Mining & Trade News

The Passenger Welfare Association (PAWA), a national body that promotes and protects the rights of passengers, has called on government to include rail transportation in hauling fuel into the country.

As part of its input to the 2023/2024 fiscal year national budget, PAWA says its suggestion is a measure to reduce the cost of transporting which would in turn bring down the cost of consumer goods across the country

PAWA President Don Napuwa says in an interview with Mining and Trade Review that government needs to take aggressive approaches in dealing with hefty prices of fuel that together with other economic forces heighten the cost of living in Malawi.

“Fuel drives the economy so if the price of fuel is high, it means the cost of living will automatically skyrocket as the prices of goods and services are also determined by transportation costs,” he says, urging government to devise means of reducing the price of fuel in order to induce a fall in related economic components.

“We propose that government facilitates ferrying fuel by rail,” he says pointing at the effects the Covid-19 pandemic which slowed down the economy and affected forex inflows resulting in fuel shortages and the subsequent escalation of commodity prices.

Napuwa notes that government has a choice either to consider their proposal or to adjust Pay-As-You-Earn tax bracket from K100-thousand to K250-thousand or K300-thousand and raise the minimum wage from K50-thousand to K150-thousand.

He also asks government to actively participate in transportation services especially movement of people.

“We expect some of these practical strategies to be adopted when developing the budget so that the livelihoods of local Malawians are cushioned,” he says

In a separate interview, Minister of Finance Sosten Gwengwe says government is determined to take-heed of every contributions made by stakeholders bearing in mind that there is need to reduce public debit which he describes as a main constraint preventing the country’s economic independence.

Gwengwe says: “Basically most of the proposals that various stakeholders are bringing on-board are things that the Ministry is already considering and now it is working in ensuring that the next budget should be centric on looking at the productive side of our economy with private sector as the main ally of our developmental projections.”

“We want the 2023/2024 budget to be inclusive in such a way that it should reflect the aspirations of the private sector, civil society organizations and all Malawians.”

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says there is need for the Malawi Government to prioritise overcoming the country’s energy challenges when formulating the 2023/2024 budget.  

MCCCI CEO Chancellor Kaferapanjira said during the Ministry of Finance and Economic Affairs’ pre-budget consultation meeting for the 2023/2024 fiscal year at Mount Soche Hotel in Blantyre that electricity supply challenges are decelerating the growth of the country’s manufacturing industry.

Kaferapanjira said addressing the energy challenges will bring out vibrancy, responsiveness and dynamism in the private sector as aspired in MW2063 so that the private sector can accelerate attainment of inclusive growth, wealth, and job creation for all Malawians.

He said: “The year 2022 posed a real challenge to businesses owing to economic shocks that defined it, which included shortages of foreign exchange and fuel, inadequate electricity supply, and high levels of inflation. The impacts of these shocks on businesses continue to be felt today.”

“Therefore we emphasize that government agencies especially Electricity Generation Company (EGENCO) should work with seriousness on electricity, yet private sector has also a role to play by investing in electricity production through alternative technologies for instance solar energy.”

Kaferapanjira bemoaned that EGENCO has taken a long time working on bringing back on stream the 129 Megawatts that was lost at Kapichira Power Station due to Cyclone Anna last year.

He said: “One point I am raising is that the foreign exchange shortage hampering fuel importation is also caused partly by EGENCO because industries now consume about 52 million litres of fuel per month. Such a high consumption is attributed significantly to inadequate supply of electricity to these manufacturers.”

“If EGENCO had played its role prudently, the demand for fuel by industries would have dwindled hence easing stress on fuel importation and consumption for other sectors as well as saving forex that could have been channeled to other vital sectors.”

“Government should move with urgency to stabilize electricity supply and increase electricity generation using both hydro and other alternative sources of energy to support the industrialization drive.”

In his remarks, Minister of Finance and Economic Affairs Sosten Gwengwe pledged that Government will ensure that the budget is in all practical sense aligned to the Malawi 2063 and its first 10-year implementation plan targeting the quick wins especially in the economic sectors that can generate wealth, create jobs, while at the same time entrenching food security and providing the nation with enough resources to retire its debt and enabling Government to sufficiently support social sectors.

“Government has set out the macroeconomic framework for the 2023/24 Budget that looks at the macroeconomic targets such as fiscal and monetary measures and the debt sustainability targets to be achieved by the end of the fiscal year,” he said.

Malawi’s economy is projected to grow by 2.6% up in 2023 from 1.7% in 2022 despite several economy bottlenecks the country is encountering including electricity supply disruptions, shortage of forex and fuel which continue to suffocate business operations.

Geologists belong to a technical expertise that deal with rocks. This technical expertise is branched into many aspects, among others, environment, geotechnical engineering/engineering geology, seismology, volcanology, exploration geology, geoinformatics, geo-statistics, structural geology, petroleum geology just to mention but a few. All these aspects of geology may be applied in the construction/ building industry using geology as the fundamental basis for such tasks. Infrastructures like road construction, bridges, foundations to buildings, railways, tunnels, housing settlements, dams, mine construction require the services and input of a geologist.

• Environmental geology is in one way also associated with Geohazard mapping among others to help in decision making and planning of housing units and settlements.
•  Engineering geology involves application of geotechnics/ geotechnical aspects by identifying geological factors that could affect construction projects.
• Seismologists are concerned with earthquake and seismic studies as in assisting in planning for settlements. They also make decisions based on attenuations of seismicity of an area where they may deduce the return period hence careful planning. Similarly they also work in areas where seismicity is the order like inducing them in oil exploration/petroleum to locate the position of wells, during design and construction of dams,
•  In road, tunnel, railway construction, engineering geologists are very important in analyzing the geotechnical aspects. For example in a tunnel construction a geologist is engaged to determine the type of rock where the railway might pass that will provide a good roof in avoidance of collapsing in and such knowledge may be accompanied by blasting technology to ascertain the blasting pattern that does not cause damage to the existing rocks and gives minimal negative or no impact at all

In mineral exploration geologists are required to do geological mapping, reconnaissance surveys, geophysical surveys, drilling, geological logging, sampling, resource estimation, geotechnical evaluations, geostatistics and in mine geology they are important in ore delineation by controlling the grade, sample analysis, geological mapping as in face mapping, stockpile analysis, ore blending, mine to mill reconciliation etc.

               1. Aspects of geology in Infrastructure Development/Construction

In construction Industry engineering geologist form the basis of foundation in determining say the type of rock to source quarry stone which may be used for building houses or roads. They may aid in planning for the choice of a site for construction of buildings to determine structures like faults. This type of geology analyses the geological and geomorphological techniques and knowledge at the pretext of aiding and facilitating infrastructure planning, geological mapping etc. The foundation of houses or buildings may be on top of these structures and may be underlain by underground drainage or an active spring. Engineering geologists here analyse ground materials to assess the risk factors and offer advice to the best procedures for the development and sustainability of such. They undertake field investigations by collecting and analyzing data where decisions can be made from. The importance of a geologist in infrastructure developments go beyond hydrogeology, petrology and geochemistry, rock mechanics, geohazard analysis  just to mention only but a few..

                2. Importance of Geology in Civil Engineering

Geology plays significant and crucial role in civil engineering discipline since it studies the structure of the earth.

• Geology tries to identify areas that are prone to structural failures arising from geological hazards like landslides, mudflows, debris flows, earthquakes etc.
• Knowledge of hydrogeology helps to understand groundwater where this is connected to water supply etc. A geologists assesses groundwater conditions that can affect the stability of a structure like dam construction. In this case, hydrogeological maps provide distribution of groundwater and the associated depth through groundwater modelling, mapping etc.
• Geological survey is also important because it tries to reduce the risk of incurring a huge cost to the project. In this regard a geologist may be required to make risk assessments of future construction sites.
• Foundation problems of buildings, bridges, roads, dams, excavations occur in direct relationships with the areas in which they are built
• The knowledge about the properties and nature of rocks and rock mass is very important to determine slope and cut stability of say road and tunnel construction.
• Geological maps help in planning by civil engineers. It provides information about structural depositions, faults, folds, joints, bedding planes that have to be carefully analyzed to increase the slope/structure stability.
• If civil engineers know the rock properties they can consider a specific rock type for a particular purpose or use such as aggregate, foundations, building stones, roofing materials since they are able to know the structure of the earth through geology.

      3. Challenges faced by geologists in Malawi

1. Geologist scope is not recognized and appreciated.
2. Lack of knowledge and exposure to work that requires the services of a geologist and constructions where contractors do not feel the need for engagement
3. Lack of understanding of technical language, digital data and interpretations of geology by the people.
4. Limited job market locally.
5. Working in various harsh environments.

Sugar group Illovo Malawi says it is optimistic that better weather and a return to normal power generation by Electricity Generation Company (Egenco) will improve the output from its agricultural operations, which will positively impact production efficiency and factory throughout.

In its audited financial statements for the year ended August 31, 2022 signed by Group’s Chairman Gavin Dagleish and MD Lekani Katandula, Illovo says it will continue pumping in more efforts to improve the performance of the group while providing the ultimate consumers with affordable prices.

It says: “More efforts on drip irrigation and other elements of the agricultural recovery plan replete with excellent agronomic practices, continued grower support, a proactive approach at plant maintenance and efficient production initiatives and embedding of the overall performance improvement initiatives throughout the entire business value chain should result in even further growth in the group results.

“The group will continue pursuing various initiatives in commercial and logistical operations that are expected to contribute to better delivery of excellent quality product pack sizes at affordable prices to the ultimate consumers.”

“Efforts at growth will also be engaged further in the export markets to assist us counter the impact on the business of the scarcity of foreign exchange and further ensure maximization of value from every ton of sugar sold.”

Dagleish and Katandula, however, say that delivery of cost optimization efforts for the business continues to suffer from depreciating exchange rates for the Malawi kwacha against major trading currencies.

They also bemoan increasing inflation and interest rates, and the scarcity of foreign currency and fuel.

“The Group will therefore continue to actively engage significant efforts at cost reduction, improvement of operational efficiency, export revenue enhancement, and domestic market growth to drive delivery of good results for the business and all stakeholders into the foreseeable future,” Reads the statement.

However, despite the challenges, the Group experienced significant growth in domestic market and sold 213 550 tonnes from 175 578 tonnes in the prior period.

The Group achieved 14% growth turnover to K186.6 billion, 24% growth in operating cost profit to K39.5 billion and 31% growth in profit before tax to K38.4 billion over the prior year.

Illovo Group also contributed to the Malawi fiscus by paying and collecting tax on behalf of government amounting to K28.2 billion and managed to fully repay its debt and achieve a net cash position in the year despite the challenges it faced.

However, Cyclones Ana and Gombe that the country experienced in the first quarter of the year 2022, impacted on the delay by the Group to commence cane crushing exercise for the 2022 season by weeks as the wet fields could not be accessed for cane harvesting and haulage.

Dagleish and Katandula state: “The persistent rainfall negatively impacted cane quality and sucrose recoveries and high ash content which caused plant mechanical problems resulting in high incidences of downtime.”

“The two factories planned to start production mid-April 2022 but could not successfully achieve this due to muddy cane, especially at Nchalo and general plant downtime.”

“Both factories eventually started production initially at low throughout rates particularly in the first week of May 2022 while factor throughout was affected by plant mechanical problems resulting from the poor quality of the cane.”

Within the year, domestic revenue for the Group continued to register growth despite the reduced inventory levels in the period from late March to mid-May 2022 resulting from the delayed crushing cane.

“The Group commits to continue contributing to the development of the country through significant employment, trade opportunities, tax contributions, and various statutory payments,” reads the statement.

Local civil engineering firm ProjEx Group has managed to swim through Malawi’s murky economic waters to emerge as a giant in the field of railway maintenance and construction.

Corporate Director for the Group Phillip Tembo says in an interview that commitment to quality is the reason for the growth of the firm, which was established in 2011 as company providing both building and civil engineering services.

“ProjEx is able to execute any kind of job in railway construction and maintenance with expertise. We also have the expertise to work on projects related to water, roads, bridges, building and any other construction and civil works,” Tembo says.

The Company is, currently, executing various projects including: Upgrading and expanding of Chintheche Water Supply System for Northern Region Water Board (NRWB); rehabilitation of Section Chipala (KM507) to Mchinji (KM696 -Chipata Border) Railway Line in Malawi for CEAR and; construction of civil works on rail line at Blantyre Depot for National Oil Company of Malawi (NOCMA).

Tembo says the Company has a well-established Quality Management System (QMS) that aims at identifying principles and processes that ensure quality assurance and quality control of their work.

He says the primary focus of the QMS is to meet the clients’ specifications and requirements and to strive to exceed their expectations.

Tembo says: “ProjEx uses structured processes, with controls at all levels from the managers to the personnel performing each task.

“The aim is to make sure that the different activities are performed according to specifications and requirements and to continuously improve each process.”

“Quality assurance is achieved through our control of documents and records, internal quality audits and internal control of non-conformances.”

“As one way of ensuring quality control and delivering high-quality testing of construction and civil engineering materials, the company invested in establishing a well-equipped materials laboratory.”

“To adhere to specifications, testing of materials is critical and crucial. ProjEx Materials laboratory provides vital testing on soils/gravel, aggregates and concrete. We also have equipment for testing materials on site.”

On Occupational Safety, Health and Environment (OSHE), Tembo says the Company has a full department headed by a qualified manager dedicated to look after OSHE issues.

He says before acquiring or renting a new machine for projects they are executing, they always perform a pre-inspection that enables them to check if the machines conform to different standards regarding OSHE.

Tembo says operators for the machines are also required to undergo through trainings before they operate the machines. 

He explains “While on the work front, operators are required to perform daily inspection checks on the machines to see if they conform to different OSHE guidelines or standards.”

“If the machines are found to have nonconformities, quick efforts to correct them are implemented immediately.”

“ProjEx Group also commits itself to maintaining its equipment as specified by different machine specifications.”

“Whether maintenance is done in the field or workshop, efforts to manage the environment are implemented. For example, if there are spillages, control is done with the presence of spill kits and a waste management plan is also followed to allow proper disposal of the waste.”

However, Tembo describes business in the year 2022 as tough as the prices of most construction materials have risen due to the 25% devaluation that the Reserve Bank effected within the year.

He also says scarcity of foreign exchange contributed to challenges for the Group as the contracts they execute rely on imported materials.

Tembo says: “Things have gotten worse now with fuel supply shortages which have caused distraction of major works for the projects we are doing especially the rehabilitation of the railway line from Chipala to Mchinji.”

“This project uses a lot of machinery and fuel is one of the major commodities being used so our business has been affected badly.”

“Nonetheless, we appreciate the efforts government is doing to overcome these challenges and it is our belief that things will improve and get back to normal.”

Projex Group has offices in all regions of the country and this year has registered a branch in Mozambique and later plans to extend to Zambia.

With over 450 employees, the company has a steel profiling factory currently producing three types of iron sheets under the brand name ‘Mudzi Malata’ namely: Mudzi tile, IBR and corrugated including producing top rolls.

The Malawi Government has planned to construct a railway line from Central to Northern Region under a Public Private Partnership (PPP) model.

The Public Private Partnership Commission (PPPC) says in a statement that it is currently seeking transaction advisory service provider to assist the Ministry of Transport and Public Works in the implementation and development of project.

The statement explains that the transaction advisory services will assist in determining the technical, legal, financial and environmental feasibility of developing and implementing the railway line, under a PPP options report which will recommend the best way to structure the PPP.

The statement reads: “It will further determine the most economical route of the railway line from Central Region to Northern Region to offer best trade services to Malawi.”

“The transaction services will also determine best option mix with the existing ports of Chilumba and Chipoka; existing road network and existing railway lines on the Malawi and Tanzania side as the situation may dictate.”

“The transaction service with also support the Ministry of Transport and Public Works in identifying a private partner to design, finance, construct, operate and transfer the required railway track and associated services which include operations of the locomotives within a given timeframe, quality, budget and scope.”

PPPC states that the Advisor is required to undertake a comprehensive PPP feasibility analysis for the Ministry of Transport and Public Works to establish the viability and affordability of constructing the railway line and operation of associated services.

It says a PPP option is considered an optimal solution and if the client opts to proceed to the procurement stage after obtaining all necessary approvals, the Consultant may be required to provide the necessary technical, legal and financial advisory support for the procurement of the private partner to design, finance and develop the railway line.

“All activities shall comply with the provisions of the PPP Guidelines and procedures Manual and other applicable procurement and PPP principles and regulations,” the statement reads.

It says the consultant will provide the Commission with all the bidding administrative support necessary including advertising, bidder communication, drafting and other administrative support for the entire procurement process.

It further says that an Evaluation Team comprising various stakeholders, assisted by the consultants, will evaluate the bids following guidance given in the Bid procedure as a Best and Final offer (BAFO) process.

The Advisors will assist PPP in the final negotiations comprising of categorising issues appropriately, developing timelines for completions and planning negotiation strategies and processes for reaching an effective agreement as the selected consultant will be expected to provide services for all the two phases which will be covered under one contact.

“Interested consultants should provide their information demonstrating that they have the required qualifications and relevant experience to perform the services,” says the statement.

It says the preferred consultants should have demonstrable experience of at least seven years of providing similar services, that is PPP detailed feasibility studies and procurement support to either the public or private sector or both.

PPP says the firm should further demonstrate having knowledge of the African operating environment as it affects the implementation of the PPPs especially in the railway transport sector.

The statement reads: “In addition, the team should provide evidence of a proven track record in successfully transacting PPPs in the ranges of the required sums of money in the past five years in various sectors.”

“It should also demonstrate having solid team of professionals in the relevant areas such PPPs, Financial and Risk Analysis, Mechanical/Transport Engineering, and Quantity Surveying with individual experience of not less than five years.”

It says the consultants will be selected using Quality and Cost Based Selection (QCBS) method which is in accordance with the procedures set out in the Public Procurement and Disposal of Assets Act 2017.

The deadline for submitting expressions of interest is November 15, 2022.

The Malawi Government is seeking an investor to construct and manage a multi-storey market in the Capital City Lilongwe under a Public Private Partnership arrangement.

Malawi’s Public Private Partnership Commission (PPPC) says in a statement that the preferred investor will be selected in accordance with Quality and Cost Based Selection method (QCBS) procedures and in terms of the Full Technical Proposal (FTP) and Financial Proposal format as described in the request for proposals in accordance with the PPP policy and PPP Act as well as the Procurement Policy, Procedures and Guidelines of the PPPC which can be found on its website: www.pppc.mw.

It says interested eligible investors may obtain further information and inspect the Request for Proposal Documents at its offices.

A complete set of Request for Proposal documents in English language may be purchased by interested eligible Investors upon the submission of a written application and payment of a non-refundable fee of MWK10-thousand

The deadline for submission of proposals is November 9, 2022.

Lilongwe is the largest city in Malawi and is divided into four sectors namely; Old Town, Capital Hill, Kanengo and Lumbadzi.

The design clusters residential, employment and service areas around each centre, in order to optimise travel distances and avoid congestion. The city is further divided into 68 areas.

The Council has four markets in the Central Business District (CBD) namely Central, Tsoka, Lizulu and Area 3 Markets.

The city has experienced rapid urbanisation such that the two main markets are overcrowded with traders.

The congestion of traders in the market has led some of the traders plying their business in the streets hence a need for a new infrastructure to accommodate more traders.

The Lilongwe City Council ranks the planned construction of the market dubbed the Wenela Multi-Storey Market and planned construction of an International Bus Terminal in the city as its flagship projects.

The Cotton Council of Malawi (CCM) says multi-stakeholder approach is imperative in developing the country’s cotton industry and its associated value chains.

CCM’s chairperson Duncan Warren made the call when the council joined the global community in commemorating World Cotton Day that falls on October 7 under the theme “Weaving a better future for cotton.”

The event provides an impetus for economic development of farmers as well as developing nations and it is celebrated across the globe through events that disseminate knowledge and give assistance to cotton farmers, processors, researchers and all other stakeholders about cotton production and marketing.

Speaking to Mining and Trade Review, Warren hinted that among the key challenges facing the cotton industry in Malawi is inadequate production to meet processing demand which needs efforts from various industry players in improving the situation.

In the 2021/22 season, about 25,000 tonnes of seed cotton was produced in Malawi, down from projected 35,000 tonnes due to climate change related problems such as the early season droughts, and cyclones Anna and Gombe which hit most parts of the country.

Warren pointed out that in an era of growing impacts of climate change, increased cotton production offers hope for a healthier planet as it has a negative carbon footprint and degrades 95% more than polyester in wastewater, helping to keep land and water clean.

He explained: “Cotton is the most abundantly produced natural fiber in the world. In 2019, world natural fiber production reached 34 million tons of which cotton accounted for nearly 80% of the total. More than 103 million tons of textile fibers were consumed in 2019, out of which cotton accounted for 24%”

“Within Malawi, cotton is grown by about 100,000 to 400,000 farming families in more than 15 districts in the country, and in some of the districts, stands in as a proxy food crop through which farmers are assured of both food and income security.”

In 2015 alone, the value of the textiles and garments industry in Malawi was estimated at US$ 410 Million which is about 6% of the GDP. Warren said this signifies one of the potential benefits available from growing and developing the cotton value chain.

 “We have also changed our mode of operations, previously we were using zoning system but we have changed to club system whereby farmers are encouraged to form clubs and cooperatives so that they stand a chance to enter into a contract with a buyer, that arrangement has improved the situation a lot in terms of access to inputs particularly seeds which are expensive and it has also improved marketing,” he said.

In his remarks CEO for Cotton Farmers Association of Malawi (COFA) Synowden Mbalafana hailed CCM for championing several noteworthy developments such as introduction of contract farming and hybrid seeds in the cotton industry that has seen local farmers substantially benefiting from their labour.

Mbalafana said Malawi is among a few countries to introduce Bt cotton, which has raised the seed cotton yield from an average of 800 kg/ha to more than 1,500 kg/ha over the past three years. Potentially, these average yields can further be enhanced through improved husbandry practices to about 3,000-4,000 kg/ha.

He said: “From 2018 when we started working with Cotton Council of Malawi we have registered significant improvements in our cotton farming as we have been introduced to contract farming which has seen closer and stronger links between buyers and farmer groups which has led to phenomenal improvements in loan recovery from a poor 15% to over 90%. It has also enhanced competition among the buyers resulting to increase in farm gate prices of cotton.”

In Malawi, cotton anchors more economic activities from agro-dealerships in pesticides, seeds, fertilizer, sprayers; employment in transportation; oil crushing and animal feeds. Cotton also directly employs more than 322,000 people in production, ginning, spinning and fabric production, garments and textiles industries.

A local non-governmental organisation Community Energy Malawi (CEM) says it has planned to construct over 100 mini grids in Malawi’s rural areas that have no access to power from the national grid.

The mini-grids which will utilise either micro solar or hydro technologies will be cabled to economic enablers such as irrigation and agro-processing projects, entrepreneurship activities, clinics, schools and households.

The project is targeting to connect at least 2,000 customers and benefit 10,000 people directly per mini-grid site.

CEM’s Country Director Edgar Kapiza Bayani told Mining and Trade Review that the organisation intends to electrify over 100 rural communities that have no access to sustainable energy.

CEM already operates the 80kW Sitolo Solar Mini-grid in Mchinji which has 735 customers connected with potential to grow to 1,200 customers, benefiting over 6,000 people.

Bayani explained: “The success, impact and experience in operating the 80kW Sitolo mini-grid and our activities in Malawi communities since 2011 have in turn generated demand for similar services across the country.”

“The 100 mini-grids project is envisaged to catalyse creation of 126,000 jobs, enhance performance of existing small to medium scale businesses, catalyse 1,000 new enterprises as well as enhance social services in education, health and general well-being for 1-million men, women, boys and girls. By powering schools, clinics and police units/posts and providing street lights around villages, the project will also support social capital development.”

He also expressed optimism that the project will fast-track economic growth of rural areas and ensure community resilience as it is grounded in climate justice concepts to utilise renewable energy technologies in decentralized energy systems that are resilient and robust, and reduce carbon foot print.

“It will ultimately advance environmental protection by reducing the use of kerosene for lighting and charcoal for cooking,” he said.

Bayani said the project is backed by diverse energy policies in the country such as the Malawi Renewable Energy Strategy which observes that mini-grids have the potential to connect 27% of Malawians in remote off-grid areas.

He said: This vision is also espoused in the Malawi National Energy Policy (2018) and the Malawi Least Cost Geospatial Electrification Plan which posits that minigrids are a cost effective means to electrify communities that are more than 10km from grid.”

“The project will favourably complement government’s goal of increasing access to electricity for Malawians. As Government works on increasing grid access, we are working with off-grid communities and catalyzing small scale factories as is the case at Sitolo where there is a sunflower oil processing facility. The mini-grids will be deployed in accordance with the Mini-grid Regulatory Framework.”

Meanwhile, CEM is working with another NGO Challenges WorldWide in conducting a prefeasibility study for the project and it is also finalizing plans to expand Sitolo Mini-grid to accommodate a new village as well as growing demand to cater for facilities like a third maize mill and other productive loads.

“We secured support from The Pebble Trust of Scotland and some Scottish Friends which is enabling us to visit the communities that expressed interest in mini-grid projects. So far we have visited Mchinji, Ntchisi, Salima, Nkhotakota and part of Lilongwe where about 25 villages have shown potential. We are on course to visit isolated villages that cannot be easily accessed in the rainy season in northern and southern regions before mid-November.”

The organization has also secured preliminary investment deals from different equity, grant making and loan financiers from mainly United States and Scotland, who are anticipating a full investment plan and finalization of other details. 

“A financial institution Green Max Capital is also working with us in a deal that will see the United States Trade and Development Agency financing some of the activities. We are working on setting up a Special Purpose Vehicle called CEM Minigrids Ltd to accommodate equity investors and also operate on business lines”

CEM has executed several leading initiatives in Malawi’s remote areas impacting thousands in 17 districts.

Other than the 80kW Sitolo Solar Minigrid, CEM has also implemented projects such as solar powered irrigation and cold storage; resilient solar systems in hospitals; sun ovens for rural bakeries; and policy advocacy.

Recently, CEM has been shortlisted for the ASHDEN 2022 International Award in the Energy Access Skills category.