3016) Republic of Malawi (formerly "Nyasaland"): i) Evolution of Currency in Independent Malawi: ii) The requirement for a higher denomination of 5000 Kwacha Banknote and its introduction into circulating currency on 24.02.2022:
About the Republic of Malawi:
Malawi is a landlocked country in South-east Africa that was formerly called "Nyasaland". Malawi is also nicknamed "The Warm Heart of Africa". The name "Malawi" derives from "Maravi", an old name of the Nyasa people, that inhabit this area.
It is bordered by Zambia to the North-west, Tanzania to the North-east and Mozambique on the East, South & West. Its capital is Lilongwe, the largest city in Malawi. Of the country's total land area of about 118,000 square kilometres, Lake Malawi covers about one-third of the territory.
The territories comprising present day Malawi were occupied by a small groups of hunter-gatherers.
Around the 10th Century, the territory of Malawi was settled by waves of migrating Bantu people.
By 1500 AD, the ethnic groups/tribes established the Kingdom of Marawi that extended from North of present day Nkhotakota to the Zambezi River and from Lake Lalawi to the Luangwa River in present day Zambia.
By 1600 AD, the Empire flourished, under one ruler, with trade and bartering exchanges and alliances with the Portuguese traders.
By 1700, the Empire broke down into several ethnic groups controlled areas.
Around the mid-1800 AD, the Arab Slave Trade reached its zenith and around 20,000-30,000 persons were enslaved and transported from Nkhotakota to Kilwa and sold as slaves.
In 1859, missionary & scout/explorer David Livingstone travelled upto Lake Nyasa (present day Lake Malawi) and identified areas for colonialization (the "Shire Highlands"). His trip brought about the establishment of several other Anglican & Presbyterian missions and the setting up of the "African Lakes Company Limited" (1988) which was set up as a trade and transport at Blantyre enterprise to work closely with the missions.
In 1883, a British Consul was posted at this settlement.
In 1889, a British Protectorate was proclaimed over the Shire Highlands.
In 1891, the Protectorate territories were extended to include the whole of present day Malawi in the name of "British Central Africa Protectorate" and renamed "Nyasaland".
In 1953, Nyasaland, which was hitherto a Protectorate of the United Kingdom, became a Protectorate of the semi-independent "Federation of Rhodesia and Nyasaland".
In 1963, this Federation was dissolved.
In 1964, the Protectorate over Nyasaland was ended and the country became independent acquiring a new name "Malawi", but still under Queen Elizabeth II.
In 1966, Malawi became a Republic.
As usually seen all over the British Empire, the British left an impoverished nation which ranks among the least developed countries in the world.
Present day Malawi suffers from low life expectancy and high infant mortality. Several programmes have been undertaken by the Malawian government to improve education, improving agriculture, healthcare, environmental protection, building up the economy etc. which are showing some good results.
The currency of Malawi is the Kwacha subdivided into 100 Tambala supervised by the Central Bank of Malawi:
In 1971, the Kwacha replaced the British Malawi Pound, the South African Rand and the Rhodesian Dollar which were hitherto circulating in Malawi. The first Banknotes introduced in that year were 50 Tambala, K1 (One Kwacha), K2 (Two Kwacha) and K10 (Ten Kwacha).
The name Kwacha was first used in Zambia where the Zambian Kwacha was introduced in 1968. This term is derived from the "Chinyanja" or "Chichewa" word meaning "it has dawned", while "Tambala" means "rooster" in Chichewa. The Tambala is so named because "a hundred roosters announce the new dawn" (symbolising the "Dawn of Freedom in Malawi from the British yoke").
Since then, higher value Kwacha denominations have been progressively introduced, without necessarily reviewing the series in terms of technological Banknote design trends, financial implications of Banknote procurement, economic developments and historical aspects et al.
In 1973, the K2 Banknote was discontinued and a K5 (5 Kwacha) Banknote was circulated.
In 1983, a K20 (20 Kwacha) Banknote was introduced into circulation.
In 1986, the 50 Tambala Banknotes were last issued.
In 1992, the printing of K1 (1 Kwacha) Banknotes was stopped.
In 1993, K50 (50 Kwacha) Banknotes were introduced
In 1995, a K200 (200 Kwacha) Banknote denomination was introduced.
In 2001, a K500 (500 Kwacha) Banknote was put into circulation.
The currency of Malawi is the Kwacha subdivided into 100 Tambala supervised by the Central Bank of Malawi:
In 1971, the Kwacha replaced the British Malawi Pound, the South African Rand and the Rhodesian Dollar which were hitherto circulating in Malawi. The first Banknotes introduced in that year were 50 Tambala, K1 (One Kwacha), K2 (Two Kwacha) and K10 (Ten Kwacha).
The name Kwacha was first used in Zambia where the Zambian Kwacha was introduced in 1968. This term is derived from the "Chinyanja" or "Chichewa" word meaning "it has dawned", while "Tambala" means "rooster" in Chichewa. The Tambala is so named because "a hundred roosters announce the new dawn" (symbolising the "Dawn of Freedom in Malawi from the British yoke").
Since then, higher value Kwacha denominations have been progressively introduced, without necessarily reviewing the series in terms of technological Banknote design trends, financial implications of Banknote procurement, economic developments and historical aspects et al.
In 1973, the K2 Banknote was discontinued and a K5 (5 Kwacha) Banknote was circulated.
In 1983, a K20 (20 Kwacha) Banknote was introduced into circulation.
In 1986, the 50 Tambala Banknotes were last issued.
In 1992, the printing of K1 (1 Kwacha) Banknotes was stopped.
In 1993, K50 (50 Kwacha) Banknotes were introduced
In 1995, a K200 (200 Kwacha) Banknote denomination was introduced.
In 2001, a K500 (500 Kwacha) Banknote was put into circulation.
Banknote Review in 2007:
In 2007, the Banknote issue underwent a review which was necessitated primarily for the following reasons -
- To minimise currency production costs and increase operational efficiency.
- To modernise Banknote designs in line with changing international trends and adopting new technology features that enhance durability of the Banknotes.
- Adopting user friendly recognition features like raised dots and enlarged fonts for the visually challenged persons.
- To improve security of the Banknotes against modern counterfeiting technologies.
- Consequently, as a result of the currency review exercise, Banknote printing costs per denomination have been considerably reduced.
The Banknote themes -
The themes of the new Series of Banknotes have largely been derived from the long-term objectives outlined in the Malawi Growth and Development strategy (MDGS), some of which are also highlighted in the Millennium Development Goals (MDGs).
The 2012 Series of Banknotes:
This Banknote series was issued as a result of the Banknote Review carried out by the Reserve Bank of Malawi.
In 2007, the Banknote issue underwent a review which was necessitated primarily for the following reasons -
- To minimise currency production costs and increase operational efficiency.
- To modernise Banknote designs in line with changing international trends and adopting new technology features that enhance durability of the Banknotes.
- Adopting user friendly recognition features like raised dots and enlarged fonts for the visually challenged persons.
- To improve security of the Banknotes against modern counterfeiting technologies.
- Consequently, as a result of the currency review exercise, Banknote printing costs per denomination have been considerably reduced.
The Banknote themes -
The themes of the new Series of Banknotes have largely been derived from the long-term objectives outlined in the Malawi Growth and Development strategy (MDGS), some of which are also highlighted in the Millennium Development Goals (MDGs).
The 2012 Series of Banknotes:
This Banknote series was issued as a result of the Banknote Review carried out by the Reserve Bank of Malawi.
On 01.06.2016, a K2000 (2000 Kwacha) Banknote denomination was circulated to ease desperate cash shortages.
Urgent requirement for a higher denomination Banknote led to the introduction of a 5000 Kwacha Banknote:
- The existing Malawi 2,000-Kwacha Banknote (previously the country’s highest denomination) was introduced in December 2016 to address Malawi’s increasingly demanding cash cycle needs.
- It was further upgraded in February to enhance its security and improve the appearance of the Banknote.
- But as the Reserve Bank of Malawi (RBM)'s Currency Management Policy requires that the highest value denomination should not account for more than 60% of the total value of the currency in circulation, it went a step further in February and also issued a new high denomination 5,000 kwacha banknote.
- The existing K2000 banknote had exceeded over 80% of the value of currency in circulation. For that reason, the Reserve Bank has introduced the 5,000 Kwacha note, reflecting the need for a higher denomination in the country’s economy.
- In addition to the new 5,000 Kwacha note, the country’s 2,000 Kwacha banknote has also been upgraded to include advanced security features and a new design on the back of the note.
- Until the introduction of the 5,000 Kwacha note the 2,000 Kwacha note was the highest denomination in Malawi. Both the new Banknotes with increased security features were issued starting 24.02.2022.
- As of now, the 5000 Kwacha Banknote is the largest denomination banknote for Malawi.
- Both banknotes are printed on paper and measure 135 x 66mm. They are the latest additions to the 2021 series of Banknotes.
The new 5,000 Kwacha Banknote:
The Front of the K5000 Kwacha Banknote features a portrait of Hastings Banda who served as prime minister also the first president of Malawi.
In addition, there is a map of Malawi, and a fish, as well as the Reserve Bank of Malawi bank seal and sun.
Dr. Hastings Kamuzu Banda (1898 - 11/1997):
He was the father and founder of Malawi and architect of the country's post-colonial Nation. He served as Prime Minister (1963 - 1966), President (1966 - 1971) and Life President (1971-1994).
He was one of the leading Pan-Africanists to come out of post-War Africa and an arch-critic of the Central African Federation of which Malawi (then Nyasaland) became apart from 1953 to 1963. He led the country's independence struggle through the Nyasaland African Congress (NAC) and then the Malawi Congress Party (MCP).
After independence, he dedicated himself in re-building the new nation and coined the motto "Unity, Loyalty, Obedience and Discipline", which underlined the importance of national unity and the spirit of hard work. He actively supported and promoted women's rights, education and health services.
The Back of the 5000 Kwacha Banknote features a large image of the Reserve Bank of Malawi, RBM bank seal, map, stack of banknotes and two people playing the drums and dancing.
The 5,000 Kwacha was introduced not just to meet the changing economic landscape but also the need for increased security for higher denominations.
The colour of this Banknote is predominantly in shades of purple and yellow.
Additional Security Features:
- The portrait is of the first President of Malawi, Dr Hastings Kamuzu Bandu (who also appears on the 1,000 kwacha). The Micromirror LEAD™ foil and Galaxy™ security thread from Louisenthal, and SICPA’s SPARK Live™, are the key optical features lifting the security of the banknote.
- To the right of the note is the SPARK Live optically variable ink, in the form of a fish, with similar dynamics to the thread on the back of the note.
- This thread – Galaxy – features dynamic and 3D effects based on micro-mirror technology. It is also equipped with ColourShift™.
The thread shows 5000 and RBM, and features Galaxy Saturn dynamics.
When the note is tilted, round graphical shapes touch each other, and the colour changes from red to green.
The Banknote has a host of other features including the watermark of Dr Banda and the number 5,000 below the portrait, and a Gemini™ UV feature:
- Holographic stripe: Louisenthals LEAD micromirror foil, 10mm wide. The bright, dynamic vertical stripe shows an animated sun (with letters ‘RBM’) and the true colour portrait of Dr. Hastings Kamuzu Banda.
- Two raised squares the benefit of the blind and visually impaired.
The Back of the Banknote features the Reserve Bank of Malawi logo and an illustration of the bank’s Blantyre branch office.
Security features here include:
- A 5mm wide Galaxy® security thread works with 3D movement and changes colour from magenta to green when the note is tilted.
- It also includes a double box design on the front left of the note to assist with recognition by the visually impaired.
- The new Banknote was printed by De La Rue on cotton substrate from Louisenthal.
- The LEAD foil is positioned to the left of the portrait. It is a bright, dynamic vertical stripe with a combination of vibrant effects and tones.
- The top shows an animated sun, true colour portrait of Dr Bandu, denomination value, a three-dimensional fish from Lake Malawi with depth background, ‘Reserve Bank of Malawi’ and RBM logo. This foil shows achromatic and rainbow effects when the note is tilted.
(The above Banknote is from the collection of Jayant Biswas. Post researched and written and Banknote scanned by Rajeev Prasad)
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Santosh Khanna has commented:
ReplyDelete"Thanks for sharing this informative and interesting post."
Thank you so much Khanna sahab.
DeleteAshok Borate has commented:
ReplyDelete"Very nice and informative post."
Thank you so much, Ashokji.
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