Simmys Institute of Music, Arts, and Culture is rallying support to uplift vulnerable youths in communities through fundraising activities such as live performances.

The organisation, which seeks is to empower young people in communities, on Saturday hosted the Festive Charity Concert at Madsoc Theatre in Lilongwe.

The concert featured a variety of performances, including the Simmys Music Academy orchestra and choir, music by Madalitso Band, Britt Cee and Neil Nayar and poetry.

The event offered a menu of activities celebrating the transformative power of the art while highlighting the need to support the underprivileged youths, including orphans, street children and people with disabilities.

In an interview after the concert, the organisation’s founder and director Simeon Mwale said the concert was a success although they did not raise the targeted funds.

“We have managed to cover the costs of the concert and participants expenses. We are hopeful that going forward, we will be able to raise sufficient funds,” he said.

Mwale appealed for support from individuals and organisations to help sustain the initiatives, adding that they plan to hold similar events in the future to make an impact in young people’s lives through education and the arts.

“We are determined to keep mobilising resources to ensure that every vulnerable youth has access to opportunities that will transform their lives. We  appeal for support from those willing to help us accomplish this mission,” he said.

Proceeds from the events will go toward scholarships and mentorship programmes under Simac’s Saving Children at Risk Project through Simmy’s Music Academy and Simmy’s School of Arts and Culture.

The initiative focuses on arts education, life skills training and mind education to equip youths with tools for a brighter future.

Chikumbutso Bwanali, 19, a dancer at the academy, credited the organisation for helping him stay away from drugs, alcohol and other harmful habits.

“The academy has supported me financially since my parents are unable. We would really appreciate support from people to help us continue our journey,” he said.

Musician Britt Cee hailed Simac for wanting to drive change using arts. She said such initiatives need support.

The post Arts institution mobilises support for vulnerable youths appeared first on Nation Online.

Malawi marked 60 years of self-rule in 2024, but relics of British colonial rule persist.

The push for independence has neglected the need to review a stack of colonial laws, which have since been discarded by the Britons who brought them forth.

One of the  laws long side-stepped by lawmakers is the Prison Act of 1956.

Human rights defender Victor  Chagunyuka Mhango states:  “The 1956 law no longer meets the needs of our modern society, but focuses on punishing offenders, contrary to the prevailing practices of justice and rehabilitation.

“Reforming our prison system is essential for ensuring that it upholds human rights, provides better rehabilitation opportunities and improves overall conditions.”

The Centre for Human Rights Education, Advice and Assistance executive director is among the campaigners for the enactment of a democratised Correctional Services Bill that President Lazarus Chakwera promised to take to Parliament last year.

However,  the law is still gathering dust on government’s shelves.

Meanwhile, even prisoners, who bear the brunt of overcrowding and draconian laws, see what the President, 193 lawmakers and multitudes in the Ministry of Justice cannot.

They want radical reforms in the repressive law proclaimed eight years before the country won independence after a gruelling battle against excesses of British minority rule. The current law was imported 68 years ago to silence any native deemed a threat to Britain’s detested imperial rule, including hundreds who survived martyrdom during the State of Emergency of March 3 1959.

But the sluggish review to align the law with human rights immortalises the colonial legacy and proclaim how the greatest beneficiaries of the liberation struggle are sleeping on the job.

They include well-paid members of Parliament and other law-making institutions.

Chakwera’s administration may need jolting, but the confined population cannot wait any longer.

During the Human Rights Day on December 10, Blantyre Prison inmates petitioned for the enactment of the proposed law which includes a parole system.

They see prisons being decongested if the law allows prisoners to serve the remainder of their sentences in their communities. The prisoners can be re-arrested if they contravene parole conditions.

The inmates’ spokesperson Ganizani Simika says the  forsaken Bill promotes prisoners’ rights and well-being.

Malawi Prisons Services commissioner general Masauko Wiscot concurs.

During a meeting organised by Chreaa in May this year, the prison chief said: “Currently, the only way to decongest our prisons is through the presidential pardons.

“If the Bill is passed into law, we will greatly reduce congestion in our prisons”.

But the so-called game -changer has been disregarded for nearly two decades of broken promises.

If passed into law, it will modernise the prison system, permitting authorities to release deserving prisoners before the sentence expires.

The Bill also proposes community service for people convicted of minor offences. This will ease prisons’ congestion and maximise prisoners’ productivity.

Besides, the proposed law requires all correctional facilities not just central and maximum-security prisons—to have clinics that provide quality health care.

It also seeks to establish halfway houses, where prisoners will serve part of their sentences before being released into their communities.

The law review promotes the rehabilitation of inmates, not dehumanising punishment normalised by the 1956 law.

In February 2023, the President, in his State of the Nation Address, stated: “In the new fiscal year [2023/24], we are reviewing and bringing forward the Prisons Service Bill that would be tabled to create the parole system that will usher in a more fair system for releasing prisoners before they complete their sentences.”

If he still cares about human rights, his administration must walk the talk before his tenure ends next September.

In July this year, Ministry of Justice spokesperson Frank Namangale told The Nation: “It is on our priority list, hopefully to be considered in the next sitting of Parliament.”

Priorities are not shelved for 18 years.

“It has gathered dust for long,” says Mhango. “If passed into law, the proposed law will restore the dignity of prisoners, who face a plethora of human rights abuses.”

Mhango, together with Irish Rule of Law country programme manager Susie Kiely, argue that if Malawi does not mordenise the prison system to shift the focus from punishment to rehabilitation and tackling selective justice, “the prison population will keep growing and people, both within and outside of the prisons, will keep suffering”.

The Bill was drafted in 2006 with support from the Penal Reform International, but authorities abandoned the initial text in the late 2000s as unrealistic considering the country’s socio-economic realities.

A special law commission published a new Bill in 2018.

The post Prison Bill still gathers dust appeared first on Nation Online.

Musician Eli Njuchi delivered a night to remember during the second edition of his concert dubbed the Hive Experience held at the Bingu International Convention Centre in Lilongwe on Saturday.

 The   event proved to be a fitting farewell to the year as music lovers filled the auditorium.

The concert, which kicked off at 8pm, featured an exciting line-up of artists who warmed up the crowd with their energetic and heartfelt performances.

Doors opened as early as 6pm and the audience filled the venue, setting the tone for what would become a night of musical magic.

Mazani was the first to take the stage and he managed to captivate the crowd with his soft melodies.

 He was followed by Maggie Ka Drum whose soul-stirring slow songs prepared the audience for an unforgettable experience. Praise Umali brought a wave of energy with performances of his popular tracks such as Time and  Kutiyeni.

Other big names, including Gwamba and Lulu, took the fun to another level. Lulu performed some of his crowd favourites before Kell Kay graced the stage, delivering hits such as Nakupenda and Muchedwa, including his recent release Assurance. Kell Kay’s performance had fans singing along and swaying in unison.

Next was Driemo with his signature charm, captivating the patrons’ hearts as he paved the way for the next performer Lawi who further mesmerised the audience with his timeless hits such as Lilongwe, Therere and Nthawi Yokolola. As  Lawi left the stage, it was undeniable he had left fans in awe.

Although there were slight delays between sets, the energy in the room remained high, thanks to the DJ who seamlessly covered the gaps with tracks that continuously pleased the crowd.

Once the supporting acts concluded their sets, it was time for the main event.

Eli Njuchi stepped onto the stage in grand style accompanied by an orchestra and backup singers who also added depth and flair to his performance.

The Gugugu hitmaker brought his A-game at Malawi Square within the Umodzi Park complex during that night, performing fan-favourites such as Tempolale,  Malo a Zii,  Phone  and Ma Ine.

When he just began his set a touching moment came  as he performed the track Malo a Zii which during the show was a tribute to the late musician Lucius Banda and fallen Vice-President Saulos Chilima, as their images were projected on the auditorium screen. The emotional performance struck a chord with the audience.

A highlight was when Eli Njuchi performed Ma Ine,  a song celebrating his mother. The artist’s parents joined him on stage and the moment was met with a thunderous applause.

Njuchi further surprised the audience by bringing on stage artists Malceba, Charisma, Onesimus and Chizmo Njuchi who he collaborated with in his tracks

The guests’ appearance added an element of surprise, keeping fans on their toes.

Later, a dancehall interlude featuring Chizmo Njuchi, Veda Njuchi, Kellie Divine, Ace Jeezy, and Bee Jay took over the stage. Their performance brought a fresh vibe into the concert and had the audience dancing non-stop.

Eli Njuchi returned to the stage in a relaxed outfit, signaling that the show was far from over. His orchestra and backup singers elevated tracks like Duwa and Mije, keeping the audience enchanted.

The highlight of the night was when Zambian superstar Yo Maps joined Njuchi to perform their collaborative track Yabaya.

The crowd erupted in cheers as Yo Maps took the stage, bringing his own magic to the event. He performed popular hits such as Kondwa and So Money, the latter which featured Malawi’s Tay Grin.

While Yo Maps briefly stole the spotlight, it was clear the night belonged to Eli Njuchi, who closed the event with Tempolale.

“This is the concert of the year. Eli Njuchi is truly a star. What a performance,” a fan Tionge Botha said.

Speaking after the show, Eli Njuchi thanked both the audience and fellow artists for the support.

The post Eli Njuchi closes 2024 with Hive Experience appeared first on Nation Online.

The Malawi Electoral Commission (MEC)  formally launched the September 16 2025 General Elections in August this year but, by then, there were already sticky issues surrounding the use of national identity (IDs) cards and election management device (EMDs).

Section 12 of the Presidential, Parliamentary and Local Government Elections (PPLGE) Act prescribes the national ID as the sole form of identification for voter registration.

On March 22 2024, immediate past MEC chairperson Chifundo Kachale, a judge of the High Court of Malawi, expressed confidence that there was adequate time to resolve capacity gaps in national ID registration.

But opposition political parties, civil society organisations, governance experts and voters warned that the capacity challenges  of the National Registration Bureau (NRB) to issue national IDs may result in millions of eligible voters being disenfranchised in the 2025 elections.

Human Rights Defenders Coalition chairperson Gift Trapence said in May that the slow pace in ID registration would undermine and violate the right to vote for many Malawians.

He said: “We will not tolerate NRB to deny Malawians their right to vote. NRB through the line ministry should make sure that resources are available so that citizens are able to get registered easily.”

NRB spokesperson Norman Fulatira came out to dismiss the concerns, saying the bureau had registered 1.4 million new registrants since June 2023 through its national outreach programme and would conduct mop-up registration to reach out to any remaining individuals.

During  the 2025 General Election launch Justice Annabel Mtalimanja, who replaced Kachale in June after the end of his four-year contract, highlighted the commission’s commitment to conduct free, fair, and credible elections.

 “As a reminder, the theme is ‘Promoting democratic leadership through your vote.’ This is a call from the commission for everyone to take up our individual responsibility to help advance the democracy of our nation through voting,” she said.

But opposition parties, including UTM Party and Democratic Progressive Party (DPP), used the launch to raise fresh concerns on the way registration for national IDs was going on and they demanded that NRB should be present at MEC voter registration centres to register individuals who did not have IDs.

NRB rejected the calls saying the required approval processes for ID registration made such an arrangement difficult. Instead the bureau only committed to deploy staff to conduct ID verification at voter registration centres.

As the voter registration period neared, concerns intensified with opposition DPP threatening to either challenge the ID law in court or lobby legislators to push for an amendment.

The opposition also opposed the use of EMDs in the electoral process fearing that they would enable rigging.

Mtalimanja also faced calls from opposition parties to resign on allegations that she was compromised.

But the MEC chairperson dismissed the resignation calls, saying she was duly chosen by the Judicial Service Commission.

 The first phase of the voter registration exercise started on October 21 with the commission using the election management device (EMDs) to register voters.

However, people without national IDs were turned away and asked to first register with NRB at the bureau’s registration centres.

On the same day, the High Court in Blantyre heard an application from five claimants seeking an injunction to stop the operation of Section 12 of the PPLGE Act, saying they were unable to register for IDs hence feared that their right to vote would be suppressed.

In its ruling on the matter on October 25, the court ordered NRB to ensure that it was present at all voter registration centres to register people who showed up without IDs.

In response, MEC committed to redo the first phase of voter registration to accommodate the arrangement.

While the ruling was meant to provide relief for people with no national IDs, spot checks indicated that the NRB failed to fully comply with the court order as it did not deploy officers or biometric registration kits in the first three days of the second phase of the voter registration.

Pan African Civic Educators Network executive director Olive Mpina, whose organisation monitored the registration exercise, said failure by NRB to implement the High Court order amounted to a deliberate effort to disenfranchise potential voters.

“Such actions should not be allowed in any democratic nation,” said Mpina.

Eventually, NRB stationed its officers in some centres during the final days of the second phase and from the beginning of the third phase of voter registration.

On December 1, MEC communications officer Richard Mveriwa told The Nation that the commission was satisfied with the registration exercise as it “tried to reach out to all eligible registrants.”

By the end of the third phase of the voter registration exercise on December 11, MEC had registered 7.1 million people representing 65.3 percent of 10 957 490 potential voters.

The number of registered voters surpassed the 6.8 million that registered for the 2019 Tripartite Elections.

However, opposition parties and election observers still want the commission to redo all voter registration phases because they feel many people have failed to register for the 2025 General Elections.

Time will show if the commission will heed to these calls.

The post Sticky ID issues dominate 2024 appeared first on Nation Online.

Recently resigned Silver Strikers coach Peter ‘Mjojo’ Mponda is understood to have already signed a two-year contract with his prospective employers FCB Nyasa Bullets.

A well-placed source confided in The Nation that conclusion of the deal awaits the return of the club’s president Konrad Buckle, who was reportedly outside the country.

Said the source: “Peter already did his part and completition of the deal awaits the club president to append his signature and, thereafter, he [Mponda] will be unveiled.”

But Mponda declined to comment on the issue when contacted yesterday.

“Please bear with me. I am not commenting anything on the issue at this stage,” he said.

On when they plan to unveil their new coach, the People’s Team acting chief executive officer Albert Chigoga yesterday said: “We will do so once the whole recruitment process is concluded.”

Mponda, who resigned from Silver almost a week ago, is set to replace  his former boss Kallisto Pasuwa, whose contract expired yesterday and  was not renewed.

He served as  Pasuwa’s assistant for three seasons during which Bullets won the TNM Super League title three consecutive times before securing a coaching job at South African second-tier league side Black Leopards FC.

In the just-ended season, Mponda led Lilongwe-based Silver to their first league title in 11 years before stepping down.

He had already extended his contract by another two years when he resigned.

The post Mponda already signed BB contract—source appeared first on Nation Online.

In Malawi, drama is said to be dead and buried. In their tributes to the good ole days, theatre fanatics salute the late Du Chisiza Jnr and his defunct Wakhumbata Ensemble Theatre as end of an era.

But the thrilling theatrics are still alive, except in politics and the politicians who play the so-called dirty game.

For the honourable theatre queens and kings, the country is a vast stage for the acts they play in people’s name.

The ended year has not been short of drama, which mostly panned out at the National Electoral Consultative Forum (Necof), the periodic talks convened by the Malawi Electoral Commission (MEC) to thrash out sticky issues in preparation for the 2025 September 16 General Election.

If politicians are not accusing the National Registration Bureau (NRB) of not adequately fuelling its power generators  to register everyone aged over 18, they are hitting at MEC for the use of the national identity card as the only legal proof for voter registration.

During the first Necof held at Bingu International Convention  Centre in Lilongwe, lawmakers from the North and South took turns, accusing NRB of  forcing them to dig deep in their pockets to fuel gensets so that everyone gets the legal proof to register and vote.

“It is NRB’s responsibility to fuel the gensets, but we are being forced to buy fuel because if we don’t, eligible voters in our constituencies may not vote,” lamented Mulanje Bale member of Parliament (MP) Victor Musowa (Democratic Progressive Party-DPP).

The vocal MPs took to the microphone in quick succession, insinuating that  the decried glitches could be a pro-regime ploy to sabotage voter registration in opposition strongholds while all was well in the governing party’s home ground–the Central Region.

This sparked a reaction from  Dedza Central East MP Joshua Malango (Malawi Congress Party-MCP), who retorted that no constituency was spared from the national registration blues.

“Even I have had to buy fuel for NRB gensets so that my constituents can register, get an ID and exercise  their right to vote,” he said.

That was in August, two months before the rollout of voter registration in November.

Two months into the exercise, they were berating NRB and MEC for ostensibly excluding the rural poor  from enjoying their constitutional right to vote.

“You are privatising the right to vote because some eligible voters cannot afford to go and register for the national ID because NRB sites remain far apart,” bemoaned Nsanje Lalanje MP Gladys Ganda (DPP) at the second Necof held at Crossroads Hotel in the capital city.

Ganda and company might have been the happiest when the High Court Of Malawi nodded to some concerned citizens’ petition, ordering NRB to deploy its staff to all voter registration sites and leave no eligible  voter behind.

However, the controversy over the constitutional amendment that makes the national ID the only proof of voter identity is symptomatic of a grave malaise in Malawi’s democracy.

It brings into question whether the MPs read and understand the laws they pass in the name of Malawi.

“Subtly, the questions over the use of the national ID raises questions about the calibre of people who make our laws? Listening to the issues they were raising, one wonders if they know their role and whether they really take time to understand the laws they pass in the National Assembly,” says political scientist Dr Boniface Dulani.

He is concerned that the MPs seem to find it fashionable in blaming MEC and NRB for the laws they make in the 193-seater House.

During the consultative meeting involving political parties and civil society delegates, MEC chief Annabel Mtalimanja  explained that MEC manages elections based on existing laws.

Section 12 of the Presidential, Parliamentary and Local Government Elections Act requires eligible voters to present to a registration officer proof of national registration issued by the NRB.

“MEC doesn’t make laws. We can only work with the laws we have,” she said.

Section 49 of the Constitution says all legislative powers of the Republic shall be vested in Parliament,  not MEC or NRB. Not even the Necof.

This is why people’s representatives in the House are alternatively called lawmakers or legislators.

Section 6 of the Constitution states:

“The legislature when enacting laws shall reflect in its deliberations and represent in its decisions the interests of all the people of Malawi and shall further the values implicit in this Constitution.”

Standing Orders, the rules of Parliament, require the Legislature to circulate the Bills to all 193 lawmakers 28 days before being tabled for debate in the House. The four-week requirement supposedly gives the legislators ample time to read and analyse the proposed laws in consultation with the people they represent.

Retired Clerk of Parliament Roosevelt Gondwe said  this is one of the six mandatory steps in the rigorous test every law must pass unless it is passed without ammendments.

“Parliament is a House of procedures and every law must pass the strict scrutiny before being passed. The rules of the house abhor shortcuts. Bills are supposed to be scrutinised at different stages by different committees before MPs can vote yes or no,” he states.

Ironically, MPs now seem to  find it fashionable to debate laws outside Parliament instead of gatekeeping and expressing their misgivings in the chamber where the Bills are supposed to be discussed.

In their whinning, they sound helpless as if they are minions muzzled under the foot of a monstrous giant.

Yet they are the ones who pass the laws they publicly detest and they not only retain the power to move the House to ammend them but also allocate adequate resources for NRB to do a good job.

In fact, constitutional ammendments was part of the review of electoral laws passed without any ammendment by the longest-serving cohort of lawmakers elected since May 2019.

While their six-year term lasts, they had better reverted to their role of making laws to further Malawians’ aspirations and constitutional values.

This not only entails consulting their constituents but also reading Bills to isolate chaff from wheat and isolate bad laws.

MPs are called ‘honourable members,’ because they have a noble job that carries weight.

So, they should stop acting like crybabies desperate for grounds to anul the next general elections.

In more of the same, a committee of Parliament recently turned itself into alarmists when they stormed a warehouse in Kanengo where they found NRB workers sorting IDs for dispatch to various locations and tagged it the hub of a vote rigging scheme.

Today, Leader of Opposition in Parliament George Chaponda has clocked three weeks and counting without giving the House evidence for the claimed rigging syndicate.

The annulment of Peter Mutharika’s narrow re-election in 2019 by the courts riled him to declare that the country will never hold elections everyone can accept.

However, MPs should stop being sensational as if they are hunting for the possible grounds for the cancellation of another election. Instead of all that drama, they should play their rightful role to create a favourable environment for credible, free and fair elections. This includes providing good laws as well as evidence-based checks and balances.

The post Who said drama is dead? Politics had it all in 2024 appeared first on Nation Online.

Festive seasons come with increased activities on the entertainment front, with artists criss-crossing the country to give out their best and spice the fun.

This year, the situation has not been different as artists have been jumping from one event to  another. Some artists have featured in many big events that have taken place.

Some of the artists have had to contend with a heavy schedule. They  include Fada Moti, Onesimus, Saint, Black Missionaries Band, Zeze Kingston and Eli Njuchi. 

After starring in his Hive Experience Concert in Lilongwe on Saturday, Eli Njuchi was on New Year’s Eve expected to lead the Blantyre 2024 Fireworks Display at Scallas’ Café.

In Lilongwe, a similar event was expected to be headlined by rising amapiano star Fada Moti at Mesh Gardens after his appearance at Soul Food event  at Blues Bar in Blantyre.

The pick of the season is Onesimus who last night alone was billed to perform at two different venues, Amaryllis Hotel and Club 247 near Kameza Roundabout in Blantyre.

Another artist appearing in two events on the same night is DJ Mighty Virus. The Blantyre-based DJ was expected to showcase at the Scallas’ Café fireworks as well as at the All Black Everything at Blues Bar.

In an interview yesterday, DJ Mighty Virus said if they cannot work hard during the peak in  December, their survival in the next three months can be hard since business takes a bit of a back step.

“That aside, it was part of my plan to make a comeback from November. That is why I have been super active in the last two months. But I want to maintain the momentum by launching new monthly party initiatives. That should keep the groove going,” he said.

After his performance on Monday night at Sangalala Focal Point in Cape Mclear, Mangochi, Zeze Kingston headed to Mzuzu yesterday for another performance.

He said although the schedules are draining, they are strategic for their survival in the lean period.

The Alamu Anu star said: “The money that we earn now can be channelled to other projects such as music video production. So you can see that the time on the road is worth it.”

On his part, Club 247 director MacDonald Soko said making double appearances on the same day is not a problem as long as the artists know how to manage their schedules.

“They know that come January, things take a slow turn on the entertainment front. But it is not an issue as long as they show up,” he said.

The post Artists get busy in Festive Season appeared first on Nation Online.

In recent years, the local film industry and creators have shown impressive potential to produce quality works.

The past five years has seen some thrilling productions emerge from the local industry. The productions have complemented other initiatives such as the establishment of the Malawi Film Festival to ensure the industry is ticking on all fronts.

There has also been a productive engagement between Filmmakers Association and Copyright Society of Malawi (Cosoma) to work out how filmmakers can earn from their image and copyright.

After a protracted disagreement between the two parties, Cosoma finally budged to allow filmmakers get 70 percent blank media levy funds which it had been withholding. That breakthrough was received as a milestone by the filmmakers.

Regardless, all the movement that has happened in the last two years, it is clear the outlet is not effective and the content is not well-monetised. Because of the status quo, filmmakers continue to struggle to sustain their productions or maintain good quality of their work.

The movie School Days is probably one of the most talked about productions from Malawi. The number of views it amassed were impressive. But the monetary returns remain unimpressive.

Another highlight for the year 2024 was the TV series Mushroom Shade. The production, storyline and members of the cast all combined to good effect. One could be excused for thinking it is not from Malawi.

But after running the initial episodes of the first season, producers Chaz Productions were forced to reflect on the production costs. They said the future of the series depended on how Malawians will support their newly introduced pay and watch model.

The last episode, which was being accessed at K1 000, raked in K4 million. According to producer Chawezi ‘Chaz’ Munthali, the amount is still on the lower side. He remains coy whether the production will continue or not.

Due to the same unsupportive nature, some film producers are failing to complete their movie projects. During the same year, renowned filmmakers Joyce Mhango-Chavula and Flora Suya announced their upcoming film Kamdothi: Dust and Longing long time ago. Despite that, there has been little movement on the ground.

Seasoned filmmaker Charles Shemu Joyah recently released a short movie Strike a Bow and Die. It is designed to raise funds for his long-time planned movie on John Chilembwe’s life.

The production of the movie comes after he exhausted all means to raise funds for the project. That goes to show how corporates in the country are not yet ready to invest in projects of that nature.

It meant artists have to do everything on their own. That has compromised the quality of the productions and also contributed to fatigue.

Some movie makers, who are clearly passionate about the trade, have opted to take a pause. In the end, it is the industry which loses out.

Joyah has ever withheld movies he has produced. He contends that this is part of his efforts to avoid piracy.

“Most Malawians who have watched my movies, have watched pirated versions. That is why I delay releasing them. Unfortunately, Malawians want things for free, without realising that it takes money and effort to produce a good film,” he said.

From the recent trends, it is evident the bottlenecks in the distribution and marketing structure remains the biggest stumbling block to enable the industry realise its full potential.

Maybe it is the reason there were less new productions last year as compared to the past two years.

The post Local movie distribution structures still leaking appeared first on Nation Online.

Essmy Mathayo of Chibalala Village, Traditional Authority Njolomole in Ntcheu District, survived the desperation to marry before her 18th birthday to escape from poverty.

Her zeal to become a doctor suffered a blow just a week into her Form Two as her parents could no longer afford to pay her school fees.

“I spent a year at home. I was dejected, so I went straight to Form Three to learn with my peers,” says the 21-year-old girl.

A concerned neighbour sponsored her return to Dombole Community Day Secondary School, but the uncertainty persisted as other needs remained unmet.

Essmy says even though her family was receiving monthly social cash transfers, the support, coupled with meagre earnings from piecework, could not meet their daily needs.

“After completing secondary education, I found a partner and we produced 21 bags of maize in readiness to marry by December last year. But we shelved the idea when I was selected to study information and communications technology ( ICT) at Namitembo Technical College in Zomba,” she recounts. 

Essmy’s family is among the beneficiaries of the Social Cash Transfer Programme which targets the poorest households across the country.

“It was a day of joy and a moment of sorrow,” she says. “I didn’t know where transport money and fees would come from as the monthly social cash transfers were not enough. However, my love and I agreed that marriage could wait.”

In January this year, Essmy, the firstborn in a family of four children, was selected to receive financial assistance from the Social Protection for Gender Empowerment and Resilience Programme (SP-Gear) through the Ministry of Gender, Community Development and Social Welfare.

Funded by the European Union and the Government of Ireland in partnership with Unicef, SP-Gear links girls from households that receive social cash transfers to vocational training and social services to accelerate their rise from poverty.

Essmy received K200 000 for the first term. She paid tuition and rentals for self-boarding. She also bought food, a cookstove, some learning materials, clothes and shoes.

“Without the financial support, I would have been married like my peers who already have two or three children,” says the trainee.

She endured high self-boarding expenses at Namitembo until March this year when the ministry facilitated her transfer to a boarding technical college in Salima District along Lake Malawi.

“Salima Technical College is fantastic and I learn in peace. My future looks promising. My dressing and looks say it all. When I go home, everyone knows I’m a college girl. I am inspiring girls in my rural community to stop marrying young,” says the ICT student.

And she refuses to quit.

“After obtaining the ICT diploma, I will get a loan to study for a degree in computer science at Mzuzu University or the University of Malawi. I want to inspire girls to dream big,” she says, her unyielding eyes fixed on her best friend, Sarah Chadzera.

Sarah, from Chitsulo Village, T/A Ganya in Ntcheu District, is studying bricklaying at Salima Technical College. She also receives SP-Gear support.

She says: “I’m living my dream. I want to build my nation brick by brick like Melifa, the skilled bricklayer I read about in the Standard Four Chichewa textbook. The support I get every term gives me peace of mind. I focus on what tutors teach since my main needs are sorted by SP-Gear.”

Like Essmy, Sarah wants to inspire girls and create jobs for the youth.

When she returned home in June, Sarah carried application forms for her peers interested to apply for vocational training.

The post Social cash transfer add-ons motivate girls to dream big appeared first on Nation Online.

Vice-President Michael Usi has donated various items to needy households in Mulanje District as part of celebrating the festive season.

He noted that the heat wave has severely damaged crops, especially maize; hence, decided to cheer people.

Usi also assured them that those severely affected will be assisted with food relief through the Lean Season Food Insecurity Response Programme.

Said the Vice-President: “Today, I was supposed to be in Lilongwe carrying out official duties, but I am here distributing foodstuffs because I want you too to enjoy the festive season.”

A beneficiary Liness Dayilo, from Ngolowera Village in Traditional Authority Chikumbu, thanked Usi for the donation saying it was timely as people in the area are facing hunger.

“We have been relying on mangoes for food, but they are seasonal and they are now finished. We need food assistance urgently,” she said.

During the visit, Usi gave elderly women two bags of fertiliser and maize seed while other community members received clothes, maize flour and other foodstuffs.

The post Veep Usi donates toneedy households appeared first on Nation Online.

The action-packed 2024 is gone and 2025 has already begun. As you flipped your calendar to the Yew Year, our Staff Writer JACQUELINE PHIRI caught up with political scientist Gift Sambo of the University of Malawi to discuss the big issues that panned out in the year he described as a mixed bag. Here are excerpts of his take on the news to remember, from the foggy death of Vice-President Saulos Chilima in the June 10  plane crash to the turbulent elective conventions of major political parties that did too little to shake up the line-up at their helms. Excerpts:

 Politically, how do you look back at the turn of events in the eventful 366 days gone by?

 The year 2024 has been a mixed bag politically. On the positive note, we have witnessed developments indicating that political parties are committed towards the entrenchment of intra-party democracy as evidenced by various party conventions where new leaders were elected through an open and democratic process. Unfortunately, these developments were overtaken by the tragic accident which claimed the life of the country’s Vice-President Saulos Chilima and eight other citizens in a plane crash. As a nation, we are yet to come to terms with this tragic event. However, despite this, Malawi remains among the most politically stable countries in the [southern African] region.

How has the death of Vice-President Chilima changed the dynamics of the country’s politics?

 Obviously we cannot rule out the Chilima effect in the current political dynamics. We have seen alliances disintegrating and new political strategic positions emerging. For example, since the demise of the Vice-President, we have witnessed several parties, including his UTM Party abandoning the governing Tonse Alliance, which is led by President Lazarus Chakwera’s Malawi Congress Party. Again, the former Vice-President’s sudden death has also led to the deepening of the culture of distrust among political parties. This is especially evidenced through the political narratives emanating from United Democratic Front and UTM which are considered potential kingmakers in the current political landscape. They are both considering going alone to face the voters. However, his absence is particularly being felt in the UTM where party zealots are yet to come to terms with his absence on the political scene.

Is the UTM, which appeared to be the hardest hit by the plane crash which occurred in the Viphya Plantation, likely to be stronger under the new leadership?

 The current UTM leadership has demonstrated the desire to maintain the party as a force to reckon with. The  move by its current president [former Reserve Bank of Malawi governor Dalitso Kabambe] of trying to reconcile all the antagonistic factions that emerged after the demise of president Chilima, signifies the quest to approach this year’s general elections as a cohesive organisation.

 Talking about the elections slated for September 16 this year, the credibility of the Malawi Electoral Commission (MEC) and the National Registration Bureau (NRB) had come under fire even before the voter registration phase got underway. What is your take on this credibility test?

Indeed, the two institutions have a huge task before them to instil trust in the people that they can offer a good service to the nation. Among others, they need to manage speculations and conspiracy theories levelled against them by conducting themselves in a manner that is within the dictates of the Constitution. Transparency and accountability are part of the deal.

How can MEC deliver a credible election that everyone can accept come September this year?

The secret to achieving believable outcomes is strict adherence to the dictates of the Constitution and relevant laws on the part of the authorities governing this electoral management body. The authorities in question should employ the constitutional devices available in resolving all issues that may emanate as the country is approaching a highly charged electoral contest.

 How can political parties quell electoral violence, which appears to be neglected despite being on the rise?

 It is very unfortunate that some political leaders are in the forefront making pronouncements that could trigger violence. Political parties should not be used as breeding grounds for political violence. Instead, political parties, as critical agents of political socialisation, should develop and entrench a culture of tolerance. Party leaders as critical opinion setters should explicitly and publicly condemn political violence and orient the youth towards the culture of tolerance and coexistence.

The post What a political mixed bag in 2024 appeared first on Nation Online.

 Politicians in the country, including former presidents have urged Malawians to remain resolute in dealing with the socio-economic challenges facing the country and hope for the best in the New Year 2025.

In separate interviews and statements, they asked Malawians to celebrate the New Year with caution, especially on the roads and ensure that they vote during the September 16 2025 General Elections.

Former president Peter Mutharika, in his New Year has become unbearable for Malawians due to rising prices of goods.

He decried that some families cannot afford the basics such as food and soap as inflation has weakened their buying power while farmers are also stranded without fertiliser or seeds under the Affordable Inputs Programme (AIP).

Mutharika , who is Democratic Progressive Party president, also bemoaned forex and fuel shortages, unavailability of food and high unemployment rate.

He said: “This is more than just a time to bid farewell to one year and welcome another. It is a moment to pause, reflect on our shared journey and acknowledge the challenges we have faced together.”

Like Mutharika, People’s Democratic Party president Kondwani Nankhumwa decried the food, economic, fuel and forex situation.

He said: “When we entered 2024, we thought things would be better. But look, we are leaving the year and entering 2025 with no fuel, no forex, the economy is bad, people are sleeping on empty stomachs.”

On his part, United Democratic Front president Atupele Muluzi said 2025 will be a year of change and a pivotal moment for Malawi.

“This is the year when the people of Malawi will make their voices heard through the ballot box, reshaping the destiny of our country. As we step into this crucial year, I wish all Malawians abundant health, happiness, and prosperity. Together, let us strive for a brighter future for our beloved nation,” he said.

Atupele’s father, Bakili Muluzi, who ruled Malawi between 1994 and 2004, wished Malawians a happy and prosperous 2025, but urged caution for those using the country’s roads.

“People just have to be careful because this is the time when accidents happen. They have to take care when driving, some drink and drive which is not good at all. Let the New Year be a blessing,” he said.

Malawi will this year hold a general election on September 16 to elect a President, members of Parliament and ward councillors.

The economy is reeling under multiple crises of foreign exchange scarcity, fuel shortages and hunger. The foreign exchange crisis is attributed to the country’s low export earnings at $1 billion against an annual import bill of $3 billion.

The post Politicians hope for a better 2025 appeared first on Nation Online.

Erstwhile UTM Party leader Michael Usi says he will not challenge his expulsion from the party but hinted that he will react politically.

The country’s Vice-President, fired from the UTM Party after a disciplinary hearing he snubbed on Monday, said by not going to court it does not mean he has accepted the expulsion.

Speaking through his lawyer Wapona Kita yesterday, Usi said he will respond to the expulsion politically since the decision taken by UTM was political.

Said the lawyer: “We are not going to court to challenge the decision as UTM has made a political decision and my client will also react to it politically.”

On whether this meant that Usi had accepted the expulsion, Kita said: “No, he has not.”

Usi was expelled on Monday after failing to appear before the party’s disciplinary committee in Lilongwe where, among others, he was accused of behaving in a manner likely to create divisions or impact negatively on the UTM Party. He was also accused of joining or supporting an organisation or party, other than an organisation in alliance with UTM contrary to Article 22(8) (k) of the party’s constitution.

In a brief response yesterday, UTM Party spokesperson Felix Njawala said they respect Usi’s decision on the matter.

On Monday evening, UTM secretary general Willet Kalonga wrote Usi informing him that the disciplinary committee found his conduct of mobilising people or supporters of UTM Party, in the party’s regalia, to government functions led by Malawi Congress Party (MCP), notwithstanding the fall out in a political alliance between MCP and UTM, contravened Article 22(8)(e) of UTM constitution.

He said: “The disciplinary committee also found that the defendant’s conduct during whistle stops in Mwanza where he was heard endorsing the MCP government by saying ’Boma ndi lomweli [this is the best choice],’ to be in contravention of Article 22 [8] [k] of the party constitution.”

Commenting on the developments private practice and human rights lawyer Khwima Mchizi said Usi was simply being political, stressing that if he does not accept his expulsion the best remedy was to go to the courts.

“This is where UTM has to be proactive, they need the intervention of the court. Usi can choose to continue doing what he does and no one can physically stop him and eventually this may bring chaos.

“The court should actually make an interpretation, so it can actually stop him from using party colours or the name UTM itself in whatever he does. Let them move the court as quickly as possible because both sides are not relating politically,” he said.

In a separate interview, University of Malawi (Unima)- based governance pundit Gift Sambo said Usi, as a former UTM Party leader, did not make any move signalling commitment towa rd s reconciliation.

On his part, governance expert George Chaima said if Usi still chooses to dismiss the legality of UTM convention that elected the current leaders, he needs to choose how he will claim his position back through political or legal means.

“Probably it is time for him to align with the MCP openly. lf Usi chooses to wage a political or legal battle against UTM leadership then we should expect more chaos to follow in the party,” he said.

Usi shunned the UTM Party presidential race by not submitting his nomination papers, citing gross violation of the party’s constitution by the national executive committee.

President Lazarus Chakwera appointed Usi as Vice-President on June 20 2024 following the death of Vice-President Saulos Chilima in a military plane crash on June 10 2024.

In the 2019 Presidential Election, Chilima picked Usi as his running mate. At the time, Usi had a movement Odya Zake Alibe Mulandu, but was working with the UTM Party.

The post  Usi laughs off UTM expulsion appeared first on Nation Online.

Malawians have entered the New Year 2025 on fuel queues due to erratic fuel availability which has left some areas having dry pumps for days, but there is no explanation from duty-bearers.

The Nation snap survey in the cities of Blantyre, Zomba, Lilongwe and Mzuzu as well as some districts yesterday showed that there is persistent fuel shortage, especially petrol and long queues in few service stations that had the commodity in stock.

In Salima, Machinga, Mangochi, Karonga and Mchinji districts the situation was dire as fuel was only available at one or two service stations.

Efforts to seek an official explanation from the Malawi Energy Regulatory Authority (Mera) proved futile as both the chief executive officer Henry Kachaje and consumer affairs and public relations manager Fitina Khonje were not responsive to calls and WhatsApp.

On the other hand, National Oil Company of Malawi (Nocma) spokesperson Raymond Likambale said Mera was better-placed and has the mandate to explain the situation.

He said the regulator usually has information from all licensees which import fuel, including Nocma.

“Let me refer you to Mera. They would be better-placed as they usually get reports from all fuel importers. Nocma is just one of the licensees,” said Likambale.

By close of business yesterday, there were just a few service stations with fuel in the capital city, Lilongwe. It was the same experience in Blantyre, Zomba and Mzuzu.

Meanwhile, the Human Rights Defenders Coalition (HRDC) has attributed the country’s now perennial fuel crisis to poor governance, corruption and a lack of political will.

In a statement signed by national chairperson Gift Trapence and national coordinator Kelvin Chirwa, HRDC cr i t i c i s ed the government’s plan to introduce a government-to-government (G2G) fuel procurement arrangement, describing it as opaque and questionable.

“While the government claims to be exploring such an arrangement with Kenya, it must be noted that Kenya abandoned this system because it was deemed unattainable and unsustainable.

“This raises serious doubts about the feasibility and sincerity of the proposed approach for Malawi,” the statement reads in part.

Malawi needs $600 million annually to bring in fuel, but generates just around $1 billion.

In total, the country needs $3 billion to meet its import requirements.

In a national address in November, President Lazarus Chakwera said his administration was mooting a government–to–government fuel deal with the United Arab Emirates with more flexible payment arrangements to avert perennial fuel stockouts, which worsened last year.

The post Duty-bearers mum on fuel shortage appeared first on Nation Online.

Malawi’s gross domestic product (GDP) per capita income, a country’s output per person, has continued to decline, a development economists say signals dwindling economic prospects.

Published data from the International Monetary Fund (IMF) shows that the GDP per capita income has dropped over the past four years to $463.73 (about K810 713) in 2024 from a peak of $580.92 (about K1 million) in 2021.

Economists say a higher GDP per capita is generally associated with a higher standard of living.

During the review period, the data shows that economic growth has declined to 1.8 percent from 4.6 percent.

According to the data, economic growth has averaged 2.2 percent, far below the recommended 10.6 percent required to grow the economy to a lower middle income status by 2030, with a GDP per capita mark of abot $1 086 (about K1.9 million) as envisaged in Malawi 2063 (MW2063), the country’s long-term development strategy.

In an interview on Tuesday, economist Milward Tobias observed that population growth  over the past years has outpaced income.

He said: “Population growth rate has been in excess of two percent every year and at times hitting as high as 2.5 per cent.

“When population grows at a faster rate than the economy, per capita income declines. Per capita income is lower now because while income has grown, population too has grown faster than income.”

Tobias, who is an independent presidential aspirant, said because of the continued depreciation of the kwacha, GDP has also continued to decline in US dollar terms.

To illustrate the situation, Tobias said a family of two with a total income of K10 000 in one year and used to have K5 000 after equal share, will now have to share K4 000 with an additional family member despite the income growth by K2 000 to K12 000.

Tobias said to reversing the trend, it requires equally growing the economy in line with MW2063 target and strengthening and stabilising the exchange rate.

Speaking separately, Consumers Association of Malawi executive director John Kapito said Malawi needs to work hard to begin to address the current levels of growth.

He said: “Unfortunately currently we are not working towards creating the economic environment we need. 

“Malawians are tired of being poor and labelled as such is unhealthy for the youth, it is a recipe for disaster.”

Mzuzu University economist Christopher Mbukwa said in an interview on Tuesday that a declining GDP per capita income is largely due to the country’s population growing at a faster rate than its real GDP.

He said: “In Malawi, population growth is around 2.7 percent annually while GDP growth has hovered around around one percent on average for the past three years; hence, a decline in GDP per capita.

“This situation potentially leads to a declining welfare among the population and quality life dminishes.”

National Planning Commission (NPC), the lead agency monitoring implementation of MW2063, estimates that for Malawi to meet the 2030 goals, the economy needs to grow by an average of 10.6 percent in the next five years.

NPC director general Thomas Chataghalala Munthali is on record as having said Malawi is unlikely to become a lower middle income country by 2030 and may only reach the goal 15 years later if it remains on the current lethargic path.

He said a series of external crises that have spilled over to Malawi and internal catastrophes have derailed the economy from growing at the six percent minimum needed to reach the promised lands.

Munthali said if there is a radical course correction through implementation of catalytic interventions that can help chalk a consistent growth of 6.4 percent then Malawi could achieve the target by 2036—still a six-year drag on the target date.

Otherwise, he said, if government continues on the current trajectory, Malawi will only achieve the target of graduating to a lower middle-income economy with a gross national income per capita of $1 036 by 2045.

The post GDP per capita income drops appeared first on Nation Online.

Poor road network, unfriendly border crossings and high prices of hotels and restaurants have emerged as some of the factors still hampering tourists attraction to countries such as Malawi, Zambia and Zimbabwe.

This is highlighted in a report by Wildwood Motorcycle Tours Southern Africa, an organisation which facilitates road travels of tourists to East Africa through Namibia, Botswana, Zimbabwe, Zambia, Malawi and Tanzania.

Mostly, the route from South Africa, Namibia and Botswana passes through Victoria Falls, Binga and Kariba in Zimbabwe; Lusaka, Petauke, Chipata in Zambia; Senga Bay, Nkhata Bay, Livingstonia in Malawi and Mbeya, Ringa, Dodoma and Zanzibar in Tanzania.

Quoting experiences of the tourists that used the route in 2024, the report, titled ‘Zimbabwe, Zambia, Malawi and Tanzania–Big African Adventure’, highlighted mobility challenges in Malawi and other countries apart from Tanzania.

It said poor road network and ‘unfriendly and overpriced’ border crossings in all countries except Tanzania are the main factors affecting tourists’ traffic for the route.

Reads the report in part quoting one tourist: “A destroyed road network in all but Tanzania, trailing the bikes we destroyed our trailers and ended up shipping the bikes back to South Africa at great expense.

“My advice to wannabe visitors is to fly into Malawi or Tanzania and rent a bike or car to get around. Without the uncertainty and chaos of border crossings, planning is simple and although a bit pricey these are beautiful countries to visit.”

In an interview on Tuesday, Malawi Institute of Tourism head of travel and tourism Dennis Magodi described the country’s road network as the biggest challenge threatening the sector’s growth.

He said: “Although tourism is part of the government agriculture, tourism and mining [ATM] strategy, little has been seen on tourism as most tourism destinations remain hard-to-reach due to poor road network.

“For instance, during the rainy season, it is not possible for tourists to visit Manchewe Waterfalls in Livingstonia, Rumphi despite beautiful and historic aspects found at the falls.”

A travel itinerary expert Innocent Kaliati of Orbis DMC agreed with the report on the lagged pandemic effects, which he said would take some time for the sector to fully recover.

“Malawian operators need to position themselves as green businesses focusing more on sustainable tourism and serious about health and safety, then traffic will come,” he said.

Through the ATM strategy, the government wants to invest in tourism and open up the sector for more foreign tourists, which could boost its capacity as one of the country’s main foreign exchange earners.

Meanwhile, Malawi has improved its rank on openness to visitors from other African countries, an indication that visitors are now entering the country without restrictions, courtesy of the visa policy changes, according to published data from the 2024 Africa Visa Openness Index.

Data from World Travel and Tourism Council indicates Malawi generated $39.4 million (about K70 billion) in 2019 from international visitor spending, but the earnings dropped to $35.5 million (about K62 billion) in 2023.

Projections further show that this year, Malawi could generate $42.9 million (about K75 billion)from international visitor spending, according to the data.

However, the earnings are far below what Zimbabwe at $215.1 million (about K377 billion), Zambia at $901 million (about K1.6 trillion) and Mozambique at $327 million (about K573 billion) generated in 2023.

The post Poor roads, unfriendly borders affect tourism growth—report appeared first on Nation Online.

VILIPO MUCHINA MUNTHALI
Contributor

Intra-group services are a critical aspect of multinational enterprise (MNE) operations, facilitating the efficient management and coordination of activities across multiple jurisdictions.

These services often involve significant costs and are subject to transfer pricing scrutiny. In fact, during most transfer pricing audits, intra-group services and associated fees draw the most attention from tax auditors globally.

This article (in two parts) provides an in-depth analysis of the concept of intra-group services, focusing on the regulatory framework, arm’s length pricing, challenges and compliance strategies.

Malawi’s transfer pricing legislation, which is aligned with international standards, form the backdrop for this discussion.

The concept of intra-group services

Intra-group services refer to activities performed by one member of an MNE group for the benefit of another member of the same group. Such services range from centralised management functions to specialised technical assistance and shared support services such as human resources and information technology (IT).

The provision of these services may arise from two possible scenarios as follows: Where the services are performed by a member of a group to meet an identified need of one or more specific members of the group and where a member undertakes activities that relate to more than one member of the group or to the group as a whole.

In the first scenario, it is relatively straightforward to determine whether a service has been provided or not. However, in the second scenario, a more complex analysis is necessary.

Both the domestic law and the Organisation for Economic Cooperation and Development (OECD) guidelines outline the principles for determining whether intra-group services have been rendered and the appropriate charge for these services.

Determining whether intra-group services have been rendered

The benefit test

The benefit test is the cornerstone of determining whether a service has been rendered. It evaluates whether the service provides a measurable benefit to the recipient.

For example, if a parent company provides IT support to a subsidiary, the test assesses whether the subsidiary derived economic value from the service.

Under the arm’s-length principle, a service is deemed to have been rendered if and only if the activity provides the recipient group member with economic value that might conceivably enhance its commercial position and if an independent enterprise in similar circumstances would be willing to pay for the same service if conducted by another independent entity or would have performed that service in-house for itself.

However, if the independent enterprise would not have been willing to pay or perform for itself, the activity would not be considered as an intragroup service. The costs for such activities are non-chargeable.

Shareholder activities

An activity performed by a group member solely in its capacity as a shareholder is not considered as an intra-group service and therefore cannot be charged to group members. Therefore, costs associated with activities such as shareholder meetings, issuing of shares or reporting requirements of the parent company are non-chargeable.

Duplicative services

An activity undertaken by one group member is not considered as an intra-group service if it merely duplicates a service which is already performed by another group member for itself or if the service is rendered by a third party.

Services that duplicate activities are non-chargeable unless there is evidence of added value. However, such services might be considered as chargeable to recipients if valid business reasons exist such as situations where: The duplication is temporary e.g. where an MNE group is reorganising to centralise its management functions; an activity is undertaken to reduce the risk of a wrong business decision (getting a second legal opinion on a subject); activities are different, additional, or complementary to the activities performed in-house and activity is undertaken to fulfil a regulatory requirement especially in regulated sectors such as financial services.

Incidental services

This refers to services performed by one group member such as a shareholder for a particular group member or a set of group members, but incidentally also provides a benefit to other group members.

The incidental benefits arising from such activities do not constitute intra-group services. For example, no service would be received where an associated enterprise by virtue of its affiliation alone (i.e., due to its passive association) has a credit-rating higher than it would if it were unaffiliated.

However, an intra-group service would usually exist if the higher credit rating was due to a guarantee by another group member.

Centralised services

These are activities that are centralised in the parent company or a group service centre but are made available to the group as a whole. Such activities will be considered as intra-group services as they are the type that even independent enterprises would have been willing to pay for or to perform for themselves.

Generally, such activities may include planning, budgetary control, financial advice, accounting, auditing, legal, operations, IT services, treasury activities, marketing, human resources, customer service and call centres, among many others.

On-call services

Intra-group on-call services apply in situations where an associated enterprise agrees to be on hand to provide services such as financial, managerial, technical, legal or tax advice to members of the group at any time.

An intra-group service would exist to the extent that it would be reasonable to expect an independent enterprise in comparable circumstances to incur “standby” charges to ensure availability of the services when the need for them arises.

For example, an independent enterprise would be willing to pay an annual “retainer” fee to a legal firm to ensure entitlement to legal advice and representation.

However, it is unlikely that an independent enterprise would incur stand-by charges where the potential need for the service was remote; or where the advantage of having services on-call was negligible; or where the on-call services could be obtained promptly and readily from other sources without the need for stand-by arrangements.

Conclusion

Intra-group services play a vital role in the operations of MNEs but are subject to intense transfer pricing scrutiny. In Malawi, the application of transfer pricing rules to intra-group services requires careful consideration of the local regulations and economic conditions.

As tax authorities intensify their focus on transfer pricing, MNEs must adopt proactive strategies to navigate the complexities of intra-group services.

In part two of this article to come out next Thursday, we shall discuss how to determine arm’s length remuneration for intra-group services. Stay tuned!

*Vilipo Muchina Munthali is managing consultant at Swift Resources, an international tax and transfer pricing consulting firm that specialises in developing, implementing and defending transfer pricing policies

The post Intra-group services: Transfer pricing perspective appeared first on Nation Online.

Today is the second day of the New Year 2025 and I guess not too late to wish you valued readers and partners a happy New Year.

If I were asked to describe the year 2024, I would say it was a mixed bag. Here is one year the nation lost Vice-President Saulos Chilima and eight others in a military plane crash, a tragedy that will take a generation to heal. It was also a year when the climate-induced disasters caused havoc, leading to reduced harvest, especially for food crops.

Persistent fuel scarcity, which has since been carried forward into the New Year as some transitioned into 2025 while on fuel queues, also left many Malawians enduring sleepless nights at fuel stations to the detriment of their personal development and contribution to the growth of the national economy towards achievement of the aspirations outlined in Malawi 2063, the country’s long-term development strategy that seeks to turn the nation into an inclusively wealthy middle-income status.

Positives in the year included sustaining the Extended Credit Facility with the International Monetary Fund amid the external shocks, including climate-induced disasters that hit hard the agriculture sector, energy and transport infrastructure.

It would also be incomplete to take stock of the year 2024 without appreciating strides in infrastructure development despite a tight fiscal space and indeed predominantly stable power supply which was a rare experience in living memory.

But, at the same time, challenges of low foreign exchange reserves, fuel scarcity and high inflation rate continued to haunt the economy. The year 2025, an election year, should be one for every Malawian to reflect deeply on the challenges and lessons drawn to find lasting solutions.

During its last meeting of 2024, the Reserve Bank of Malawi Monetary Policy Committee (MPC) maintained the policy rate at 26 percent while also keeping intact the Lombard rate at 20 basis points above the policy rate and the Liquidity Reserve Requirement (LRR) ratio at 3.75 percent for foreign currency deposits.

When I looked at some of the policy prescriptions in the year, I wondered whether they were the right ones to heal the economy and how long it would take.

Why the above questions bothered me is because I have noted that for the past six decades Malawi has been taking the same approach to improve the economy. However, the strategies do not seem to have worked out well, something that demands novel and sophisticated models to find solutions because simplistic models that may have worked in the 1980s when the problem was single variable may not work now in a complex environment.

Economies do not recover through miracles or prayer. They do by making hard choices and strategies that will later benefit the economy at large.

Inflation is one key variable the MPC has been using to manage the economy. But truth be told, Malawi’s inflation is not really about demand as authorities often put it because it remains from the supply shocks with almost all strategic commodities, including maize are being imported. The day Malawi will find an alternative way to deal with the supply side shocks will mark the start of the road to sustained recovery.

Many people use the dawn of a New Year as a time to implement resolutions and goals to improve their situation. To achieve the set goals, some invest in further education while others put their money in property development as well as in children’s education.

To achieve more, one needs to discard old bad habits and do business unusual. It has been said before that doing the same thing over and over again and expecting different results is next to insanity.

Do you want to do great things from January 1 2025? Well, you will need to do away with distractions such as obsession with social media—especially the gossip, let go of procrastination and be consistent when doing things. Do not be contented with your current status, always have the hunger to achieve more even if it means going out of your comfort zone.

Remember, they say birds of the same feathers flock together, meaning the people you interact with have a huge influence on your life. Reflect on who you hang out with and what issues dominate your conversations, avoid bad company.

In the book Making Your First Million, Malawian economist Henry Kachaje stresses that people become what they think and this applies even to financial capabilities. He argues: “If you do not think in millions, you will not earn money in millions—simple. Your earning limitations are first set in your mind before they manifest physically.”

Wishing you a happy New Year 2025!

The post Heal the economy, think big in 2025 appeared first on Nation Online.

 Dark start to New Year as 84.8MW is off the grid

ENERGY

Malawians have started the New Year 2025 on a gloomy note with increased power rationing after technical chal lenges at Kapichira and Nkula B hydro power stations took out 84.8 megawatts (MW) from the national grid.

The development has left the grid with 305.7MW from hydro power plants.

In a s t a t emen t o n Tuesday evening, Electricity Gen er a t i o n Company (Egenco) Limited said two units at Kapichira, with a combined generation capacity of 64.8MW and one unit at Nkula B which produces 20MW, are not operational due to turbine mechanical failures.

Reads the statement : “Currently, two units at Kapichira, and one unit at Nkula B are not operational due to turbine mechanical system failures. As a result, Kapichira is operating at 50 percent of its installed capacity while Nkula B is at 80 percent capacity.

“Our eng i n e e r s a re diligently working around the clock to resolve these chal lenges. One unit at Kapichira is expected to be back online within the next 10 days, with the second unit within 25 days. The unit at Nkula B will take at least five days.”

Station has four machines with a combined generation capacity of 129.6MW, each producing 32.4 MW. On the other hand, Nkula B has five machines, each rated 20MW.

Egenco said the works at Kapichira will include repairing and replacing turbine underwater parts.

The company further said that to mitigate the impact of this outage, it will utilise all available generators to supplement the available hydro capacity.

Last week, Egenco chief executive officer Maxon Chitawo told stakeholders in Lilongwe that it has in place backup power generators with about 40MW capacity in the event of damage to one of the existing stations owing to the ongoing rainy season.

He said: “Our plan is that we should not have power blackouts during the rainfall season and in the case that something has happened, we should be able to respond quickly.

“ H o w e v e r , t h e effectiveness of our plan h i n g e s o n e n h a n c e d monito r i ng and ear l y warning systems for potential risks, robust emergency r e s p o n s e p r o t o c o l s , coordinated communication and col laboration with stakeholders.”

Meanwhile, in its load shedding schedule for December 30 2024 to January 4 2025, Electricity Supply Corporation of Malawi (Escom) said the power rationing was prompted by power supply deficit due to increased demand and insufficient capacity to cover it.

Reads the Escom statement in part: “Electricity Supply Corporation of Malawi [Escom] Limited will implement load-shedding from Monday, 30th December 2024, to Saturday, 4th January 2025 due to a power supply deficit as a result of increased demand and insufficient capacity to cover it.

“Note: Solar plant s c o n t r i b u t e t owa r d s availability of electricity. Despite weather forecasts, random fluctuations in intensity of sunshine may af fect solar power production, leading to load shedding outside this programme.”

Under the load shedding schedule, customers are divided in six groups with three groups experiencing at least three hours of blackout per day.

Since August 2024, Escom had been implementing load shedding programme whereby each group was experiencing two hours of power outage per week.

In a separate statement, Escom argued that the blackouts are limited to two hours each day, disputing reports that it plans to extend the blackouts to 11 hours per day.

Egenco has total instal led generation capacity of 441.95MW, with 390.55MW from hydro power plants and 51.4MW from standby diesel power plants.

Malawi Government planned to generate 1 000MW of power by 2025 due to reforms which it said had opened up opportunities for independent power producers. However, the target was missed due to poor or delayed response from potential investors in the power sector.

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President Lazarus Chakwera has started the New Year 2025 by reconfiguring his Cabinet to bring renewed energy, but retained the bulk of the core team.

The Cabinet, which now has 31 members from 27 in the previous one appointed on January 31 2023, has seven deputy ministers from four and split Ministry of Education into two—Higher Education and Basic and Secondary Education.

In the changes announced by the Office of the President and Cabinet after the President’s televised New Year Address, former minister of Defence Harry Mkandawire and Ntcheu Bwanje North legislator Nancy Chaola Mdooko (UTM Party), who served as Deputy Minister of Education, are the only casualties.

Minister of Mining Monica Chang’anamuno has replaced Mkandawire.

Prior to the release of the new Cabinet list, the President said the changes followed deep reflection over the past few weeks to bring renewed energy, focus, efficiency and speed to government service delivery.

Said Chakwera: “With this team, we will work harder than ever to make your lives better this year and beyond. But as always, for that to happen, I will be counting on your support.”

Newcomers in the Cabinet include Lilongwe East member of Parliament (MP) Ezekiel Ching’oma (Malawi Congress Party-MCP), who has replaced Ken Zikhale Ng’oma at Homeland Security. Ng’oma has moved to Mining.

The other new face is MCP spokesperson Jessie Kabwira who is heading the newly-created Ministry of Higher Education while then incumbent Madalitso Kambauwa Wirima is now Minister of Basic and Secondary Education.

The President has also promoted Deputy Mi n i s ter of Local Government, Unity and Culture Owen Chomanika to Minister of Natural Resources and Climate Change, taking up the portfolio previously held by Vice-President Michael Usi who is now Minister of State for Public Service Delivery—a role that injects presidential level influence in overseeing performance in ministries, departments and agencies.

In the changes, the President has created deputy minister portfolios at Foreign Affairs, Agriculture, Transport and Public Works and Gender, Community Development and Social Welfare.

Mwanza West MP Joyce Chitsulo, who fell out with Democratic Progressive Party (DPP), has been appointed Deputy Minister of Local Government, Unity and Culture while Mangochi North MP Benedicto Kaluwa-AdweII Chambo (DPP) is Deputy Minister of Agriculture.

Lilongwe South MP Peter Dimba is Deputy Minister of Transport and Public Works while Patricia Nangozo-Kainga, a former Zomba Central legislator, is Deputy Minister of Foreign Affairs and Halima Daud has moved from Health to Deputy at Gender. Nkhata Bay South East MP Noah Chimpeni (People’s Party-PP) has replaced Daud at Health.

In his address, the President also outlined what he called three big losses of 2024; namely, the death of Vice-President Saulos Klaus Chilima and eight others in a military plane crash on June 10, loss of close to half of food crops due to El-Nino weather and loss of life and property caused by excessive rain and thunder in December.

On the other hand, he mentioned progress on roads, K200 million for Constituency Development Fund and mobilisation of K300 billion in off-budget support to procure emergency food for 5.7 million Malawians as some of the gains.

Reacting to the speech, political pundit Wonderful Mkhutche said people should not expect miracles with the changes made to the Cabinet, saying it was political.

In a separate interview, governance pundit George Chaima said splitting the Ministry of Education was costly, as it now means government will be paying two ministers and several principal secretaries.

On his part, Centre for Social Transparency and Accountability executive director Willy Kambwandira said while the President’s speech was full of hope, it struggled to live up to the expectations of Malawians.

RETAINED MINISTERS

Minister of Finance and Economic Affairs Simplex Chithyola Banda

Minister of Trade and Industry Sosten Gwengwe

Minister of Agriculture Samuel Kawale

Minister of Foreign Affairs Nancy Tembo

Minister of Health Khumbize Kandodo Chiponda

Minister of Local Government, Unity and Culture Richard Chimwendo Banda

Minister of Justice Titus Mvalo

Minister of Gender Jean Sendeza

Minister of Tourism Vera Kamtukule

Minister of Water and Sanitation Abida Sidik Mia

Minister of Energy Ibrahim Matola

Minister of Information and Digitisation Moses Kunkuyu

Minister of Transport and Public Works Jacob Hara

Minister of Lands Deus Gumba

Minister of Youth and Sport Uchizi Mkandawire

Minister of Labour Engineer Vitumbiko Zasamula Mumba

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