Malawi Commissions its First Uranium Mining Project

VOA News - Malawi Commissions its First Uranium Mining Project

Malawi’s government has commissioned the country’s first uranium project, an effort that is expected to boost the economy. The mine will be located in the northern district of Karonga. The approval of the Kayerekera Uranium Project came after critics withdrew their court injunction against it. Voice of America English to Africa Service’s Lameck Masina reports on its expected benefits.

Economists say the ten-year project is expected to boost Malawi’s foreign exchange earnings by 20%. It’s set to begin in December and will be managed by the Australian mining company Paladin Africa Limited.

Prominent economist Goodall Gondwe is Malawi’s minister of finance. He says the project is expected to contribute greatly to annual export earnings, “You [we] are looking at more than 40% addition to our export now. This is huge. It means [if] this project is successful, we will in fact pass the one billion US dollar mark in exports and the impact of that on the economy is enormous.”

Until now, tobacco has been Malawi’s main export, contributing most of the country’s foreign exchange earnings. The new mine may change that, producing an expected 100 tons of uranium every year.

But civil society organizations opposed the government’s decision to grant a license to Paladin Africa Limited. They said the company had not addressed possible environmental and health problems.

They said gas released from the mines could cause a number of illnesses, including cancer, kidney infection and brain damage. They also expressed concern over the wastewater from the mines.

But the government said Paladin had met all legal requirements and all the environmental issues had been dealt with. Unconvinced, the NGOs obtained a court injunction to prevent the government from approving the project. The case was settled out of court amid allegations from other civil society groups that their representatives accepted kickbacks to back down.

Undule Mwakasungura is the executive director of the Centre for Human Rights and Rehabilitation, one of the NGOs that strongly opposed the project. He explains the change of heart, “The discussions have been very honest, very honorable and I believe that it is important that at a certain point decisions should be made for the interest of the country. And this is what we made. The issue of motivating us with money was not there. Whether we are corrupt or not, it’s up to the people of Karonga to judge us. But I believe we have made a better decision for the interest of this country.”

Mwakasungura says both the government and Paladin have agreed to address all the concerns raised by the civil society organizations.

John Borshoff is the managing director of Paladin. He says his company will adhere to the terms of the out-of-court settlement. They include the establishment of a new NGO, which will be part of a broader monitoring group that will keep an eye on the environmental and health impact of Paladin’s mining operations.

The company has also amended its social responsibility program, which now includes the allocation of $8 million towards upgrading the water supply for the surrounding communities.

Only five countries in the world produce and export uranium -- Canada, Australia, Kazakhstan, Namibia and Russia. If the Kayerekera Uranium Project succeeds, Malawi will join them.

IMF ups loans to Malawi as fuel costs squeeze

WASHINGTON (Reuters) - The International Monetary Fund increased
funding to Malawi by $16.9 million on Monday, approving a total
disbursement of $24.7 million to help the country cope with soaring
fuel and fertilizer prices.

The disbursement to the southern African country is the final
payment by the IMF under a three-year $62.1 million loan program agreed
in 2005.

IMF Deputy Managing Director Takatoshi Kato said the increased
funding was approved because of concerns over Malawi's low levels of
international currency reserves and the threat that posed to financial
stability and food security.

"Rising fuel and fertilizer prices are increasing the downside risk
and adding inflation pressure," Kato said in a statement. "Further
consolidation of government net domestic debt will facilitate the
further accumulation of international reserves without jeopardizing
growth and crowding out the private sector," he added.

The IMF said financial help from donors would help smooth the adjustment.

Muluzi to accomodate 5 relatives in his 120 million Kwacha UK home bought in April 2005

Government contests Muluzi’s UK trip

BY Vincent Phiri

10:12:16 - 10 July 2008



Government
Wednesday contested at the High Court in Blantyre former president
Bakili Muluzi’s trip to South Africa and the United Kingdom on grounds
that there was no adequate information regarding his hosts in the two
countries.



However, the court quashed state arguments and allowed Muluzi to leave the country.



Lawyers for Muluzi applied to the High Court for him to leave the
country on Saturday next week for a medical check up in South Africa
and to proceed to the UK five days later to attend the wedding ceremony
of his nephew, Kalikokha Banda.



Muluzi was put on house arrest in May in connection with treason
charges and was granted bail by the High Court in Blantyre on May 30
and ordered to apply for permission from the court whenever he wants to
leave the country.



However, state lawyer Janet Kayuni asked the court to dismiss Muluzi’s
application to leave the country on grounds that it lacked proper
supporting documents that would authenticate the importance of his trip.



In an application for leave, Muluzi asked the court to allow him to
travel to South Africa on July 19, 2008 to meet a neurosurgeon Forster
for a medical check up at his surgical chambers on July 20, 2008.



The application was supported by a copy of a letter dated June 30, 2008
signed by Muluzi’s consultant neurosurgeon George Mtafu, who is also
leader of UDF in Parliament.



“Muluzi will be in South Africa for about five days and will be
residing at Holiday Inn Hotel in Sandton, Johannesburg after which he
intends to proceed to the UK for wedding preparations for his nephew
Kalikokha Banda who is getting married on 1st August 2008 at Lyndhurst
Park Hotel in that country.



“It is Muluzi’s humble prayer that your Lordship may be pleased to
grant permission to the former president to leave the jurisdiction on
the 19th July 2008 for the Republic of South Africa and the UK
respectively and return by the 25th August 2008,” reads the application
in part, which was attached to a copy of the wedding invitation and a
copy of a letter of confirmation from National Bank of Malawi
certifying that Muluzi maintains an active account in the books of that
commercial bank.



In support of the application, Muluzi submitted to the court a copy of
a letter from Mtafu, who wrote to him that Dr Forster, who operated him
in Stellenbosch, Cape Town, South Africa, has confirmed to see the
former president at his surgical chamber on July 20.



But Kayuni argued before Justice Edward Twea in an open court that it
was not enough to have communication from Mtafu to Muluzi alone, saying
there was need for the court and the state to be furnished with
communication from Dr Foster as well.



“As it stands now, the court has been starved with information from Dr
Foster confirming the said appointment and indeed his proper address in
the Republic of South Africa. Muluzi’s application leaves a lot to be
desired unless he produces the original copy of the said document.



“The state, therefore, contends that since Muluzi’s application was
proceeding merely on affidavit evidence it must not leave gaps in the
facts supporting the same. I respectfully pray to the court to dismiss
the application for lack of proper supporting documents,” reads
Kayuni’s response to Muluzi’s application for leave.



But Twea quashed Kayuni’s argument and ruled in Muluzi’s favour by
allowing him to leave for South Africa and UK respectively and come
back on August 25.



The UDF leader would be accompanied in UK by his sister Esnath Phiri,
brother Friday, brother in law Lloyd Katema, sister in law Edna Muluzi
and grandson Andrew Banda.



Muluzi applied to the British High Commission for visas of his five
relatives and indicated that he would take responsibility for their air
tickets and accommodate them at his residence, 9 Quinton Place,
Cardford, St Peter, BA12 0JU, Wiltshire in the UK, adding that he would
take charge of all other expenses that would be incurred during their
stay in London.

Commonwealth business team to visit Malawi due to sound economic management of current administration

Barely two months after Chinese investors
visited Malawi, a 20-member Commonwealth Business Council (CBC)
delegation is scheduled to visit the country from 15 to 18 July this
year for a series of meetings in the Capital city Lilongwe with the
country’s business sector.

Secretary for Industry and Trade Newby Kumwembe said in an interview
yesterday the purpose of the visit was to explore investment
opportunities in Malawi.

He said the delegation will be interested to venture into bankable
projects in sectors such as agriculture and agro-processing sector,
banking and capital markets, transport and core infrastructure,
information and communication technology (ICT), mining and energy as
well as tourism and aviation.

"Meanwhile, the ministry is calling on all business persons and
firms in Malawi who have bankable projects to register with it or the
Malawi Confederation of Chambers of Commerce and Industry (MCCCI) five
days before the arrival of the delegation," said Kumwembe.

He explained that bankable projects should preferably be worth US$10
million (about K140 million) or more although those above US$5 million
(about K70 million) could also be considered if they are very good.

Recently Finance Minister Goodall Gondwe attributed the interest
shown by investors to sound economic management under President Bingu
wa Mutharika’s government since assuming power in 2004.

Mutharika also echoed this during the 44th Independence Anniversary
Celebrations in Mzuzu on Sunday where he acknowledged that the
country’s economic growth has experienced a complete turn-around.

"The country’s growth rates have increased from an average of 1.5
percent between 2001 and 2005 to an average of eight percent over the
last two years," he said.

Meanwhile, the Chinese business delegation that visited Malawi two
months ago has started giving feedback to the Government of Malawi with
one investor showing commitment to invest in the cotton industry,
according to Kumwembe.

Malawi adopts high-tech banking, leapfrogs many countries

By Rebecca Wanjiku
,
IDG News Service
, 07/08/2008

When Kenya implemented automated banking systems and regulation in 2000, it looked like Malawi would be stuck with ancient
technology.

Fast-forward 10 years: Malawi has leapfrogged most African countries and is second only to South Africa in implementation
of smart cards backed by biometrics technology.

Card users are allowed to authorize their transactions by scanning
their fingerprints, an alternative to less-secure verification by PIN
(personal identification number) or signature, notes a United Nations
Environment Programme study of sustainable banking in Africa.

The system offers a majority of Malawi's population the chance to access banking services, as smart cards offer a secure and
portable repository for cash, says Tryson Kalanda, operations manager at the Bankers Association of Malawi.

"The system has reduced fraud and crime because of the fingerprint identification requirements," Kalanda said.

Moreover, the electronic check clearing system has reduced clearance time to two days.

"The electronic check clearing system uses image truncation
clearing," explained Paul Mbugua, general manager of Fintech, one of
Africa's leading banking-software vendors. "Within a minute the check
is scanned at the teller, and the image is relayed to the head office
and pushed to the online clearing house. Every three hours the image
checks are pushed to respective banks, and clearing is twice daily."

Fintech worked with the banks in Malawi and installed the systems for electronic clearance. Nine out of 10 banks are using
the system, Mbugua noted.

"The technology has improved efficiency in our banks, which has a bearing on economic growth," Kalanda said.

This is in comparison to Kenya's system, where physical checks are
sent by courier; clearance time is four days, and businesspeople are
forced to wait nearly a week before money is available.

Kenya is bogged down by regulatory requirements that stipulate that all checks must be archived, Mbugua said. Previously,
checks had to be photocopied, but the Central Bank of Kenya has begun to accept electronic archives.