Malawi abandoned plans to introduce a 1% withholding tax on mobile-money transactions after criticism from the country’s main operator, lawmakers and a consumer-rights organization.
Finance Minister: Mwanamveka
Finance Minister Joseph Mwanamvekha, who proposed the proposed levy in his budget speech last month, told lawmakers Monday the government will now seek to introduce a 20% withholding tax on interest earned by trust funds that mobile companies set up to finance social programs.
The mobile tax drew criticism from Telekom Networks Malawi Plc, the country’s biggest phone operator. Chief Executive Officer Michiel Buitelaar wrote to Mwanamvekha, noting the tax would increase the cost of mobile-money transactions by 25% and stifle financial inclusion, the Nyasa Times reported, citing the letter.
The Consumer Association of Malawi Executive Director John Kapito said the tax would hit the poor hardest.
Mobile-money transactions increased by 8.2% to 7 million in the 3 months through June, according to a report by the Reserve Bank of Malawi, while the value rose 39% to 1 billion kwacha ($1.4 million).
The Malawi Communications Regulatory Authority has fined Airtel Malawi Limited the sum of MK500 million for failing to comply with the minimum local shareholding requirements.
Further to this The Authority also imposed a fine of MK20 million for every 14 days that Airtel will remain in breach of the requirement.
Airtel had up to the 25th of November 2018 to comply to this requirement.
Under the Communications Act 2016 and the telecommunications and broadcasting Licensing Regulations which came into effect in 2016, it is a requirement for providers of electronic communication services to have a minimum of 20% local shareholding.
in 2014, upon the renewal of its telecommunications license, Airtel committed itself to have a minimum of 20% local shareholding.
Airtel Malawi has since paid a total of MK820 million in fines and is expected to pay more if it continues to breach the conditions of their license.
Below some of the highlights of the press briefing which we held today.
President Prof. Arthur Peter Mutharika Tuesday afternoon began his speech with a minute silence in respect of the Police Officer killed in the disturbances at Msundwe earlier this morning.
Speaking at Kamuzu Institute of Sports, after successfully launching the construction of 250 secondary schools at Kawale Community Day Secondary School in Lilongwe, the President said his administration will make sure all corners of the country recieve equal development and treatment regardless of whether they voted for him or not adding that he is president of all Malawians adding that he will make sure there is unity of purpose.
The President also called on the public to desist from violence and vandalism of public infrastructure that is aimed at developing this nation.
Early in the day, a police officer was stoned to death at Msundwe trading centre as people were demonstrating against Mutharika holding a meeting at Kamuzu institute for Youth.
President Arthur Peter Mutharika has for the third time strongly refuted assertions that the May 21st Presidential election was rigged.
President Mutharika said this during a half an hour program on one of the reputable media organization in the world, Aljazeera.
President Mutharika who responded to the questions calmly and composed reiterated that the 2019 elections were free, fair and credible as was declared by six election observers namely European Union, African Union, Commonwealth among others.
The half an hour program, centered much on most critical issues affecting the country including the alleged election fraud, good governance, corruption among others.
On Presidential election outcome, in which the opposition parties are challenging in court, President Mutharika said the election was free fair and credible and repeatedly said the way Malawi’s elections were conducted should set an example to the rest of Africa and the world.
When asked if the current demonstrations being perpetrated by HRDC and the opposition political parties have affected his ability to run the country’s affairs this is what the Malawi leader had to say: “It does not affect my programmes. All the programmes we promise during the campaign, we are doing them.”
On the same, President Mutharika said he is not against the demonstrations but is against violent demonstrations. He said no right is superior than the other and he has since challenged the demonstrators to stop because they don’t have a point.
Mutharika on aljazeera
Professor Mutharika said he is not surprised with the post-election violence being championed by HRDC’S Timothy Mtambo and MCP’s Lazarus Chakwera because they already planned for this in February following a leaked conversation between the two that they would not accept the election outcome not in MCP’s favor.
“Under the constitution, peaceful demonstrations are allowed, and I support that. I am one of the drafters of the constitution, Am a Comparative Constitutional Lawyer myself. What has happened is that, these demonstrations are becoming violent, property has been destroyed- what the attorney general did was to go to court and get an injunction to stop violent demonstrations until the rganisers of the demonstrations can prove to the court that they are able to conduct peaceful demonstrations. I swear to protect the people, and also to protect the country and that’s what the attorney general was doing,” said the Malawi leader.
Asked whether he was grooming someone to take over from him after 2024, this was what Mutharika said: “There are many young people in the Government. In my cabinet, half the cabinet is under 40. We even have a 23 year old parliamentarian. I don’t think it is necessary to groom somebody. This is a democracy. This is not a monarchy and I cannot anoint anybody. The DPP will decide in 2023 at the convention on who should be the leader of the party and therefore the presidential candidate.”
The program also highlighted Malawi’s commitment on climate change and bilateral relations with countries like China and Japan among other important issues affecting Malawi and beyond. This is not the first time for the President to speak to the media after May 2019 post-election matters. Professor Mutharika also recently had an interview with British Broadcasting Corporation-BBC.
The LFC Foundation headed back to Malawi last month to deliver the final stage of the Health Goals Malawi project alongside the Liverpool School of Tropical Medicine (LSTM).
The joint project, which was launched in 2017, delivers sports-based public engagement activities in Malawi, which allow young people to access health services and education focused on HIV and other sexually transmitted diseases.
Liverpool charity work in Malawi
Using the power of the LFC badge and the wider appeal of football, the programme engages with local youngsters – in particular, males aged 14-22, who are least likely to access health education and services such as self-testing and treatment plans.
In Malawi, the number of people living with HIV is one of the highest in the world and young people account for 50 per cent of new infections, with incidences highest among 15 to 17-year-olds.
Knowledge around prevention and transmission of disease is essential among young people, who often have low levels of awareness and are therefore more likely to contract HIV or be living with it unknowingly.
Matt Parish, director of the LFC Foundation, said: “We were delighted to head back to Malawi once again to deliver this fantastic project.
“The programme has built an amazing platform for health education in Chikwawa and has ensured sustainability through the training and development of local coaches.
“Working with LSTM and the local coaches out in Malawi has allowed us to engage with such a hard to reach group and we’ve been able to make a real difference to the health and life chances of hundreds of young people in the area.”
Across the week, LFC Foundation coaches and LSTM staff delivered seven community outreach sessions throughout the Chikwawa region, with over 600 young people taking part.
25 local community coaches, who were trained by FA Malawi and LFC Foundation back in June, worked alongside LFC Foundation staff to lead carousels of activities including football training and HIV education.
LFC Foundation staff provided feedback, hints and tips to build on the community coaches’ skills and continue their aim of becoming genuine role models in the local community.
The week-long programme of activities culminated in the MLW Kafukufuku Festival in Chikwawa, where LFC Foundation coaches led football education sessions alongside HIV education messages.
All participants were taught how to use a HIV self-test kit and shown a demonstration video featuring Sadio Mane, with those who were old enough given a self-test kit to take home.
In total, over 1,000 HIV self-test kits were distributed to participants and amongst the 5,000-strong crowd, who gathered to watch a Health Goals Malawi squad take on Blantyre-based team, Wizards FC, in the final of the MLW Kafukufuku tournament.
Local coach, Frank Chilongo, said: “The Health Goals Malawi project has not only increased knowledge of HIV amongst young people, but it has also broken down the fear of getting tested for HIV.
“Now, if you finish a session without telling the participants any health messages – they are going to ask you, ‘Coach, are you not going to tell us a health message?’ It’s because they are enjoying it, so it’s great for us.”
