Capital Lilongwe that IMF will embrace Malawi’s local grown policies that advance economic recovery.
IMF Director for Africa Abebe Selassie
He assured Mutharika’s Government that IMF will not impose economic policies but rather able to understand on workable strategies to help local people in improving livelihoods.
He was responding to Mutharika’s appeal that Malawi needs immediate resources to secure critical imports as the country faces a delayed farming season and recurring fuel queues.
The Malawi leader called for urgent support from the International Monetary Fund (IMF) to help Malawi confront what he described as an “extremely difficult” economic crisis marked by shortages of food, fertilizer, fuel and foreign exchange.
IMF Director for Africa Abebe Selassie with his team meeting Malawi leader Peter Mutharika
“Help us with forex to address food, fuel, fertilizer purchase for good of our people’s welfare.
“You help other countries with huge finances. But, we are just asking for a little, the rest will square ourselves,” Mutharika appealed to IMF’s Africa Chief Selassie.
Echoing the same, Finance Minister, Joseph Mwanamvekha said the Malawi government simply wants the IMF program back.
Mwanamvekha expressed optimism that IMF will support Malawi’s economic recovery strategies.
The Minister disclosed that IMF will meet donors pool in Malawi for support.
The meeting provided an opportunity for Selassie to appreciate President Mutharika’s vision for the country, particularly how his administration plans to address the current economic challenges Malawi is facing.
The discussions also focused on identifying areas in which the IMF can provide support to complement government efforts.
The IMF Director, Selassie told the press after the meeting that his visit to Malawi and the meeting with Mutharika, signifies the commitment that the Bretton institution has to assist Malawi with the crises.
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The midyear budget review recently presented by Minister of Finance, Economic Development and Decentralization, Joseph Mwanaamveka, has sparked significant discussion and debate, highlighting various aspects of fiscal management and accountability.
The involvement of the Democratic Progressive Party (DPP) government in conducting an independent review of the budget adds a layer of credibility to the findings.
This independent assessment has helped to ensure transparency and accountability in the budgetary process, allowing for a more comprehensive understanding of the financial situation left by previous Chakwera regime.
However, the introduction of a new Pay As You Earn (PAYE) tax structure has raised concerns among employees, as it is expected to reduce their monthly net pay.
This change can potentially lead to dissatisfaction among the workforce, thereby affecting morale and productivity.
It is crucial for the Mkulukuta Moyo government take steps to communicate the rationale behind this tax adjustment and consider its implications on the average citizen.
Furthermore, the review has brought to light significant over-expenditure in state residences and the Office of the President and Cabinet departments, which have reportedly consumed their entire annual budget within just half a year.
This revelation is alarming and underscores the need for stricter financial controls and oversight to prevent wasteful spending and ensure that public funds are used effectively.
Perhaps one of the most concerning findings of the review is the diversion of fuel intended for public use to a private organization.
This not only raises ethical questions but also highlights potential corruption and mismanagement within the government.
Such practices undermine public trust and call for immediate investigation and corrective measures to ensure accountability.
Moving forward, the commitment to free primary and secondary school education is a commendable initiative that promotes equal access to education for all children.
This policy not only alleviates the financial burden on families but also encourages higher enrollment rates and retention in schools.
Investing in education is crucial for long-term economic growth and social development, as it equips the younger generation with the skills and knowledge necessary for the future workforce.
Furthermore, the implementation of austerity economic measures reflects a responsible approach to fiscal management in various facets.
The decision to halt travel allowance for the President sets a precedent for accountability and prioritizes the allocation of resources towards essential services.
By restricting travel and mandating economy class for government officials, the government demonstrates a commitment to cost-saving measures while still allowing for necessary engagements.
The directive that no new government vehicles should be purchased helps to curb unnecessary expenditures and redirects funds to more critical areas.
While the suspension of new recruitments limit job creation in the short term, it can help stabilize the budget and focus on optimizing existing resources.
Again, the introduction of a 0.05% levy on bank and mobile money transfers is a strategic move to generate additional revenue.
Of course, this levy is relatively low but it can provide a steady stream of income for the government while still allowing citizens to access financial services without significant burden.
Furthermore, the implementation of new taxes on rental properties is a necessary step to ensure that all sectors contribute fairly to the national budget.
This measure can help increase government revenue, which can be reinvested into public services and infrastructure.
Additionally, the decision to charge visa fees based on reciprocity is a fair approach to international relations.
It encourages other countries to treat Malawian citizens equally and can also help bolster government revenue from tourism and international business.
It is obvious that the increase in Value Added Tax (VAT) from 16.5% to 17.5% is a significant move to enhance government revenue.
While this will lead to higher prices for consumers, it is essential for funding public services and infrastructure projects.
However, it is crucial that the Mkulukuta Moyo government communicates the necessity of this increase to the public to maintain transparency and trust.
In conclusion, the midyear budget review reflects a balanced approach to fiscal management, prioritizing essential services while implementing measures to generate revenue.
The focus on education, austerity, and fair taxation demonstrates a commitment to sustainable economic growth and social equity.
However, it will be important for the Mutharika Government to monitor the impact of these measures on citizens and adjust policies as necessary to ensure that the economic burden does not disproportionately affect the vulnerable populace.
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BLANTYRE-(MaraviPost)-Fed Steel Engineering has donated MK15 million worth of school desks to Milonga Community Day Secondary School in Mulanje to support education sector.
Speaking during the handover ceremony, Managing Director Fedson Selwin, a former student of the school, shared his experiences of studying without proper furniture and expressed his commitment to improving educational conditions.
Selwin highlighted the need for collaboration between the government, alumni, and local businesses to enhance learning environments.
He encouraged students to explore vocational skills and hands-on training as valuable career pathways.
Thandizo Tomato, a Form 4 student, stressed the importance of caring for the donated desks, noting that students have long missed the comfort of proper seating.
“We used to sit on the floor and now we have received this, we are grateful and we will make sure that we are taking proper care of it,” He said
Headteacher Janet Hanjahanja thanked Fed Steel Engineering for their support, emphasizing that the new desks will greatly improve learning conditions.
Fed Steel Engineering, based in Lilongwe, specializes in high-quality furniture and customized steel products for residential and commercial needs.
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LILONGWE-(MaraviPost)-The Standard Bank Joy of the Arts initiative has burst into life with two key sponsorships on music and theatre unveiled this week.
On Wednesday the bank rolled out a K12 million sponsorship for the Malawi Music Business Summit in Lilongwe and will proceed to unveil another K25 million package today for the Unima Theatre Festival weekend in Zomba.
Head of Brand and Marketing Tamanda N’gombe said the Joy of the Arts, now in its second is making tremendous progress in transforming Malawi’s arts and culture scene.
“We are into our second full year of the Joy of the Arts program to demonstrate that this initiative is about creating a uniting platform where Malawian artists connect, learn, and inspire the next generation while also making a living. By linking corporate responsibility with cultural vibrancy, Standard Bank is turning Joy of the Arts into a catalyst for social cohesion and economic growth,” she said.
She said the bank partnered Hills Capital, an artist management firm for the Malawi Music Business Summit to underline its commitment towards helping the country’s music industry become a force to reckon in Africa.
“We believe our music industry has great potential and elevating this sector for artists, music producers, song writers & talent managers is exactly what we need to activate our country’s productive sectors in Agriculture, Tourism, Energy and Mining to which music adds value,” said Ng’ombe.
She said overall the Joy of the Arts initiative is designed to embrace the diversity and lure of Malawi’s vibrant art forms in music, the visual arts, performing arts and drama, media, tourism, science and culture.
Hills Capital Managing Director Bob Phondo said launch of the Malawi Music Business Summit is a major step towards building a more vibrant and professional creative industry.
“The first Music Business Summit marks a turning point for Malawi’s creative sector. We’re grateful to Standard Bank for choosing to become a key partner in this journey, as their support reflects a genuine belief in the potential artists creating economic value,” Phondo added.
Inside the first Malawi Music Business Summit, which was held at BICC in Lilongwe were sessions on music publishing, distribution, financial fitness, foreign currency management, and a global market masterclass.
The event was attended by musicians, record producers from Malawi, Kenya and Nigeria.
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LILONGWE-(MaraviPost)-Malawi is preparing for a major change in the way taxes are recorded and collected as the Malawi Revenue Authority (MRA) moves forward with the roll-out of the Electronic Invoicing System (EIS) in February 2026.
The rollout was initially scheduled for November 2025 but was postponed after taxpayers and key stakeholders requested more time to understand the system’s technical and operational requirements.
The MRA, which has long relied on Electronic Fiscal Devices (EFDs), describes the EIS as a major digital upgrade that is more efficient, user friendly, and cost effective.
According to MRA, the shift to the EIS is part of a broader effort to improve tax compliance and record keeping.
The system promises better accessibility and functionality for businesses of all sizes, aligning Malawi with a growing list of countries pursuing similar digital tax reforms.
For example, Uganda introduced its Electronic Fiscal Receipting and Invoicing System (EFRIS) earlier this year, while Poland’s KSeF and Saudi Arabia’s FATOORAH are also underway.
Tanzania’s Electronic Financial Data Management System (EFDMS), Vietnam’s e-invoicing platform, and Mauritius’ EBS reflect the same continental and global trend.
Across these nations, governments have recognised the severe losses caused by tax non-compliance in revenue collection.
In Malawi, the issue is especially pressing as we face a fiscal deficit of MK2.4 trillion, twice the budget for education (MK1.3 trillion) and nearly four times the allocation for health (MK714 billion).
The World Bank estimates that tax evasion alone costs Malawi about 12 percent of its GDP, a figure higher than Namibia’s by roughly three percentage points.
Combined with persistent corruption, these losses have significantly constrained public investment and service delivery.
Despite previous reform efforts, Malawi’s fiscal challenges have persisted for decades. But digital interventions like the EIS and the recently introduced Digital Excise Tax Stamps (Kalondola) offer a potential turning point for revenue management and transparency.
In 2024, the MRA signed a ten-year agreement with SICPA Malawi, a subsidiary of the Swiss-based SICPA SA, globally known for secure traceability and authentication technology.
The partnership introduced the Kalondola system to modernise excise tax collection and reinforce accountability in Malawi.
The SICPA technology behind Kalondola uses secure tax stamps combining material and digital security features.
It allows both authorities and consumers to verify product authenticity while helping detect illicit trade activities such as counterfeiting or smuggling.
The system improves oversight across the supply chain, particularly for excisable goods such as cigarettes, alcoholic beverages, bottled water, carbonated soft drinks, lotions & glycerines.
These categories have historically been vulnerable to under-declaration and illicit trade.
Castel Malawi, one of the country’s largest beverage producers, publicly supported the initiative, saying the digital excise tax stamps enable accurate revenue capture that can be reinvested in essential services and economic growth.
In a press statement, Castel Malawi Managing Director Thomas Reynaud emphasized the importance of consumer vigilance in the fight against counterfeit products, which he said pose serious health risks and undermine legal trade.
“Castel Malawi Limited urges all customers to remain alert and ensure that all spirits purchased are genuine and compliant with legal standards,” said Reynaud. “Authentic Castel products carry digital tax stamps, date stamps, and batch numbers, which are clear indicators of their legitimacy and regulatory compliance.”
In supporting digital tax reforms, economic and policy expert Dumbani Mzale notes the substantial economic and governance benefits that digital tax stamps can bring to public finance management, including increased revenue collection and the reduction of illicit trade.
Mzale said, “Digital tax stamps (Kalondola), particularly for excisable goods like alcohol and tobacco, help governments all over the world to effectively control and collect taxes.
By minimizing opportunities for fraud and tax evasion, the state can significantly boost its revenue streams, and Malawi could be no exception if this agenda could be implemented to the letter.”
He added, “For too long, Malawi has been a victim of counterfeit products, especially beer and other key consumables.
This has resulted in the country losing billions of Kwachas in potential tax revenue, money that could have helped reduce the gap between total government expenditure and total domestic revenue, which includes tax and non-tax revenue.”
By deploying both the EIS and Kalondola, the Government of Malawi is signalling a shift toward stronger controls, cleaner tax administration, and better protection of public resources and of consumers.
Moreover, this state-of-the art technology enables leveling the playing field for legitimate actors whose contribution to growth and development of the country is paramount, contrary to illicit traders.
If implemented effectively, these reforms could help move the country toward a more stable, predictable, and equitable public finance framework.
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BLANTYRE-(MaraviPost)-On November 7, 2025, Old Mutual Pension Services Company hosted its inaugural Pension Trustees Conference at Sunbird Nkopola Lodge in Mangochi.
The event brought together a diverse range of stakeholders from across Malawi’s pension industry.
Held under the theme “Shaping the Future of Pensions: Resilience, Sustainability, and Innovation,” the conference provided a platform for knowledge exchange and strategic dialogue on the evolving pension landscape.
The conference attracted key industry figures, including Emily Makuta, a respected legal practitioner and governance professional, Kaluso Chihana, Director of Pension and Insurance Supervision at the Reserve Bank of Malawi; Dr. Wisely Phiri, Founder and CEO of Sparc Systems Limited; Pempho Likongwe, Managing Partner at Likongwe and Company; Mphatso Kasalika, Managing Director of Old Mutual Investment Group; Busani Ngwenya, a seasoned insurance executive and John C. Maxwell Certified Coach.
Setting the tone was Emily Makuta who zeroed in on the importance of pension being the backbone of financial security.
According to Makuta Pension must withstand shocks and remain reliable.
She said, “There is a need for Pension administrators to diversify investments, strengthening governance and risk management strategies”.
In his presentation, “Landscaping for Future Reforms,” Kaluso Chihana emphasised the need for proactive regulatory alignment to strengthen fund performance and sustainability.
He traced the sector’s journey from the 2010 reforms focused on operationalisation and supervision to the current stage of enhancing functionality, voluntary schemes, and economic impact.
Chihana highlighted five reform pillars: efficiency, sustainability, coverage, security, and adequacy.
Drawing on National Statistical Office data, he noted that of Malawi’s 950,000 elderly citizens, only 60,000 are pensioners, and of 960,000 salaried employees, just 645,000 belong to pension schemes against an active population of 6.6 million.
“These figures,” he said, “reveal the gap and the amount of work that still needs to be done.”
He added that the new Pensions Law was designed to be more inclusive, acknowledging that Malawi lacks a broad-based social security system.
“Currently, only about 4% of Malawians are covered by the National Pension Scheme,” he said.
Offering a technological perspective, Dr. Wisely Phiri discussed trends and innovations in pension fund governance, stressing the role of technology and data-driven systems in improving administration and oversight.
He identified five global trends shaping modern governance: going beyond compliance, integrating ESG principles, member-centric models, professionalism, and digital innovation.
“True innovation,” he noted, “is not about systems or code; it’s about people and ensuring that every kwacha contributed in faith is managed with integrity and returned with fairness.”
From an investment standpoint, Mphatso Kasalika’s presentation on “Sustainable and Impactful Investing” underlined the need to align financial returns with positive environmental and social outcomes.
He showcased Old Mutual’s responsible investment strategy, integrating ESG factors into financial analysis to achieve sustainable long-term returns through investments in housing, roads, communication infrastructure, tourism, and agriculture.
Addressing risk and resilience, Busani Ngwenya shared lessons from Zimbabwe’s hyperinflation era, urging trustees to prepare funds for shocks and volatility through risk monitoring, diversified portfolios, liquidity reserves, sound governance, and effective member communication.
Echoing the same, Counsel Pempho Likongwe underscored the importance of succession planning and governance frameworks within pension structures.
The conference therefore highlighted that strong governance, innovation, sustainable investing, and collaboration are central to securing the future of pensions in Malawi.
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