By Carol Mkandawire Lilongwe, Mana: UK Foreign Commonwealth and Development Office (FCDO) Acting Chief Economist, Nick Lea has advised the government that it should take private sector seriously as it the only sector which is employing a lot of people in the country. He made the remarks on Wednesday during High-level Roundtable discussion which was organised by National Planning Commission (NPC) in collaboration with the UK Foreign Commonwealth and Development Office (FCDO) and Trade Mark East Africa (TMEA) at Ufulu Gardens in Lilongwe. The event was held to discuss priority policy options of the recently launched Malawi 2063 First 10 Year Implementation Plan (MIP-1). Lea said private sector would be the future of Malawi’s wealth and jobs, and government needs to take private sector very serious because most of the jobs come from private sectors. “Malawi should implement very serious consultation with the private sector and government should make Malawi the easiest place the private sector to invest as it grows job opportunities,” he added. Lea pointed out that Malawi as a country needs a clear vision for global marketers including the private sector because development involves transitions. He said that, export rate growth is only way Malawi could develop hence Foreign exchange has to be at the centre for Malawi brands development. Principal Secretary for Economic Planning and Development, Dr Winford Masanjala said that the private sector are depending on the state for business. He said instead of being innovating and growing economy they are scrambling for the little government procurement and government business. Masanjala further said that private sector remains the engine of broad and government acknowledges that.
Category: Business & Commerce
2 Malawian companies get MK160.5m EU funding to fight COVID-19
By Kondwani Magombo LILONGWE, Mana: The European Union (EU) has pumped in a total of MK160.5m to two Malawian companies, Ethanol Company (EthCo), and Intelligent Monitoring Systems (iMoSys) to increase their production capacity in medical and pharmaceutical COVID-19 related material in a bid to fight the pandemic. EU Head of Delegation to Malawi, Amb. Rune Skinnebach, disclosed this on Thursday during the stakeholder engagement event under the Support towards Industrialization and Productive Sectors (SIPS) held at the Bingu International Convention Centre (BICC) as part of the 5th SADC Industrialization Week and Exhibition (SIW) activities. The two companies, iMoSys and EthCo, have been granted respective sums of 100,000 Euros (MK91.7m) and 75,000 Euros (MK68.8m) for the cause. Skinnebach said the EU and its Member States, acting together as Team Europe, are taking comprehensive action to tackle the destructive impact of COVID-19 in the region believing that acting together now, we can emerge stronger tomorrow. He noted that Africa currently imports 99 percent of its vaccines and that more than 90 percent of all medicines and health technologies, making it a priority for the African continent to strengthen local manufacturing of pharmaceutical products, and thereby improving equitable access to vaccines, medicines and medical technologies. “We are awarding a financial grant to Ethanol Company (EthCo) which will allow it to scale up its production line and increase production of hand sanitizers and surface disinfectants from 2,000 litres to 7,200 litres a day,” explained the EU Head of Delegation to Malawi. Skinnebach noted that due to the COVID-19 pandemic and the high demand for alcohol-based sanitizers in Malawi, EthCo extended their core business and built a production line for hand sanitizers and surface disinfectants to meet the local demand for hand sanitizers and reduce the reliance on imports. He further recognized iMoSys for reacting swiftly to the “extreme shortages” of personal protective equipment (PPE) at the onset of the COVID-19 pandemic and adjusting its operations, venturing into the manufacturing of medical face shields. According to Skinnebach, the EUs Team Europe is supporting iMoSys to expand the company’s production capacity of high quality, affordable face shields for health-care workers and for Small and Medium Enterprises in critical sectors. “The company targets to increase its production from 300 face shields a day to 700 face shields a day [and] it estimates this could create employment for up to 35 additional staff, of which 40 percent should be female,” explained Skinnebach. Minister of Tourism, Wildlife and Culture, Michael Usi, who presided over the event on behalf of the Minister of Foreign Affairs and International Cooperation, Eisenhower Mkaka, hailed the EU for the grants, saying as a region, SADC needs to build capacity to address emerging challenges facing it, including COVID-19. Usi described the event as important saying it does not only raise awareness of the SIPS programme objectives and its interventions, but it also encourages participation of private sector and SADC Member states in the implementation of the programme to benefit the region. “Let me acknowledge the financial and technical support that SADC receives from the European Union and German Government. Despite the pandemic, we need to demonstrate our solidarity for resilience even more, to stand strong together and continue to find ways to continue to develop our communities and defeat the COVID-19 pandemic,” said the minister. Usi said as a region, SADC should be focused to improve the performance and growth of selected regional value chains and related services within the agro processing and pharmaceutical sectors to contribute to the SADC Industrialization and regional integration agenda. After the event, the minister toured and appreciated the exhibitions displayed by various companies, including the two companies that have been given grants by the EU.
RBM asks employers to save pension for their employees
By Blessings Kaunda Mzuzu, Mana: Reserve Bank of Malawi (RBM) has urged employers to putting all their employees on pension scheme as required by the law. Speaking Thursday, RBM Chief Examiner, Paul Nyirenda said this during pension awareness week held in Mzuzu. “Remittance of pension contribution has been a challenge for some time. The law says pension contribution must be permitted within 14 days of or after the end of the month. But what we have seen is that some employers have not remitted those contributions and arrears have been accumulating. “When one retires he still needs some reliable source of income. It is only pension which provides that reliable source of income. That is why we would like to encourage people to save for retirement,” Nyirenda said. Nyirenda added that employer and employee contribute 10 and 5 percent respectively. The Chief Examiner cited that some companies decide not to give pension to their employees before pension Act 2010. He said registrar of financial institutions engaged the employers to urge them to meet the contribution but others did not comply. “NBM then came up with the list of noncompliant employers and published them in newspapers. After the publication some complied while others still had challenges to comply. “In June this year the Registrar actually visited a number of noncompliant employers after visiting them we gave them an administrative penalty in line with the law so the penalty basically gave them the direction that noncompliant employers should comply within 21 days. As we talking now some have complied,” he added. According to Nyirenda the Registrar has taken a further step to take these employers to court and they are in the process of initiating the court proceedings which are underway.
SADC Industrialization Week to boost Malawi trading partner’s base
By Kondwani Magombo Lilongwe, Mana: Government has said the week-long Industrialization and Exhibition Week for the Southern African Development Community (SADC) that starts Monday in Lilongwe will accord the country an opportunity to build strong trading partners base, among other things. Minister of Industry, Roy Kachale said this Sunday during media orientation held at the Bingu International Convention Centre (BICC) in Lilongwe, ahead of the official opening of the event. He said the event, which would advance the SADC Industrialization Strategy that the regions Council of Heads of State decided on in Harare in 2015, would enhance value addition for commodities in the region. “The General expectations are that we’re going to build networks with the region and within ourselves so that we increase our trading partner’s base,” Kachale explained. He added: “We hope to forge networks with other countries on trading of intermediary goods, for example: if sugar is our end product but in other countries it is taken as a raw material, we need to start building those capacities instead of us exporting intermediary goods and importing finished goods.” The Minister added that, other than attaining the growth in manufacturing value added products and the trading of intermediate goods, Malawi would like to see several indicators increase, including growth in GDP. SADC Director for Industrial Development & Trade, Dr. Khutula Sibanda said the regional body needs to appreciate the rationale behind the SADC Industrialization Strategy to enhance value addition to improve the regions manufactured goods. He added that the Strategy is also aimed at improving the regions manufactured inputs and trading amongst the member states as indicated by SADC trading figures. Sibanda said that, “Our trading figures are currently very low: they are around 20 percent at present which is very low as compared to other regions such as the European Union (EU) where that figure goes to up to 60 percent. “This is so because they trade more amongst themselves than we, in SADC, trade amongst ourselves”. He said the industrialization week would help stakeholders’ share common understanding as SADC family and he called upon the media to disseminate the proceedings to the “farthest district of Malawi and to the farthest districts of the rest of the member states.” The Director hoped that the week-long event would motivate people in the region to work around industrialization and to support the policies which support industrialization. “As a region, we expect that where those policies are not put in place they should be put in place and we expect that our policy makers ensure that innovative funding mechanisms are put in place to finance the various components of the strategy, in particular, those big pillars like infrastructure,” Sibanda said. The Industrialization and Exhibition Week will run from Monday through Friday with the participation of all SADC member states.
Airport Development Limited (ADL) signs a sub-lease agreement with InteGrow Capital Group
By, Maston Kaiya Mana: Airport Development Limited (ADL) and InteGrow Capital Group (ICG) have signed a sub lease agreement for 20 hectares of prime land situated next to Kamuzu International Airport in Lumbadzi, Dowa. ICG is the promoter of the Malawi Gold Project and is among the first few companies that have been granted licences by the Cannabis Regulatory Authority (CRA) for cultivation, processing and selling of medicinal hemp and industrial cannabis in the country. ICG Chief Executive Officer Robert Wirima said the land at Lumbadzi has been dedicated as the center of excellence for medicinal cannabis cultivation and processing. “The company is excited about the strategic agreement signed with ADL because of the intrinsic value that the agreement brings to the shareholders of Malawi gold project and also ADL as a company,” said Wirima. Wirima disclosed that InteGrow Capital Group initiative created The Malawi Gold Project as an investment vehicle where Malawians and other like-minded investors can take up equity in the Project. “Formation of an SPV called Malawi Gold Limited is underway where all partners including InteGrow Capital Group will take up shares in the company. All investments will be channelled through this new company,” he said. He said activities on the land at KIA are expected to commence within the month and the company has plans to build one conventional greenhouse and three smart greenhouses, build a processing Centre, build a lab for testing products before shipping out, build storage facilities and build offices for staff. Wirima further disclosed that once settled, the company plan to work with local farmers through cooperatives to reinforce an inclusive approach that the company wants to take. On her part, ADL Public Relations Officer Wezzie Gondwe said sublease agreement with ICG to lease 20 hectares of its agricultural land which will be used for commercial farming by ICG. “The sublease agreement which is for 30 years is for land that is part of the airport titled land and is within the area zoned for agricultural activities,” said Gondwe. She said the utilisation of the land is very important as it is also part of the airport city program and it will increase the employment rate in the surrounding communities as well as the country at large Gondwe further disclosed that ICG will be required to pay monthly ground rentals and a concession fee to ADL based on the gross revenue of the farm produce.
Invest in rural women–First Lady
By James Mwale Lilongwe, Mana: FirstLady Madame Monica Chakwera says investing in rural women to empower them economically is key to building a strong nation and ensuring a promising future for the country. She was speaking in Lilongwe Tuesday during launch of the 2021 Capital Injection programme, a Women Economic Empowerment initiative under the USAID funded Feed the Future Agriculture Diversification targeting financially struggling rural women. Madame Chakwera said it was unfortunate that women’s empowerment services like bank loans. She said as pillars that support society, women need to be supported financially and strengthened. “The same women we call pillars of our society have been rendered weak and voiceless and well know the fate that awaits a structure that hangs on weak pillars. “Our women need to be strengthened and I am happy that this (Capital Injection programme) is happening to our women,” she said. Under the programme, which is so far operational in 11 districts, women in rural areas are encouraged to form groups through which they access loans payable within four months at a 10 percent interest rate. According to Chikumbutso Mtemwa, Feed the Future Malawi’s Director of Women Empowerment and Access to Finance, the programme is so far benefiting 30,000 women who have been clustered into 1300 groups across the 11 districts. Each group was given a MK600,000 start-up capital. “We started with a gender analysis which was done in 2017 and the result of the analysis brought us to the decision to focus on access to finance for women with a goal to achieve women economic empowerment,” she said, adding that capital injection was best idea after gender analysis had revealed that access to finances was a challenge, especially because most commercial banks have no confidence in rural women to repay the loans. “Much as rural women might have great business ideas, the ideas would not come to life because they couldn’t secure bank loans to implement them (the ideas). Feed the Future has thus come in to bridge the gap that has been there between credit facilities and the rural women who are not attractive to commercial banks,” she said. She said to ensure financial sustainability and resilience when the programme ends, the beneficiaries have been connected to formal financial service systems, one of which is New Building Society, through which the groups have to open a savings account where their funding is credited to. She added that after two successful loan repayments, the women qualify to obtain a loan twice as much as their saving with NBS. She said so far, the groups have registered a 99 percent loan repayment record. Speaking earlier, USAID’s Mission Director to Malawi, Catie Lott, said investing in human capital, building resilience of individuals and households, and increasing economic development and growth is critical to achieving the Malawi Vision 2063 agenda and that her agency was ready to partner with the government of Malawi t make sure th goal is attained. “The ability to invest capital into business- whether to buy land, equipment, livestock or farm inputs is the foundation of a business enterprise and the engine of economic growth. Without sufficient financial capital, dreams will not grow into reality. The capital injection programme addresses this gap by working through the existing Village Savings and Loan systems,” she said. As part of its commitment, USAID will, by the end of this year have provided more than $700000 (approximately MK63million) to enable atleast 30000 entrepreneurs,75 percent of whom are women to invest in their own business opportunities according to Lott.
Islanders boast of an improved livelihood in solar power plant
By Lusungu Kaunga Likoma, MANA: since Electricity Generation Company Installed uninterrupted solar power plant in Likoma lasy year lives of some islanders are slowly improving as they are now active doing economic activities. Egenco launched MK3.2billion solar power plant in Likoma and Chizumulu in November 2020; ending the years of power woos in the district. One of the welder at Mbamba market, Mike Chindimba said since the solar power plant was launched in 2020, his business has improved as he is now able to work long hours. “This uninterrupted power supply has improved my business. I am able to work long hours and hence making huge profits and able to rest without fear of power outage,” said Chindimba Another man, running a barbershop, Curthbert Mzumala said with the sustainable power, there has been an improvement of business saying is able to handle more clients as compared to previous years. “We are able to refrigerate our fresh fish and ready for business in the mainland; and we are hopeful more investors will see the need to come and invest on the Island,” echoed Dumisani Chitete.
Malawi seeks to expand market horizon at international expos
By Andrew Magombo Lilongwe, Mana: Government has earmarked international expositions in Dubai, United Arab Emirates and Durban in the Republic of South Africa as a perfect opportunity for the country to showcase its products and develop its trade base on the global market. Speaking at a press briefing held in Lilongwe on Friday, Minister of Trade, Sosten Gwengwe said the two expos present a platform for the Malawian delegation to engage with potential investors and financiers of some projects which would uplift the country’s economy. He said government, some local companies and a number of Small Medium Enterprises (SMEs) would exhibit products and services in pavilions which have already been erected at both fairs. Some of the products ready to be placed on the display include but not limited to coffee, mangoes, minerals and other traditional goods ready for export on the international market. “To us, the Dubai Expo climax will be on November 20,2021 as it will be the day dedicated to our country and over 15 companies have joined us for this activity, “he said. “Together with Inter Africa Trade Fair which kicks off this coming November 15, 2021, we hope to establish linkages with buyers as well as pushing the agenda of value addition and industrialization with focus on agro processing, mining, tourism and culture,” the Minister said. He added that Malawi would take advantage of the themed day to woo investors through display of cultural dances and other traditions because when they are looking for a country to invest in, there are several factors that are taken into consideration. Gwengwe added that, “Business and tax holidays aside, financiers look at the culture, warmth of people, peace and the judicial system of a country as such we will be showcasing who we are really as the warm heart of Africa.” According to the Minister, the entourage to the expos would be led by State Vice President and Minister of Economic Planning, Dr Saulos Chilima; Minister of Tourism, Michael Usi, and Minister of Mining, Rashid Gaffar. Mainstream international media houses like CNN, BBC and Aljazeera have already engaged government on possible coverage on the themed day for Malawi exhibition at the Dubai Expo. Executive Director for Perisha Agro and Packaging Enterprise, Fannie Gondwe said the exhibitions are most likely to boost the agro-processing industry which largely lacks market boost. “We want to find a market and network with investors who are interested in importing some of our products like Soya, Ground nuts, Beans and other raw materials in bulk,” she said.
2021 Institute of People Management Malawi – IPMM annual conference Opened
By Evance Chisiano Mangochi, Mana: Vice President Dr. Saulos Chilima on Thursday said Malawi’s knowledgeable and hard work human resource is capable of contributing to the successful implementation of the national development aspiration, as ascribed in the Malawi 2063. Chilima made the remarks when he was opening the 2021 Institute of People Management Malawi (IPMM) conference in Mangochi. He has therefore called on IPMM members to familiarize themselves with the Malawi 2063 saying the country’s blue print is also focused on human capacity development which is key to transforming Malawi to highly industrialized economy. “The fifth enabler in the MW 2063 is human capacity development,” the Vice President said, adding that delegates to the annual IPMM conference should dwell on the theme to ensure they’re responsive to the modernity and changing world which calls for professionalism, ethics and integrity. Chilima therefore pledged that government will provide all the support to make the IPMM a strategic partner and change agent saying meaningful development can only be achieved through investment in human capital. “I’m more than convinced that this conference will have candid discussions to resurrect this country from moral degradation, negative mindset and self-belittlement,” he said. However he was quick to add that human resource management in the changing world was not a simple task as there is need for paradigm shift starting from mindset change to ability to accommodate the current generation which is expected to play a crucial role in achieving the national development aspirations of the Malawi 2063. The IPMM is currently pushing for a legislation to regulate the human resources management profession but it has taken five years of a slow pace despite input from Ministry of Justice and Constitutional Affairs in collaboration with the Department of Human Resources and Management Development. The Vice President has so far assured the IPPM that his office will support in pushing things forward to ensure that the bill is presented to parliament for enactment into law observing that Malawi will in turn have well trained, international recognized, ethically guided, disciplined and stimulated human resources managers capable of driving the country’s reform agenda in both public and private sector. Chilima’s remarks of the bill came after IPMM President, Godwin Ng’oma expressed concerns over slow process towards enactment of the bill into a law which is expected to regulate the fraternity saying “We don’t have a legal instrument to stand for us, a bill to regulate us”. He however added that the IPMM is expecting that the next sitting of parliament will discuss the issue as it will shortly gone past preliminary stages. Ng’oma however commended the Ministry of Justice and Constitutional Affairs and the Department of Human Resources and Management Development for playing an obligatory role in pushing the process further. Formed in 1984, the IPMM is a professional membership body representing human resources and public management managers, currently there are more than 400 paid up members. The IPMM lake shore annual conference is being held at Nkopola Sun bird from November 4 to 6 with guest speakers like Sarah Richson from Kenya, Associate Professor from the University of Malawi, Ngey Kanyongolo, Jimmy Lipunga formerly from the Privatisation Commission where among others the members will be discussing issues ranging from sexual harassment at the work to work ethics.
Lafarge to explore limestone at Phirilongwe in Mangochi
By Evance Chisiano Mangochi, Mana: Lafarge Cement Manufacturers is planning to conduct a geological exploration mission at Phirilongwe Hills in Mangochi where the company intends to evaluate the prospects of limestone for cement manufacturing. Lafarge Head of Operations and Business Development, Hendricks Manyinda disclosed the planned exploration in Mangochi on Friday during District Executive Committee (DEC) meeting as Lafarge intended to carry out detailed exploration by bore drilling nine holes each of 100 metres deep. He said the K500 to K600 million explorations was meant to establish limestone deposits at Phirilongwe hills that should lead to actual mining of the limestone for cement manufacturing. Manyinda added that Lafarge acquired the licenses from the Ministry of Mining for the explorations and upon successful results the company would apply for a mining license. He said that Lafarge earlier explored limestone deposits in Balaka but were not sufficient to qualify for large scale and investment mining venture hence looking for a supplementary site in Mangochi. Lafarge already did surface sampling and analysis before the intended exploration at 48 square kilometres Phirilongwe area. Members of Mangochi DEC advised the company to ensure that environment at the exploration site remains intact and that there should be no disturbance of life in the community around the site “Be assured that this is only exploration, this is not the phase where we will bring in heavy plants and machinery and emission of dust,” Lafarge Head of operations and Business Development assured the DEC of peoples safety, no dust emission and no disturbing noise in the area of exploration. Before the DEC presentation, Manyinda made another presentation on Thursday during a District Environment Sub Committee where the subcommittee discussed, critiqued and made recommendation for DEC presentation. District Environmental Officer (EDO) for Mangochi, Bruno Kamanga advised Lafarge to take into account all environmental and social issues in the course of exploration to avoid disturbing the ecological system. The exploration at Phirilongwe Hills on 48 square kilometres is expected to take three to four weeks, Lafarge formerly Portland Cement Malawi mined limestone at Changalume in Zomba from 1966 to 2004.