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APM Unveils JMA as His Running mate

Democratic Progressive Party president Prof Arthur Peter Mutharika has picked former MEC chairperson Justice Dr Jane Ansah as his running mate for the September 16 presidential election. The choice of Justice Jane Ansah as Mutharika’s running mate, has surprised many people as some expected APM to pick one of his vice presidents who include Bright Msaka in the eastern region, Jap Mtuwa Mhango, Northern region VP, Alfred Gangata, central region VP and Joseph Mathyola Mwanamvekha who is DPP vice president for the southern region. DPP supporters waited with bated breathe at the iconic Bingu International Conference Centre and two things were at the heart of DPP supporters, to see Mutharika who was rumored to be unwell, and to see who his choice of running mate is. After presenting his nomination papers, MEC Chairperson Justice Annabel Mtalimanja told the DPP candidate that having gone through the nomination papers he had just presented, everything was done properly. In his speech, Peter Mutharika began by reminding Malawians his prophetic speech he gave some 7 years ago at Livingstonia in the northern part of Malawi in which he warned Malawians to vote wisely, ‘If you are not careful, one day evil will rule this country ” Mutharika preached peace and unity and said he wanted to retire but people asked him to retire from his retirement in order to rescue the country. He said he listened to the call and accepted to be DPP torchbearer during the forthcoming election. Speaking about his choice of running mate, Mutharika described Justice Jane Ansah as mature, experienced, and God-fearing person who served in various portfolios in the country. He concluded his speech by calling everyone in the DPP to work selflessly for the betterment of the nation, saying ‘ If we work together, We shall all win. This year’s presidential election has 22 candidate, according to MEC

Politics

Lilongwe, Malawi

DPP, AFORD Alliance Agreement Signed and Sealed; as AFORD Accept 2nd Vice President Position

It was an announcement every Malawian who love this country has been waiting for, political alliance agreement between Democratic Progressive Party and AFORD. The news of the alliance was greeted with joy and optimism as suffering Malawians are desperate to change the government come 16 September, 2025. But to achieve this, the people view meaningful and well structured political alliance as the only hope and way to rescue the country. During the joint press briefing the two parties held on Thursday in Lilongwe, AFORD president revealed that he has accepted the position of  2nd vice president and not Mutharika’s running mate because he is putting the interest of the country first. He said there is mass poverty and can’t let Malawians continue experiencing gnashing poverty because of greedy for power. The AFORD Czar went further saying talks on sharing of cabinet positions were very successful and each party was satisfied. Chairperson of alliance negotiating committee Hon Dr George T. Chaponda from the Democratic Progressive Party echoed Chihana’s call for all opposition political parties to come together and rescue the country which is on fire due to poor leadership of Lazarus Chakwera. According to a press release dated 22nd July, 2025 , and jointly signed by the two parties, the alliance has been necessitated by the suffering of millions of Malawians, the collapse of key state institutions and the erosion of democratic values. Both Dr Chaponda and Chihana said the signing of this historic political alliance agreement does not bar other parties from starting discussing possibilities of joining the alliance.

Elections News

Lilongwe, Malawi

Chihana Endorses APM; Proven Leadership Poised to Win the September 16 Polls

Enoch Chihana, President of AFORD has finally come out to endorse Professor Arthur Peter Mutharika as torch bearer of Grand Alliance to unseat the clueless Malawi Congress Party which has failed Malawians after over promising them during the 2020 Fresh Presidential Elections. Chakwera promised “Canaan”, land of milk and honey and terribly failed to deliver anything. Speaking at a rally at Namadidi in Chiradzulu district, he proposed an alliance which can stop Malawi from becoming an autocratic state and can help to take Malawi out of economic hardship with the proven leadership of Professor Arthur Peter Mutharika. The announcement by Chihana is the culmination of a series of talks between the two leaderships to put a united front in September, rather than splitting their votes which may benefit the incumbent, President Dr Lazarus Chakwera and his MCP.

Politics

Chiradzulu

MCP Loses Case Against Mumba

Justice Justus Kishindo of the High Court in Mzuzu has nullified the MCP primary elections for Mzimba Central constituency and has since ordered the party to hold fresh elections that borders on free, fair and credible footing. The Court says the MCP used “fraudulent electoral college” to favour a particular candidate against the claimant, Mumba. The judge also ruled that MCP failed to give the claimant, fairness, that MCP has no internal discipline resolution mechanisms, and that the rights of the claimants were severely injured.

Politics

Mzuzu, Malawi

President to Address the Nation at 7pm

President Dr Lazarus Chakwera will be addressing the nation at 7pm. Chakwera is expected among other things to comment on the campaign marathon which has been launched today by MEC at BICC in Lilongwe. He is also expected to comment on the political violence that erupted in Lilongwe which his police and army failed to protect demonstrators and the merciless beating of Human Rights Activist Silvester Namiwa by suspected MCP thugs, the high cos of living, scarcity of forex, corruption, hunger, lack of drugs in hospitals, what he has done in 5 years if any among other issues. More in our subsequent news articles.

National News

Lilongwe, Malawi

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Lilongwe, Malawi

DPP-AFORD Alliance Deal Sealed to save Malawi from Cyclone MCP- Chakwera Disaster

“Today, we mark a new chapter in our collective concealment of a better Malawi. After a careful consideration and deliberation, the National Executive Committee of Alliance for Democracy (AFORD) has resolved to form an electoral Alliance with the Democratic Progressive Party DPP and other political Parties.” Chihana wrote.  AFORD President Rt. Hon. Enoch Kamzingeni Chihana has finally sealed the electoral alliance deal with DPP at a time when some political party leaders are advancing their personal interest other than of the nation.  In a press release signed by the AFORD President and seen by Khulubvi Post, Chihana has started by highlighting reasons for unity of purpose focusing on poor Malawians who are suffering  under MCP poor leadership. He said, “We are all aware how we have suffered as a result of skyrocketing of prices, scarcity of fuel, lack of employment among the youth, deliberate creation of hunger due to exorbitant price of fertilizer, sheer arrogance, nepotism, mismanagement of resources through corruption and failure to adhere on austerity measures”. Chihana stated that additionally, our democracy is under threat and if not careful as leaders, Malawi will turn into a one party State. We have had enough of empty rhetoric and failed policies. As we approach the September 16 elections, he is compelled to express his profound disappointment at the total number of presidential candidates vying for the highest office in the land. With 20 individuals seeking the presidency, it is clear that many are driven by personal ambition rather than a genuine desire to serve the nation. In a country struggling with pressing economic challenges, this dissonance of candidacies is a luxury we can not afford. Chihana said that he has decided not to join this calamity of greed individuals who are eager to satisfy their personal interests and not that of a common man. He observed that greedy will not save Malawians from the clueless government and further said that it is imperious that political leaders prioritize unity, stability, socio- economic development and collective progress over individual interests. This bold step taken by AFORD President, Enock Chihana is driven by an obligation for the welfare of our great nation. AFORD believes that by joining forces with DPP, they can harness their collective strength to drive meaningful development, promote peace and ensure stability in our country.  Chihana says, he is confident that this Alliance will bring about a new era of prosperity and progress for all Malawians.  His special message to Professor Arthur Peter Mutharika is that Malawians are looking forward to him as a father who will guide this ship to the Promised Land. On 16th September, Mutharika is going to take-over the leadership of this country based on sustained trust given to you by your fellow Malawians. Nevertheless, Malawians are expecting a change in the way the government would be operating. He  said Malawians are asking leaders to rebuild this country that has lost its moral compass. Malawians want a country where rule of law, justice, accountability and transparency become the true values of democracy. The spirit of business as usual by party zealots shall never be condoned. Chihana however warned those who are used to violence, intimidation and impunity to stay away from this crusade because some of us will not be part of a government that shields impunity and lawlessness. He appealed to alliance leaders not let Malawians down rather to build a Malawi that is inclusive, prosperous and just for all where every citizen has access to opportunities, where every voice is heard, and where every life is valued. He further urged all our supporters and the general public to join us on this journey. Let us march forward with courage, with conviction and the commitment to our nation’s progress.  Meanwhile, Professor Arthur Peter Mutharika, torch bearer for the alliance is expected to submit his nomination papers on Friday, July 25, 2025 in Lilongwe. At least 20 candidates who collected nomination papers from the Malawi Electoral Commission (MEC) to contest in the Sept. 16 presidential race are expected to present their papers to the MEC from July 24 to 30.

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Lilongwe, Malawi

Northern Region Shun MCP, Opposition Parties Gain Momentum Across the Country

In a bid to get rid of  the clueless ruling Malawi Congress Party-MCP from the halls of power, the main opposition party, the Democratic Progressive Party-DPP has clinched a deal with the Northern Region Block as one of their best surrogates to promote the name of Professor Arthur Peter Mutharika for the September, 16 Elections. According to the document which is in the public domain, the parties have agreed to work together following the suffering of poor Malawians under the leadership of President Dr Lazarus Chakwera. “Cognizant of the suffering of millions of Malawians, the collapse of key state institutions, and the erosion of democratic values, the Democratic Progressive Party (DPP) and the Northern Alliance Block are pleased to announce the official signing of a Political Alliance Agreement on Tuesday, 22nd July 2025,” the statement reads. The DPP says that this alliance is born out of a shared commitment to rescue Malawi from the deepening socio-economic crisis, leadership failure, and rising despair that have defined the current administration. It is a response to the loud and growing cry of Malawians for a return to proven, experienced, and visionary leadership, “reads the statement which has been co-signed by Dr George Chaponda who is the Chairperson of Negotiating team from the DPP and Dr Buchuzga Victor Madhlopa, the Lead Negotiator of the Northern Region Block It adds that the agreement represents not just a political alignment but a unified national mission. It is not just a coalition of political interests. It is a coalition of purpose the statement further reads. The two parties have also disclosed that further details of the alliance agreement will be made available to the media and the public soon.

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Blantyre, Malawi

DPP Leaders Rally Behind APM in Blantyre

Top DPP officials held a rousing political rally at BCA Ferries ground in Bangwe, Blantyre, urging voters to support Prof. Arthur Peter Mutharika in the September 16 polls. Hon. Sameer Suleman, MP for the area, lambasted the MCP government for failing to deliver on its 2019/2020 campaign promises, saying, “Malawians are fed up with MCP’s empty promises and are ready to vote them out in September.” DPP Vice President for the Southern Region, Hon. Joseph Mwanamveka MP, assured the crowd that DPP will reclaim power under Prof. Mutharika’s leadership, citing his previous tenure as a period of economic prosperity. “We will bounce back to power in September, and Prof. Mutharika will lead the country to a brighter future,” Mwanamveka declared. The rally was attended by prominent DPP officials, including MPs Hon. Noel Lipipa, Hon. Charles Mchacha (DPP Regional Governor), and Yeremiah Chihana of the Afford Party.

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Lilongwe, Malawi

The Politics of Running Mate Choice for Political Parties – July 24

The Malawi Electoral Commission (MEC) has announced a schedule for the presentation of nomination papers for presidential candidates starting Thursday, July 24 with former President Dr Joyce Banda at 9am. “The Malawi Electoral Commission wishes to inform all presidential candidates that, political parties and the general public that the presentation of nomination for the Presidential Election will take place on Thursday, July 24 to Wednesday, July 30, 2025 at the Bingu Wa Mutharika International Convention Center (BICC),” reads part of the communication. According to the press statement, Joyce Banda will be the first to present her nomination, followed by Adilu Chilungo and Dr Daniel Duwe in the afternoon. Then on Friday there will be Professor Arthur Peter Mutharika in the morning, Millward Tobias and Frank Tumpale Mwenefumbo in the afternoon. Atupele Muluzi will be presenting his nomination papers on Saturday in the morning, Kondwani Nankhumwa and Cosmas Chijopola in the afternoon. On Sunday, there will be Dr Dalitso Kabambe in the morning then Akwame Bandawe and Rev Kaliya in the afternoon. Come Monday, Davie Mbewe in the morning, while in the afternoon there will be Davie Mbewe and Kamuzu Chibambo. On Tuesday there will be Dr Michael Usi in the morning then in the afternoon there will be Jordan Sauti and Dr Cassim Chilumpha. On Wednesday morning which is the last day, there will be Smart Swira in the morning before Dr Lazarus Chakwera presents his papers in the afternoon. But will rumours of alliances come up, it is worth noting that some presidential candidates will not present the papers at MEC. The fierce battle now is between the incumbent Dr Lazarus Chakwera and Professor Arthur Peter Mutharika who is currently leading by over 40%  according to the Afrobarometer survey results mainly because of the economy which is in shambles at the moment. MEC blows the whistle: on your mark, get set, go… running mates choices may determine the results of the election.

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Big Bullets wins Airtel Top 8 Cup

FCB Nyasa Big Bullets are the champions of Airtel Top 8 making them the most successful club in the competition. They defeated Silver Strikers 4-3 on post match penalties after a one-all draw during regulation time. This is a third time in a row for Bullets to win the competition and the fourth one since 2017

Lilongwe, Malawi

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PSG Outclass Real Madrid

Paris Saint-Garmin, the current European Champs put up a vintage performance against the Spanish giants Real Madrid on Wednesday night and book themselves a place in the final of Fifa Club World Cup with a 4-0 thumping The win means PSG will face the English side Chelsea in the final on Sunday who beat the south American team, Fluminense 2-0, both goals scored by their new signing Joao Pedro. Despite Madrid danger men Kylian Mbape and Vinicius Jnr starting the game, Madrid failed to breakdown or unlock the disciplined, stubborn and watertight defence of PSG which made their goalkeeper Gialuigin Donnaruma to be like a spectator. PSG dominated the game throughout the first and second halves and no wonder the 2 goals were scored inside 9 minutes in the first half. Goals came from Fabian Ruiz and Osmoune Dembele. The second half ended PSG leading 3-0. After a recess, Madrid did not change tactics or approach to the game despite making several substitutions as they conceded again in the dying minutes of the game. The final goal was scored by Goncalo Ramos.

Lilongwe, Malawi

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Nomads, Karonga Share Spoils

Mighty Wanderers, a Blantyre based soccer power house and Karonga United, a northern region soccer outfit, on Sunday took to the turf in a TNM Super League encounter where Nomads were expected to dislodge the current league leaders FCB Nyasa Bullets, but it was never to be as the game ended in a 1-1 draw As it is, FCB Nyasa Bullets are still league leaders with 24 points while Wanderers are on second position on the log table with only a point separating the two teams Both goals were scored in the first half of the game and the visitors, Mighty Wanderers were the first to score through a Gad Chirwa header But the home team equalised in the 38 minutes through a penalty kick following a dangerous tackle by Wanderers defender Peter Cholopi on Zikani Mponda in the box. Cholopi was red carded and his team played the remaining 52 minutes with a man down.

Lilongwe, Malawi

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HTD Limited and FCB Nyasa Big Bullets Announce Exciting Partnership

HTD Limited is proud to partner with FCB Nyasa Big Bullets to recognize and reward the team’s outstanding players. As part of this partnership, HTD will provide a monthly amount of K1.2 million to motivate the team’s top performers. Senior Team Winner K600,000 Reserves Team Winner K200,000 Women’s Team Winner K200,000 Additional Support K200,000 for other club initiatives. This partnership aims to boost players performance.

Lilongwe, Malawi

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Education

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Lilongwe, Malawi

Japanese Ambassador on Addressing Socio-Economic Issues for Malawi

Japanese Ambassador to Malawi, Yoichi Oya, underscored the vital role of higher education in addressing Malawi’s pressing socio-economic issues during his visit to Kamuzu University of Health Sciences (KUHeS) on Wednesday. The visit formed part of the Ambassador’s wider tour of Malawian universities aimed at gaining insight into their operations and exploring potential partnerships with Japanese institutions. “Since I was posted in this country, I have been visiting some leading universities to find out some spaces of engagement with the Japanese universities. I will take all the information back to my office to see how we can continue working together,” Oya stated. Dr. John Phuka, KUHeS Executive Dean, School of Global and Public Health, said KUHeS through his school can leverage Japanese knowledge and experience in managing the impacts of natural disasters and public health emergencies. “As you are aware that the country is facing significant challenges in terms of cyclones and other public health emergencies of different kinds including epidemics,” he said. Dr. Phuka also appealed to the Ambassador for resource support to address the increasing demand for healthcare human resources in Malawi. Prior to the discussions, Ambassador Oya was given a tour of the KUHeS campus, where he observed the infrastructure development and gained insight into the university’s service provision.

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Dedza, Malawi

8.7 Percent Rise in Female Participation in JCE; Equity and Access to Education for All

Minister of Basic and Secondary Education Madalitso Kambauwa Wirima has attributed the 8.7 percent rise in female participation in this year’s Junior Certificate Education (JCE), to national commitment to ensuring equity and access to education for all. Wirima made the remarks when she inspected the start of the 2025 JCE at Linthipe Secondary School and Nthulu Community Day Secondary School in Dedza district. The minister, said the schools that government introduced under Secondary Education Expansion for Development (SEED) project to increase access to secondary education, for young Malawians especially girls, are materialising. “We introduced 72 secondary schools under SEED project and most of them this is their maiden year to administer the exams. This is encouraging because we have noted an increase in girl’s participation in secondary education,” said the Minister. Commenting on the development, Inkosi Kamenyagwaza 5 of Dedza commended the ministry of education for the efforts in promoting education mainly for girls. A total of 166,123 candidates will sit for the JCE examinations nationwide this year, against a total of 154,504 last year.

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Dowa, Malawi

Inauguration of Bio-Energy from Electrical Energy in Schools

Ministry of Basic and Secondary Education has inaugurated the Bio-Energy from Electrical Energy in Schools (B-EES) Project in a significant stride towards integrating renewable energy with education. The initiative introduces solar-powered technologies, including a mini oil expeller, into the primary school setting, aiming to provide students with hands-on experience in renewable energy applications. Minister of Basic and Secondary Education, Madalitso Kambauwa Wirima, officiated the launch at Kaungwe Primary School in Dowa on Friday. She emphasised the project’s potential to inspire students towards careers in science and engineering. “I, therefore, encourage learners to view the initiative not merely as a project but as an opportunity to gain practical skills that align with the nation’s vision for sustainable development,” she said. Belgian Ambassador to Malawi, Peter Huyghebaert, highlighted collaborative efforts between Malawi and Belgium, noting that the project aims to enhance energy accessibility and educational opportunities in rural areas . The B-EES Project is implemented by G-HiTech in collaboration with the Ministry of Basic Education, funded through a €700,000 grant from Belgium’s FINEXPO and an additional €159,321 from the Walloon region (AWEX). The initiative aligns with Malawi’s broader educational reforms, such as the Building Education Foundations through Innovation and Technology (BEFIT) programme.

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Mt Soche

Unqualified Private Schools Risk Closure

Minister of Basic and Secondary Education, Madalitso Kambauwa Wirima, has warned that private schools that fail to meet standard educational requirements will be closed, as the government is committed to improving standards for quality education in Malawi. The minister said this on Wednesday when she opened the Independent Schools Association of Malawi (ISAMA) National Conference at Mount Soche Hotel in Blantyre under the theme; Advancing Quality in Schools: Embracing Inclusion, Digitalisation, and Corporate Governance for a Sustainable Future. Wirima emphasized government’s commitment to improve education quality in both public and private institutions, saying the ministry will not tolerate schools that fail to meet government-set standards. “Running a school is not just a business but a responsibility. We will not allow any school to operate without qualified teachers, learning materials, or proper infrastructure. “These are basic requirements. A school that fails to meet these requirements puts learners at risk,” said Wirima. She added that, while the government values the role of private education institutions in expanding access to learning, the ministry will continue deploying education inspectors to assess and shut down schools that fall below the required standard. “The ministry has intensified inspections across the country. Schools operating without licenses or with unqualified teaching staff will be closed,” Wirima said. ISAMA President Bishop Wycliffe Chimwendo acknowledged the minister’s concerns and said the association will operate in line with the ministry’s mission to deliver quality education to all learners in Malawi. “The conference theme resonates well with the ministry’s mission to provide education that responds to today’s challenges and equips learners with practical skills. I would like to assure you that ISAMA is committed to supporting both our schools and the ministry in the quest for educational excellence,” he added. Chimwendo therefore called for closer collaboration with the government to review policies that may hinder the operations of private schools, particularly those serving rural populations or low-income earners. The conference had presentations from education experts from South Africa and Zambia, who shared strategies for improving governance and internal management in schools. Director of Rise and Shine Private School, Vincent Kambuka, said a session on corporate governance inspired him to strengthen his school’s management structures. “A school without a board of directors or a parent-teacher association (PTA) is like a ship without direction. That stayed with me. I now plan to set up proper systems to support effective learning,” he said. The two-day event also tackled topics such as digital learning, inclusive education, and integrating learners with disabilities into mainstream classrooms. The conference will enter its second day on Thursday with a general meeting and elections to choose a new president of ISAMA. #mananews

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Lilongwe, Malawi

Chihana Reacts to World Bank Economic Report; Chakwera with Pedestrian Economic Understanding

AFORD President Enoch Chihana says there is an urgent need for the new government in September to focus on the economic hardships Malawians have been subjected to by the Chakwera -led government citing deep concerns over rising economic problems and governance challenges. He was reacting to the World Bank Report that has indicated that the Malawi economy is in ICU; struggling on multiple fronts. According to the Report, titled “Navigating Uncertainty” it says the growth of the economy is at the tortoise pace, the economy is tumbling, prices of basic needs are rising and millions of Malawians are scrambling to make ends meet due to poor leadership. In his quick response, Chihana says September 16 is the defining day for Malawians to address the myriad of challenges they are facing under President Dr Lazarus Chakwera. “AFORD and other well meaning opposition parties are here to rescue the sinking boat. This government has not only deepened poverty across the country, but it has also set new records in wasteful spending and corruption. At a time when millions of Malawians are struggling to survive, government officials mainly the elites in ruling the Malawi Congress Party-MCP are living in excess and approving for each other’s budgets to travel abroad at the expense of the common poor Malawian. So a pity,” said Chihana. The report from the World Bank has come at the time Malawians go to the polls in September and it reinforced opposition messages on the economy. According to the report, it also indicates that Malawians are going through hunger crisis as maize production which is the main staple food will be in deficit and the limited foreign reserves means importing of relief food and fertilizer will be limited as well. The report also says the government overspent its budget in 2024/25, pushing the deficit to 10.5% of GDP and that in the coming fiscal year, debt repayment alone will eat up half of all tax revenue, leaving less money for service delivery mainly in critical areas of education, health and agriculture. The bank has since urged urgent intervention to stabilize the economy, support local producers, and defend the poor families and it has warned that if nothing is done, Malawians are expected to be unredeemable people. With less than 60 days before elections, many Malawians see the current leadership as not delivering on their key promises to improve the country’s ailing economy, food security, and corruption. Chakwera’s reelection bid is jeopardy as his government is very unpopular with the inflation crisis.

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Blantyre, Malawi

A 100 million US Dollar Oil Factory Commissioned in Malawi

A Tanzanian conglomerate Bakhresa Malawi Limited has added soya beans oil production to their line of businesses raising a prospect of consumers spending less on cooking oil which saw prices of the commodity soaring in recent years. The company has disclosed that it has spent 100 US dollars to set up the factory and it is determined to become the country’s leading oil producer to meet local demand According to Richard Tchereko, the company’s human resource and compliance manager, the company had met MBS requirements and it received pre-qualification certificate to start production. Tchereko further said with adequate raw material supply, the company will be producing 500 tonns of soya beans per day which very significant and he has encouraged local farmers to take advantage of the situation by growing and supplying more soya beans to Bakhresa Business gurus and economic experts have hailed the establishment of the oil company which among other things, will create jobs and save forex as the product will be produced locally using local raw materials. President Lazarus Chakwera presided over the official opening of the company on Wednesday in Limbe and stressed the need for Malawians to invest in the country  

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Washington State,

IMF Staff Completes 2025 Article IV Mission to Malawi

IMF Press Release number 25/175 published on its official website page in Washington, DC on Wednesday, 4th June, 2025 states that an International Monetary Fund (IMF) team led by Justin Tyson visited Malawi from May 22 to June 3 to hold meetings with the Malawian authorities and other counterparts from the public and private sectors and civil society for the 2025 Article IV consultation. Discussions focused on policies to restore macroeconomic stability, and the structural reforms needed to foster strong, inclusive, and durable growth. Below is the brief report of the mission to Malawi by IMF Staff which has ceen completed in 2025. Context, Macroeconomic Outlook, and Risks The Malawian economy has been buffeted by several shocks. Real GDP growth declined slightly to 1.8 percent in 2024 as a drought affected agricultural production, while foreign exchange and fuel shortages dampened economic activity. Over 20 percent of the population is facing high levels of food insecurity, up five percentage points over 2023. Headline inflation began easing in late-2024 and reaccelerated in early-2025 in the context of maize prices rising to historical levels, elevated money growth and an increasing official-parallel exchange rate spread. Fiscal and monetary policy has remained too accommodative. The FY2024/25 (April/March) fiscal balance fell short of budget targets and deteriorated relative to the previous year as revenue underperformed and expenditure ceilings were exceeded. Persistent and elevated domestic fiscal financing has fueled money growth and inflation, which in turn exerts pressure on the exchange rate. Monetary policy did not tighten sufficiently in the context of elevated government domestic borrowing. The broader reform momentum has been slowing. Consequently, domestic, and external imbalances worsened. The current account deficit expanded further to about 22 percent of GDP and gross reserves are critically low, pointing to an overvalued exchange rate. The official-parallel spread is wide and may reflect other factors beyond fundamentals. Malawi remains in external debt distress and domestic debt is growing. The macroeconomic outlook is subdued and dependent on the agricultural sector output and foreign grant support. Under current policies, the mission expects real GDP growth to be 2.4 percent in 2025 and gradually increase to 3.4 percent over the medium term. Inflation is projected to average 29 percent in 2025 and settle at around 14 percent over the medium term. The current account deficit is projected to improve to about 17 percent of GDP in 2025 based on lower fuel prices and a rebound in key exports. General elections, scheduled for September, have reinforced political-economy constraints to macroeconomic adjustment. After the expiry of the ECF arrangement, the Malawian authorities are designing a homegrown reform program. Risks are tilted to the downside. Lower-than-anticipated grant inflows and food production, additional global trade tensions, and delayed reforms could deepen macroeconomic instability. Greater-than-expected mining investment and production constitute an upside risk. Fiscal Policy Returning to a sustainable fiscal adjustment path is a priority. Tackling the rising interest bill will create space for domestically-financed investment and pro-poor spending, while also ameliorating the sovereign-bank nexus. Domestic revenue mobilization is urgently needed to achieve fiscal sustainability in an equitable way. This could be achieved through a combination of broadening the tax base and tax policy instruments (e.g., reducing exemptions, and personal and corporate income tax reform). Improving wage bill efficiency and rebalancing expenditures towards human capital and social protection could support these efforts. Staff welcomes public financial management improvements, which remain critical for strengthening fiscal governance and building public trust. The authorities have made progress in expanding the coverage of the Integrated Financial Management and Information System (IFMIS), bank reconciliations, and increasing the efficiency of public investment. Reform efforts should continue to, inter alia, enhance budget development, execution, and reporting, improve the procurement system, and strengthen State Owned Enterprises (SOE) oversight. Decisive steps are needed to restore debt sustainability. The authorities have achieved some progress with their bilateral creditors and continue to engage with their external commercial creditors to ensure that external debt is sustainable. Tangible progress on external debt restructuring could pave the way for new concessional inflows. This should be supported by steps to reduce the cost of domestic borrowing. Price Stability and Exchange Rate Policy Tighter fiscal and monetary policies would support disinflationary efforts and ease pressure on the exchange rate. High inflation hurts the economy in general, but especially the poorest and most vulnerable. A combination of more restrictive monetary policy and an urgent fiscal adjustment, including enhanced reporting on budget execution, could reduce broad money growth, support policy credibility and re-anchor inflation expectations. Structural constraints may also be contributing to entrenched inflation expectations. A unified and market clearing exchange rate is critical to reducing imbalances and supporting the authorities’ growth objectives. The current regime with a large and volatile spread between the parallel and official rate creates distortions, impedes exports, subsidizes some imports, and encourages informality and tax avoidance. Foreign direct investments and official aid flows are discouraged, and domestic revenues reduced. Eliminating these imbalances requires unifying the official and parallel exchange rates, at a level reflecting fundamentals and discounting speculative factors, and stabilizing the foreign exchange market. Consistency between the de facto exchange rate regime, the monetary policy framework and fiscal policy are needed to ensure sustainable growth. Financial Sector Policies The banking sector’s credit and foreign exchange risks should be monitored to preserve financial stability. While the sector is well-capitalized, liquid, and profitable, its significant exposure to government borrowing and the net foreign liabilities position within the banking sector require continued careful monitoring. Increased banking sector credit to the private sector would support economic growth. Fiscal adjustment would reduce crowding out of private sector due to public borrowing and support export-oriented investment. In addition, a lower inflation and interest rate environment would further support credit to businesses. Structural Reforms Improving the investment climate would help attract investment, diversify the economy, and move up the value chain. Sustained multi-year prudent fiscal policies and removing price distortions (e.g., re-activating the automatic fuel price mechanism) would bolster policy credibility and strengthen external competitiveness. Addressing key structural impediments to growth would durably support efforts to raise productive capacity, reduce inflation and improve self-sustainability, as envisaged under the authorities’ Agriculture, Tourism, Mining and Manufacturing (ATMM) policy umbrella. Further strengthening governance measures will support confidence in public service provision. Despite government reform efforts, including the two National Anti-Corruption Strategies, gaps persist. For example, the public procurement process and SOE operations would benefit from greater transparency and less discretionary decision-making. The IMF mission team thanks the Malawian authorities and all other interlocutors for the candid discussions and their hospitality. follow the link provided IMF Staff Completes 2025 Article IV Mission to Malawi

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Nchalo, Chikwawa

Minister of Trade Tours Illovo Sugar Company Amidst Scarcity of the Commodity

On 3 June 2025, Illovo officials hosted the Honorable Minister of Trade and Industry Vitumbiko Mumba and his entourage at the Nchalo Estate in Chikwawa District. The visit provided an opportunity to showcase their ongoing efforts to stabilize sugar supply on the domestic market and ensure consistent availability of the commodity for Malawian consumers. From field to factory, the Minister toured key operational areas and engaged with the Illovo team on the ground to better understand the production processes, challenges, and strategic interventions aimed at strengthening the local sugar industry. At Illovo Sugar Malawi, they remain committed to working closely with the government and stakeholders to grow the local economy, and deliver value for the country. Meanwhile sugar scarcity hits the old Zomba capital city as the local people line up to buy one packet of sugar at Chipiku shops.

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