Independence Day & more –6th July 2023

Muli bwanji from BA! This is the Rorshok Malawi Update from the 6th of July twenty twenty-three A quick summary of what's going down in Malawi.

Happy Independence Day!

Malawi gained its independence from British colonial rule on the 6th of July nineteen sixty-four. This means that offices and schools will be closed on Thursday the 6th to observe the Independence Day celebrations. Normal activities will resume on Friday the 7th.

One of the activities during the Independence holiday is the Ufulu Festival, which includes music performances, dances and pop-up stalls with various goods. Over the last couple of years, the Ufulu Festival was hosted at CIVO Stadium in Lilongwe. However, the organizing team - Flood Church - said this year's festival will be hosted at Gateway Mall in Lilongwe. They said the venue is the only thing that has changed.

Lilongwe residents can also anticipate a Pop Up Market, which will happen on the 9th and 10th of July, or on Independence Weekend, as locals call it.

Dennis Imaan, the Chairperson for the Pop Up Market, said the event will celebrate Malawian culture and heritage while promoting local businesses, food, arts and crafts. It will also feature live performances of music and poetry. It will be held at City Center in Lilongwe and will cover areas from the Parliament Roundabout to the Sunbird Capital Roundabout.

Imaan said that they are working with the Lilongwe City Council.

As one way of celebrating Independence Day, President Chakwera pardoned over two thousand prisoners—which is one of the highest numbers of convicts to be pardoned in Malawi. While the prisoners have a newfound freedom, the move was called into question as it has compromised the safety of the citizens, since crime rates might soar as the prisoners try to survive or “earn” a living.

Unfortunately, there are more reasons why a lot of locals might not enjoy the Independence holiday.

On Saturday the 1st, local media revealed that there is a looming fuel shortage. They said that motorists had started queuing for the commodity at most fuel stations in Lilongwe and Blantyre cities.

There are rumors among locals that the fuel stations are hoarding the commodity in preparation for a price hike, following the recent Kwacha devaluation. Others think that the queues were caused by locals who were panic buying after hearing that the commodity’s price may be hiked soon.

The Malawi Energy Regulatory Board is yet to comment on the issue.

In more disheartening news, Sosten Gwengwe, the Minister of Finance and Economic Affairs, released a document on Friday the 30th, regarding the Customs and Excise Act, which has amended tariffs for used imported vehicles. On Saturday the 1st, people on social media started sharing the Act.

What stands out from this document is that the Malawi Revenue Authority (or MRA) will no longer calculate the duty of vehicles based on their value, but on the specs of the car, such as their country of origin and year of make. This has made car importation exorbitantly expensive, with taxes on most of the vehicles being more than the cost of the car itself.

For instance, to purchase a Mazda Axela, people used to pay 6.8 million Kwacha - roughly 6,500 dollars - for both the vehicle and its duty. Now, that amount covers only its tax fees.

You can check out the new vehicle import duties in our show notes.

On Monday the 3rd, the MRA held a media briefing in Blantyre to explain the new duty fees, but local media said the MRA failed to do so.

Chimwemwe Kawalewale, the MRA Deputy Commissioner of Facilitation, said their analysts looked at huge volumes of internal data to come up with the new tax rates. He quickly added that the new taxes will benefit importers, as they'll now be aware of how much duty they'll have to pay in advance.

Prior to the briefing, Gwengwe said the new duty fees will suppress the demand for the importation of used vehicles, and save the country's foreign exchange.

The public outcry has since intensified and people are calling for demonstrations. On Tuesday the 4th, the Forum for National Development started an online movement called #DutyMustFall and petitioned the Parliament to abolish or reduce the taxes. They called the government's move "shocking, disgusting, concerning and worrying".

They said they will petition at the Malawi National Assembly on the 26th of July, and have asked all concerned parties to meet at the Parliament Building on the same day.

The Human Rights Defenders Coalition also released a statement asking the government to reconsider its taxes within seven days or face unspecified action. They called the government's move "unrealistic and punitive taxes on citizens, and a hindrance to their economic growth and right to participate in economic activities".

They asked the government to reevaluate the formulas they used to determine the taxes.

On the evening of Wednesday the 5th, word got out that the government had heard the public outcry concerning the duty fees, and had called for a meeting with second-hand motor vehicle importers. The meeting is set for Friday the 7th.

Still on the MRA, on Thursday the 27th, the Authority announced that they are implementing a new system for cargo clearance for importers at their Dedza and Songwe border stations.

Under the new system, goods from Dedza and Songwe borders going to the Lilongwe Inland Examination Center (or IEC) will be eligible for entry for home consumption or warehousing at the border. Break bulk consignments will be cleared at the border, while cargo in shipping containers will be cleared at the IEC.

The MRA feels that this will enhance their efficiency when clearing goods.

Read the MRA's full statement in our show notes.

In other news, the management of Sunbird Tourism plc is getting impatient with the government's delay in deciding whether there will be a share dilution, in other words, if they will issue company stocks to reduce ownership.

Sunbird is the country's biggest hotel chain. The government owns a 71% stake in it, 15% is owned by another company, Press Corporation plc, while the remaining 14% is owned by some citizens.

Sam Mwale, the Chief Executive Officer for Sunbird, called the government to reduce its shares, so that new investors can bring in capital for more infrastructural developments. He said that the government is aware of these calls, and that Sunbird cannot force them to dis-invest if they don't want to.

Moving on, on Wednesday the 5th, Indian and Asian shop owners in Mzuzu city did not open their stores because their employees took to the streets.

The employees were demanding better salaries and working conditions. Joseph Nyirenda, one of the protesters, told local media that they tried sharing their grievances with their employers, but to no avail. As such, all the employees from different shops around the city boycotted work, mobilized themselves, and demonstrated. They were cheering and shouting along the city streets, demanding that their salaries be increased.

Still in Mzuzu city, the Mzuzu University (or Mzuni) bid farewell to John Kalenga Saka, its Vice Chancellor, on Friday the 30th. Saka also served as the school’s Professor in Chemistry and worked at Mzuni for about four years.

The school held a farewell party for him on Thursday the 29th. During the party, Chikondano Mussa, the Principal Secretary for Education, said that Saka made a tremendous contribution towards higher education.

Saka’s colleagues said that one of his biggest achievements was a performance management system that he pioneered.

That’s it for this week! Thanks for joining us!

This Malawi Rorshok Update is one of the country-specific podcasts we do.

But we've always wanted to try some on other topics less tangible than countries. And we finally have!

Last week we have launched the Rorshok Ocean Update, about the 70% Earth's surface covered in salt water as well as The Rorshok Multilateral Update, covering the world's major multilateral institutions. And coming soon, the Rorshok Arctic Update. You can look for them in your podcast listening app of choice or follow the links in the show notes! Tell your friends!

Pitani bwino!