Low Paid Civil Servants To Get A Raise

Minister of Finance, Economic Planning and Development has increased budgetary allocation to the Department of Human Resource Management and Development with K7.7 billion in order to allow lower paid workers in civil service to get better salaries. 

Finance Minister Goodall Gondwe told the National Assembly during the Committee of Supply before the passing of 2016/17 budget that the increment has been made to avert possible strike if workers continue to get little salaries. 

CDF Allocation Increased To K18 Million Per Constituency

There was jubilation in the National Assembly during Committee of Supply when Finance Minister, Goodall Gondwe announced that Constituency Development Fund (CDF) to each constituency has been increased to K18 million from K12 million.

CDF is under National Local Government Finance Committee budgetary vote and Members of Parliament were proposing increment of K20 million allocation per each constituency from K12 million. 

But the Gondwe earlier told House that Government was willing to raise CDF per each constituency from K12 million to K15 Million. However, the Finance Minister motion was defeated and the Committee of Supply deferred the vote forcing the Minister to make further consultation. 

2016/17 Budget Increased To K1.149 Trillion Now Passed

Goodall: Presented Budget on 27 May 2016

The 2016/17 National Budget has been passed on Thursday night by the National Assembly but the budget figure has now been increased to K1. 149 trillion from K1.140 trillion following the introduction of new budgetary allocation vote for the Greenbelt Initiative and increment made to Department of Human Resource Management and Development by K7.7 billion

Greenbelt Initiative which has just been created by Government is a new vote which has received an allocation of K300 million. It was omitted on the Order Paper until it appeared on Thursday night when Government presented Supplementary Order Paper.

National Assembly Budget Increased by K1 billion

Minister of Finance has increased the National Assembly budgetary vote by K1 billion after legislators had on Monday deferred the vote saying it was insufficient to enable committees of the House to carryout their oversight roles.

The National Assembly vote was initially allocated with K9. 410 billion and with the change the vote has increased to K10. 410 billion.

Water Scarcity Hits Parliament: Force Early Adjournment

Deputy Speaker of the Malawi National Assembly, Esther Mcheka Chilenje on Wednesday evening adjourned the House earlier than agreed time citing health grounds as taps runs dry at the Parliament.

The adjournment that happened at 18:44 hours left Leader of House, George Chaponda and his fellow cabinet ministers gob smacked as it happened just after Government had successfully won the motion to extend the sitting time for the Committee of Supply to last night hours.

FISP Allocation Increased By K3.5 Billion

Government has increased budgetary allocation to the Farm Input Subsidy Programme (FISP) with K3.5 billion raising the figure from initial K31. 4 billion to K34.9 billion.

Minister of Finance, Economic Planning and Development informed the Committee of Supply that the increment has been made following increase in the market price of fertilizer commodity.

Govt Punishes MPs; Worked Till Night On Tuesday

Leader of House in the National Assembly, George Chaponda on Tuesday forced Members of Parliament to work till the night hours following prolonged debates that caused delays in passing the budgetary allocation made to each various Government ministries and departments.

Normally, the National Assembly is adjourned at 17:00 hours each sitting day, however, this was not the case on Tuesday as the House sitting hours were extended till late in order to recover the lost time during the day.

Govt Allocates K500 Thousand To Prisons For Agriculture, Expansion Of Cells

Prisons will in the 2016/17 financial year receive K500 thousand for the agriculture to enable prisoners produce food for themselves and for the buying of some few building materials to support the expansion of prison cells.

Minister of Finance and Economic Planning, Goodall Gondwe indicated that the allocation is seed money to be shared by most of the country’s prisons to enable them buy fertilizer to support their farming activities and to enable the most congested prisons particularly Maula Prison in Lilongwe to procure construction materials like cement to support the expansion of cells.

Legislators Wants Wants National Assembly Budget Increased To K12 Billion

The Parliamentarians welcomes Finance Minister's decision to defer national budget allocation of K9.410 billion for the National Assembly to allow further consultation as the House wants the allocation raised to K12 billion.

As the House began Committee of Supply where the whole House is considering and passing the budget votes for 2016/17, Legislators have argued that K9.4 billion it is not enough to allow the committees of the House to play oversight function on several issues including that Government is promising Malawians.

Govt Okay MPs General Purpose Fund Loan Implementation

Negotiations on the implementation for the General Purpose Fund (GPF) loans of Members of Parliament are finally over as Government has accepted full implementation of the loans, Minister of Finance and Economic Planning confirm.

A welfare committee has been negotiating with Government through minister of Finance on implementation of the personal loan facility amounting to K5 Million for each Member of Parliament, a package which includes funds for motor vehicle, general purpose funds and emergency.

Geological Mapping Programme To Open Malawi’s Mining Sector To Investors

Malawi is optimistic that its recent launch of Geological Mapping and Mineral Assessment Project (GEMMAP) will open up way for potential investors to come in the country to start serious mining business.

The launch of GEMMAP follows the 2015 launch of the High Resolution Airborne Survey Data that has pinpointed areas with high mineral potential. GEMMAP will among several issues, conduct ground follow ups of the anomalies interpreted in the High Resolution Airborne Survey Data and the investigations will include to identification of the type of rocks, the minerals hosted by the rocks, the quality and the quantities of the minerals in the ground.

IBAM Calls Govt To Develop Partnership Policy

Mlombwa: IBAM President 

President for Indigenous Businesspersons Association of Malawi (IBAM) says local businesses can benefit from the Investment Forums being hosted by Malawi only if it there is policy that promotes partnerships between indigenous businesses and foreign investors.

IBAM president, Mr. Mike Mlombwa, was speaking on the sidelines of the Malawi-China Investment Forum which is underway in Lilongwe. The forum has been officially opened this Tuesday midday by His Excellency President Peter Mutharika.

Over 100 businesses from Peoples Republic of China particularly from Anhui Province are in the country to explore investment opportunities mainly in Agriculture, Education and Industry and are expected to interact with over 300 local businesses.

IMF Approve US$ 76.8 M To Malawi

International Monetary Fund (IMF) Executive Board approves US$ 76.8 Million disbursement to Malawi.

According to press release from IMF, the Board approved the support on Monday 20th June 2016 after completion of the seventh and eighth reviews of Malawi’s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement. 

The Board’s decision for the immediate disbursement of the US$ 76.8 million, bringing total disbursements under the arrangement to US$ 169.1 million.

"In completing the reviews, the Board also approved the authorities’ request for an extension of the current ECF arrangement to end December 2016 and an augmentation of access by the equivalent of SDR 34.7 million (about US$ 49.2 million or 25 percent of quota). The requested extension would give the authorities more time to achieve the original objectives of the program while the additional financing will help to strengthen the country’s response to the El Niño induced drought which has caused a humanitarian crisis." Reads the statement 

Pres. Mutharika Impressed With Investment Interests From Chinese Investors

President Peter Mutharika says is pleased with the Chinese business investor’s interests in sectors of Industry, Agriculture and Education.

A group of Chinese business investors from Anhui Province are in the country to attend the first ever ‘Malawi-China Investment Forum’ this Tuesday, 21st June 2016 at Golden Peacock Hotel in the capital city, Lilongwe.

Speaking at Kamuzu Palace on Monday evening, during the audience with the representatives from the People’s Republic of China, President Mutharika said the Chinese Investors have made “Strategic choice of focus.”

“These three areas are strategic to Malawi’s economic paradigm shift” stressed President Mutharika

YCW Movement Fundraising To Support St. Peters Major Seminary

Catholic grouping of Young Christian Workers (YCW) in Malawi has called on people of good will to join the fundraising activity to support St. Peter's Major Seminary in Zomba which is in deep financial crisis.

Augustine Mulomole the National President for the movement, said the group has learnt with concern that St. Peter's Major Seminary is in deep financial crisis, requiring over K8 Million by July 2016 to finish the current academic calendar.

"As YCW, we have made a commitment to raise up to K500 thousand as our contribution to the seminary." Said Mulomole

"Financial contributions are greatly encouraged and can be made through Airtel Money and TNM Mpamba using the following numbers: 0997 541 127 or 0882 474 641." urged Mulomole who encouraged all people of good will to support the Seminary

"St. Peter's is the University for young men aspiring to become priests and most YCW members, specifically boys, are at a stage of deciding to choose a vocation and priesthood is one such vocation. Even girls need priests too, so, if the seminary closes shop, then it will be difficult and very expensive for the Catholic Church in Malawi to train future priests" he explained

Since most well wishers have committed to honour their pledges by the end of the month of June, Mulomole said YCW will be receiving the donations up to the end of this month of June and during the same period, it is set to consolidate all the donations and submit them to St. Peter's.

Malawi Parliament Adopts Hemp Cultivation Motion

How Malawi Economy Wins Through Industrial Hemp

Industrial Hemp Farm

In a historic way, the Malawi National Assembly on Thursday, 16^th June 2016, adopted a motion legalizing the cultivation of the Industrial Hemp for its economic and health benefits.

Ntchisi North Legislator, Boniface Kadzamira presented the motion which has been appearing in the Order Paper since in February this year but the motion failed to be debated.

Parliamentary Budget Committee Pessimistic With Malawi Projected GDP Growth Of 5.1 Percent

Chiphiko: Nation needs to pray 5 times a day to achieve such ambitious rate of growth

The Parliamentary Committee on Budget says nothing tangible for this year’s Budget to make the Malawi economy register real GDP growth rate from 3.1 to 5.1 percent.

Chairperson for the Committee, Rhino Chiphiko finished presenting the Committee's findings on Tuesday in the National Assembly, a response to Minister of Finance Goodall Gondwe's recently presented K1.136 trillion national budget estimates in the National Assembly for the 2016/17 financial year.

Parliamentary Budget Committee Chairperson, Rhino Chiphiko says his Committee established that the only positive areas in the budget has been large allocation to the Ministry of Agriculture which represent 17 percent of the total national budget and allocation for the food purchase.

The committee further noted the proposals to reform the Farm Input Subsidy Program and plans in Public Finance Management.

However, the Budget committee found number of worrying developments in the Budget which led the Committee to conclude that Malawi will fail to achieve real growth.

"Mr. Speaker Sir, events in the natural, or, Act of God, and in the human realm portend a difficult future. Climate change and extreme adverse weather events, unstable exchange rate, persistent high inflation, high interest rates and constrained fiscus, all portend a sluggish and depressed economy. An economy is in an Intensive Care Unit (ICU) like a patient on a Life Supporting Machine. Malawi is in an economic crisis." emphasised Chiphiko with urge that "But we must do something" mentioning lowering of interest rates and boost industrial production.

In the Committee findings presentation, performance of many sectors in the Malawi will be adversely affected by poor performance of the Agriculture sector as it is apparent that climate is still affecting the sector yet Malawi continues to depend on the sector.

According to Chiphiko, later in an interview said Malawi may this year register a negative 2.5 growth rate and not surpass the average growth in the regional which is around 3 percent. He said the committee believes that Ministers projected growth figure will need the nation "to pray more than 5 times a day in order to achieve such ambitious rate of growth."

Chiphiko said the budget has large allocation on expenditure for the public debt charges and interest repayment and that this will make Malawi fail to meet Millennium Development Goals as less has been allocated to the Development programmes.

His committee further notes that interest rates in banks remains stubbornly high making lives of many to be unbearable in the year which 8 million Malawians will face food shortage.

The Committee emphasise that interests rates must be revised downwards to make people able to borrow from banks and able to repay loans at reasonable rates. 

The Committee has among others noted that number of tax proposals cannot lead to any economic recovery and may even push the economy deeper into recession.

Govt Ministries, Departments Be Creative As Resources Continue To Dwindle

Hon. Wakuda Kaanga: Lets be creative

As Malawi continue to face economic challenges, difficult to adequately finance most Government Ministries and Departments, Kasungu North East legislator, Elias Wakuda Kamanga says Government institutions must be creative and efficient in using the limited resources to achieve high quality results.

The People’s Party legislator, hon Wakuda Kamanga was reacting to underfunding concerns being expressed by various Government Ministries and Departments pertaining to the allocations in the 2016/2017 national budget.

“You know, at a time like this when every country in the world, Malawi not being exception, where economies are not performing very well it is very dependent upon institutions across the board to begin restructuring their activities” Said Wakuda Kamanga

Hon Kamanga argued that “it doesn’t make any sense” in the face of dwindling resources to see institutions expanding in terms of activities but stressed for “serious radical transformation” that may translate how institutions work. 

Wakuda maintained that Malawi is endowed with resources but only that people are not working out ways to expand resources they have.

“I don’t agree with anybody that says Malawi has no resources this country has financial and human resources but we are mismanaging resources. We are not prioritizing very well about what is it that we should be doing. If Government can look inside itself they will definitely see that the resources are there but we need to take certain actions that can protect those resources and re-direct them to activities that would make sense to the growth of this economy.” he added

2016/17 National Budget Scrutiny Ends Today

The cluster Parliamentary Committees scrutinizing the 2016/2017 Budget are finalising today analysis of budgetary allocations to various ministry's and departments.

Finance Minister, Goodall Gondwe presented K1 trillion budget on 27th May 2016 a budget which is prioritizing agriculture.

2016/2017 National Budget Trim MHRC Budget Down By Half

The Malawi Human Rights Commission (MHRC) to face more challenges in the 2016-2017 financial year as the national budget has only allocated half of the amount needed by the institution this year.

MHRC submitted to treasury a planned budget of K213 million but the national budget has allocated K110 million.

The 50 percent reduction will scale down half of the planned human rights activities for this very important institution in this financial year of 2016-2017.

Grace Malera

Executive Secretary for MHRC, Grace Malera told the Cluster Committee on Authorities and Public Appointments which is scrutinizing the budget that this is “a record low” funding to the institution comparing to the previous budgetary allocations.

According to Malera, there are several implications to this reduction. She says the office will scale down crucial activities including Investigations, research and advocacy and education relating to ongoing attacks and killings of persons with albinism.

Even the construction project of MHRC long waited regional office in the Northern Region will continue to remain a dream as again this year, there is no allocation to that budget.

“The people in the northern region are people too, they are human beings and they have got human rights. So, this national body, the Human Rights Commission has got to reach out to them but this is one of the implications.” Says Malera who laments that MHRC activities in the north are experiencing number of problems due to lack of regional office

Malera also informed the parliamentary committee that with this reduction, MHRC will fail to hire new officers and solve office space problem. She told the committee that MHRC currently has 60 members of staff but requires 144 members of staff and that this financial year it plans to recruit 16 staff.

She further disclosed that MHRC has eight old vehicles but the budget has again failed to allocate money for the procurement of new vehicles and that this is a perennial issue which is again putting MHRC in mobility challenge situation when reaching out to communities across the country.

Among others Malera informed committee that MHRC is yet to receive from treasury, part of 2015-2016 budgetary allocation which is worrisome as there are only few weeks before the 2015-2016 financial year comes to an end.

“Whatever we are going to receive from July onwards, if it is going to come at the level of reduction of 50 percent, means the number of areas that we would have wanted to reach out to are going to happen at a lessened level.” Said Malera

Chairperson for the Cluster Committee on Authorities and Public Appointments, Hon. Lilian Patel, observed with concern that MHRC problems have remained the same for years now and that what the institution is asking Government this year were very same things that were asked previous years.

Patel then pleaded with the treasury to consider raising the allocation to the MHRC for it to fulfill its constitutional mandate of promoting human rights in the country.

However, in her response, Deputy Budget Director, Loyce Chilimsungwi maintained that it will be difficult to revise upwards the allocation to MHRC because the major hiccup in Government is resource availability.

“We don’t have enough in the basket” maintains Chilimsungwi