President Peter Mutharika has cancelled Government-to-Government (G2G) fuel procurement deal, reverting to the old Open Tender Fuel Procurement System to restore transparency and efficiency in the sector.
Speaking on Friday during the opening of the 52nd Session of Parliament in Lilongwe, Mutharika said the move will also ensure stability of fuel supply in the country.
“Mr. Speaker, Sir, we are still in a fuel crisis. Fuel queues are still with us even today. Malawians voted for us to end this crisis and we will end it.
“Therefore, Mr. Speaker Sir, in order to ensure stability of fuel supply in the country, my Administration will ensure that fuel imports consistently meet national demand. We will increase allocation of foreign exchange to match import requirements.
“Mr. Speaker, Sir, my Administration will revert to the Open Tender Fuel Procurement System to ensure fast deliveries, efficiency, transparency, and value for money, while also diversifying fuel importers to promote competition and reduce dependence on a few suppliers,” he said
National Oil Company of Malawi (NOCMA) entered into an agreement with companies in the UAE and Oman to procure fuel which it was said that it will save the country about US$100 per metric tonne compared to previous tender-based imports.
NOCMA spokesperson Raymond Likambale said the arrangement with OQ Trading of Oman and the Abu Dhabi National Oil Company (ADNOC) is more cost-effective, with diesel CIF premiums at US$77.17 per metric tonne and petrol at US$69.89, compared to US$175.71 and US$185.90 respectively under the Open Tender Fuel Procurement System.
President Peter Mutharika has assured Malawians of a brighter future despite the challenges that have affected the country in recent years.
Speaking on Friday during the opening of the 52nd Session of Parliament in Lilongwe, Mutharika emphasized that his administration is committed to inclusive development where every citizen and leader contributes to building a stronger and more resilient nation.
He said the countrys economic recovery remains a top national priority, highlighting a series of measures that include reinstating open tenders for fuel imports, scaling up the Mpatamanga Hydropower Project, reforming the mining sector, and addressing the ongoing passport crisis.
The President said Malawi is facing a serious economic crisis caused by what he described as misaligned macroeconomic policies and actors.
To stabilize the economy, my administration is engaging international partners for grants and loans while enforcing stronger fiscal discipline and accountability in government operations, he said.
Mutharika also revealed that government will reintroduce a reformed Constituency Development Fund (CDF), allocating K5 billion annually to every constituency, alongside K100 million each for youth and womens business loans.
On the fuel situation, the President said government will revert to open tenders for fuel importation to restore transparency and efficiency in the sector. He said the move aims to eliminate inefficiency and corruption in procurement and ensure a steady fuel supply and proper use of public resources.
The fuel crisis we are witnessing today is due to forex shortages. My government will rectify this problem and ensure a steady supply of fuel across the country, said Mutharika.
He further directed that no public school should demand contributions towards the School Development Fund or any other levies, except boarding fees.
On food security, the President said his administration has reverted to the Farm Inputs Subsidy Programme (FISP), reducing the price of redeemable fertilizer from K15,000 to K10,000 per 50-kilogram bag to ensure that every farmer in rural areas has access to the product.
The President also assured Malawians that government will resolve the passport crisis, saying measures have been put in place to reduce congestion and delays at immigration offices.
We are resuming the printing of passports in Blantyre, Mzuzu, and Mangochi by the end of this financial year, he said.
Wrapping up his address, Mutharika urged Members of Parliament to put aside their political differences and work together to rebuild the economy and improve the welfare of all Malawians.
President Peter Mutharika has called on all Members of Parliament (MPs) to rise above partisan politics to tackle the country’s economic woes.
He made the remarks on Friday, during the official opening of the 52nd session of Parliament in Lilongwe.
“Mr. Speaker, Sir, as leaders, we bear a noble responsibility to build our country with passion and dedication. As we do so, let us place national interests above personal gains. I am confident that we will rise to the occasion and build a better Malawi together,” he said
Mutharika said he was deeply concerned with the state of the country’s economy, as all major macroeconomic indicators are misaligned.
“Inflation is high at 28.2 percent, up from 8.6 percent in 2020. Persistent shortages of forex have resulted in intermittent fuel supply and critical shortages of fertilizer and medical drugs. The forex scarcity has also driven up the prices of nearly all essential items including food, soap, salt, and sugar, placing immense pressure on households.
“Mr. Speaker, Sir, owing to the misaligned macroeconomic indicators, both revenue and expenditure for this fiscal year have been performing poorly. Government has not been able to mobilize enough revenue to implement its programmes.
“Overall growth projection remains weak with GDP projected to grow at 2.8 percent in 2025 from 1.7 percent in 2024 mainly attributed to low agricultural productivity, supply chain constraints, and limited industrial capacity.
“Mr. Speaker, Sir, the national deficit has surged from MK558.9 billion in 2020 to the current K2.4 trillion. Similarly, as of April 2025 total public debt had reached MK21.6 trillion from MK4.1 trillion in 2020, underscoring mounting fiscal pressures and long-term sustainability concerns,” said Mutharika
He said as a solution, government has already started taking steps to deal with the ‘prevailing undesirable situation’ by engaging financiers on debt treatment and raising more financing through grants, among others.
MPICO, a member of the Old Mutual Group, today signed a memorandum of understanding with Soche Technical College to support vulnerable youths who have had little access to formal education.
The youths will be trained in two trades, plumbing and electrical installation. MPICO has contributed MK10 million to cover the training program and financial literacy sessions.
Elliott Jambo, MPICO Head of Property Services, noted that the company’s success is closely linked to the wellbeing and progress of the communities it serves. He described the MOU as a pledge to restore hope, create opportunities, and empower Malawian youths to become productive citizens, reflecting Old Mutual’s commitment to responsible business.
Steria Mpinganjira, Acting Head of Construction at Soche Technical College, stated that financial barriers have hindered students from training. She welcomed MPiCO’s generous support.
Under the project, the college will train 37 students—20 females and 17 males—in plumbing and electrical engineering.
In a drive to address issues of portable water supply in Lilongwe city, the Lilongwe Water Board (LWB) has taken shift action to stabilize water supply and reduce service disruptions by constructing an additional Water treatment work 3 with a capacity of 50 thousand cubic meters per day.
The project will be completed by March next year.
Speaking during the media tour of construction site on wednesday in Lilongwe, LWB Chief Executive Officer, Silli Mbewe told The Atlas Malawi that the treatment work 3 will cushion the gap that the institution is currently having in terms of demand and supply.
He said that due to issues of urbanization,Lilongwe city is growing for about 4.5% per anum and the demand for water is heavily increasing.
He added that currently, they are producing 125 thousand cubic meters per day which is not enough hence constructing another treatment work 3 which will be producing 50 thousand cubic meters per day to meet the demand.
“our production capacity looking at treatment plant 1 and 2 is 125 thousand cubic meters per day. Now the treatment work 3 will now add another 50 thousand cubic meters that will take us to 175 thousand cubic meters per day which will be adequate to bridge the current deficit that we are having in sustaining the demand”, said Mbewe.
In his remarks, the LWB Southern Zone Manager , Dan Kafuka said the project is funded by the European Investment Bank with a sum of 20 million Us Dollars to increase the production capacity so that they supply Water to all customers.
Kafuka also cited the negative impact of human activities by people living along the lilongwe river bank saying that it is heavily affecting their operation in as far as providing good quality water is concerned.
“Most of the times people damp waste along the river. This compromise water quality because when we are tapping raw water which is not in good quality it also push us to spend more on chemicals to treat water to be of good quality to meet the standards of Malawi Bueral of standards as well as the world health Organization”, explained Kafuka.
Kafuka said that they are doing their best to sensitize people along the the river to make sure that their catchment is well managed.
One of Malawi’s leading tobacco companies, JTI Leaf Malawi on Wednesday took its growers on a tour of its factory as a way of appreciating the role growers are playing in the success of the company.
JTI Corporate Affairs and Communication director Limbani Kakhome said over the years growers have been supplying the company with top-quality leaf and the tour was meant to appreciate and encourage growers to work even harder.
“The factory tour today is an important milestone in the history of our relationship with the grower. We want them to appreciate the processes the tobacco goes through before we ship them abroad. This is to appreciate the role the grower plays in the value chain, appreciating the good job they are doing in giving us top-quality leaf and in quantities we agree before the start of the season,” said Kakhome.
Amin Acid, a grower from Mangochi, thanks JTI for the opportunity to come and visit the factory and appreciate the processes their leaf goes through before it is shipped to the international market.
“This is historic. The company has spent lots of money putting us at a hotel and taking us to the factory so we can see the process they do to our tobacco before it is taken out of the country. As growers we need to ensure our tobacco does not have any non-tobacco related material so as to protect the machines and ensure Malawi tobacco has a reputation is maintained,” said Acid
President Peter Mutharika has expressed optimism that the country stands to significantly benefit from mining sites discovered at Kasiya and Kangankude.
Mutharika said this on Tuesday at Sanjika Palace after the swearing in of the Second Vice President Enock Chihana, Minister of Agriculture, Irrigation, and Water Development, Roza Fatch Mbilizi, and Minister of Industrialization, Business, Trade and Tourism, George Patridge.
The President said if the mining proceeds from the two sites would be managed properly, the country would be generating around $500 million every year.
“I will not allow exportation of raw materials from our mines. Raw materials have to be processed here. Those involved in illegal mining or abuse, your days are numbered,” he said.
Mutharika further advised the newly sworn in Ministers to be vigilant and help government deliver to its people.
“The oath you have taken today is a solemn commitment to the people of this country that you will serve them. It is not about oneself. It’s old fashion to eat at the expense of the people we are supposed to serve,” he said.
In an interview, Patridge said he was honoured to be appointed as a Minister and promised to transform the country through his sector.
“My first assignment is to make sure that the business environment is right for business to thrive. Once we produce, as emphasized by the President, most of these problems will be solved,” he said.
The oath of office by Chihana was administered by the Deputy Chief Justice, Lovemore Chikopa, while the Chief Registrar of the High Court, Innocent Nebi, administered to the two Ministers.
President Peter Mutharika has reaffirmed his administrations commitment to ending hunger and improving access to education, calling for unity, patriotism, and collective effort among Malawians, regardless of tribe or political affiliation.
Speaking on Sunday when he graced the Mulhakho wa Alhomwe annual festival at Chonde in Mulanje, Mutharika said government has already secured 200,000 metric tonnes of maize from Zambia to ensure that no Malawian goes hungry in the coming months.
“The past six years have been difficult for our people; but hunger will soon be a thing of the past. All agreements have been concluded and maize will start arriving from Zambia soon,” said Mutharika.
The President expressed disappointment with some local farmers who were allegedly hoarding maize in anticipation for higher prices, saying such practices undermine national food security.
“It is utter nonsense to question why we are buying maize from outside when some of our own farmers are keeping maize to sell at inflated prices.
“Let us be patriotic and think about our fellow Malawians,” said Mutharika, adding that his government is working to ensure fertilizer availability for this years farming season.
Mutharika further announced that, starting January next year, school fees for both primary and secondary schools will be abolished, warning learners against absconding and indulging in drug and substance abuse.
“No parent will have an excuse not to send their children to school. Education is key to development, and we want discipline and hard work if Malawi is to move forward,” he said.
He also thanked Malawians for their continued support and the trust shown in him during the elections, stressing that his government will serve all citizens equally.
“I was not elected by one tribe, but by all Malawians. I will help every Malawian without looking at tribal lines. Our blood is the same despite where we come from,” he said.
The President appealed for patience and faith among citizens as his administration works to stabilize the economy.
“Things are difficult, but I promise to do my best and be fair to everyone. Let us have faith and love one another beyond tribal boundaries,” he said.
Earlier, Paramount Chief Kaduya commended the theme Enduring spirit, overcoming challenges together saying it reflects the resilience Malawians have shown in the face of disasters and hardship.
“We have endured cyclones, hunger and diseases, but unity has kept us going. Let us continue holding hands especially in facing challenges brought by climate change,” she said, urging the youth to take education seriously for the countrys progress.
Mulhakho wa Alhomwe Organising Committee Chairperson Felix Tambulansi thanked the President for his consistent presence at the event and his counsel in promoting peace and unity among Malawians.
“We are grateful to the President for always standing with us and reminding us to remain united as one people,” he said.
Mulhakho wa Alhomwe Board Chairperson, Muchanakwaye Mpuluka, cautioned critics to stop linking the grouping to any political party saying that it is cultural not political.
“Mulhakho wa Alhomwe is not a political movement. Its founding members were not chosen based on party lines. No government resources have been used for this event; support has come from the business community both within and outside Malawi,” said Mpuluka.
He hailed the spirit of unity which has been demonstrated at the festival, as witnessed by the attendance of Manganja chiefs, Inkosi Gomani, Inkosi Mbelwa V and representatives of Gawa Undi.
The Mulhakho wa Alhomwe Festival, established to promote cultural heritage, language, and unity among the Lhomwe people, drew thousands from across the country and neighboring Mozambique.
Sphiwe Msiska wears many hats. She serves as the Director of Administration in the Ministry of Industrialisation, Business, Trade and Tourism, while also making her mark as an entrepreneur and innovator, driving agricultural transformation and trade facilitation.
As Managing Director of MCM Investments, a company she founded in 2017, Msiska is leading efforts in crop value addition, particularly sunflower processing.
Under her leadership, the company produces Sweet Gold sunflower cooking oil and sunflower cake, contributing to local value chains and job creation.
MCM Investments now employs 25 full-time young professionals, the majority of whom are recent female graduates.
“I was previously a poultry farmer and I used sunflower cake as feed for chickens. That’s when I decided to venture into sunflower farming. Later, I started producing Sweet Gold sunflower cooking oil. With the growing demand, I entered into sunflower contract farming agreements with farmers and cooperatives, mostly women,” she said.
The company collaborates with over 500 smallholder farmers and five farmers’ cooperatives by providing them with input seed loans, offering them agricultural extension services on best agronomic management practices, and buying their produce for processing into cooking oil.
“Apart from that, we also buy sunflower from other farmers who are not contracted to us, so that they have a steady market for their harvest,” said Msiska, who has also worked as a District Commissioner (DC) for four councils before being moved to the Ministry of Industrialization, Business, Trade and Tourism.
With its factory situated at Mpingu, along Mchinji Road in Lilongwe, MCM Investments is selling sunflower cooking oil in 2-litre and 5-litre bottles at retail and in drums at wholesale.
Cooking oil production in Malawi is a growing sector, marked by recent large-scale investment from companies mostly owned by wealthy foreigners.
Msiska explaining about her products
Despite the competition, Msiska’s passion to join the trade was not for money only but to support fellow women and young people who are into farming.
The company entered into partnership with the Centre for Agricultural Transformation (CAT), which aims at boosting productivity, providing financial and technical assistance to produce high-quality value-added products, and offering ready markets for farmers.
Currently, MCM Investments is part of Cohort 6 of the Growth Accelerator (GA), which targets post-revenue businesses to assist them to scale up and grow with a combination of blended financing (a matching grant of up to US$40,000), mentorship and business development support.
Under the programme, Msiska aims to expand her business to soya value addition. She has procured a machine that will be processing 20 tonnes of soya per day.
“We have a very huge demand which we are failing to satisfy. So with the procurement of the soybean processing machine, we want to diversify our production. We want to be producing soybean cooking oil as well as soap.
“This also means roping in more farmers and workers at the factory. We expect to create over 20 permanent jobs at our factory, with 50% of these opportunities dedicated to women and youth,” Msiska said.
She adds that the company aims to scale up production to over 250,000 litres of cooking oil and 750 metric tonnes of sunflower cake.
The GA is Malawi’s pioneering business acceleration programme implemented by UNDP, and is designed to inject risk capital into start-ups led by young, impactful Malawian entrepreneurs.
Beyond financing, the programme offers business acceleration support and mentorship to foster sustainable growth.
With the company’s ongoing expansion, Msiska is setting her sights on supplying Sweet Gold cooking oil to major retail chain stores across the country.
The State Vice President Justice Jane Ansah has said the Public Sector Reforms are currently under scrutiny to best map the way forward on government duties.
Ansah made the remarks at Capital Hill in Lilongwe on Friday during an engagement with human resource personnel from various ministries, departments, and agencies (MDAs) to review the reforms and assess their successes and challenges.
The Vice President said it is paramount for public institutions to fulfil the duties assigned to them by State President Arthur Mutharika with commitment to quality and effective service delivery. She emphasized that it is essential to assess what has been accomplished, identify what remains to be done, and map the way forward before launching new operations on the ground.
“There are some MDA’s that have performed their duties well, but still more, some have failed to fulfil their duties which will require a lot of work and action to deliver exceptional service to the people of country.
“We want to ensure that there are relevant appointments in all the MDA’s to avoid wasting resources on unnecessary positions hence there is need to review various public sector reforms,” she explained.
She also noted various challenges that the public reform sector is facing which includes delay in law amendments, financial challenges, and human resource management.
Charles Kalemba, Secretary in the Office of the Vice President, said the meeting was meant to brief the Vice President on the progress and scope of public sector reforms. He noted that most MDAs have signed the reform agreements and have made notable progress in achieving certain goals, despite facing various challenges.
“Some of the achievements under the public sector reforms include the establishment of ports in various districts such as Mangochi, Chikwawa, Blantyre, and Lilongwe. In road traffic services, significant improvements have been made, while the Immigration Department is transitioning towards electronic payments and online processing of passports and visas, eliminating the need for physical presence.
“We have also disclosed the introduction of bottled water by Lilongwe Water Board, paying of wards in some government hospitals as one way of revenue collection which can be used for other government services,” he said.
Kalemba, however, noted several challenges affecting various MDAs, including delays in the human resources sector caused by overspending, issues of food security, fuel shortages, limited foreign exchange, and delays in amending key laws. He added that swift actions will be taken immediately, as directed by the Vice President.
The scrutiny of public sector reforms marks the beginning of a new era since the Vice President was sworn in.
