AGP Executive Report

Urban Roads Funding: Roads Fund Administration signs a K54 billion deal with seven councils to rehabilitate and upgrade urban roads, with Lilongwe and Blantyre taking the biggest shares—K15bn each—while RFA pushes for accountability and value for money. Forex Reality Check: Malawi’s forex reserves rose to $616.3m (2.5 months of import cover) in June, but economists warn shortages persist for businesses and the gains may not be structural. Power Crunch: Escom warns of more blackouts after a 42MW generation shortfall, widening to 83MW at evening peak, as Nkula A and Nkula B repairs run into mid-September and early October. Mining Integrity: Governance experts urge PPDA to blacklist businessman Mahmood Azhar Chaudhry over alleged fraudulent MAREP Phase 9 deals, while government moves to formalise gold buying to curb smuggling losses estimated at up to $700m a year. Digital Inclusion Push: GSMA reports 80% of Malawians remain offline despite coverage, saying reforms could unlock MWK 1.1 trillion in value and 490,000 jobs by 2030. EU Support for Industry: EU commits €143m for agriculture, energy, education and skills, plus €13m budget support, with an emphasis on accountability. Youth & Skills: Malawi’s justice reforms and youth skills gaps stay in focus as the government accelerates legal updates and calls for better alignment between education and labour market needs.

Digital Economy Push: GSMA says 80% of Malawians live within mobile broadband coverage but don’t use mobile internet, with unique internet penetration at 12.5%—yet reforms could unlock MWK 1.1 trillion in value and 490,000 jobs by 2030. EU Financing: The EU approved €143m (plus €13m budget support) for Malawi’s agriculture, energy, education, skills and social protection, with accountability stressed. Power Crisis: Escom warns of more blackouts after a 42MW generation shortfall, widening to 83MW at peak; Nkula A and Nkula B repairs are delayed into September/October. Tax & Agriculture Accountability: The Auditor General flags K5.3bn in withheld AIP funds, held by SFFRFM for over two years and partly used for commercial fertiliser purchases without clear Treasury approval. Mining Finance & Trade: NBM calls for tighter collaboration between banks, government and miners to unlock mining financing, while Malawi plans gold buying centres to curb smuggling. Seeds Quality Learning: Malawian officials visited Tanzania’s TOSCI to learn how seed certification systems protect farmers and markets. Regional Water Cooperation: Malawi, Mozambique and Tanzania signed the Ruvuma/Rovuma Establishment Agreement to set up a river basin commission covering transboundary water management. Sports Partnerships: NBM-backed Scorchers’ WAFCON success draws renewed calls for corporate support to sustain athlete development.

Power Crisis: Escom warns of more blackouts after a fresh 42MW generation shortfall, widening to 83MW at evening peak as Nkula A and Nkula B Unit 6 remain constrained until mid-September and early October. EU Support: The EU announced €143m (plus €13m budget support) for Malawi’s agriculture, energy, education, skills and social protection, with Agricatalyst and energy efficiency programmes among the key channels. Digital Divide: A GSMA report says 80% of Malawians live within mobile broadband coverage but only 12.5% use mobile internet; it estimates MWK 1.1 trillion in unlockable value and 490,000 jobs by 2030 if device affordability, skills and FX barriers are tackled. Gold Markets: Malawi plans gold buying centres from September to give miners legal outlets and curb smuggling, after estimates that up to $700m in gold leaves the country annually outside government channels. Mining & Environment: MMRA warns communities against illegal mining for safety, health, GBV and water pollution risks, urging small-scale licence applications. Agribusiness: Inosselia’s Kamuzu-area greenhouse farm is hailed as a game-changer for year-round vegetables, jobs and export earnings. Legal/Business: Court clears K383m in a Medf-related entrepreneur case by discharging a preservation order. Road Funding: Malawi targets four new toll gates expected to raise about K10bn annually for road maintenance. Tobacco: Tobacco Commission says withheld proceeds from excess-volume sales will be paid to growers next week as production forecasts soften. Creative Sector: Nahec remains non-operational two years after the National Arts and Heritage Act, with stakeholders pushing for faster rollout.

Digital Inclusion Push: Malawi’s digital divide is still biting hard: GSMA says 80% of people live within mobile broadband coverage but only 12.5% use mobile internet, even as 4G coverage sits at 87%; officials at the Digital Africa Summit blamed device costs, digital skills and forex barriers, with government promising an action plan to unlock up to MWK 1.1 trillion and 490,000 jobs by 2030. Energy & Forex Bottlenecks: The Energy Ministry wants the Reserve Bank and Finance to prioritise forex for key projects after Marep Phase 9 delays left imported equipment stranded, worsening the power crunch. Mining & Gold Markets: Malawi plans gold buying centres and mobile units to curb smuggling, after estimates of over US$700m in gold leaving the country outside government channels; MMRA also warned communities against illegal mining. Rare Earths Momentum: US DFC pledged US$62.8m to rare-earth projects in Malawi and others, but private investors remain wary; meanwhile Lindian says Kangankunde rare earths stays on track for Q4 2026 production. EU Support for Industry: The EU announced €143m (K287bn) for agriculture, energy and education/skills, aimed at Malawi 2063 transformation. Local Finance Pressure: Councils received only 9% of the 2026/27 allocation, raising fears of stalled projects.

Rare Earths & Mining: Lindian Resources says its Kangankunde rare earths project in Malawi remains on schedule for first monazite concentrate production in Q4 2026, with mining ramping up and process plant works advancing toward front-end commissioning in late October. Local Governance & Public Finance: Malawi’s councils are still reeling as government releases only 9% of the promised local government funding, with development disbursement at just 4%, raising fears of stalled projects and rising costs. Competition & Consumer Protection: Malawi’s CFTC says it will defend contested penalties in court after fining banks and other firms for competition and consumer protection breaches, including Standard Bank Malawi. Mining Safety: MMRA warns communities against illegal mining, citing unsafe conditions, health risks, gender-based violence, and river pollution, urging small-scale miners to use proper licensing. Macroeconomy: Economic experts welcome inflation easing to 20.8% in July, saying it supports purchasing power and a better environment for business. Agribusiness & Inputs: MEDF plans to auction excess farm inputs to recoup costs, while El Niño preparedness pushes calls to redesign farm input strategies by region. Digital Payments: UnionPay and Standard Bank expand cross-border e-commerce acceptance to merchants across nine African markets including Malawi.

Energy & Power Reliability: Egenco says Malawi’s generation capacity (about 370MW available) is lagging peak demand (451.61MW), leaving the grid reliant on load-shedding and highlighting a wider financing gap that is slowing new plants. Mining & Policy: The Chamber of Mines and Energy warns that Malawi’s suspension of new mining licences and the audit/bans on raw mineral exports are dampening investment, while the coal industry pushes for financing to scale up local production and cut import dependence. Agriculture & El Niño Readiness: Malawi is being urged to redesign farm input support by agro-ecological zone ahead of El Niño, with calls to tailor fertiliser approaches for the north versus the south; meanwhile, Fisp is set to revert to paper coupons, raising fresh corruption fears. Banking & Industry Support: CDH Investment Bank backs the Bankers Association of Malawi’s Lake Conference with MK5m and deepens support for LUANAR innovation and scholarships. Digital Commerce: Standard Bank and UnionPay expand UnionPay e-commerce acceptance to nine markets including Malawi, giving merchants more cross-border payment options. Critical Minerals Pipeline: US DFC funding is backing rare-earth projects in Malawi and other countries as private investors stay cautious. Business & Jobs: Youth in Kasungu are being linked to UAE trade opportunities through a five-year programme aimed at skills and economic independence. Regional Industry Agenda: SADC leaders endorse industrialisation, infrastructure, agricultural transformation and critical minerals at the Durban summit.

Digital Payments & Trade: Standard Bank and UnionPay expanded UnionPay e-commerce acceptance to nine African markets, including Malawi, giving merchants secure cross-border online payments and boosting reach for travellers and regional shoppers. Road Safety & Logistics: Zimbabwe’s authorities are calling to upgrade Gachegache (Charara-Kanyanya) road as a safer alternative link after the Lake Kariba ferry disaster. Energy & Power Reliability: Malawi’s electricity crisis is laid bare by a widening gap between peak demand and available generation, with load-shedding driven by underinvestment and a large financing shortfall. Fertiliser Subsidy Transparency: Malawi’s Fisp is reverting to paper coupons for the 2026-27 season, replacing digital checks—sparking fresh corruption fears. Real Estate Regulation: Malawi’s Real Estate Management Council is still not operational despite being created, leaving buyers exposed while “cowboy” operators exploit the regulatory vacuum. Youth Jobs & Skills: Malawi’s reformed CDF is being pitched as a youth jobs engine, while Kasungu youth are also being linked to UAE work opportunities in trades like construction. Critical Minerals: AuKing Mining signed to acquire Tusker Minerals’ Malawi subsidiary Green Exploration, consolidating rare earth and other projects including Tundulu and Machinga. Agriculture Prices & Climate Risk: IFPRI reports maize retail prices rose 8% in July, but remain far below last year, as insurers warn agricultural cover is still under 10% ahead of a potential Super El Niño. Health Access: BeOne Medicines and partners extended the Brukinsa access programme for CLL patients through 2028, with potential expansion to new countries including Malawi depending on readiness.

Health Access Expansion: A global programme led by BeOne Medicines, BeOne Care Foundation and The Max Foundation has extended access to the blood cancer drug Brukinsa for chronic lymphocytic leukaemia patients through 2028, targeting about 1,000 patients and potentially expanding into Malawi and other countries. Youth & Jobs via CDF: At Malawi’s 2026 National Youth Summit, Local Government Minister Ben Phiri said the reformed Constituency Development Fund is now positioned as a youth jobs engine, with K5 billion allocated to each of 229 constituencies and calls for more youth-led firms to partner with banks and contractors. Food Prices Watch: Maize retail prices rose 8% in July to K791/kg, with IFPRI linking the increase to seasonal supply depletion, while NFRA says it has bought 26,663MT of maize toward a 108,000MT target ahead of the rains. Critical Minerals Deal: AuKing Mining signed to acquire Tusker Minerals’ Malawi subsidiary Green Exploration, giving it rare earth and copper-PGE projects including Machinga, Ngala Hill and Karonga. Governance & Public Trust: Civil society groups are split over President Peter Mutharika’s fitness to govern, while another dispute in MISALICO centres on a purported letter calling for an emergency meeting. Energy Resilience: Malawi’s push for battery storage continues as the country seeks to cut blackout risks and protect business and health services from climate-driven grid shocks.

Road Financing: Malawi’s Roads Fund Administration says “road bonds” are loans repaid from fuel levies, letting government front-load projects like the Area 49 dual carriageway and Area 18 interchange—while motorists keep paying at the pump. Food Prices: Maize costs jumped 8% in July to K791/kg (K39,550 per 50kg), with Ifpri noting imports helped cap further spikes, but experts warn prices could stay elevated. Food Security Stocks: NFRA has bought 26,663MT of maize toward a 108,000MT target, spending K23.99bn so far, and plans to preposition grain to shortage areas before the rains. Energy Reliability: Malawi is pushing battery storage (BESS) to cut blackouts, charging from excess solar/hydro to stabilise a grid vulnerable to floods and drought. Critical Minerals: AuKing plans to fast-track rare earths exploration in Malawi by acquiring Green Exploration Ltd, including projects in Machinga, Salambidwe and Ngala Hill. Health Pressure: Bwaila maternity ward in Lilongwe is delivering up to 115–120 babies daily as private hospital fees push more mothers to free services. Regional Trade & Industry: Malawi and Zimbabwe reaffirm stronger ties for trade, investment and security cooperation as SADC leaders push industrialisation and infrastructure-led growth. Inflation Trend: Malawi’s inflation eased to 20.8% in July, continuing a decline since October 2025. Pension Focus: Old Mutual urges youth to protect pension savings and avoid early withdrawals ahead of retirement.

Healthcare Pressure: Bwaila Hospital’s maternity ward in Lilongwe is delivering about 115–120 babies a day (90 normal births plus 25–30 C-sections), up from 68–75 earlier last year, as soaring private hospital fees push more mothers into free services—raising fears beds, staff and space are being stretched. Transport Finance: Malawi is using road bonds to “front-load” road construction, borrowing from banks and repaying through fuel levy proceeds, with examples including Lilongwe’s Area 49 Presidential Drive dual carriageway and Area 18 interchange. Tobacco Sector: The Tobacco Commission says Malawi’s 2026 output is down to about 155m kg, blaming bushy-top disease, heavy rains and post-harvest losses, while the market has sold 135m kg so far. Trade & Value Addition: India urges Malawi to process exports, citing pigeon peas and pointing to dual-processing plants in Luchenza and Liwonde that are yet to start operating. Energy & Cost of Living: Fuel price pressures and forex shortages continue to disrupt daily life, while inflation eased to 20.8% in July 2026—down from 21.1% in June. Mining & Industry: CSOs want mining devolution matched with real resources and accountability, and AuKing Mining reports deeper diamond drilling at Tundulu rare earths, with carbonatite geology open at depth. Innovation & Skills: CDH Investment Bank commits K19m to the Luanar innovation hub, supporting university-led problem solving and pitching for global competitions. Regional Agenda: At the SADC summit in Durban, leaders are pushing resilient industrialisation via infrastructure, agriculture and critical minerals, with migration and trade barriers also high on the agenda.

Inflation Watch: Malawi’s inflation eased to 20.8% in July 2026, down from 21.1% in June, with food inflation slowing even as month-on-month pressures rose—an early sign Mutharika’s economic stabilisation is starting to bite. Fuel & Transport Pressure: Blantyre motorists and minibus operators are again facing fuel uncertainty as some filling stations run dry, forcing longer trips and disrupting daily operations. Forex Strain on Daily Life: Malawi’s foreign-currency shortage is turning routine payments into long delays, leaving students and households stuck when transfers remain pending. SADC Industrial Push: Leaders meet in Durban for the 46th SADC summit, with industrialisation, infrastructure, agriculture and critical minerals on the agenda—while migration and regional security stay front and centre. Mining Devolution Accountability: Mining CSOs back devolution of mining functions but warn government must match it with real funding, clear mandates and stronger district-level oversight. Rare Earth Drilling Update: AuKing Mining reports deeper diamond drilling at its Tundulu rare earth project, extending a carbonatite intersection to about 510.6m and keeping geology open at depth. Tobacco Output Drop: The Tobacco Commission links lower tobacco production to disease, heavy rains and post-harvest losses, after output fell to 155m kg from about 197m kg earlier estimates. FISP Procurement Debate: SFFRFM is lobbying for at least 75% of the K111bn FISP fertiliser contracts, arguing direct procurement could cut costs and improve timely supply. Connectivity Leap: Airtel and Starlink launched Africa’s first satellite-to-phone service in the DRC, enabling compatible phones to connect where mobile coverage is weak. Consumer Protection: Zimbabwe warns of counterfeit Nivea lotion and Huletts sugar—an enforcement reminder for the region’s informal retail supply chains. Health & Skills: Vision Care’s eye camp at Kamuzu Central Hospital completed 101 cataract surgeries, while Malawi’s education results show mixed outcomes with a widening gender gap at primary level.

Consumer Safety Watch: Zimbabwe’s authorities warn shoppers about counterfeit Nivea lotion and fake Huletts sugar after seizures showed how popular brands are slipping into informal markets, raising concerns over expiry, storage and ingredient safety. Health Partnerships: Vision Care’s KCH eye camp in Lilongwe completed 101 cataract surgeries in four days, costing about K120 million and easing Malawi’s backlog at the central referral hospital. Education Accountability: Malawi’s national exams show mixed outcomes—PSLCE pass rates fell to 81.17% (down from 87.5%), while JCE rose to 81.21%; gender gaps remain wide. Banking & Trade Finance: Ecobank’s regional executive visited Malawi to strengthen customer relationships and partnerships, including a courtesy call on NOCMA. Energy & Business Risk: Fuel queues returned in Blantyre as some stations run dry, reviving fears of supply disruptions tied to foreign exchange and global energy shocks. Water Security: Government stepped up El Niño preparedness with plans to rehabilitate and build climate-resilient boreholes to protect safe water access. Regional Industry & Diplomacy: Malawi’s Second Vice-President Chihana heads to Durban to represent the country at SADC meetings focused on security, integration and industrialisation. Power Sector Governance: A K65.9bn Escom–Egenco power purchase dispute remains unresolved, with critics saying consumers may be paying twice. Agribusiness Outlook: Tobacco production fears eased after the Tobacco Commission revised the 2026 forecast to 154.7m kg, below projected trade demand. Sports as National Industry: Malawi’s Scorchers’ WAFCON run is being framed as a unifying “industry,” with sponsors and leaders rallying supporters ahead of the final.

SADC Diplomacy: Malawi’s Second Vice President Enock Kamzingeni Chihana lands in Durban for the 46th SADC Summit, with migration, trade, critical minerals, industrialisation and security on the agenda as South Africa takes over the chairmanship. Regional Migration & Trade: South Africa’s Ramaphosa condemns attacks on foreign nationals, saying the country is “ashamed” and warning against exclusion while pushing SADC to ratify the movement protocol and deepen intra-regional trade. Power Sector Tension: Malawi’s Escom and Egenco remain locked in a long-running K65.9bn power purchase dispute, with critics saying consumers may end up paying twice as reviews and billing adjustments drag on. Water & Sanitation Push: Government launches a Presidential Compact on WASH aiming for 85% rural and 100% urban safe water access by 2030, while noting only about 40% of Malawians have basic sanitation. El Niño Preparedness: Malawi steps up El Niño readiness with plans to rehabilitate 200 boreholes and build 100 climate-resilient ones to protect groundwater and reduce waterborne disease risks. Fuel Supply Watch: Blantyre sees renewed fuel queues as some stations run dry, raising fears of a return to earlier shortages tied to foreign exchange constraints. Health & Industry: A regional training programme in Eastern and Southern Africa strengthens frontline surveillance for non-communicable diseases, including Malawi’s participation. Connectivity & Jobs: Airtel and Starlink commercially launch satellite-to-phone service in DRC, extending light-data and SMS where mobile coverage is weak. Agribusiness: Tobacco production fears ease after the Tobacco Commission revises the 2026 forecast to 154.7m kg, below projected trade demand. Sports & National Mood: Malawi rallies behind the Scorchers in WAFCON finals in Morocco, with sponsors and politicians hosting supporters as the team seeks a historic win.

El Niño Preparedness: Malawi’s agriculture ministry says it is stepping up El Niño readiness with plans to rehabilitate 200 non-functional boreholes and build 100 climate-resilient ones, warning that falling groundwater could push communities toward unsafe water and raise cholera, typhoid and diarrhoea risks. Power Sector Accountability: A K65.9bn dispute between Escom and Egenco over power purchase arrangements remains unresolved, with critics saying a mix of debt write-offs and tariff changes is leaving consumers to pay twice. WASH Push: Government launched a Presidential Compact on WASH aiming to lift safe water and sanitation access by 2030, as survey findings show only about 40% of Malawians have basic sanitation. Fuel Supply Watch: Blantyre motorists are again facing long queues at some filling stations, reviving fears of renewed fuel shortages. Mining Governance: Civil society welcomed devolution of some mining functions to district councils, but urged funding and technical support so local oversight doesn’t stall. Tobacco Market Update: Malawi’s Tobacco Commission says oversupply fears have eased after revising production forecasts downward, while trading continues across auction floors. STEM Scholarships: MUST students—31 young women—received K71.3m in scholarships via the MUST endowment fund supported by Illovo Sugar. Regional Integration & Migration: South Africa’s Ramaphosa condemned attacks on foreign nationals and called for deeper SADC trade, after large-scale departures of African migrants. Telecom Innovation: Airtel Africa and Starlink launched satellite-to-mobile service commercially in DRC, bringing connectivity to non-terrestrial areas. Agribusiness Trade: Malawi secured a groundnuts export market in Kenya under AfCFTA, with initial shipments of 30MT and potential demand of 65MT/month.

Mining Devolution: Malawi’s civil society welcomed the move to devolve selected mining functions to district councils, saying it could boost transparency and community participation—if councils get real funding and technical capacity. Power Sector Tension: A K65.9bn dispute between Escom and Egenco over power purchase payments has spilled into consumer anger, with critics warning taxpayers and tariffs may end up covering the gap. WASH Push: Government launched a Presidential Compact on WASH aiming to lift safe water and sanitation access by 2030, including targets of 85% rural and 100% urban safe water. Tobacco Outlook: Tobacco fears eased after the Tobacco Commission revised the 2026 forecast to about 154.7m kg, below projected trade demand, citing disease, leaching and post-harvest losses. Food & Fertiliser Pressure: Fertiliser stocks remain short ahead of planting, while maize prices are projected to rise sharply—raising household cost risks as El Niño looms. Regional Integration & Migration: SADC leaders faced renewed focus on xenophobia after Ramaphosa condemned attacks on foreign nationals, as Malawi migrants reportedly return home after South Africa crackdowns. Tech & Connectivity: Airtel Africa and Starlink launched satellite-to-mobile service commercially in DRC, bringing SMS and light-data access to compatible phones. Education & Industry Skills: Malawi-China partnership opened a School of Artificial Intelligence at University of Hebron, while Illovo Sugar disbursed K71.3m scholarships to 31 MUST women in STEM.

Telecom & Connectivity: Airtel Africa and Starlink have commercially launched satellite-to-mobile service in DR Congo, letting compatible phones access light-data apps and SMS without extra equipment. AI & Language Tech: LINGUA Africa selected 26 projects across 50+ African languages, with healthcare, farming and justice use cases backed by cash and compute credits. Finance & Pensions: Old Mutual Malawi reaffirmed its pension administration and investment push at the 2026 Pension Trustees Conference, as trustees and regulators discuss governance and member decision-making. Water & Sanitation: Malawi’s basic sanitation access sits at about 40%, with government targeting 65% by 2030 under the Presidential WASH Compact. Trade & Agriculture: Malawi secured a groundnuts export market in Kenya under AfCFTA, with shipments starting at 30MT and potential demand up to 65MT/month. Food Prices & Maize: Malawi maize faces pressure from cheaper Zambian imports, while Agra warns maize prices could rise sharply into 2026/27. Energy & Mining: Coal Mines Association urges financing to expand local coal production and cut forex spending; Lindian says its Kangankunde rare earth licence remains valid amid scrutiny. Regional Industry & Policy: SADC performance remains mixed on jobs and growth ahead of the Durban summit, where industrialisation, agriculture and critical minerals transformation are central.