* As the Government is automating most fees to eliminate cash transactions across all Ministries, Departments and Agencies
Maravi Express
Traffic offence fines by the police will now be made through mobile money as the Government is automating most fees to eliminate cash transactions across all Ministries, Departments and Agencies.
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This was announced by Minister of Finance, Economic Planning & Decentralisation, Joseph Mwanamvekha in his presentation of the 2025–2026 National Budget in Parliament today.
In the same vein, the Government has introduced strict measures to safeguard foreign exchange and channel it through formal systems, saying the Reserve Bank of Malawi (RBM), alongside agencies like the Malawi Revenue Authority and Fiscal Police, are intensifying probes and prosecutions of suspicious transactions.
The move aims to combat illegal forex externalisation and bolster the country’s economic stability and Mwanamveka said this is government’s commitment to curbing illicit financial flows and promoting transparency in foreign exchange dealings.
And in order to combat vandalism of Electricity Supply Corporation of Malawi (ESCOM) copper cables and other equipment, the Government has introduced export duty on scrap metal.
Mwanamveka told the august House that Government has noted an influx of powdered soft drinks flavours which pose a health hazard to people and to discourage its use, a 20% tax has been introduced on the goods.
On tax measures, Mwanamvekha announced that, with effect from tonight, there will be a removal of import duty on equipment for community technical colleges to support skills development; taxes on assistive devices for persons with disabilities to promote inclusivity and accessibility and removal of tax on religious materials like the Bibles, the Quaran and other religious materials.
Mwanamvekha also indicated that the country’s public debt remains worrisome, noting that the rising debt levels are exerting significant pressure on the country’s fiscal performance, which is limiting the government’s ability to implement key development programmes and stabilise the economy.
On the food situation, Mwanamvekha said the country’s maize supply has improved, with strategic grain reserves strengthened. The Government has procured 58,000 metric tonnes of maize from Zambia to stabilise supply and as a result, maize prices have dropped, with a 50kg bag now selling between K48,000 and K50,000, down from K100,000.
On pensions and gratuity, Mwanamvekha said the waiting period is now pegged at three months in order to ensure that pensions and gratuities are paid on time.
He also announced that Government will commence the construction of new hospitals in Blantyre and Chikwawa during the 2026/2027 financial year, with funding from both government resources and development partners.
He has added that the projects have formed part of the administration’s development-focused budget, which has prioritised investments in key social infrastructure to improve healthcare delivery across the country.
The 2026/2027 National Budget has been formulated through a consultative process, incorporating input from various stakeholders, including academia, the youth, and the private sector, among others.
The Minister added that the Democratic Progressive Party (DPP) assumed office at a time when the economy was in tatters with inflation at high levels and economic instability which affected citizens due to high cost of living.—Reporting by Patience Longwe, Patricia Kapulula & Adson Nthenga, MANA; edited by Maravi Express
