20110921
Reuters
BLANTYRE (Reuters) - Businesses in Malawi's commercial centre Blantyre closed on Wednesday ahead of possible anti-government rallies and rights groups urged people to stay away from work until the weekend to reduce the risk of bloodshed.

President Bingu wa Mutharika's forces killed 20 people when crushing protests in July against his rule in the impoverished southern African state. A high court judge lifted an injunction on street rallies on Tuesday.

There was an uneasy calm on the streets of Blantyre and the capital Lilongwe early on Wednesday, with many citizens worried about the possibility of another crackdown by Mutharika's forces. The Malawi Stock Exchange (MSE) was closed for business.

"Following the lifting of the injunction on vigils by the High Court, there will be no trading ... due to security reasons," the MSE said in a note to investors seen by Reuters.

Activists want the president to respond to a petition calling on him to account for his wealth, address the chronic fuel and dollar shortages that have added to the misery of the poor and restore diplomatic ties with former colonial master and major aid donor Britain.

Concern over the reaction of the police to any demonstrations led rights groups to call on workers to stay home for the remainder of the working week.

"Police say they will not protect anybody who demonstrates today and that's why we are now asking people to stay away for three days," said Peter Chinoko, a civil rights leader.

In August, local U.N. officials negotiated a deal to head off further rallies, but rights groups pulled out of the process last week when the properties of two leading activists were hit in petrol bomb attacks.

Malawi, which relies on foreign aid for about 40 percent of its state budget, has lost hundreds of millions of dollars of overseas assistance due to the crackdown on the protests and Mutharika's increasingly strained international ties.

"The full impact of international donors withholding budget support will be felt for a long period ahead," Standard Bank said in a recent research note.