AGP Executive Report

IMF Support: The IMF says it is stepping up financial support for at least four African countries and is in accelerated talks with Malawi on a new assistance programme, as war-linked shocks keep squeezing energy and fertilizer supply chains. Food Safety & Standards: Malawi Bureau of Standards destroyed about 300 bales of expired soya chunks and fined a Blantyre wholesaler K2 million after market surveillance found the expired stock. State-Owned Industry Leadership: Salima Sugar Company appointed Clement Kumbemba as its new CEO, aiming to improve productivity and operational efficiency. Environment & Industry Approvals: MEPA and fertilizer businessman Napoleon Dzombe traded blame over delays in licensing his Dowa fertilizer plant, with MEPA saying it reviewed the project and the firm took nine months to respond to requirements. Digital Economy Push: Sparc Systems unveiled a blueprint to scale Malawi’s ICT services exports across Africa, citing growth in exports and calling for faster scaling support. Economic Recovery Debate: Economists warn Malawi’s National Economic Recovery Plan may fall short on forex generation, export diversification, spending priorities and implementation capacity. Transport Costs: Transporters say poor infrastructure and rising operating costs are driving up the price of goods, with roads-related costs cited as a major factor. ICT/Innovation Funding: UGI donated K15 million to MUBAS for its Research and Innovation conference, backing tech and AI-driven service improvements. Health Policy: Government’s proposed up-to-25% import tariffs on selected medicines has sparked debate over whether it will raise drug prices or help local manufacturing. Climate Risk: A new Malawi environment report warns the country is degrading natural capital faster than it can replenish it, while officials also flag high chances of a strong El Niño ahead.

Research & Innovation Partnerships: MUBAS is set to host its September Innovation Conference under “Research and Innovation,” aiming to turn university research into practical solutions for business, with UGI also pledging K15m to support the event. Digital Economy Push (and Scrutiny): Malawi’s cloud, cybersecurity and AI shift is accelerating, but industry is warning that the digital ecosystem still needs stronger support; Sparc Systems’ ICTAM win and its export scaling blueprint highlight the opportunity. ICT Exports & Forex: Sparc Systems says ICT services exports rose from about US$70m (2020) to US$154m (2023), arguing Malawi can’t keep blaming forex shortages while underinvesting in proven export sectors. Policy Pressure on Digital Growth: ICT sector players at ICT Expo urged government to move beyond statements with tax incentives, export support and new legislation to unlock the digital economy. Tax & Health Industry: Government’s new up-to-25% import tariffs on selected medicines is sparking debate over pharmaceutical self-sufficiency versus higher costs for patients. Environment & Industry Compliance: MEPA and fertilizer firm Napoleon Dzombe are trading blame over delays in environmental approval, with MEPA saying omissions and late revised reports slowed the process. Transport Costs Hit Business: Transporters warn that fuel, maintenance, insurance, tolls and compliance costs are rising faster than haulage rates, pushing up prices. Banking Rate Trend: Commercial banks cut the June reference rate to 20.4% from 20.6% in May, as liquidity improves and government borrowing stays subdued. Climate Risk Ahead: Malawi is preparing for a possible Super El Niño after WMO forecasts, with local analysis still pending. US Health Funding: The US pledged up to $792m for Malawi’s health sector over five years, boosting delivery and systems strengthening.

Digital Economy & Forex: Malawi’s ICT exports are already pulling in billions of kwacha, with industry leaders citing growth from about US$70m (2020) to US$154m (2023) as proof the sector can ease the foreign exchange squeeze. Banking Ambition: Standard Bank says it wants to become the largest bank in East Africa by 2030, aiming to double earnings and grow its client base across key markets including Malawi. Humanitarian Logistics Training: DHL Group launched the DHL Academy of Humanitarian Logistics (DAHL) to train nonprofit and humanitarian actors in customs, dangerous goods handling, packaging and safety. Transport Costs Bite: Transporters warn that rising fuel, maintenance, insurance, tolls, compliance and FX costs are outpacing haulage rates, pushing up prices of goods. Agri Diversification: Windmill plans to pivot from fertiliser into a diversified regional agribusiness platform, targeting higher-value inputs and expansion across Malawi, Zambia and Mozambique. Health & Pharma Policy: Malawi’s government moves to impose import tariffs up to 25% on selected medicines, aiming to boost local manufacturing but raising fears of higher drug prices. Environment Warning: A new national environment report warns Malawi is on a damaging path of forest loss, soil degradation and worsening climate shocks. Rare Earths Momentum: AuKing says new airborne surveys at Tundulu in Malawi point to a much larger carbonatite system, with a major drilling push underway while licence transfer review continues. US Support for Health: The US pledged up to $792m for Malawi’s health sector over five years, building on earlier cooperation. Education Infrastructure: Let’s Build Foundation constructed classroom blocks and sanitation facilities in Dowa District to improve access to quality secondary education.

Transport & Costs: Malawi transporters warn that fuel, maintenance, insurance, tolls, compliance and forex pressures are pushing haulage costs up fast, while rates stay stuck—on the Lilongwe–Beira route, costs reportedly exceed earnings per trip. Agribusiness Pivot: Windmill (Private) Limited says it will diversify beyond fertiliser into higher-value inputs and regional markets (Zambia, Mozambique, Malawi), after retiring US$6m in creditor obligations and seeking US$10m for its next phase. Rare Earths Update: AuKing says airborne magnetics and LiDAR at Tundulu in Malawi show a much larger carbonatite system, unlocking new drill targets; it has also set an earn-in deal to keep exploration moving while licence transfer approval is reviewed. Pharma Policy: Government’s new import tariffs on selected medicines (up to 25%) are set to boost local manufacturing and health security, but critics fear higher prices for essential drugs. Energy/Power Governance: ESCOM-related concerns continue, with reports of internal suspensions and calls for clearer turnaround steps. Health & Diplomacy: The US pledged up to $792m for Malawi’s health sector over five years, while Malawi’s foreign affairs minister flags US visa and consular changes as a risk to opportunities for Malawians. Mining & Investment Climate: Malawi is being positioned as an ASX critical minerals destination as more explorers line up projects, even as regulatory processes and approvals remain key. Humanitarian Logistics: DHL launched a DHL Academy of Humanitarian Logistics in Sub-Saharan Africa to train local and regional responders on customs, dangerous goods and safety. Environment & Conservation: Malawi marks World Environment Day with a focus on nature-based solutions, including conservation lessons from Neno’s Mpatamanga Wildlife Ranch. Food Security Pressure: IMF support is being discussed/accelerated for several African countries affected by the Middle East conflict’s ripple effects, including fertilizer and food supply shocks.

Critical Minerals & Mining: Malawi is drawing fresh ASX attention as AuKing reports new geophysics at its Tundulu rare earths project, pointing to a much larger carbonatite system, while also working through the MMRA licence transfer process and using an earn-in deal to keep exploration moving. Fertiliser Industry: MEPA has pushed back on claims of delays over Napoleon Dzombe’s Mulalo granular fertiliser plant in Dowa, saying the developer’s late resubmission of revised environmental documents caused a major hold-up—leaving the factory idle. Agribusiness & Governance: Questions are growing after the appointment of murder suspect Paul Limbani Taulo as CEO of SFFRFM, a key institution managing fertilizer support for smallholders. Health & Trade Costs: Government import tariffs on essential medicines are raising alarm among health advocates, who warn higher duties could push up drug prices, while officials have not clearly explained the policy. Digital Economy: Datacom Malawi donated MK10 million to support ICTAM’s ICT Expo 2026, with telecom and ICT stakeholders urging stronger collaboration to grow ICT exports, trusted payments and fraud resilience. Macroeconomy & Finance: The IMF says it is in accelerated talks with Malawi for a new assistance programme, as the US-Iran conflict continues to strain energy and fertiliser supply chains. Logistics for Aid: DHL launched a humanitarian logistics academy in Johannesburg to train local responders on customs, dangerous goods handling and safer, faster aid delivery.

IMF & Malawi Finance: The IMF says it is stepping up support for Ethiopia, The Gambia and Burkina Faso, and is in accelerated talks with Malawi on a new financial assistance programme as Middle East conflict keeps pushing up energy and fertilizer costs. Fertiliser Industry: Malawi’s much-hyped Dowa fertiliser plant remains idle because it is still waiting on environmental approval from MEPA, delaying production plans. Public Health & Trade: Malawi faces backlash after Parliament approved higher import tariffs on essential medicines, including malaria drugs and antibiotics, with health advocates warning prices could rise for patients. Governance & Agriculture Finance: Controversy is growing after Paul Taulo—linked to a 2023 murder case—was appointed CEO of SFFRFM, raising ethical and public trust concerns around a key fertilizer support institution. Digital Economy: Datacom Malawi donated MK10 million to support ICTAM’s ICT 2026 expo, urging stronger collaboration to drive Malawi’s digital transformation. Energy Access: Germany-funded EnDev demand-side subsidies are reported to have reached over 112,000 people with improved cookstoves and 58,000 with solar products across several districts. Transport & Safety: Blantyre residents are alarmed by widening cracks on Kamba Bridge, a major commuter link, calling for urgent assessment and repairs. Humanitarian Logistics: DHL launched the DHL Academy of Humanitarian Logistics (DAHL) to train local responders in customs, dangerous goods handling and safety, aiming to speed up aid delivery. Regional Migration Tensions: South Africa’s anti-migrant violence continues to drive Malawians and Mozambicans to seek refuge, while Malawi says repatriation support will be available for citizens who voluntarily request it.

US Tariff Threats: The U.S. Trade Representative says it will impose an extra 12.5% tariff on imports from 54 partners, including China, Japan and South Korea, after a forced-labour probe; public comments run to July 6 before a July 7 hearing. Economic Recovery Shift: Malawi’s Finance Minister Joseph Mwanamvekha defended tax hikes and a new National Economic Recovery Plan that moves away from subsidies toward mega farms, contract farming, solar irrigation corridors and agro-processing clusters. Healthcare Cost Pressure: Malawi faces backlash over a new 25% import tariff on essential medicines like amoxicillin, aspirin and paracetamol, with advocates warning of higher prices amid drug shortages. Energy Access Boost: Germany’s EnDev demand-side subsidies are said to have reached 112,000 people with improved cookstoves and 58,000 with solar products across seven districts. Transport & Infrastructure: Work on the Kameza interchange for the M1 expansion is underway, while fears are rising over widening cracks on Blantyre’s Kamba Bridge. Investment & Jobs: The Lilongwe Ryalls Golf Estate/Protea Hotels project is reported at 90% completion, valued at about K107 billion, with handover expected later this year. Regional Humanitarian Crisis: Xenophobic violence in South Africa has driven hundreds of Malawians and Mozambicans to shelters, prompting Malawi to arrange voluntary consular support and repatriation logistics. Agriculture & Markets: Farmers in Ntchisi complain poor roads block access to markets and even delay ambulance services, urging urgent road repairs.

Xenophobia Fallout: Malawi says it has started consular and diplomatic steps after vigilante attacks and anti-migrant violence in South Africa, with reports of Malawians among those fleeing; authorities are also arranging support for affected nationals. Agribusiness & Value Addition: Nasfam won praise from Ireland’s minister after demonstrating how donor funding moves from farm production through its commercial factory to finished products for shelves and school meals. Market Access Pressure: Farmers in Ntchisi are demanding better roads, saying poor routes are blocking transport of produce to markets and even delaying access to healthcare during the rainy season. Mining & Critical Minerals: Sovereign Metals reports high-value heavy rare earth minerals at Malawi’s Kasiya project, including dysprosium, terbium and yttrium—potentially boosting the site’s strategic value beyond rutile and graphite. Insurance Sector Rules: Malawi’s insurance players back stronger enforcement under the new Insurance Act, including mandatory premiums before cover takes effect and tougher penalties for fraud. Regional Fisheries Governance: SADC renewed the board of the Regional Fisheries Monitoring Control and Surveillance Coordination Centre, keeping Stanley Ndara as chair and prioritising vessel registers and reduced donor reliance. Food Policy: Malawi reiterates that the maize export ban remains in force while it awaits updated food balance guidance.

Tariff Shock for Trade Partners: The U.S. plans extra tariffs of 10% or more on many major economies after a forced-labour probe, with China and others facing even higher add-ons—raising new pressure for global supply chains. Regional Fisheries Oversight: SADC reappointed Stanley Ndara to lead the MCSCC board in Maputo for a second term, aiming to curb illegal fishing, cut donor reliance, and roll out a regional fishing vessel register. Malawi’s Mining Upside (and Control Questions): Sovereign Metals says Malawi’s Kasiya Rutile-Graphite project has high-value heavy rare earths like dysprosium and terbium, but local coverage also highlights the wider issue of foreign control over mineral wealth. Insurance Act Tightens Rules: Malawi’s insurers back stronger enforcement under the 2024 Insurance Act, including mandatory premiums before cover and tougher penalties for fraud. South Africa Xenophobia Hits Region: Malawi is monitoring attacks on African migrants in South Africa and engaging authorities, as Mozambique reports deaths and repatriation efforts after unrest in Mossel Bay. Transport Safety Move: Nacala Logistics will install spikes at Chirimba railway crossing from June 8 to stop unsafe use of the train passage gap. Power Sector Under Attack: ESCOM says vandalism is disrupting services and draining billions, with multiple transformer incidents recorded in recent months. Food Security Policy: Malawi says the maize export ban remains in force while it awaits updated food balance guidance. Infrastructure Push: Government plans a modern Kameza interchange as part of M1 Highway expansion, with major contracts already awarded.

South Africa Xenophobia Fallout: Malawi says it’s monitoring vigilante attacks on African migrants and has started diplomatic and consular steps via its Pretoria High Commission and Johannesburg Consulate to support affected nationals. Critical Minerals Push: Sovereign Metals reports high-value heavy rare earth minerals at its Kasiya mine, including dysprosium, terbium and yttrium, with concentrations higher than top global producers—potentially recoverable from mining waste. Women in Business Finance: Germany’s envoy flags persistent barriers for Malawian women entrepreneurs in accessing affordable credit, as a Growth Accelerator programme expands grants, training and mentorship. Transport Safety & Infrastructure: Nacala Logistics will install spikes at the Chirimba rail crossing (Magalasi Road) from June 8 to stop motorists misusing the train passage gap, after calls for clearer warning signs and lights. Power Sector Under Attack: ESCOM reports ongoing vandalism of transformers and cables, warning it’s draining billions and disrupting essential services. Tobacco Market Update: Six weeks into the season, Malawi’s tobacco earnings are about K120bn ($68m), down versus last year, though rejections are improving. Payments Innovation: PayPal launches its dollar-backed stablecoin PYUSD in Malawi and 26 other African countries to speed up cross-border transfers. Water & Environment: Malawi launches major biodiversity and ecosystem protection frameworks, while separate reporting warns safe water access needs far more funding to hit 2030 targets.

Digital Payments: PayPal has launched its digital dollar, PayPal USD (PYUSD), in Malawi and 26 other African countries, promising faster, cheaper cross-border transfers via PayPal accounts and dollar-backed stablecoin access. Transport & Trade: Government is negotiating a partnership with National Bank of Malawi to operate shipping services on Lake Malawi, alongside upgrades to ports and rail/marine oversight. Food Security & Markets: Admarc has been allocated K5 billion out of a K60 billion maize purchase budget, raising fears over how long buying can run; meanwhile, Admarc says it will start maize purchases at K900/kg. Water & Governance: Blantyre Water Board employees have demanded urgent action over the CEO–board standoff, warning operations and staff morale are being hit. Construction Quality: Malawi Institute of Architects says poor workmanship is linked to contractor capacity and cheap labour, urging professionals to use technology without losing human judgement. Entrepreneurship Finance: MEDF has launched a K100 billion loan disbursement push for MSMEs, stressing timely repayments to keep the fund revolving. Public Health Oversight: Parliament’s PAC is alarmed by claims embalming chemicals may be diverted to preserve fish, calling for stronger regulation. Energy & Risk: Oil markets react to Iran’s exit from talks, with Brent seen edging toward $100—an external pressure point for Malawi’s costs. Mobility Investment: Electric mobility startup Spiro nears unicorn status after raising $215m and says it plans expansion including Malawi. Governance & Elections: Malawi Electoral Commission is challenging a presidential directive to relocate its headquarters, seeking court protection.

Food Security & Markets: ADMARC is set to start buying maize nationwide at K900/kg, but only K5bn of the K60bn budget has been released so far, raising fears of weak purchasing continuity for farmers. Agriculture Policy: Government raised onion procurement prices under its buffer stock scheme by 24.4% to Rs 15.80/kg and reported record pulse buffer stocks, aiming to protect farmers’ returns while stabilising prices. SME Finance: MEDF launched a K100bn loan disbursement drive to expand affordable credit for MSMEs, stressing repayment discipline to keep the fund revolving. Infrastructure & Transport: Demolitions have begun for the Liwonde–Matawale road rebuild, funded by a World Bank K106bn loan, with works expected to start soon. Energy & Mining Governance: President Mutharika split the Energy and Mining portfolio into two ministries, appointing Jean Mathanga for Energy and Thoko Tembo for Mining. Public Health Oversight: Parliament’s PAC warned of alleged diversion of embalming chemicals into fish preservation, calling for stronger regulation of medical supply chains. Regional Trade & Logistics: NOCMA denied favouring foreign fuel hauliers, citing Malawi-registered tanker shares and exclusive use of Malawian transporters on the Mozambican route. Crime & Borders: South Africa’s Beitbridge bust intercepted 713kg of methaqualone (ABBA) worth nearly R1bn, with arrests including Malawians, highlighting cross-border organised crime risks.

Food Security & Markets: Malawi released only K5bn of a K60bn maize-buying budget for ADMARC, starting purchases at K900/kg but raising fears of limited purchasing power for farmers. Roads & Infrastructure: Demolitions have begun for the Liwonde–Matawale road rebuild, funded by a World Bank K106bn loan, with completion targeted for July 30, 2027. Energy & Mining Reshuffle: President Mutharika split Energy and Mining into two ministries, appointing Jean Mathanga (Energy) and Thoko Tembo (Mining), a move analysts say could improve focus but may strain austerity. Finance & Risk: The RBM introduced mandatory insurance rules after repealing the 2010 Insurance Act, covering construction liability, public buildings, insurance fraud, and imports. Logistics & Industry: CTS Courier won “Most Reliable Courier Service” at the 2026 Consumer Choice Awards, highlighting growing competition in Malawi’s delivery and logistics space. Governance & Public Services: MEC’s Election Management Device (EMD) was nominated for the ICTAM Digital Public Service Award, alongside other e-government systems. Climate & Agriculture Support: ICRISAT expanded climate-resilient chickpea seed production in Malawi, Zambia and Mozambique to help farmers cope with fertilizer costs and weather shocks. Public Safety: South Africa’s Beitbridge operation intercepted a Malawi-linked methaqualone shipment worth about K106bn, with arrests reported and investigations ongoing.

Digital Governance: Malawi Electoral Commission’s Election Management Device (EMD) tablet has been nominated for the ICT Association of Malawi (ICTAM) “Digital Public Service Award,” alongside other national e-systems like MRA’s e-invoicing and PPDA’s e-procurement. Food & Agriculture Markets: Government has released K5 billion to ADMARC out of a K60 billion maize-buying budget, but farmers and traders question whether the funding is enough to sustain purchases at the K900/kg price. Roads & Infrastructure: Demolitions have started for the Liwonde–Matawale road rebuild as Malawi moves to rehabilitate a badly deteriorated M3 corridor, financed by a World Bank K106 billion loan. NGO Localization: World Relief in Malawi is transitioning into Impact Relief to align with the amended NGO Act and push community-led, locally led programmes across health, WASH, agriculture and resilience. Energy & Mining Reshuffle: President Mutharika split the Energy and Mining ministry into two portfolios, appointing Jean Mathanga for Energy and Thoko Tembo for Mining—sparking debate over efficiency and austerity. Finance Regulation: RBM has introduced mandatory insurance policies after the Insurance Act repeal, covering infrastructure under construction, public buildings, insurance fraud and imports. Logistics & Business: CTS Courier won Malawi’s Most Reliable Courier Service award, highlighting continued demand for dependable delivery and logistics. Electricity Debate: CDEDI has objected to ESCOM’s plan to transfer the single buyer licence to PML, warning it could raise tariffs without fixing blackouts. Regional Security: South Africa’s Border Management Authority intercepted a Malawi-linked methaqualone shipment at Beitbridge valued around K106 billion, arresting suspects and renewing calls for tighter border controls.

Rail Rehabilitation Woes: A decade after a 20-year transport master plan, Malawi’s rail lines—especially the Limbe–Makhanga stretch—are reportedly overgrown, decayed and left to vandalism, undermining freight and passenger ambitions. Tobacco Market Divide: At Lilongwe auction floors, contracted and non-contracted tobacco farmers face sharply different realities, with independent growers lacking guaranteed buyers and support. Fuel & Forex Pressure: Government’s explanation for diesel challenges still points to forex scarcity and procurement constraints, as authorities push longer-term fixes like storage expansion and diversified import routes. Energy Sector Tension: CDEDI has objected to ESCOM’s plan to shift the single buyer licence to Power Marketing Limited, warning it could raise tariffs and distract from fixing blackouts. Electricity Governance Shake-up: Malawi’s cabinet restructuring splits Energy and Mining into two ministries, appointing Jean Mathanga (Energy) and Thoko Tembo (Mining). Drug Trafficking Crackdown: South Africa’s Beitbridge bust—about 713kg of methaqualone linked to mandrax—has led to arrests of two Malawians and a Zambian, with court proceedings and valuation questions now in focus. Industrial Jobs Under Pressure: AfDB says Malawi’s manufacturing employment fell from 4.3% (2010) to 3.9% (2024), citing electricity shortages, weak capacity and low-value production. Agribusiness & Climate Resilience: ICRISAT expands climate-resilient chickpea seed production in Malawi and the region as fertilizer costs and weather shocks strain food systems. Cotton Season Opens: Cotton Council launches 2026 marketing with optimism, targeting about K27bn from 22,000MT and citing zoning to improve buyer-farmer efficiency. Logistics Spotlight: CTS Courier wins Malawi’s Most Reliable Courier Service award, highlighting growing competition in transport and delivery services. Donor Support Signal: Ireland assures Malawi it will keep supporting despite wider donor withdrawals, focusing on food systems and health/education. SME Space Boost: Pacific Limited’s property development drive is praised for easing business space constraints in Blantyre, with calls to expand to Lilongwe and Mzuzu.

Electricity Policy Clash: CDEDI has objected to ESCOM’s plan to transfer the single buyer licence to Power Marketing Limited, warning it could raise tariffs and worsen blackouts instead of fixing ageing infrastructure. Border Security & Drugs: South Africa’s Border Management Authority intercepted a Malawi-registered truck at Beitbridge carrying methaqualone (ABBA) worth about K106 billion; two Malawians and a Zambian were arrested, with court proceedings and valuation questions still emerging. Manufacturing Jobs Pressure: An AfDB report says Malawi’s manufacturing employment fell from 4.3% (2010) to 3.9% (2024), blaming electricity shortages, weak capacity, and limited value-add. Business Environment Reform: Malawi launched the Companies, Registrations and Intellectual Property Centre (CRIPC) to streamline company registration and IP services under one semi-autonomous agency. Agribusiness & Seeds: ICRISAT is expanding climate-resilient chickpea seed production in Malawi and partners across Southern Africa, while Cotton Marketing Season opens with a K27bn target. Energy Fuel Shortages: Government says it is prioritising diesel for hospitals, water utilities and security as supply disruptions continue to hit transport and business activity. Industry Skills Support: Press Cane donated lab chemicals worth about MK20m to MUST to strengthen engineering education and industry-academia collaboration.