Nthanda Times

Brenda Sanudi

  • EDF defies Ombudsman’s order on CEO recruitment

    The Board of Export Development Fund (EDF) continues to defy a determination by the Office of the Ombudsman to adhere to its own regulations and procedures for recruiting Chief Executive Officer (CEO).

    Recently, EDF came under fire following revelations that it lowered its bar to suit their preferred candidate Gerald Nsomba as CEO despite him not having professional and educational qualifications spelt out in the initiatial advertisement placed in the newspapers.

    The initial advert indicated that the successful candidate should have a Master’s Degree in Economics, Finance, Banking or other relevant Post Graduate Qualification, which Nsomba did not have.

    However, the Reserve Bank of Malawi (RBM) subsidiary lowered the bar to Undergraduate Degree and a Master’s Degree in Economics, Business Administration, Finance and Banking just to accommodate Nsomba whose qualifications could not meet the initial requirements.

    “Mr Nsomba appears to have been an already preferred candidate of the Governor of RBM at the material time, late Mr. Chuka, going by the evidence furnished to the inquiry by Mr. Nsomba regarding his email, telephone and in-person conversations with the former Governor, as well as the sharing of a draft Advertisement of the CEO role to Mr. Nsomba by the former Governor, when clearly, as Governor of the RBM he was not supposed to play a role in the recruitment of a CEO for EDF. The Memorandum of Association as well as the Articles of Association specifically vests the role of recruitment of CEO for EDF in the EDF Board,” reads part of the investigations by the Ombudsman.

    The investigations followed a complaint on September 1, 2021, from Concerned Employees of RBM who raised a red flag on the unprocedural recruitment and appointment of Nsomba as EDF CEO.

    The board, comprising Chairperson, Dr. Neil Nyirongo; Mrs Agnes Sentala, then Company Secretary of EDF; Ms. Christina Zakeyo, exofficio member representing the Ministry of Trade; Mr. Peter Simbani, exofficio member representing the Ministry of Industry, as he then was; Mr. Ralph Tseka representing RBM; Mr Tim De Borde independent Board, and Mr Namale independent member, appeared before the Ombudsman on November 29, 2021, for an inquiry.

    Findings of the inquiry confirmed that Nsomba was wrongly and irregularly shortlisted, interviewed, and eventually offered the post of CEO of EDF.

    Additionally, the Ombudsman found that EDF did not recruit Nsomba in accordance with their Human Resource Policies and Procedures.

    “The evidence of Mr Efford Goneka who was the CEO of EDF at the time Mr. Gerald Nsomba was shortlisted and underwent the interviews in 2017 also corroborates the fact that Mr. Nsomba was an already preferred Candidate of the then Governor late Mr Chuka. In addition, on his own admission, upon assuming the position of Chairperson of EDF Mr. Henry Mathanga also facilitated the making of an irregular job offer to Mr. Nsomba. Equally, in her own words, Mrs. Mzembe the Chairperson of EDF when the initial interview process happened in 2017, admitted that when Mr Chuka saw potential in Gerald Nsomba that he could carry the vision of EDF, she did not doubt it,” reads part of the determination by the Ombudsman delivered on 1 April 2022.

    It adds, “It is also interesting that the Board addressed the issue of two candidates who were similarly situated differently. As was explained to the Inquiry, Mr Thoko Mkavea the second best candidate indicated a remuneration package, which the Board felt the EDF could not afford. In turn the Board simply ruled him out and did not make any attempts to negotiate with him on the issue. Similarly, Mr Nsomba also indicated a remuneration package, which the Board felt the EDF could not afford, and proceeded to enter into negotiations with him. On the basis of all the above revelations, bias and favoritism towards Mr. Nsomba by key persons that were involved in or connected to his recruitment process cannot be ruled out.”

    The Ombudsman, Grace Tikambenji Malera, directed that EDF Board should ensure that good administrative principles of recruitment are put in place and are strictly adhered to, including putting in place a clear recruitment policy, which will guide how recruitments are to be carried out within the institution.

    Malera also ordered the Reserve Bank of Malawi as the shareholder to ensure strict compliance with the terms of the EDF’s Memorandum and Articles of Association.

    “The EDF Board should ensure that it discharges its mandate as provided for in the EDF’s Memorandum and Articles of Association, in strict compliance with the provisions thereof, including in all oversight functions relating to the administration and management of the EDF, in particular, ensuring fair labour practices and recruitment processes that are lawful, reasonable and procedurally fair,” she ordered.

    But latest reports from EDF indicate that the Board has defied this order by recruiting a new CEO whose experience does not meet the 10 years’ experience on a similar job.

    EDF Board Chairperson Dr. Neil Nyirongo described the matter as an old condition.

    “This is an old condition that ended in departure of the then CEO,” reacted Nyirongo in a brief interview on Saturday.

  • LPG usage increases by 50% among middle and low-income households in Malawi

    Malawi has registered a 50 percent increase in liquid petroleum gas (LPG) among both middle and low-income working Malawians, a development that excited both government of Malawi and environmental experts.

    Malawi Energy Regulatory Authority (MERA) Consumer Affairs and Public Relations Manager, Fitina Khonje, told journalists on Friday that there has been a 50 percent increase in market consumption of LPG in the country.

    Khonje described the increase as remarkable. She stated that the annual gas consumption stood at 2,194 metric tonnes just 24 months ago, and there were only seven importers and 63 retail outlets in the country.

    She attributed the rise in LPG usage to the introduction of low-priced gas cookers and three-kilogramme LPG cylinders by 265 Energy Limited.

    The company’s partnership with Standard Bank has enabled the provision of affordable, clean, renewable energy, a key factor in the fight against environmental degradation.

    The Managing Director for 256 Energy Limited, Mfundo Mvundula, said the low-priced gas cookers would help many people access alternative energy while saving the environment.

    Mbvundula granting journalists an interview

    “We are confident that the low-priced gas cookers are able to help a lot of people have access to such energy alternatives while also saving the environment,” he said.

    Experts say that the increase in LPG usage is a positive step towards the use of efficient and sustainable alternative energy sources that do not exert pressure on natural resources.

    With only slightly above 3 percent of Malawi’s population using gas and 70 percent of that for domestic use, the potential for further growth is high.

    The success of the LPG initiative is an indication that the government and stakeholders are making progress in mitigating the effects of environmental degradation while offering affordable alternative energy to Malawians.

  • Bankers association calls for more investment in climate change fight

    Bankers Association of Malawi (BAM) has called for more investment and concerted efforts to address effects of climate change in the country.

    Speaking at the eighth edition of Green Finance Conference in Lilongwe, BAM Chief Executive Officer Lyness Tamandani Nkungula cited lack of financial and organizational resources, limited capacity for innovation and lack of access to cleaner technologies as some of the challenges frustrating the fight against climate change.

    The conference was held under the theme “the Contribution of Africa’s Private Sector to the Achievement of the 2015 Parts Climate Agreement”.

    The event was aimed at analyzing the possible opportunities and also propose necessary solutions to meet the financing needs of Green SMEs, which is the main challenge.

    Nkungula said African countries need to invest more in innovative activities, which will help the nations mitigate the negative effects of climate change.

    Minister Matola addressing journalists while flanked by Jules, Nkungula and an official from Reserve Bank of Malawi

    “We need to see firms developing new products, services, and technologies that have lower carbon emissions and greater sustainability. From the previous conferences, we have seen that SMEs have a critical role not just in job creation and economic development, but also in fighting climate change. It is estimated that Malawi has more than 1.6 million SMEs and more than 1.8 million people have found employment through them,” she said.

    Nkungula also called for the transitioning of SMEs into green economy, observing that they make a huge contribution to job creation and economic development of any country.

    “Nevertheless, we need also to remember that transitions do not happen overnight. They need more time to take shape, and also need exceptional expertise and substantial investment. The unfortunate thing is that most of our SMEs do not have all these. But looking at the stakeholders that are in attendance, I am very confident that by the end of this conference, latent solutions to issues of capital will be found and our SMES will easily go green and become more sustainable.

    “So, the Issue of green finance is more critical for developing countries, Malawi being one of them. The low physical and financial capacity for most of the developing countries seems to have increased the cost of capital. This is why there is an urgent need for a deliberate action to cut the situation.

    “As a matter of fact, the effects of dimate change have seen the credit ratings of many developing countries deteriorate due to the increased clarate risks that directly increase the cost of domestic and international capital, resulting in higher interest payments. This trend ought to be checked, and one of the ways in which this can be handled is by addressing the challenges being faced by the SMES.

    “But for us to achieve this, it requires an active and collective participation of the private sector, particularly Small and Medium Enterprises (SMEs), African Guarantee Fund, The Nordic Development Fund, and our financial institutions. These are considered as key stakeholders that are very instrumental in achieving the desired goal,” she said

    Group Chief Executive Officer for African Guarantee Fund (AGF), Jules Ngankam said as some stakeholders are willing to invest more into green transition, their efforts should be compensated with climate and social returns.

    “The green transition is defining a new way of living, a new way of doing business, a new way of exchanging goods and services. At the core of this green transition, we have the commercial banks, we have the financial institutions. AGF is part of the financial institutions.

    “One question come to our mind: Us in the financial sector, are we ready? When discussing our readiness, there are 3 areas that are critical: Capital, regulation and business. An increasing number of investors are looking to invest in new asset classes that are aligned to the green transition.

    “These investors are even willing to take a lower financial return but it has to be compensated with climate return and social return. It is no longer just about maximizing the financial return but maximizing all returns together. Some research shows that more 100 trillions of green capital will flow in the world economy by 2050.

    “We are seeing more and more green bonds getting issued. In 2014, the total volume of green bonds issued worldwide was 15 billion USD. And in 2022, 600 billion USD. Are our financial institutions ready to tap into this huge growing capital market where they can raise long term capital at a lower cost?

    “To mitigate the negative impacts of climate change, central banks, financial regulators and policymakers have started undertaking various initiatives. They are analyzing the climate challenges from a financial risk and stability point of view.

    “They are developing tools to monitor the Climate-related financial risks in the banking sector. And these Climate-related financial risks are becoming an important part of financial disclosures.

    “In western countries, Central banks are discussing ways to ease capital requirements for green lending because of the fact that commercial banks can participate in reducing the climate risk. So we expect to have in Africa, some regulatory changes related to climate risk,” she said.

  • Fire Mphepo, Chipungu and Namalomba to bring peace in DPP, Msonda advises APM

    Democratic Progressive Party (DPP) Deputy Director of Research and Training, Kenneth Chitatata Msonda, has advised party leader Professor Arthur Peter Mutharika to fire Francis Mphepo, National Organizing Secretary Chimwemwe Chipunga and Shadric Namalomba.

    Msonda said this is key to ending squabbles that have rocked the party since it lost power in June 2020.

    The outspoken DPP National Governing Council (NGC) member accused Mphepo, Chipungu and Namalomba of ‘taking over leadership of the party’ through the backdoor.

    “There is leadership vacuum in DPP, simply put there is no leadership in DPP. That’s why Hons Mphepo, Chipungu ndi Namalomba have taken over leadership of the party. It is alleged that akaledzela they are just firing party members and replacing them ndi womwe akuwapatsa ndalama,” he said in an interview on Friday.

    Msonda alleged that some ‘desperate aspirants’ are buying positions by giving out huge sums of monies to get positions.

    “Asiyeni, sakudziwa kuti in DPP we have *Political Economic Hitmen. Desperate aspirants abeledwa ndalama, adziwanso but will lose at the convention. It happened before in 2018 because of trusting bad people, crooks specialized in cashing on desperate aspirants; it shall happen again this time on 2nd July 2023 National Elective Conference,” he said.

    Msonda also described the numerous cases party officials have take to court as a sign of power vacuum in DPP.

    “If I was Advisor to APM and Jeff wa Jeffrey, I would have requested them to IMMEDIATELY FIRE HONS MPHEPO, CHIPUNGU AND NAMALOMBA TO BRING PEACE AND SANITY IN DPP! OTHERWISE CHIPANI CHIZINGOSUMILIDWA KU COURT CHONCHI, WASTING TIME AND RESOURCES, ABUSING THE COURT CHIFUKWA CHA ANTHU ATATU MAKA KUSAMVA KWA ATSOGOLERI ATHU – HE APM & SG JEFF WA JEFFREY!,” he said.

  • African Guarantee Fund provides US$15m to finance SMEs in Malawi

    The African Guarantee Fund (AGF) has provided US$15 million to go towards financing small and medium enterprises (SMEs) in Malawi.

    AGF Chief Executive Officer Jules Ngankam announced the news in Lilongwe at the opening of the eighth edition of the green finance conference.

    AGF is working with local banks to provide flexible loans to SMEs, including those offering services related to managing climate disasters such as floods and droughts.

    Ngankam stated that SMEs make significant contributions to Malawi’s economy and that his organization is committed to supporting them.

    “Our guarantee is to give more comfort to financial institutions as they develop their portfolio towards the green economy, to make sure that they meet the requirements of their investors, of the regulators and more importantly the risk quality of their SME customer. In addition, the guarantee is coupled with a technical assistance component, because we believe that beyond the financial products that we provide, we need to build skills for SMEs as well as financial institutions,” he said.

    Minister Matola addressing journalists while flanked by Jules, Nkungula and an official from Reserve Bank of Malawi

    Ngankam said his organization recognizes the importance of public and private sector partnerships if we want to succeed. He said this is why the Green Finance Conference discussed possible synergies that will enable all of us to achieve the goal of sustainable development.

    He assured the Malawi Government of his organization’s willingness to work closely with the country to develop specific programs and products that will support SMEs to drive the economy of the country.

    While welcoming the gesture, Bankers Association of Malawi (BAM) Chief Executive Officer, Lyness Tamandani Nkungula, called for the inclusion of all local banks in supporting SMEs with loans.

    Nkungula said SMEs create a lot of jobs in many countries.

    “And for this reason, 95 percent of the economy in most African countries like Malawi is made up of SMEs,” Ngankam said.

    Speaking on behalf of the Malawi Government, the Minister of Energy Ibrahim Matola thanked AGF for supporting green SMEs in the country.

    Matola said the private sector is crucial in the development of clean energy.

    “Climate change is a development issue that needs to be dealt with holistically. Climate change affects the budget  negatively in the sense that the Ministry of Finance has to come in with budgetary resources to implement mitigation and response mechanisms designed to minimize negative effects of climate change. Apart from budgetary allocation, climate change affects growth prospects either through drought induced shocks or flooding as has been the case with Cyclone Idai, Gombe, Ana and recently Freddy,” he said.

  • Chakwera coaxes largest East African juice maker to invest in Malawi

    President Dr. Lazarus McCarthy Chakwera has asked founder and chairman of the largest juice maker in East Africa, Kimani Rugendo, to consider investing in Malawi where fruits are readily available to serve as his raw material for his business.

    Chakwera made the sentiments when he met Rugendo in Kenya on Tuesday on his way back from the United Kingdom (UK) where he attended the coronation of King Charles III.

    “I have urged Mr Rugendo to consider Malawi as his next investment destination because we have a large contingent of fruit farmers across the country whose abundant yield is a readily-available raw material in the agro-processing operations. I am glad that Mr Rugendo has assured me to explore where within our market can his venture make a positive difference. He is also considering bringing on board other Kenyan private sector players to follow suit,” wrote the Malawi leader on his Facebook page.

    Rugendo is founder and chairman of Kevian Kenya Limited, which is one of the largest juice-makers in Eastern Africa.

    During his meeting with President Chakwera, Rugendo was accompanied to the meeting by anti-corruption advocate Professor PLO Lumumba who recently was a keynote speaker at the National Anti-Corruption Symposium in Blantyre.

    Meanwhile, Chakwera has assured the investors that his administration will continue putting in place investment-friendly policies to create a conducive environment for business growth, increased exports leading to more forex, job creation and better livelihoods for Malawians.

  • Chakwera asks Poundstretcher CEO Aziz Tayub to invest in Malawi

    Malawi President Dr Lazarus McCarthy Chakwera wound up his visit to the United Kingdom (UK) with a call to the Chief Executive Officer (CEO) for Poundstretcher, Aziz Tayub, to consider investing in Malawi.

    Poundstretcher is one of the world’s leading chain store company. President Chakwera therefore felt having the company invest in Malawi would create opportunities to both Malawians and the investor himself.

    President Chakwera with Poundstretcher CEO Aziz Tayub after the talks

    Writing on his Facebook page, President Chakwera said the businessman and his associates pointed out potential areas of investment in line with the incumbent administration’s agenda to revolutionise the agricultural sector through value addition and securing of new markets.

    “I have granted him a positive response to start formalising the processes with relevant agencies and departments so that we fast track this promising opportunity,” said the President.

    Meanwhile, Chakwera has departed London for Lilongwe after a week-long tour of the UK.

  • Reunion Insurance donates MK5.6m to Ekwendeni School for the Blind, others as it celebrates 18th anniversary

    Malawi’s fastest growing insurance provider – Reunion Insurance Company Limited – on May 3, 2023, celebrated its 18th anniversary by conducting weeklong national corporate social responsibility (CSR) in various communities in Malawi.

    The company also donated assorted items to Ekwendeni School for the Blind in Mzimba North, Ministry of Hope – Crisis Nursery Orphanage in Area 14 in Lilongwe and 20 wheelchairs at Malawi Against Physical Disabilities (MPA) – Kachere Rehabilitation Centre in Blantyre.

    In total, the national corporate social responsibility donations cost the company MK5.6 million.

    Speaking when he handed over the donation to MAP in Blantyre, Technical Manager responsible for Claims and Business Development, Mr. Hastings Kapesa, commended Malawians, clients, business partners and staff for their unwavering support to the company.

    Kapesa handing over one of the wheelchairs to Kalua of MAP

    Kapesa, who represented the Chief Executive Officer for Reunion Insurance Company Limited Dr. Dorothy Chapeyama, said it is against this background that they decided to celebrate the day by giving back to the communities.

    “As we reflect on our journey, we realize that we could not have made it this far without the support of our clients, partners, human capital, and communities in which we operate,” he said.

    He added that as they celebrate this milestone, they also recognize that there are people in the society who face significant challenges in their daily lives, adding that people with physical challenges are among those that need support because disabilities prevent them from fully participating in society, accessing education and healthcare, and achieving their full potential.

    Lilongwe team donating to Crisis Nursery in Area 14

    “However, we firmly believe that disability is not inability. Kapesa said that the company was established by sons and daughters of Malawi who came together to build a sustainable and trusted insurance company that has recorded high level of public trust and innovation. This is the reason why we celebrate our anniversaries with communities by giving back to them; we know that People and partners are the key to Reunion’s current and future growth,” he said.

    MAP Board Member MacDonald Kalua thanked Reunion Insurance Company for the donation he described as timely.

    Kalua said the donation will go along way in assisting the rehabilitation centre in its day-to-day operations.

    He pointed out that the facility is faced with numerous challenges such as food, vehicles for their outreach programs, more beds etc. and asked other well wishers to emulate what Reunion has done.

    Mzuzu team of Reunion Insurance Company presenting the donation to Ekwendeni School for the Blind

    MAP is a charitable organization that provides medical rehabilitation services to people with physical disabilities in Malawi. The organization assists people physically disabled by club foot, strokes, amputations, meningitis, road traffic and work-related accidents etc.

    Meanwhile, Reunion Insurance Company has promised to remain supportive and flexible to its customers as it values their well-being and the trust they bestowed upon it.

    Reunion Insurance Company has over 12 offices across Malawi and gets its support from brokers and agents spread across the country.

  • Undule describes court order restraining Lake Malawi Water Project as strange, retrogressive

    Malawi’s revered governance and human rights advocate, Undule Mwakasungula, has described as strange and retrogressive an action taken by the Forum for National Development (FND) to stop government from borrowing money for the Lake Malawi Water Supply Project.

    Through its lawyer, the Fryson Chodzi-headed organisation has obtained an interlocutory injunction stopping commercial banks – NBS Bank and National Bank of Malawi and Khato Civils (Private) Limited – from transacting financially on the project.

    The order does not state the reasons that prompted Chodzi to take the action.

    But in reaction to the development, Mwakasungula described the step FND has taken as ‘worrisome and a setback on this long much awaited water supply project’.

    He stressed that putting partisan interests aside the Lake Malawi Water Supply Project is a very important and viable project. 

    “The project will tap water from Lake Malawi to the city of Lilongwe, surrounding areas and town centres along the M14 Lilongwe – Salima Road. The Project will also increase water availability for Lilongwe City and strengthen capacity of Lilongwe Water Board (LWB) and surrounding towns as to respond to adverse climatic conditions, hence sustain reliable water supply to its customers,” said Mwakasungula.

    Mwakasungula: This is retrogressive

    “Water, being life, it is paramount to remember that our way of life depends on clean water. Our economy depends on clean water, manufacturing, farming, tourism, recreation, energy production, and other economic sectors need clean water to function and flourish hence the importance of the Lake Malawi Water Supply Project,” he added.

    He cites Sustainable Development Goal 6 (SDG 6), which ensures availability and sustainable management of water and sanitation for all, and this confirms the importance of water and sanitation in the national and global political agenda. 

    SDG 6 also recognizes that social development and economic prosperity depend on the sustainable management and sharing of freshwater resources and ecosystems.

    Mwakasungula therefore appealed to the FND leadership to withdraw the injunction to allow the facilitation of the project without further hindrance. It is no secret this project has been surrounded by so much controversies since its inception but politics aside it is a much – needed project for the benefit of Malawians.

    “Much as we have constitutional democratic rights to exercise, it is also time we promoted national issues above and beyond our political interests for the sake of national development,” he implored.

  • Korea gives UNFPA MK200m support for Cyclone Freddy survivors in Mulanje, Phalombe

    The Government of the Republic of Korea has given the United Nations agency on sexual and reproductive health and rights agency – UNFPA – US$ 200,000 (more than MK200 million) to supplement its on-going response in Mulanje and Phalombe, which were among the districts affected by Tropical Cyclone Freddy.

    UNFPA is expected to use part of the support to procure winterised dignity kits for distribution to women of reproductive age, including adolescent girls in the two districts. The dignity kits contain hygiene and sanitary items, as well as other items tailored to the needs of women and girls of reproductive age.

    The kits will help women and girls maintain their dignity during the current humanitarian crises.

    In a statement released on Friday, the Ambassador of the Republic of Korea to the Republic of Zimbabwe, Zambia and Malawi, DO Bong-kae, expressed hope that their humanitarian assistance would help residents in affected areas swiftly and bring stability to their daily lives and recover from the damage.

    President Chakwera with Ambassador of the Republic of Korea to the Republic of Zimbabwe, Zambia and Malawi

    The UNFPA Representative, Ms. Nelida Rodrigues, said the funding has come at the right time as the needs on the ground keeps growing against a background of a shrinking resource base.

    “UNFPA is grateful to the Government of the Republic of Korea for coming forward with the support at this critical time,” she said. “With this timely intervention, UNFPA will ensure that adolescent girls and young women in the targeted districts have access to life-saving  sexual reproductive health and rights services and commodities, especially dignity kits,” said Rodrigues.

    She added that the resources will help mitigate the risks of public health and other protection issues especially gender based violence prevention and response to the affected communities, especially women and girls are currently facing.

    “The cyclone displaced thousands of people from their homes to overcrowded temporary shelters,” she said. “In these temporary shelters, women and girls faced increased risks of violence, sexual exploitation and abuse and lack of the very basic items. We are working with local authorities and partners to ensure that we help maintain girls and women’s self-esteem and confidence, which is important to cope in stressful and potentially overwhelming humanitarian situations.”

    The UNFPA Country Representative further disclosed that they will use the dignity kits as an entry point to begin working with women and girls, understanding gender based violence risks in the shelters as well as the sexual and reproductive rights they deserve.

    “The kits are not only important for managing menstrual health but they also provide a safe entry point for possible disclosures of gender based violence incidents and referrals, delivering sexual and reproductive health information, and psychosocial support for women and girls,” the UNFPA Representative added.

    In addition to sanitary supplies and basic hygiene items, UNFPA will also add items such as solar lanterns and winter blankets in the dignity kit package, to help the affected population cope with the approaching winter season.

    The financial support from the Republic of Korea will directly benefit 3,800 girls and women with dignity kits and winter blankets for their hygiene, mobility and safety during the acute emergency period. In addition, 760 girls and women who are in the status of the most vulnerable will receive solar torches for their protection and safety.