Malawi Roundup: Whistleblower law, Burundian refugees, visa removal
Whistleblower law
Malawi is on the verge of enacting a Whistleblower Protection Law following extensive consultations with stakeholders, led by the Special Law Commission. During a recent stakeholder consultation meeting in Mzuzu, Justice John Chirwa, the chairperson of the commission, announced that they aim to have a comprehensive draft legislation ready for submission to the cabinet by February 2025, Malawi News Agency reports. However, Justice Chirwa acknowledged potential funding challenges that could impact the timeline, stating, "We cannot guarantee that, as sometimes we face funding challenges." Despite this, the commission remains committed to advancing the development of this crucial legislation. The proposed legislation is part of Malawi's broader efforts to strengthen anti-corruption measures and promote a culture of accountability. As developments unfold, the nation anticipates a significant step forward in fostering a safer environment for those who choose to expose wrongdoing and contribute to the fight against corruption and maladministration.
Burundian refugees
The Department of Refugees in the Ministry of Homeland Security in Malawi has successfully organized the voluntary repatriation of 52 individuals from Burundi who had sought refuge in the country. The departure took place through Kamuzu International Airport in Lilongwe, marking a significant step in the voluntary repatriation efforts. This initiative brings the total number of refugees who have left the country voluntarily to 276, Hilda Katema Kausiwa, the Senior Administrative and Operations Manager in the department, confirms. Kausiwa emphasized that such voluntary repatriation initiatives contribute to easing the burden on the country in terms of refugee care. Expressing satisfaction with the development, Kausiwa stated, "We are pleased because this is something we are encouraging on the understanding that refugees cannot maintain their status for life; we are encouraging all durable solutions to be employed," she is quoted by Nyasa Times Kausiwa further highlighted the department's expectation that more refugees will be supported in returning to their respective countries voluntarily.
Visa removal
Standard Bank Plc Chief Executive Phillip Madinga has applauded the government’s decision to remove visa restrictions for about 47 countries across the globe. Madinga sees this decision as a timely and strategic step to enhance the country's foreign currency inflows, a critical need in the face of persistent shortages, the Nyasa Times reports. Madinga believes this decision will position Malawi as an attractive tourism destination, ultimately bolstering foreign currency flows in the long run. The removal of visa restrictions was identified as one of the bottlenecks during the bank's Business Leadership Round Table on December 12, a high-level forum that engages government officials, regulatory bodies, donors, and the private sector to discuss economic policy reforms. Home Affairs Minister Ken Zikhale N'goma officially announced the lifting of entry restrictions in a Gazette published on February 8.
State of Nation Address
President Lazarus Chakwera is scheduled to deliver the State of the Nation Address (Sona) amid uncertainties regarding the Leader of the Opposition position. The Democratic Progressive Party (DPP) has appointed Mary Navicha to the position, creating a focus of attention on Chakwera as he reflects on the achievements and challenges of his administration in the current fiscal year. The State of the Nation Address is expected to include Chakwera's vision for the next fiscal year, particularly as this session coincides with the Budget Session of Parliament. The address will likely outline the government's plans, policies, and priorities for the upcoming year, the Times Group reports. In a separate development, the DPP has chosen Mary Navicha as the Leader of the Opposition. Navicha's appointment comes after the party faced challenges in having its vice president for the Southern Region, George Chaponda, ascend to the position due to a court injunction. The Parliament spokesperson, Ian Mwenye, has confirmed that the DPP has formally notified the Speaker of Parliament about Navicha's appointment. However, it seems that Parliament is still consulting on the matter, suggesting that there may be ongoing discussions or considerations regarding this appointment.
Policy rate
Commercial banks in Malawi have implemented a significant increase in their base lending interest rate, known as the reference rate, by 1.3 percentage points, bringing it to 24.9 percent. The adjustment, effective Thursday, follows the Reserve Bank of Malawi's decision on Monday to raise the policy rate by 200 basis points to 26 percent, the Times Group reports. The reference rate serves as the benchmark that commercial banks utilize when determining other interest rates, including those applied to loans for individuals or businesses. Published statements from the commercial banks explained, “We wish to inform you that due to the recent upward adjustment of the policy rate, the reference rate for February 2024 is 24.90 percent from 23.60 percent in January 2024. This rate is effective Thursday, February 8, 2024." The reference rate for February 2024 now stands at 24.90 percent, up from 23.60 percent in January 2024, as indicated in the statements released by the commercial banks. This adjustment implies that borrowers may face a minimum interest rate of 31 percent on loans, depending on factors such as the lender and the risk profile of the client.
