AGP Executive Report

Water Services: Blantyre Water Board officials are studying Italian utilities to improve governance, water quality and digital monitoring in the commercial capital. Fuel and Costs: Supplies are expected to improve as 31 million litres arrive, but Malawi still has Africa’s highest petrol price, at $3.226 a litre, squeezing transport and business costs. Rural Finance: MAIIC’s K42bn facility targets farmers and rural firms; K27.34bn is committed, but just K5bn has reached participating lenders so far. Mining Exports: Lotus Resources has secured the final permits for a first 145,000-pound uranium shipment from Kayelekera, with transport through Zambia to Namibia’s port planned next week. Agriculture: Renaissance Agriculture is set to receive a K4.59bn FISP contract to supply 765 tonnes of maize seed. Roads: Government says depleted funds have left it struggling to pay M1 contractors, threatening a vital route for fuel, fertiliser and other imports.

Fuel Supply: Malawi expects relief as 24 petrol and 27 diesel tankers unload in Lilongwe. The energy minister says 31 million litres have been secured—about three weeks’ supply—with deliveries expected to ease shortages this week. Regional Connectivity: Ethiopian Airlines is adding three weekly Addis Ababa–Blantyre–Nacala flights, strengthening Malawi’s links to Mozambique and the carrier’s wider network. Rural Finance: MAIIC’s K42 billion facility targets farmers and rural businesses; K27.34 billion is committed, but only K5 billion has reached participating lenders so far. Mining Exports: Lotus Resources secured Namibia’s final permit for its first 145,000-pound uranium shipment from Kayelekera via Zambia, with dispatch expected next week and shipping planned for November. Agriculture: Government intends to award Renaissance Agriculture a K4.59 billion contract to supply maize seed for the 2026/27 farm input subsidy programme.

Fuel and Transport: Malawi’s fuel crisis is leaving drivers stranded in queues and pushing up costs across the economy. The country also has Africa’s highest petrol prices, while government says depleted project funds have delayed payments to contractors rehabilitating the M1, a key import route. Agriculture Finance: MAIIC’s K42bn rural facility aims to fund farmers and businesses, but only K5bn has reached participating lenders so far, with about K2bn disbursed to 2,714 beneficiaries. FISP Supplies: Renaissance Agriculture and Food Systems is set to receive a proposed K4.59bn contract to supply 765 tonnes of maize seed, following its acquisition by Ghana’s Legacy Crop Improvement Centre. Mining: Malawi’s delegation is studying Ghana’s gold-sector reforms, while Lotus Resources has secured the final permit for its first uranium shipment from Kayelekera, expected to leave next week.

Rural Finance: MAIIC’s K42bn facility aims to expand affordable loans for farmers and rural businesses. K27.34bn has been committed, but just K5bn has reached participating lenders, with about 2,714 beneficiaries reached so far. Economic Outlook: A new analysis says Malawi’s economy is projected to grow just 2.83% in 2026, extending a run of growth below 3% and highlighting the challenge of turning growth into better living standards. Mining Exports: Lotus Resources has secured Namibia’s final key approval to transport uranium from Kayelekera through Zambia for export. Its first shipment of about 145,000 pounds is expected to leave next week. Transport Infrastructure: Government says depleted project funds are delaying payments to M1 contractors, who have not been paid since July 2025. The road’s poor condition is disrupting traffic on a vital route for imports.

Innovation: MUST engineering students won a design competition with Neohearscreen, a tool aimed at detecting hearing impairment in newborns. Foreign Exchange: Malawi imports about 1,000 vehicles a month despite acute forex shortages, prompting calls to curb luxury imports and encourage electric vehicles and local battery production. Fuel and Transport: Persistent fuel queues are disrupting businesses and livelihoods, while authorities say 287 tankers are expected to help ease shortages. Export Growth: The Reserve Bank plans a $50 million Thrive project to finance export-ready firms and SMEs supplying them, targeting stronger value chains and forex earnings. Mining: A new World Bank compact sets priorities for investment, jobs, infrastructure and local value chains in the sector. Prices and Production: Inflation fell to 19.4% in September, but non-food inflation remained at 31.5%; rice farmers also face mounting pest and disease threats. Small Business: About 400 women in Zomba received business training, with start-up materials and marketing support planned.

Blantyre’s Future: Local Government Minister Ben Phiri has urged the city to use its 150th anniversary to become more resilient and economically vibrant, noting its importance as Malawi’s commercial and industrial hub. Forex and Fuel Pressure: Malawi imports at least 1,000 vehicles a month despite scarce foreign exchange. A governance expert has called for curbs on imports, while the National Planning Commission has suggested promoting electric vehicles and local battery production. Fuel shortages and long queues are also disrupting businesses, with black-market fuel reportedly selling at two to three times pump prices. Economic Outlook: Inflation fell to 19.4% in September, but non-food inflation remained at 31.5%; economists warn that price pressures persist. Mining and Exports: A new World Bank-backed mining compact aims to attract investment, build infrastructure and strengthen local value chains. The Reserve Bank will also implement a $50 million project to finance export-oriented firms and productive small businesses, with the goal of boosting foreign exchange earnings.

Small Business: About 400 women in Zomba completed training in soap, cooking oil, petroleum jelly and peanut-butter production. CTS Courier and Smedco say they will provide start-up materials, marketing help and business guidance. Economic Outlook: Oxfam warns recovery remains fragile: growth averaged 2.9% from 2015 to 2024 and has stayed below 2% in recent years, trailing population growth and squeezing living standards. Inflation fell to 19.4% in September, but non-food inflation remained high at 31.5%. Mining and Exports: Malawi’s new World Bank mining compact prioritises investment, jobs, infrastructure and stronger local value chains. Separately, the RBM will implement a $50 million project to finance export-oriented firms and productive SMEs, aiming to lift foreign-exchange earnings. Fuel and Markets: Fuel shortages continue to disrupt travel and business, with motorists facing long queues and reports of black-market sales at inflated prices. The stock market has also lost nearly K5 trillion in value over a year, amid investor concerns about policy uncertainty and new taxes.

Economic Outlook: Inflation eased to 19.4% in September, but non-food inflation remained high at 31.5%. Economists warn Malawi still trails regional peers and drought could push prices back up. Fuel and Power: Shortages are disrupting transport and businesses, while fuel sells on the black market for two to three times the pump price. HRDC has threatened protests unless government tackles fuel, electricity, water and medicine shortages. Mining and Exports: Malawi’s new World Bank mining compact targets better sector governance, infrastructure and local value chains. A separate $50 million Thrive project will help exporters and productive small businesses access finance to grow sales abroad. Agriculture: Maize prices averaged K997 per kilo in September, with some markets reaching K1,200, squeezing households and raising food-security concerns. Investment: The Malawi Stock Exchange has lost nearly K5 trillion in value in a year, with policy uncertainty and new share-sale taxes cited among the pressures.

Mining: Malawi has secured a World Bank mining compact focused on governance, infrastructure, skills and local supply chains, as the sector is projected to generate more than $30 billion in exports by 2040 if investment and production constraints are addressed. Export Growth: RBM is preparing a $50 million World Bank-funded Thrive project to finance exporters and productive SMEs, strengthen value chains and boost foreign-exchange earnings. Fuel Crisis: Prolonged shortages are disrupting transport and businesses, with foreign-currency constraints hampering imports and some motorists queueing for days. Food Markets: Maize prices rose 3% in September to an average K997 per kilogram, with some markets reporting K1,200, adding pressure on households and farmers.

Fuel and Transport: Malawi’s fuel shortage is leaving motorists queued for days, disrupting businesses and pushing transport costs higher as foreign-currency shortages delay imports. Food and Farming: Stakeholders are urging a joined-up food system that improves storage, processing and distribution, while scientists explore biotechnology to protect rice from pests and disease. Agritech Skills: LUANAR and STEMpower have launched a six-month programme to train 24 secondary students in practical technologies such as smart irrigation and poultry monitoring. Industrial Revival: Government says it will operationalise the Malawi Development Corporation within six months, renewing hopes for state-backed investment but raising questions about funding and results. Power Supply: Egenco is working to restore 31MW at Nkula A and B, with spare parts on the way; officials say repairs could help stabilise electricity supply. Regional Logistics: Mozambique is seeking private operators for parts of its rail network, including corridors linking its ports to Malawi, potentially expanding freight options for importers and exporters.

Power Supply: Malawi expects electricity supply to improve as Egenco works to restore about 31MW at Nkula A and B. Spare parts are on the way, while a new task force is preparing for El Niño risks to hydropower. Agriculture: The Attorney General is reviewing completed audits of Mega Farms and Neef farm-input loans, with possible police or Anti-Corruption Bureau investigations if financial crimes are identified. A Mwapata Institute study says poultry reforms and investment could add K539 billion to the economy, largely through maize and soya bean changes. Mining: Government is considering support to formalise artisanal and small-scale mining, potentially improving miners’ access to equipment, markets and safer practices. Forestry: Government is seeking private investors for plantations, timber processing, sawmills and furniture production as underfunding hampers forest protection and development.

Power Supply: EGENCO expects to restore about 31MW at Nkula A and B by mid-November, including the 20MW Nkula B Unit 6 by October 31. Repairs at Nkula A and spare parts for other units are also expected to ease outages by December. Poultry Industry: Malawi’s poultry value chain could add K539 billion to the economy, a Mwapata Institute study estimates. Lower feed costs, improved access to foreign exchange and formalised exports to Mozambique could unlock growth. Forestry Investment: Government is seeking private investors for plantations, replanting, timber processing and furniture manufacturing as forest loss continues at 11,565 hectares a year. Mining Value Addition: Proposed Minerals Act changes aim to boost local ownership and processing, creating jobs and keeping more value in Malawi, though energy constraints remain a challenge.

Power Supply: Egenco expects to return 20MW from Nkula B to the grid by October 31, with another 11MW from Nkula A by mid-November. A proposed 50MW electricity deal with Mozambique is close, but tariff talks remain. Fuel Crisis: Drivers are spending days in queues as shortages disrupt transport and business; 287 fuel tankers are expected this week. Food and Agriculture: Economists warn Malawi’s El Niño preparations are underfunded, with K163.7bn raised against K488.5bn needed. Cotton growers also face high seed costs and falling production. Mining and Investment: Proposed Minerals Act changes aim to boost local processing, ownership and jobs. Malawi is also among countries the World Bank may partner with under its planned increase in metals and minerals financing to $19bn by 2030. Business Finance: The Reserve Bank is reviewing Islamic finance rules; FDH Bank’s existing K50bn facility is mainly used by manufacturers. Regional Logistics: Malawi is being considered for a specialist training centre under Tanzania’s planned regional maritime university, focused on inland-waterway transport and multimodal logistics.

Power Supply: Egenco expects to restore 31MW by mid-November as repairs continue at Nkula A and B; a proposed 50MW import from Mozambique is awaiting agreement on tariffs. Climate and Agriculture: Economists warn Malawi’s El Niño preparations are underfunded, with K163.7 billion raised against K488.5 billion needed. High cotton-seed costs and delayed farm-input distribution add pressure on growers. Business Costs: Fuel shortages pushed transport costs up 14.29% in September and lifted the basic cost of living for an urban household of six to about K1.15 million. Mining and Industry: Proposed Minerals Act changes aim to boost local processing, ownership and jobs. Malawi is also among 20 countries the World Bank Group may partner with as it plans to raise metals and minerals support to $19 billion by 2030. Business Finance: The Reserve Bank is reviewing Islamic finance rules; an existing K50 billion financing window is being used mainly by manufacturers.

Cotton Crisis: High seed costs and foreign-exchange shortages have helped drive cotton production down to 3,000 tonnes, from 26,000 farmers last season to just 7,000 this year. The Cotton Council says local seed multiplication and better extension support are needed. Power Supply: A 50MW electricity deal with Mozambique has been tested, but tariff talks remain. EGENCO also expects parts to restore 31MW at Nkula, offering hope for businesses hit by blackouts. Central Bank: RBM Deputy Governor Kisukyabo Simwaka and two directors have been seconded to other institutions, including the Ministry of Industrialisation; officials have not given reasons for the reshuffle. Farm Inputs: Experts warn delays in distributing Fisp packages could leave farmers short of time to prepare Mbeya fertiliser before planting. Household Costs: Fuel shortages pushed transport spending up 14.3% in September, lifting the estimated monthly cost of living for a family of six to K1.15 million. Rural Energy: Salima has identified 63 sites for electricity connections, but funding, foreign-exchange and supply constraints continue to slow the rollout.

Rural Electrification: Salima has identified 63 sites for connections under the 2026–2030 rural electrification plan, but funding, foreign-exchange and supply constraints continue to slow delivery. Farm Inputs: Experts are urging faster FISP coupon distribution, warning that farmers need time to prepare Mbeya fertiliser before planting; it takes about 21 days to ferment. Household Costs: The monthly cost of living for an urban household of six rose 3.18% to K1.15 million in September, with fuel shortages pushing transport costs higher. Infrastructure Finance: The Reserve Bank is calling for deeper capital markets to direct long-term savings into energy, transport, water and digital projects. Mining: Lindian Resources says construction at its Kangankunde rare earths project is nearing completion, with first concentrate targeted for December; energising the site remains a key step.