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Malawi lags behind neighbours on FDI

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Foreign investors seem to be shunning the Malawi market in preference for neighbouring countries, a development observers say is largely due to macro-economic instability.

Published data from United Nations Conference on Trade and Development shows that in 2024, foreign direct investment (FDI) inflows to Malawi stood at $220 million (about K385 billion), a rise from the previous year’s $214 million (about K375 billion), but below regional neighbours.

The data further show that last year, neighbouring Mozambique attracted FDI worth $3 553 million, with South Africa at $2 469 million, Tanzania at $1 718 million, Zambia at $1 238 million and Zimbabwe at $597 million.

In a statement following the publication of the 2025 UN World Investment Report, Unctad secretary general Rebeca Grynspan observed that too many economies are being left behind not for a lack of potential, but because the system still sends capital where it is easiest, not where it is needed.

She said: “But we can change that. If we align public and private investment with development goals and build trust into the system, domestic and international markets will bring scale, stability and predictability.”

In a written response on Tuesday, Malawi Investment and Trade Centre director general Kruger Phiri said despite progress following some policy reforms, there is still limited infrastructure to facilitate investments.

He said: “These infrastructural needs are in the transport and energy sectors, but the country is tirelessly working hard to improve them.

“Furthermore, the low gross domestic product per capita is a setback as it puts off some investors.”

Phiri said the policy reforms and initiatives such as the establishment of special economic zones, liberation of the electricity sector, setting up of Malawi Mining Authority and the agriculture, tourism, mining and manufacturing (ATMM) strategy, among others, all seek to promote investments in manufacturing, mining and value addition.

Speaking separately, National Working Group on Trade and Policy chairperson Frederick Changaya observed that government has done well to build  institutional frameworks that support attraction of FDI.

He said: “What remains to be done is to revolutionise our policy coherence that support general economic growth. FDI flourishes where there are growing and increasing returns.”

In its June 2025 Global Economic Prospects, World Bank observed that ongoing trade policy uncertainty and growing protectionism will likely weaken,  compounding their challenges to ensure the creation of sufficient employment for expanding working-age populations.

Absa Africa Financial Markets is quoted as having stated that continued shortage of foreign exchange was dampening Malawi’s potential to attract investors.

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Multichoice to pilot micro-subscriptions

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MultiChoice Group has announced plans to pilot a special viewing package that enables customers to subscribe for short periods.

This means, their subscribers will be able to pay for a week to access content on both DStv and GOtv platforms under the initiative called micro-subscriptions.   

The digital television service provider said the initiative is designed to give both DStv and GOtv customers flexibility and affordability in accessing content.

“It is a short-term subscription and it has been piloted in Uganda already,” reads a statement from MultiChoice.

MultiChoice Group chief technology and information officer Sabelo Mwali said the technology has been rolled out and the micro-subscriptions product is being embraced by many customers in Africa.

He said: “Nowhere are cost-of-living concerns more important than in Africa. In a developed market, a subscriber might stay on the same postpaid subscription product for decades. But in the African environment, a customer’s financial position can change drastically.”

He said the short subscription has been introduced to support customers who cannot pay on monthly basis.

“As fellow Africans, we understand the value of technological innovation, and we are mindful of the needs of our people. In Africa, innovation is not just nice to have, but it is a survival mechanism,” Mwali said.

In a separte interview, MultiChoice Holdings southern region corporate affairs manager   Selina Nyirenda said they will take the phased approach where the initiative will undergo a benefit review before rolling out.

Already local subscribers are excited with the development as they hope the incoming new invention will help them.

She said: “We take a phased approach in how we roll out our products and services. By doing that we are able to address  challenges as we rump up usage.”

One of the DStv subscribers Matthews Singini said: “This is a massive idea. With the rising cost of living, we need this kind of innovation. This thinking in Japanese we would have said its ‘kaizen’ meaning it is progressive development.”

Another subscriber, Yohane Richard Zibophe, said this is a good development although it has come late when others are already doing it.

“This is good but they should go further from micro subscription and introduce pay per view,” he said.

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Aero Events gets Bwede on board

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Another day and another milestone for Mighty Wanderers Football Club cheerleader Bwede.

  He is now under the management of Aero Events, a subsidiary of Lilongwe-based entertainment joint Aero Lounge.

Kita (L) and Bwede during a previous encounter. | Courtesy of Kita

Aero Lounge proprietor and director Wapona Kita announced the development on his Facebook page.

“Aero Events is now the official manager of Bwede. Any formal bookings can only be done through Aero Lounge. We thank companies which have secured their bookings to have Bwede perform at their corporate functions,” reads the communication in part.

Speaking in a separate interview, Aero Lounge manager William Ngwira said the deal seeks to provide Bwede with exposure and financial opportunities that will help him unleash his artistic potential.

“The cheerleading that he does in the football stands is art and part of singing. On top of that he composes his own songs. We want to explore possibilities to have the songs reproduced in the studio so that he can perform them live with support of a band,” he said.  

Reacting to the news yesterday, Bwede expressed his delight for being bestowed such an opportunity to have a team of professionals managing his brand.

“This is good news . You know I am not a musician,  I am just a cheerleader and this opportunity flatters me,” he said.

He has thrust himself in the limelight courtesy of his compositions such as Ng’ona ilibe mabele, Msinayigwire and Angokunyenga which have become household songs in entertainment spaces. 

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Utilise Malawi, Ukraine relations—expert

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A political scientist Peter Zalmayev has said much remains to be done between Malawi and Ukraine to realise the full potential of the two countries’ political and economic relations.

Zalmayev, who is also director of the Eurasia Democracy Initiative (EDI) with offices in New York, USA and Kyiv (Ukraine’s capital) and a television host, observed that the economic relations have been affected by the Ukraine-Russia war.

Chakwera and Kuleba last year in Lilongwe . | Lucky Mkandawire

The Ukrainian-American personality is on a five-month 40-country Ukraine promotion world tour of the South Pacific, Australia, Papua New Guinea and Africa.

Said Zalmayev: “Bilateral trade [between Malawi and Ukraine], which was steadily growing and reached over $50 million per annum before the war had dropped to about $14 million in 2024.

“This is yet another impact the war has had, affecting the livelihoods of ordinary people involved in our bilateral trade. The sooner the war ends the faster we shall be able to restore and increase our economic ties.”

The Ministry of Foreign Affairs in Ukraine quoted Ukraine Foreign Minister Dmytro Kuleba on its website after his visit to Malawi: “We appreciate Malawi’s firm and consistent stance on Russian aggression against Ukraine as well as its support for the Peace Summit communiqué.”

Last year, Ukraine gave Malawi 19 200 metric tonnes of maize through the “Grain from Ukraine” initiative to support 863 000 households that were affected by hunger.

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Diaz worried about rising poverty levels

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Outgoing United States Head of Mission Amy Diaz says she regrets that Malawi has not yet cracked the code for fighting corruption as she has seen more people getting poorer than when she first arrived.

Speaking in an exclusive interview with The Nation at the end of her tour of duty, she said seeing more people become poorer was a concern.

Diaz: More Malawians are poorer. | US Embassy

Said Diaz: “After three years, living in Malawi has been sweet for me and there is so much I am going to miss. One thing that feels the most undone for me is that I have seen more Malawians ending up poor in the last three years than when I first arrived.

“I don’t think that we have really cracked the secret of how to address corruption in meaningful ways. But also what feels undone is how the country can really attract the resources necessary to transform the economy. These are the things that I will look back on and say I really wish I had done this and that.”

A World Bank report released in April this year estimated than additional 417 000 people in Malawi will this year fall below the international poverty line of $2.15 (about K3 764) per day.

International Monetary Fund (IMF) figures also show increasing poverty levels with GDP per capita income dropping over the past four years to $463.73 (about K810 713) in 2024 from a peak of $580.92 (about K1 million) in 2021.

But whereas the World Bank and IMF attributed the poor economic performance to natural disasters such as Cyclone Freddy and El Nino, Diaz cited corruption as another major factor.

She said the real work to reduce corruption lies in Malawians holding leaders accountable and voting for leaders that will seriously tackle the vice.

“I have spoken against corruption and a lack of meaningful progress in holding corrupt actors accountable. We have also taken action in restricting issuing visa to public officials that are involved in corruption and families that benefit from corruption,” said Diaz.

Lawyer and human rights activist Benedicto Kondowe said current statistics show that 30 percent of the national budget goes down the drain through corruption and fraud.

He agreed with Diaz that electing leaders that would act on corruption is critical.

Minister of Information and Digitisation Moses Kunkuyu defended the government, saying the Lazarus Chakwera administration has been very prompt in ensuring that the Anti-Corruption Bureau [ACB] has capacity to fight corruption.

“The first step in going beyond rhetoric in the fight against corruption is ensuring that the graft fighting body is well capacitated in terms of both financial and human resources.

“The departing US envoy was privileged to be the first to witness this unprecedented capacity transformation of the ACB.”

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Police, MDF fail to protect demonstrators

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In full view of security officers, a gang armed with pangas and other weapons yesterday torched vehicles, stole a public address (PA) system and beat up Lilongwe protests organisers, including Sylvester Namiwa.

The gang disrupted demonstrations that Citizens for Credible Elections organised to force Malawi Electoral Commission (MEC) chairperson Annabel Mtalimanja and chief elections officer Andrew Mpesi to step down.

Panga-wielding men manhandled civil rights activist Sylvester Namiwa picture by Jacob Nankhonya

Lilongwe District Council had earlier allowed the protest, assuring the organisers of police security as evidenced by armed officers who in the morning gathered at Lilongwe Community Ground, the protesters planned starting point. The Malawi Defence Force (MDF) soldiers later joined them to beef up security.

The protests’ coordinator Namiwa looked excited as he went around greeting security officers and later joined those dancing to music as they waited for more people to join.

As the music played, the crowd was suddenly attacked by the gang with pangas, stones and other weapons while police and MDF soldiers watched.

Namiwa being attacked in full view of Police and MDF officers picture by Jacob Nankhonya

The hooligans pelted the protesters with stones, forcing them to flee. The gang also torched two vehicles, damaged others and beat up the organisers.

While some police officers tried to disperse the gang by firing tear gas, other security agents were seen running for dear life.

Namiwa, who was targeted in the ambush, was mercilessly beaten up and wondered how police and MDF soldiers let the thugs assault him and attack protesters in their presence.

“Have we reached this point where thugs can attack peaceful gatherings in the presence of the police and MDF? What are you doing as security personnel?” cried out Namiwa.

As he cried out for help, the gang members intensified the assault.

A group of bouncers, who had arrived at the scene in a Toyota Fortuner, nearly abducted Namiwa. They aimed at the activist and severely assaulted him while dragging him to their vehicle.

Panga-wielding men manhandled civil rights activist Sylvester Namiwa at Lilongwe Community Centre Ground picture by Jacob Nankhonya

Namiwa narrowly escaped after police fired tear gas to contain the situation.

In an interview, one of the organisers Edward Kambanje, who was also assaulted, accused the governing Malawi Congress Party (MCP) of being behind the attack.

However, he said the protesters are determined to pursue their agenda.

“A number of people have sustained injuries and the attack is a sign that we are no longer in a democracy under MCP,” he said.

Asked about the whereabouts of Namiwa, who could not be reached on the phone, Kambanje said he was informed that Namiwa had rushed to a hospital for medical attention.

When contacted, MCP deputy publicity secretary Ken Msonda declined to comment on allegations that the party was behind the violence.

“If you want to know who went to disrupt these demonstrations, find out. As MCP we have no comment, thank you,” he said.

However, he accused the opposition Democratic Progressive Party (DPP) of organising the demonstrations, claiming the party was using Namiwa and his colleagues to wreak havoc in the country.

Civil Society Elections Integrity Forum (Cseif) and National Advocacy Platform (NAP) have condemned the attack on the protesters.

In a statement yesterday, Cseif and NAP chairperson Benedicto Kondowe said the two institutions have demanded that the Malawi Police Service immediately prosecute all perpetrators of violence.

“We call on all political parties to unreservedly denounce, disassociate from, and stop the orchestration or endorsement of violence against demonstrators, as such actions amount to an assault on democracy and the rule of law,” reads the statement.

Meanwhile, UTM Party president Dalitso Kabambe has asked Minister of Homeland Security Ezekiel Ching’oma and Inspector General (IG) of Police Merlyne Yolamu to resign following ugly demonstration scenes in Lilongwe.

In a press briefing last evening in Blantyre, he noted that police failed to provide the necessary security at the demonstration, a situation that led to the assault of some demonstrators, including their leader Namiwa.

Kabambe said police’s inaction was questionable.

He said: “I am calling for the immediate resignation of the Inspector General of police and Minister of Homeland Security.

“If they will not resign or be fired, we will mobilise our supporters to join future demonstrations where we will add the resignation of the two on the agenda.”

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K2.6bn grows wings in 4 embassies—audit

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Malawi’s diplomatic missions have squandered K2.6 billion of public funds through a litany of illegal expenditures, violating the new Public Finance Management Act of 2022, an Auditor General’s report has revealed.

The report, covering the year ended March 2023, exposes systematic financial abuse across four missions of Tokyo in Japan, New Delhi in India, the UN Mission and Pretoria in South Africa.

Banda: We are reviewing the issue.

New Delhi accounted for the lion’s share of the abuse as auditors found K1.8 billion spent on health services without signed contracts.

According to the report, payments totalling K54 031 657 04 were made to BLK Hospital without counter signatures of the patient or guardian on the bills or invoices.

Reads the report in part: “As a result, it was difficult to ascertain the validity of the payments… An inspection of payment vouchers and related documents revealed that the commission made payments amounting K14 087 952 31 in respect of patients’ allowance without basis. This could lead to loss of public resources.”

It further states that the embassy in Tokyo illegally transferred K236.5 million from visa accounts without the written approval of the Secretary to Treasury, adding that it treated a Holding Account 8461316 like personal cash and spent K248 million.

Again, the Malawi Permanent Mission to the UN illegally shifted K87.2 million between its ORT and PE accounts without prior Treasury authority and there is no evidence that the funds were refunded.

It also misallocated K18.7 million from the ORT account to pay temporary diplomats, bypassing Treasury approval for such transfers.

In Pretoria, the embassy procured goods worth K107.8 million without the Internal Procurement and Disposal Committee’s (IPDC) approval, violating procurement laws.

Auditors also found that payments worth K72 298 934.50 were not supported with necessary documents such as loose minutes, invoices, delivery notes and receipts.

The report reads: “In the absence of the documents, it was difficult to ascertain the authenticity of the transactions… Subsistence al lowances amounting to K12 951 150 00 were paid to staff for attending meetings and election observer missions.”

Mini s t r y of Finance spokesper son Wi l l iams Banda said the audit covers 2021/2022, the same year the Public Finance Management Act was enacted.

He said: “We are cautiously reviewing the issues to avoid being caught on the wrong side of the law. In this regard, we are engaging the Public Accounts of Parliament, the Auditor General and the Attorney General, considering that the report was issued in a transitional period.

“Furthermore, IFMIs is being migrated and domesticated to all missions.”

Ministry of Foreign Affairs spokesperson Charles Nkhalamba said he needed more time to finalise consultations.

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Mzuzu, Blantyre conduct peaceful anti-MEC demos

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Peace character i sed demonstrations in Mzuzu and Blantyre yesterday where hundreds marched to demand the resignation of Malawi Electoral Commission (MEC) chairperson Annabel Mtalimanja and chief elections officer Andrew Mpesi within seven days.

The protesters accuse the two MEC officials of allegedly neglecting calls for an independent audit of the election management system (EMS).

Phiri (C) presents a petition to Mdooko in Blantyre

In Mzuzu, Citizens for Credible Elections (CCE) led the demonstrations from Katoto Secondary School ground around 10am through the roundabout at Shoprite to the clock tower before delivering their petition to M’Mbelwa District Council representative Evelyn Chirwa in the afternoon.

There was a heavy presence of Malawi Defence Force (MDF) and Malawi Police Service officers, who provided security to the marchers.

However, the organisers played delaying tactics during the parade.

For instance, they took about about five hours to cover a distance of less than three kilometres from Katoto to the council offices.

Speaking when delivering the petition, the group’s coordinator Gomezgani Nkhoma said Mtalimanja and Mpesi should not be allowed to run the upcoming September 16 General Election.

He said: “The duo is too compromised to run the elections. This is evident by their denial to allow independent entities to audit and validate Smartmatic EMS.

“We don’t trust the system along with those who are managing it. But our lost trust can only be restored if the duo either allows independent auditors into the system or resign.”

Business was at a standstill for the rest of the day in Mzuzu central business district.

In Blantyre, the demonstrators presented their petition to Blantyre district commissioner (DC) Alex Mdooko.

Citizens for Credible Elections Southern Region chapter chairperson Asabuni Phiri said they resorted to demonstration after exhausting all means of presenting their concerns.

He said Mtalimanja has failed Malawians after rejecting the proposal by some political parties to conduct an independent audit into the EMDs that will be co-used in votes transfer during the elections.

The group also noted that Mpesi was one of the Malawi Congress Par ty (MCP) witnesses during the 2019 presidential elections case and that his decisions as MEC chief elections officer would be subjective.

“If the seven days elapse, we will take further action. But we cannot disclose the planned action now,” said Phiri.

Speaking after receiving the petition, Mdooko assured the demonstrators that he will forward it to relevant authorities.

The demonstrations started from Ginnery Corner Mosque to the DC’s office via Masauko Chipembere Highway to Haile Selassie Road.

Besides Lilongwe, Blantyre and Mzuzu, people in Mangochi also took to the streets to demand the resignation of Mtalimanja and Mpesi.

The group, led by Cliff Chinyama, presented their petition to Mangochi district commissioner Davie Chigwenembe, who pledged to forward it to relevant authorities for consideration.

He al so commended the demonstrators for conducting the protest peacefully.

However, shortly after the petition was delivered, tensions ensued when some protesters began disrupting traffic.

Police officers intervened, and in an effort to restore order, fired teargas to disperse the crowd.

The confrontation caused panic among bystanders and vendors in the area.

The post Mzuzu, Blantyre conduct peaceful anti-MEC demos appeared first on Nation Online.


Police mum on violence

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Inspector General (IG) of Police Merlyne Yolamu yesterday declined to comment on police officers’ failure to prevent attacks on peaceful protesters.

However, Minister of Homeland Security Ezekiel Ching’oma said he has information that businesspeople disrupted the demonstrations.

Panga-wielding men manhandled civil rights activist Sylvester Namiwa at Lilongwe Community Centre Ground picture by Jacob Nankhonya

Yesterday the police and the Ministry of Homeland Security attracted the wrath of the public after civil society organisations (CSOs) planned protests under the banner Citizens for Credible Elections were disrupted by armed hooligans in full view of police and Malawi Defence Force (MDF) officers.

When contacted on why the police failed to protect protesters, Yolamu refused to grant an interview, saying the National Police spokesperson Peter Kalaya was better placed to comment.

But Kalaya was not available on his mobile phone number while his deputy Harry Namwaza said he was out of office.

However, Ching’oma said the solution to continued attacks by panga-wielding hooligans is to have a mechanism where demonstrators would compensate the business community for disrupting their businesses.

He said: “Government finds itself in an awkward situation where on one hand, it has to protect the rights of demonstrators and on the other, it has to protect businesses.

“As a government, it is our duty to protect everyone. We have to protect the rights of the people who want to demonstrate but at the same time we have to protect the rights of the business people.”

Asked why the government was not able to put police and MDF soldiers in strategic places to protect the businesses and their property, the minister said people still damage shops due to violence.

Governance expert Moses Mkandawire has since described Ching’oma’s statements as unfortunate, saying as a minister he has to ensure that every Malawian is protected and secure.

“That kind of an argument can only be pursued by someone who is not in Malawi,” he said.

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Clean cooking excites Lilongwe community

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Community members in Traditional Authority Kabudula in Lilongwe have expressed excitement with the installation of solar-powered cooking stoves at Permaculture Community Training Centre.

The centre, established in 2020 to enhance communities’ livelihood through climate-smart agriculture technologies, is benefitting at least 50 villages.

Young men testing the solar stoves.

On Sunday, Ugandan engineer Soddo Paul, who is also IntelliSys Limited chief executive officer, installed three solar-powered stoves at the centre.

In an interview, the centre’s project coordinator James Gomani said the stoves are in line with their objectives of using cleaning energy to protect the environment.

He said: “The stoves will help us demonstrate to people the importance of clean energy amid climate change shocks.

“As a training centre, we teach people about efficient stoves that can use little firewood. However, the reference point will be the solar-powered stoves.”

Gomani thanked the centre’s United Kingdom (UK)-based donors for buying and flying the stoves from Uganda to Malawi.

The centre’s project manager Edwin Mponela, who is also group village head Gumbi, said the stoves will make the centre a role model in advocating for clean cooking.

Speaking in an interview, Paul said the stoves do not emit smoke, as such, a family cannot suffer kitchen-related respiratory diseases.

“Much as they consume a quarter of the power as that of a regular resistive-type electric cooker, they prepare beans and other regular meals in an hour or less,” he said.

In an interview from the UK, a donor, who opted for anonymity, said she is interested in sustainability of the planet and she founded two small charities based on sustainable fashion to empower women.

“An Internet search revealed that a small UK charity was developing a permaculture training farm at Gumbi [in Malawi], so I supported it,” she said.

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Calls mount for SOE reforms

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The Economics Association of Malawi (Ecama) says without urgent reforms, State-owned enterprises (SOEs) debt burdens will continue to destabilise the national budget and hinder development.

The sentiments follow a Ministry of Finance and Economic Affairs credit risk assessment showing that the majority of SOEs that are beneficiaries of government guarantees and on-lending arrangements have limited debt payment capacity, exposing the government to higher fiscal costs and risks.

Bangara-Chikadza: It’s a fiscal timebomb

In a written response on Wednesday, Ecama president Bertha Bangara-Chikadza said the fact that highest risk entities use loans to cover operational costs rather than productive investments, indicates chronic cash flow problems.

She said: “Critical issues here are fiscal sustainability concerns because we have built a bailout culture. Recurrent defaults force the government to absorb liabilities, diverting funds from critical sectors strain the budget.

“SOEs contracting debt without the actual delivery or fruits from these are troubling the government because these debts and SOE guarantees will keep on worsening the country’s debt-to-gross domestic debt ratios. Thus, they are a fiscal time-bomb.”

Chikadza urged the Treasury to have strict guarantee criteria and stick to reforms such as profitability benchmarks, anti-corruption audits to exclude high-risk SOEs, restructure SOEs (and introduce cost-cutting measures that do not fund extravagance while not profiting) to reduce reliance on state guarantees.

The assessment was conducted on 10 SOEs between March 2022 through March 2024 and shows that the majority of the enterprises are compelled to use loans to augment working capital requirements.

Among the SOEs, Admarc Limited, Blantyre Water Board (BWB), Electricity Supply Corporation of Malawi (Escom) and Northern Region Water Board (NRWB) have the highest risk while Central Region Water Board (CRWB), National Oil Company of Malawi (Nocma) and Southern Region Water Board (SRWB) had high risk.

On the other hand, Electricity Generation Company of Malawi (Egenco), Lilongwe Water Board (LWB) and Umodzi Holdings Company Limited (UHL) risk were moderate.

The assessment further shows that as at March 2024, the present value of expected losses of the government from the entities, except UHL, was K222.9 billion mostly to be in loan default and subsequent government bailout with challenges on debt repayment highly likely to continue in the coming years.

Corporate governance expert Jimmy Lipunga, a former chief executive officer of the Public Private Partnership Commission (PPPC), had attributed the dismal performance of some SOEs to lack of clarity of mandate, adding that for a turnaround, there is need to institute strong leadership that operates on a commercial basis.

Secretary to the Treasury Betchani Tchereni conceded that the government remains exposed to potential fiscal shocks arising from poor financial performance of SOEs, particularly in sectors where service delivery is critical, but cost recovery is inadequate.

Comptroller of Statutory Corporations Peter Simbani is quoted as having said that while SOEs have been looking up to the government for bailouts, which is not sustainable in the long-run, the government has many other priorities requiring resources.

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Experts warn govt on borrowing

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Economists have warned that Malawi’s rising domestic borrowing is distorting credit markets, driving up interest rates and pushing productive sectors out of the lending queue, even as government revenues climb.

The concerns follow the Reserve Bank of Malawi’s latest report, which shows the government began the 2025/26 financial year with a K130.4 billion fiscal deficit in April—despite a 26 percent jump in revenue to K435.1 billion. Expenditure rose by 13.5 percent to K565.5 billion.

The home of Malawi’s economy: The Reserve Bank of Malawi. | Nation

To fund the shortfall, government turned heavily to domestic borrowing. While the central bank reduced its net claims on government by K139.0 billion, commercial banks stepped in, increasing their holdings of Treasury bills and notes by more than K150 billion.

Though private sector credit expanded by K45.8 billion to K1.6 trillion, this was driven largely by household and foreign currency loans. Lending to commercial and industrial sectors shrank by K102.1 billion, and mortgage lending fell by K3.1 billion.

Key sectors such as construction, transport, energy, trade and finance posted credit declines—raising red flags about the viability of private investment in the current fiscal environment.

An economic stastician, Alick Nyasulu said government is competing with the private sector, and this will always work against private enterprised.

“Interest rates will continue to rise because government can afford to pay more, but the private sector cannot grow under such expensive financing conditions.”

Nyasulu added that bank balance sheets and asset managers are now “heavily invested in government debt,” leaving little capital for private borrowers. “Private credit is generally diminishing, and industries are struggling to grow,” he said.

A Mzuzu University economics lecturer Christopher Mbukwa also voiced concern that domestic borrowing is crowding out enterprise finance, particularly in key sectors like construction, transport and energy that recorded credit contractions in April.

“In a thriving economy, the private sector should be the main driver of credit participation in strategic sectors—not development partners or the government,” the lecturer said.

He warned that excessive borrowing injects liquidity into the economy and often forces the central bank to tighten monetary policy, leading to higher interest rates.

“Commercial banks prefer the safety of lending to government through Treasury instruments, leaving less capital available for private businesses.”

Nyasulu said the government is “stuck in a spiral cycle of debt where we will continue to borrow to pay debt,” adding that the situation is inflationary and risks undermining financial stability.

He called for immediate fiscal restraint.

“We need the political will to drastically reduce government spending.”

The Mzuzu academic, meanwhile, proposed targeted tax incentives, loan guarantees and public-private financing models to redirect capital into productive sectors.

Both experts stressed that infrastructure projects should be evaluated for their crowding-out effects before funds are committed, warning that unchecked borrowing could erode Malawi’s growth prospects.

With the government projecting a full-year deficit of K2.49 trillion—of which K2.33 trillion is to be raised domestically—analysts say credit market pressures are likely to intensify unless spending priorities shift.

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‘They called me Dr Abortion’

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On July 23, the Malawi Parliament will rise after six years in office since 2019. Not only will the seats of sitting legislators be vacated, by law, the committees that run the legislature on trust from Malawians will also have finished their mandate. KONDWANI KAMIYALA talks to Matthews Ngwale, outgoing chairperson of the Parliamentary Committee on Health. Excerpts:

Ngwale: Many women are dying. | Nation

QWhat about the highs?

AYou see, I am happy that the relationship between us, government, civil society and other stakeholders was very cordial.

Even so, we pushed for the construction of 900 health posts across the country. That means we have two new posts per constituency.

During your tenure, we have seen the coming of the controversial Termination of Pregnancy Bill which seeks to add other conditions under which women can seek an abortion in public hospitals. How has it been?

Yes, some of our stakeholders came in with concerns about unsafe abortions where women continue to die. We took it to the house but it was never discussed. The problem is that this matter is heavily misunderstood but women are dying not only because of the effects of unsafe abortions but some even commit suicide unable to face the world with an unwanted pregnancy.

QS o m e propel the fact that it is more costly to treat a woman who has had an unsafe abortion than to carry out a safe one. How true is this?

AThe cost is not only on the drug. You see, when an unsafe abortion is procured and there is need for treatment, a woman has to be transported to the hospital. Here, drugs are expected to be administered and the medical staff have to use intravenous syringes. These calculations would let you know how much goes into it. The problem is that those speaking against it use moral and religious grounds. But then for some, it is religion which propels these unsafe abortions for their own good.

QWhat has been the reaction from fellow parliamentarians and your constituents in Chiradzulu West?

AYou see, some took it personal but I brushed it all aside. The support from many of the parliamentarians was overwhelming. I was called Dr Abortion but you see, I was only doing my part serving my constituents and the nation at large as chairperson. It has not been about my belief in abortion or not. It is not about my understanding or grounds for or against the issue. There is so much evidence that women are dying so we can’t look aside. My constituents are understanding. Even stakeholders who have been coming in my area have conducted sensitization meetings that this is not my personal affair have made T/A Chitera from my area.

QThe House rises on July 23. If by chance you get back and return to preside over the committee, what would you do differently?

AIt is unfortunate that Parliament and the government don’t work together as they should. When they were signing protocols on reproductive health and gender, Parliament was never there. It has been difficult to provide an oversight role given the limitations. If stakeholders do not bring back the issue, those on the position will have nothing to do about it. This is why you find that our neighbours like Zambia and South Africa have flexed the law on abortion where it is provided on-demand.

QAny other comments?

AAnother problem that has hit the country is that of non-communicable diseases like epilepsy, sickle-cell anaemia, blood pressure and even men dying from the effects of using viagra. The dialysis machines for kidney problems are mostly broken down. Before looking at the remedies for these, we need heavy research on the causes 80 percent from the government. We made sure that this issue should not just come out in conferences but do nothing about it.

Then the United States Department of International Development pulled out and the health sector was grossly affected.

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Three member associations axed from FAM

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Football Association of Malawi (FAM) annual general meeting (AGM) on Saturday axed National Youth Football Association, National Football Coaches Association and National Referees Association as the mother body’s affiliates.

This followed a motion which Northern Region Football Association chairperson Masiya Nyasulu moved during the AGM held in Salima.

Haiya chaired the FAM AGM

In his proposal, Nyasulu argued that having the three as affiliates is a duplication since FAM already has structures performing their duties.

The development means once the FAM statutes are amended, the statutes which will later be ratified at the next AGM, will reflect that it has seven affiliates, namely Super League of Malawi, Northern Region Football Association, Central Region Football Association, Central Region Football Association, Eastern Region Football Association, Beach Soccer Malawi and National Women’s Football Association.

FAM president Fleetwood Haiya said the three associations were not supposed to be affiliates in the first place.

He said the statutes amendments are in line with Fifa and Confederation of Africa Football (CAF).

Malawi football has been lagging behind because of having coaches referees and youth as member associations, a development CAF and Fifa are also against, according to Haiya.

Nevertheless, the motion did not just pass without opposition as National Football Coaches Association chairperson Aubrey Nakhuni and his National Youth Football Association counterpart Tiyenkhu Chavula, vehemently opposed the move.

But still 31 out of 42 delegates voted in favour of the motion.

Football analyst George Chiusiwa in an interview also said the move is retrogressive to football development.

He said: “Football governance entails internal mechanisms for strengthening transparency and accountability.

“And this is only possible when members of the national football governing body have equal political powers for decision-making.

“In the modern times, effective football governance is only possible when members of football associations are free to express their views in a free and transparent environment.”

Chiusiwa said the amendments are aimed at serving the interest of individuals and not football in general.

He said: “This is not the football transformation that the country was promised but retrogression.”

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Kabambe, others claim immunity in K6.2bn case

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Former ReserveBank of Malawi(RBM) governorDalitso Kabambe and hisco-accused are seeking toblock their prosecution overthe alleged illegal transferof K6.2 billion, citingimmunity under the CentralBank’s Code of Conduct.

Kabambe, former deputy governor Henry Mathanga, and former RBM secretary Samuel Malitoniare accused of influencing the RBM board in 2020to divert the bank’s profit to the government forCovid-19 disaster response.

Kabambe wants his prosecution blocked

The State says the moveviolated laws governingappropriation of profits.

During a hearing onFriday before the HighCourt’s Financial CrimesDivision in Lilongwe, thedefence argued that thetrio were immune fromprosecution unless a courtfirst determined they actedin bad faith.

Lead defence counselKhumbo Bonzoe Soko toldthe court: “Immunity isnot a defence. It exemptsone from criminalliability altogether.

“In this case, theprosecution was requiredto seek court approval toshow that the accused didnot act in good faith beforeinitiating charges.”

Soko’s arguments weresupported by fellow defencelawyers Kalekeni Kaphale,SC, Powell Nkhutabasaand FostinoMaele.

In response, Senior Statecounsel Kamudoni Nyasulumaintained that criminalproceedings are valid, sayingthe defence was wronglyapplying civil law standardsto a criminal case.

He argued that the Codeof Conduct’s immunityclause conflicted with theRBM Act, which permitsprosecutionwhere lawsare

breached.

But Soko pushed back,insisting the immunityonly applied to actionsdone in good faith and thatsuch protection did notcontradict the RBM Act.

“The presumption is thatactions of public officersare lawful unless provenotherwise. The court cannottreat an action as criminalmerely because the Statealleges so,” he said.

Soko further argued thatthe State should have initiateda preliminary inquiry beforea magistrate’s court to provelack of good faith.

On his part, Kaphale, whois a former Attorney General,added that the Code ofConduct was not subsidiarylegislation as claimed by theState, but rather, part of theRBM Act itself.

He, therefore, urged thecourt to uphold the accusedpersons’ immunity.

The court has since adjourned and is expected to rule on the immunity application on August 6 2025.

The post Kabambe, others claim immunity in K6.2bn case appeared first on Nation Online.


MDF not complicit in violence—Valentino Phiri

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 Malawi Defence Force (MDF) Commander General Paul Valentino Phiri has denied claims suggesting that the military was complicit in the violence in Lilongwe when machete-wielding thugs attacked protesters.

The violence was perpetrated by a gang that disrupted demonstrations Citizens for Credible Elections organised to force Malawi Electoral Commission (MEC) chairperson Annabel Mtalimanja and chief elections officer Andrew Mpesi to step down.

Malawi Defence Force Commander General Paul Valentino Phiri

In full view of both police and MDF officers, the gang torched vehicles, stole a public address system and beat up Lilongwe protests organisers, including activist Sylvester Namiwa.

Civil society organisations and the international community have been quick to blame the police and military for failing to protect the demonstrators.

But in an interview with the Commander in Salima on the sidelines of an MDF Drill competition on Friday, he said the military could never be complicit in violence.

“But I am looking at it from a perspective where maybe there must be some misunderstanding. You have to understand that issues of internal security belong to the police. The military are only called in to assist when the police are overwhelmed.

“So, it depends on the interpretation which those who are advancing these sentiments are coming from. I would like to leave this issue for now. Maybe after further consultations and understanding, I might be able to shed light on this. But as of now MDF is there to protect civilians. There is no way MDF would actually go into the field and start firing at civilians,” he said.

Meanwhile, Changalume Barracks (9 Malawi Rifles) have won the 2025 Malawi Defence Force drilling competition which took place at Malawi Armed Forces College in Salima.

The Armour Battalion finished second and the Malawi Navy finished third.

For being champions, Changalume carted home K5 million in prize money, Armour Battalion pocketed K3.5 million and Navy got K2.5 million

It was a double triumph for Changalume as their parade commander Major Dalitso Jimmy Jeseman was named best parade commander.

Speaking during the closing ceremony, the Valentino Phiri said the competition was meant to reinforce discipline and attention to detail, qualities that are indispensable in both training and operational environments.

“This event was not merely about display of precision and coordination, but a testament to the values that define us as a disciplined and cohesive force. Drill is the foundation of military professionalism. It instils discipline, fosters unity and sharpens the mind and the body,” he said.

The competition, which started on Tuesday and ended on Friday, saw military units from MDF fighting for honours.

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Sweet sorrow as sugar scarcity courts new beneficiaries

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In the midst of the current sugar scarcity, a thriving black market has emerged—traders purchasing the commodity in bulk using various middlemen and selling it at inflated prices to desperate consumers.

These middlemen—often disguising themselves as desperate consumers standing in long queues in supermarkets and other outlets—have found a lucrative business as they are paid different amounts by the traders.

People queue to buy sugar

“This is better than minibus touting,” said Elliot George whom Nation on Sunday met at Chipiku Stores at Ginnery Corner last Wednesday.

“I do not mind standing all day because I make more money from this as compared to being a minibus tout at the Queen Elizabeth Central Hospital stage.”

George, seemingly partly drunk on the day, said on a good day he makes between K15 000 and K20 000—an amount he cannot manage through minibus touting.

But the Soche-based resident is into the trade together with three other friends, although they pretend not to know each other when inside shops.

They are also not sure whether most people in the queue are in the same business or are desperate consumers struggling for the commodity.

His colleague Adamson Mawanda said the sugar scarcity is helping address their personal financial woes.

“I am always happy when sugar is available and together with my friends we are called to do business,” he said.

On this particular day, Nation on Sunday witnessed how the four loaded various bales of sugar into a pick-up truck parked inside the same compound. After they were given money, they went back to the queue. This happened about four times.

Nation on Sunday also established that this is the trend elsewhere in Zomba, Lilongwe and Mzuzu whenever there is a scarcity of the commodity.

One trader from Mzuzu who opted for anonymity claimed that almost every other trader is engaging in such

 practices.

“Most of them are hoarding the commodity knowing fully that a scarcity is imminent. Whenever a scarcity arises, they bring out the sugar and they can sell at any price knowing consumers will buy. Do you think all those people in queues are desperate consumers?” he said.

Two others corroborated the Mzuzu claims. The duo said in some instances, they are supporting each other to make more purchases knowing they will make double profits; hence, be able to pay back their debts.

“For every packet sale, traders are making a hefty profit. Others are selling double the price, others nearly double the initial price. It all depends on how much you have spent on transportation. Otherwise, traders are making profits out of this scarcity,” said one of the traders.

The situation has since negatively impacted small-scale business owners, especially those in the confectionery business who are struggling to make profits as they cannot adjust prices.

In an interview during the week, Jenifer Malunda, a baker from Zomba, said adjusting prices of her cakes would mean losing customers.

She said: “I already adjusted prices twice following recent adjustments in some of the items we use in baking. Now, if I have to adjust the prices upwards because I am buying a packet of sugar at K6 000 would mean some of my customers would abandon me.”

But for the traders, they don’t really care about how the situation is adversely impacting both consumers and businesspersons.

“We all want money and this is what we are doing. At all cost, we know people will buy from us because sugar is more of a basic need. It is used every day, everywhere,” said the Blantyre trader we talked to.

“We make sacrifices to buy the sugar, and so the consumers should also make sacrifices in buying from us. Mind you, we also have to pay the middlemen we are using to buy the sugar. We cannot buy on our own.”

This is the situation despite the Competition and Fair Trading Commission (CFTC)—a statutory body mandated under the CFTC Act to regulate unfair trading practices while promoting competition.

This means consumers are protected from exploitation by law.

Consumers Association of Malawi executive director John Kapito said in an interview on Tuesday that the situation is appalling.

He said the sole loser in this situation remains ordinary consumers, whose lives are already strained by an escalating cost of living.

Kapito said what is further worrisome is the inaction by the Ministry of Trade and Industry, and CFTC who are mandated to enforce trade regulation rules.

He said: “It is, therefore, annoying to consumers who are now buying a pack of sugar at double the normal price. Why has the Ministry of Trade and Industry together with CFTC abandoned their responsibilities and obligations?”

CFTC public relations officer Innocent Helema on Tuesday asked for more time before responding while Minister of Trade and Industry Vitumbiko Mumba did not respond to our questions sent to him through WhatsApp.

When we followed up with Helema on Friday, he indicated that our questionnaire was yet to be cleared.

Illovo Sugar Malawi plc acting managing director Kondwani Msimuko told The Nation edition of May 26 2025 that the sugar scarcity is due to late opening of its crushing season and illegal exports.

He said the major sugar manufacturer delayed opening its factory due to weather-related factors.

The country’s major sugar manufacturer, which has a 97 percent market share, annually cultivates around 1.8 million metric tonnes (MT) in addition to about 350 000MT produced by smallholder farmers.

The post Sweet sorrow as sugar scarcity courts new beneficiaries appeared first on Nation Online.

MEC revises electoral calendar

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Malawi Electoral Commission (MEC) has revised its electoral calendar to correspond with nominations in alignment with Parliament’s dissolution.

In a brief statement on Thursday, MEC director of media and public relations Sangwani Mwafulirwa said: “This calendar reflects the latest adjustments made by the commission to align key nomination activities with the dissolution of the National Assembly and Local Councils.

A woman casts her ballot in the 2020 Fresh Presidential Election.

“We urge all stakeholders, political parties, aspiring candidates and the public to review the calendar carefully and take note of the revised timelines.”

MECs timeline of events shows that the official campaign period will start from July 14 2025 to September 14 2025 while pre-inspection of nomination papers for the Presidential election at the commission’s head office will be from July 16 to July 23 2025.

Pre-inspection of nomination papers for Parliamentary and Local Government elections will be in the same period. Presentation of nomination papers for the Parliamentary and Local Government Elections will be from July 24 to July 30 2025.

The most anticipated presentation of nomination papers for the Presidential election also falls under the same period and it will be done at the Bingu International Convention Centre in Lilongwe.

From August 1 to August 31 2025, there will be submission of names of party candidates to MEC for polling while on August 8 2025, names of nomination candidates will be published in the Gazette.

Then on August 11 and 12 2025, there will be vetting of ballot paper templates at council offices for the Parliamentary and Local Government election and MEC head office for the Presidential election.

Malawians will then vote on September 16 2025 and from this particular date to September 24 2025, there will be vote counting and declaration of the Presidential election results.

Counting and declaration of the Parliamentary election results will take place from the voting day up to September 30 2025 while counting and declaration of the Local Government election results will be from the day of voting to October 7 2025.

In her speech during a meeting of a joint security task force at Nkpola in Mangochi on Monday, MEC chairperson Annabel Mtalimanja, said the commission is keen on ensuring a free, fair and credible election.

“The 2025 General Election must be peaceful, orderly, inclusive and secure. We want every Malawian to be able to go to the polling station, vote freely and return home safely. This is our shared vision and the commission is commited to fulfillment of this,” she said.

“The commission wants to ensure that this election becomes a model—not only in terms of voter turnout and transparency, but also in how security arrangements are managed and coordinated. We want other countries to visit Malawi and learn from us—not just how we vote, but how we secure, protect and uphold the democratic process.”

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Chakwera’s sports promises under scrutiny

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 With the General Elections in a few months’ time, President Lazarus Chakwera’s administration has not fulfilled most of the promises made after being elected, Nation on Sunday has established

When Chakwera took an oath of office five years ago, he promised to develop sports in the country by building infrastructure, podium performance in international events and invest in grassroots.

Has not delivered on some promises: Chakwera.

On infrastructure upgrade, Chakwera pledged to construct a state-of-the-art sports complex in Lilongwe, launch a sports academy, rehabilitate existing youth centres and construct new ones.

He also pledged to train 800 school coaches in various sports disciplines as part of sports development programmes.

His government also promised to construct a new stadium in Blantyre and complete the Mzuzu Youth Centre.

But he has only concentrated on the Griffin Saenda Sports Complex, Aquatic Centre and Indoor basketball Court in Lilongwe.

Al t h o u g h g o v e r n m e n t invested nearly K15 billion, as a demonstration of commitment to infrastructure development, three years down the line the projects are yet to be completed.

In this years annual budget, K2.6 billion was allocated towards the two projects.

“We expect money as provided in the approved the budget of K2.6 billion to be paid to the contractor as part payment.

“We are hopeful that the contractor will use part of the money to glaze the building and connect the water and electricity and other minor works to make the facility [Griffin Saenda Sports Complex] usable.

“After midterm budget review, we are hopeful that Treasury shall provide more funding,” said Ministry of Youth and Sports spokesperson Macmillan Mwale.

But sports analyst Parry Chinyama says despite the political will, little has been achieved in infrastructure development.

“Griffin Sayenda Complex and the Aquatic Centre have been neglected over the period. Recall this was a political decision,” he said.

On the positive side, Chinyama praised Chakwera for improved national team players remuneration.

Malawi National Council of Sports chief executive Henry Kamata in an interview said stakeholders are better placed to assess the Chakwera administration’s success and failures.

He said: “Malawi National Council of Sports is a government institution, therefore, government cannot analyse itself in this respect.

“We believe the sports stakeholders are better placed to give us feedback on how we are doing.”

The post Chakwera’s sports promises under scrutiny appeared first on Nation Online.

My wife asked to meet her buyer, should I be worried?

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I am 30 and my wife is 37. We have been together for five years. We have two kids. Since we married, she has been paying all the bills since am jobless.

She recently ventured into a business with some man I have met once. Her business has skyrocketed and we’ve had the luxury of getting to treat ourselves.

My wife has always been a good looking woman. Has a nice behind and full chest. But with tons of money in her account, she’s made some significant changes to her wardrobe and body, and she really is gorgeous.

She goes away for a lot of business trips and that’s fine. She would come home and share about her trip and say how so and so hit on her and what not. I’m secure in my marriage as we are both Christians so I am not overly bothered.

But before she left last week on her business trip which will take five days, she asked for “permission to entertain not in a sexual way” that person she frequently does business with as it was good for our business.

I said no. I can’t help, but worry that she’s going to ignore me and meet him. I’m just stressed out about it. Help a brother, please?

House Hubby

Via WhatsApp, New Shire Area 49, Lilongwe.

Dear House Hubby,

I think it’s high time you started looking for your own house because your wife has been cheating for a long time, way before her hottness overhaul.

Hotness overhaul is one of the most obvious signs that a woman has found a new suitor. On this, I am 100 percent right.

In fact, her asking for your permission is a sign she’s going to move on with her plans to sleep with him again and this was her final attempt to see if she could have both worlds, the proverbial cake and eating it too.

You say you are stressed, oh you better start sweating because your marriage is definitely on the rocks.

My brother, how can you stay with a person who think’s infidelity is acceptable enough to ask for permission? It’s not always about the act but the heart and convictions that one has to reach this point.

A woman could be ‘loyal’ all day, but if she believes in her heart that ‘permission to entertain other men’ aren’t reprehensible, she’s for the streets!

Pepa mbele wanga. Start job hunting to support yourself now. Iyi yalakwa.

Big Man Wankulu

BIG MAN NOTE: You can now send your problems to BMW via WhatsApp number: +265 888-209-027. No calls please!

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