The Malawi Energy Regulatory Authority (MERA) on Friday announced that it has approved a four-year electricity tariff hike of 50.8 percent.
Addressing the media in Lilongwe, MERA Chief Executive Officer (CEO) Henry Kachaje said the MERA board recommended the tariff hike at a meeting held on August 29, 2023.
He said this is after reviewing a Power Market Limited proposal of a 99.9 percent increment and later a base tariff application of 69.7 percent by the Electricity Supply Corporation of Malawi (ESCOM).
Henry Kachaje
“Following review of the base tariff application by escom in April, Mera met Escom and the Electricity Generation Company (Egenco), and conducted public hearings in Blantyre, Lilongwe and Mzuzu.
“Escom justified its application and base tariff application,” said Kachaje.
He indicated that in the 2023/2024 financial year, MERA has approved an 18 percent increment and 16 percent adjustment in the 2024/2025 financial year.
Kachaje said the lectricity base tariffs will be increased by 12 percent in the 2025/2026 financial year and 9 percent in the 2026/2027 financial year.
The electricity tariff is defined as the rate at which the electrical energy is sold to a consumer.
However, the tariff should include the total cost of producing and supplying electrical energy plus the profit to the power company.
In practice, the tariff cannot be the same for all types of consumers because the cost of production of electrical energy depends upon the magnitude of electrical energy consumed by the user and his load conditions
The Malawi kwacha has marginally depreciated by 2.8 percent against the United States of America dollar following the foreign exchange auction the Reserve Bank of Malawi (RBM) conducted on Tuesday.
This means that the kwacha will now be trading at K1,126 against the dollar from K1,095.
In a letter to addressed to authorised dealer banks (ADBs) on Thursday, RBM Governor Wilson Banda said the forex auction was successful as all Authorised Dealer Banks (ADBs) participated.
Reserve Bank Governor Wilson Banda
“As per the bank’s communication from 12th January 2023 on foreign exchange auctions, these auctions will determine the market clearing price of the Malawi Kwacha against the United States dollar and other major currencies.
“In this regard, please be advised that effective tomorrow (September 1) the maximum selling price shall be K1,126.77 per dollar. Please be reminded that all foreign currencies should be priced according to the 2023 Guidelines for Foreign Exchange Trading Activities,” he said.
According to Banda,the modality of the forex auctions is that ADBs bid to sell foreign exchange to the central bank at prices or exchange rates freely determined by each participating bank.
He said the bids are now supposed to be for a minimum of $50 000 and in multiples of $10 000 thereafter.
On Thursday August 31,2023, Sycamore Consult Limited, a Malawian leading training and consulting firm held an attractive and successful ‘Wealth Creation’ conference at Amarylis Hotel in Blantyre.
Under the theme ‘ Resilience and Reinvention in a Tough Economic Environment’ the conference brought together several people including employees, entrepreneurs and students.
In his presentation, Malawi’s business mogul Napoleon Dzombe who was the guest of honor shared his business success story.
Dzombe, who has recently built a magnificent Kalipano Hotel in Dowa district encouraged the conference attendees to always not underrate themselves if they want to achieve big in business.
“Business requires people who have self confident. People who don look themselves down. In business, always gather courage that what you are starting, you will finish it and bring expected results,” he said .
Dzombe indicated that he started business as a salt seller rising up to a person who now owns several businesses in Malawi.
Audrey Mwala
He revealed a secret that one to be successful in Malawian businesses should avoid doing one business for long.
“If you want to survive in Malawi businesses, you should not to be committed to one business.Always change from one business to another.In that way you can grow big,” he said.
On her presentation, Sycamore Consult Limited Founder and Managing Director Audrey Mwala talked more on Wealth Creation.
Mwala said wealth creation is the process of accumulating assets, investments, and resources over a period of time.
She indicated that the process combines key aspects such as strategic planning, risk-taking, and long-term investment.
Mwala insisted that there are no business opportunities in Malawi as some people say.
“I always insist that there are no business opportunities in Malawi and that no one can grow big in Malawian business. If it is so, what about Dzombe, is he doing business in South Africa?, is Kalipano hotel owned by him in America?. Such other peoples’ achievements should always encourage us that everything is possible for everyone here in Malawi, “she said.
She echoed Dzombe that self-confidence is one of the important steps for one to achieve big in every business.
“Be confident. Say I can and I am a winner for this business. Having that courage is only one step that can make you a successful business person everywhere,” said Mwala.
She further challenged those having plans to start businesses to be risk-takers.
“Do not fear to loss what you are investing in your business. Take risks and overcome them and become a winner,” she said.
Sycamore Consult Limited is a Malawian owned training and consulting company registered in Malawi in 2017 with corporate offices in Plantation House, Blantyre, Malawi.
The company is also registered in Zambia, South Africa and operates in the rest of Africa and Dubai, United Arab Emirates.
Sycamore specializes in providing expert personal skills development and mindset change programs through trainings to employees and entrepreneurs.
The company provides business and project solutions to governments, the private sector, and Non-Governmental Organizations through consultancy works.
It also provides organization development capacity building programs for board of directors, management and all employees of various organizations.
As President Chakwera opened the private sector mega farms programme , there has been a rallying call for the Malawians living in the diaspora to seriously consider making investments in mega farms. The call has been made by leader of Malawi Congress Party Diaspora Network Chalo Mvula , who claims national food security can be another great contribution by the diaspora.
Speaking to 247Malawi News , Chalo Mvula commended the Chakwera administration for prioritising the establishment of mega farms . “ We have to thank President Chakwera and his government , true to what was promised in the manifesto , the government is working hard to get these mega farms up and running something that is so crucial to revamping the country’s agricultural sector” said Mvula.
Chalo Mvula- diaspora need to invest in Mega farms
Mvula , who is based in the United Kingdom however encouraged his fellow diasporas to get on board and make investments in the agriculture sector , especially on the mega farms. He said diaspora investment in sustainable agricultural projects has real potential to impact the lives of poor rural people and stimulating agricultural production thereby reducing import dependency to enhance food security.
The Government of Malawi has committed to transform agricultural production through large-scale farming in the form of “mega-farms” that will be centers of large-scale production and serve as an anchor for other farmers in surrounding communities by attracting private markets for inputs and outputs. Mvula echoed President Chakwera remarks that the induction of the private sector mega farms programme will significantly contribute to the country’s economic growth in line with the Malawi vison 2063
The Malawi 2063 (MW2063) Agenda aspires to develop mega-farms to increase agricultural production, productivity, and commercialization, and to contribute to urbanization and industrialization.
President Chakwera at the Private Mega farms Programme launch
They are strong indications that some Malawians based in South Africa have been caught in the fire accident that has razzled a building in Johannesburg. Unconfirmed reports making rounds in the social media suggest the number of Malawians could reach 20 .
More than 70 people have died and more than 50 have been injured after a fire in South Africa’s city of Johannesburg. The five-storey building in the city centre has been described as “hijacked”, meaning it is used by squatters
Authorities say it’s unclear what sparked the blaze. Emergency services have said the fire gutted the building at about 01:30 (00:30 BST) on Thursday
Firefighters evacuated the building’s occupants on arrival, and the search and recovery of bodies is continuing. Reports suggest the occupants were mostly African migrants
