Mining & Trade News

Organizers of business and entrepreneurship symposium dubbed Wealth Creation Conference, Sycamore Consult Limited says all preparations are through to host the much anticipated business symposium in the capital city, Lilongwe.

The conference to be held on August 31, 2022 at Bingu International Convention Centre (BICC) is set to bring together local and international business executives and entrepreneurs to share experiences on sustainable means of navigating through economic hardships and wealth creation ladder.

Speaking to Mining and Trade Review, the firm’s CEO Audrey Mwala hinted that the conference has been themed; “Mindset change” with a sole purpose to awaken many Malawians to diverse business opportunities currently at their disposal amidst economic crisis the country is going through.

Mwala stressed that the conference is critical as it has tried to bring together notable practical based business executives and seasoned entrepreneurs who will speak based on diverse experiences attained through years of running successful businesses.

Notable figures expected to speak at the conference include Jimmy Korea Mpatsa of Mpatsa Holdings Limited, Prophet Shepherd Bushiri, Standard Bank of Malawi CEO Philip Madinga and seasoned entrepreneur Napoleon Dzombe.

She said: “The speakers are ready, I talked to them they are not only ready to but also excited to have the opportunity to share their experiences for the benefit of many people in Malawi. Malawi is not a poor country, there is no reason why Malawian should be poor. We need to have the right mindset of wealth creation. Everyone can become rich.”

“This conference is very crucial because it is about making a decision between living a life of poverty or a life of wealth. The steps to wealth creation will be laid bare, not by people that speak theory, people that write or just motivate other people without having the experience of being on the ground to implement, and go through the grind, but these people are talking from experience, sharing their moments of fear, doubt, pain confusion, discomfort and yet victory at the end

“The conference will tame the key challenge local business firms are facing, which is failing to think big and grow big. The conference will show how the speakers started and where they are today.”

Peacock Seed officials assert that they will continue producing drought tolerant maize (DTM) seed varieties to reduce the impact of climate change.

The officials said, they use technologies that increase the availability of maize grain, even in times of drought. The seed producer officials claimed that the technology they have adopted in seed production has led to income stability among small scale farmers, thus driving the agricultural economy base.

Speaking in an interview withthis reporter, the company’s General Manager Matthews Sikwese, said smallholder farmers are the primary target for Peacock Seed whose aim is complementing government’s efforts of promoting subsidy through Agricultural Wide Sector Approach (ASWaP).

Sikwese said commercial and large scale farmers have currently shown growing interest for Peacock products in various regions of the country and they are doing everything possible to ensure that their products reach most areas. Non-governmental and private organizations dealing in agricultural value chains contribute to their customer base.

“Our purpose is to promote the adoption and use of DTMs to rescue farmers from hunger. We promote our technologies through demonstration plots and field days, mainly targeted at showing the productivity and performance of these products locally,” he explained.

Peacock Seeds certified brands include MH 30 which matures within 110-120 days and produces a slender cob suitable for green consumption. MH 31’s yield potential is up to 10 tons per hectare. The grain is also drought tolerant and resistant to diseases such as Gray Leaf Spot (GLS) and Maize Streak Virus (MSV) and adapts to various attitudes.

“CAP 9001 is another variety the company produces which matures within 110-120 days. The yield potential for the crop is up to 14 tons per hectare. The crop is high drought tolerant, high resistant to diseases such as GLS and MSV and adaptable to various attitudes,” he said.

Another brand the seed manufacturer produces is Peacock 10 which matures between 110-120 days. This variety is sweet when roasted, and its yield potential is up to 240 bags of 50 Kgs per hectare. It’s also high drought tolerant and good for Dambo farming, and high resistant to diseases such as GLS and MVS. 

Kholophethe and Naganga beans, CG7 groundnuts, Cow peas and pigeon peas, Kilombero and Faya rice are the other seed varieties the company manufacturers.

Felix Jumbe, the company’s Managing Director, said they create consumer awareness on their products through Education and Communication materials such as, brochures, fliers, leaflets and banners. 

Jumbe said there has been an increase in demand for their seeds, leading to the company’s sales drastically growing from zero to 54 percent, which he attributed to winter farming most farmers have lately embraced in the country. Peacock Seeds, which received an award in 2015 for being the best producer of improved seed varieties in conjunction with the maize commodity team at National Research Institute, is currently producing and promoting the use of drought tolerant hybrid maize seeds.

Peacock Seeds has for the past five years been producing and marketing the seeds within Malawi.

Cotton farmers have been complaining about poor cotton seed germination, less resistant to disease and are urging companies that produce seed to improve the cotton genetics and technologies as one way of dealing with the problems.

One of Malawi’s cotton seed producers, Quton Limited, says it has heeded to farmers’ complaints and will support modern cotton cultivation practices through provision of extension services and high quality seeds to local farmers so that the country achieves improved cotton production.

Quton Limited’s General Manager John Ackim Lungu made the promise in an exclusive interview with this reporter.

He explains that the company has put in place strategies that allow farmers to access improved cotton genetics and technologies.

“We are committed to bridge the existing gap in terms of technologies available for production of cotton, which is one of the most important cash crops in the country,” he says.

According to Lungu, cotton production directly supports 300,000 families and the revival of the crop as an income generator and a forex earner will have a huge boost to the agrarian community and the nation at large.

The company says it has in place modalities to assist the farming community realize their potential of becoming a bigger scale highly robust enterprise that produces and supplies high quality cotton.

For the past two years, Quton has been attempting to provide relevant extension services to farmers who grow cotton in the country by recruiting and training energetic individuals on cotton agronomy around BGII Bollgard cotton seed who in turn, visit allocated Extension Planning Areas (EPAs) to continuously engage farmers throughout the crop season.

“This extension programme has been in effect for two successive years with over 20 field extension officers on the ground and it includes several other important stakeholders in the industry with farmer at the center,” he says.

So far, the General Manager says the programme has proven to be a success and it will continue.

Quton Limited’s main product is Bollgard (BG) II Hybrid Cotton Seed, which is incorporated with the BG2 technology, a revolutionary solution to the low productivity and Lepidopteran pests of cotton crop.

The variety produces two Bacillus thuringiensis (Bt) proteins Cry1 Ac & Cry2 Ab which together manage the key Lepidopteran pest of cotton known as African Bollworm but also provide substantial control of Pink Bollworm and Tobacco Caterpillar.

Lungu touts BGII technology as a highly profitable variety determined by its unique attribute of being a high yielding crop on the output and reduced cost on the inputs.

Meanwhile, the company say it is testing new hybrids in its research programme to improve on variety characteristics beneficial to farmers.

Quton distributes seed brands through Cotton Council, Ginners and directly to the farmers as well.

“While this model of distribution continues, we have also started working with agro-dealers to improve our outreach and cover remaining demand. All we want is to provide farmers with the choice to invest in better seed technology,” he elaborates.

Lungu further says being the only organized cotton seed Company in Malawi brings a lot of responsibility both in actions and results.

“We see ‘quality of seed’ as the key differentiation for us. We set and abide by highest quality standards in terms of packaging, purity, performance and results. And we are dedicated to reach out to the farmers with every agronomy related support required and be there with them to share their success,” he says.

Besides cotton, Quton also produces a variety of vegetable seeds that are tailor-made to local growing conditions and their pledge is to evolve in terms of improving the existing seed technologies and bringing in the new ones.

“We intend to diversify our business by looking into crop seeds that make business sense. We have already introduced ourselves to the vegetable business and would like to increase the presence of our products and our messages. We want farmers in Malawi to see and feel us growing close to them in terms of support and products,” he says.

 Lungu says Quton also wants to exert its uniqueness through planned establishment of robust mechanisms of extension messaging and complaint handling to ensure that they deliver on objectives of taking the cotton industry in the right direction.

Currently, the company says it is working with the Department of Agriculture Research Services (DARS) so that the genetics of the seeds they produce should conform to Malawi environment.

A local Nongovernmental Organization (NGO) that works in the area of energy and environmental conservation Renew’N’Able Malawi (RENAMA) says renewable energy sources are key in the development of the country.

The organization has said this following the Department of Energy Affairs’ (DoEA) Access to Clean and Renewable Energy (ACRE) project, being implemented with support from the United Nations Development Programme (UNDP) which will run from 2020 to 2023.

The goal of the project is to increase access to clean, affordable, reliable, and modern energy by enhancing the sustainability, efficiency and cost- effectiveness of energy technologies.

Speaking in an interview with this reporter, the organization’s Advocacy and Communication Officer Kenneth Mtago said, there is a need for the country to help in migrating Malawians from using traditional energy sources to those which are environmentally friendly.

 “I feel it will take ages to move 82 percent of Malawians who are depending on unsustainable sources of energy which is unclean to clean energy,” he insinuated.  

He, however, expresses concern that the involvement of stakeholders working in energy to realize the goal is minimal.

“For instance, there is no advisors at district level to spur and support this project by transferring technical skills to stakeholders supporting government efforts in ensuring that Malawians who are facing energy poverty are supported,” he laments.

So far the Access to Clean and Renewable Energy (ACRE) project has not yet identified and delivered affordable clean and renewable energy solutions, including financial and regulatory incentives, to address energy access challenges which target poor and vulnerable women, men, and children, commercial businesses and entrepreneurs, and the social sector.

“As much the project outcomes seems to be of help to reduce energy challenges. I still feel stakeholders’ involvement is paramount to realize the goal,” Mtago reiterates.

He also bemoans lack of reliable energy sources in health facilities which he said, is one of the causes of high maternal mortality rate in Malawi.

“Unreliable energy sources can discourage nurses and doctors to work in rural areas and storage of delicate medical items such as blood and medicines that require refrigeration becomes a big challenge,” he hinted.

Mtago said Renew’N’Able Malawi is implementing a project supporting the Ministry of Health to reduce maternal mortality rate through rehabilitating solar systems in selected health centres in Thyolo and Phalombe districts.

The project ensures that water is available to these health facilities through solar pumps, and provides training to local artisans who make cook stoves (a new design of stoves) that uses pallets and sustainable charcoal.

Three days have elapsed without Janet Chikoko, a resident of Senti Township in Lilongwe, taking any meal because she has no fuel to use in her kitchen due to the increase in charcoal prices and hefty electricity tariffs.

Not knowing what to do with her condition, she wishes government and other stakeholders in the energy sector had broadened their operating base through providing people with sustainable alternative energy sources to benefit those with limited financial resources.

This is a common experience in most parts of the country, both in the rural and urban areas, where people are starved not because they have no food but the scarcity of affordable fuel.  

This is where a call for swift identification of proper energy sources is required.

Agri Smart Malawi (ASM) is a possible solution to fuel challenges Malawians are currently experiencing. The organization has invested substantially in the production of Biogas which has proved hopeful to some Malawians.

ASM CEO Julius Chilembwe says his organization decided to venture into energy sector specializing in Biogas production as one way of supplementing government’s efforts of conserving natural resources through providing people with sustainable energy sources.

The organization trains people in the biogas and briquettes production. He also explains that to motivate people to accept the modern fuel form, the organization provides them with cheaper biogas plants. He adds that, in a bid to reach people with messages on the importance of embracing biogas as energy source, the organization which is currently working in the central region, works through committees.

“As an organization working in the energy sector, we are determined to ensure that people in the country embrace biogas as energy source. To ensure that our dreams are realized, we instituted committees that help in our operations, and we are currently training people in making biogas briquettes which are critical in natural resources conservation,” Chilembwe explains.

On the other hand, ASM which also provides services in organic farming through the provision of organic fertilizers and pesticides that help in the reduction of water pollution, is working in the promotion of forestry conservation which he says, is done through the promotion of permaculture.

To ensure that their activities benefit the country, Chilembwe urges government to vigilantly work on ensuring that Malawians start accepting new energy sources including biogas.

He explains that it is imperative for government to directly engage people at grassroots on matters concerning energy rather than imposing on them questionable policies and legislations.

“The challenge we have discovered which prevents Malawians from accepting dynamics happening in the energy sector is government’s failure to fully engage people on decision making regarding shifts from one form of energy to another. My appeal, therefore, is that government should engage people directly from the grassroots through holding intensive sensitization meetings whenever there are new policies and legislations on energy,” Chilembwe says.

In an attempt to market potential business opportunities able to lure foreign investors into the country, the Malawi and Belgium will hold a business webinar on September 22, 2022 aimed at discussing business opportunities between the countries.

A press statement by country’s investment and trade promotion and facilitation agency, Malawi Investment and Trade Centre (MITC) says the webinar which is targeting the private sector will discuss the business climate and investment opportunities available in Malawi to attract potential investors from Belgium.

The statement also explains that the meeting will provide a platform to strengthen and promote trade links between Malawi and Belgium.

Public Relations Manager for MITC, Deliby Chimbalu has described the business webinar as an important platform for exchanging important business information between Malawi and Belgium.

Chimbalu said: “This webinar is a great opportunity for our private sector to know and understand the available business opportunities in Belgium.”

“It is also a perfect space for them to learn and understand the market requirements especially those wanting to export to Europe in general and Belgium in particular.”

The business webinar is being organized by the Malawi Embassy in Brussels in conjunction with MITC and the Belgium Chamber of Commerce, CBL-ACP.

Belgium is one of Malawi’s top export destinations and recent data from the Observatory of Economic Complexity (OEC) World indicates that in 2020, Malawi exported about $161million to Belgium.

The main products that Malawi exports to Belgium are raw tobacco, sugar and tea. 

As a promotion agency, MITC identifies, develops and packages investment opportunities in Malawi; provides a professional service to all clientele; brands and markets Malawi as an investment destination; retains and expands trade and export activities and links opportunities to the developmental needs of the Malawi community.

MITC also operates as a One-Stop Service Centre for business start-ups in Malawi.

Knowledge is power and seeing is believing. In a bid to bring awareness to farmers on the performance of different varieties of seeds, local umbrella body of all seed producers in the country Seeds Trade Association of Malawi (STAM) recently organized field days in the Central, Northern and Southern regions of the country.

During the field days, the Association showcased various seed varieties to farmers to enable them appreciate how they perform in respective areas of the country. One of the areas where the event took place was Mikundi Agricultural Extension Planning Area (EPA) in Mchinji District.

Speaking in an interview on the sidelines of the field day in Mchinji, STAM secretary general, Nessimu Nyama said the event was critical and beneficial to farmers because it (event) enabled them appreciate how various seed varieties can perform in various parts of the country with diverse climatic conditions, weather, rainfall patterns and soils.

According to Nyama, seed varieties which were used as samples in the project, were obtained from 22 seed companies which are STAM affiliates. He added that the Mchinji event was also aimed at helping farmers to move with time in as far as seed selection is concerned.

“Farmers are wise enough to make their own choices. You know there are issues of climate change that have swept across the globe. So we would like to see farmers moving with time because, they might be trusting seed varieties that cannot cope with the current climate change. As you are aware, the rains are not as prolonged as they used to be. We have short rainy seasons these days. So we are urging farmers to go for varieties that can do well even when the rainy season is short,” Nyama explained.

STAM general secretary therefore encouraged farmers to buy modern seed varieties so that they can realize bumper yields. He also highlighted that quality of seeds is not only crisped in productivity but other aspects as well that include drought tolerance and disease resistance.

Nyama who is also a board member of Africa Seed Trade Association (ASTA), challenged farmers in the country to participate in field days to learn more about hybrid varieties that are performing better than what they used to know.

Quizzed on the fairness of the exercise, Nyama said: “there is no biasness towards any company. We have varieties from all the companies for farmers to choose and there are no company names on the tag, instead code numbers were used to represent names of companies. As an umbrella and nonprofit-making body, we promote all our member companies equally.”

On this point, he applauded government through the ministry of agriculture for introducing the Affordable Input Program (AIP) describing it as one of the channels that STAM uses to convey its technologies to the farmers.

“The program takes huge quantities of maize seeds to the farmers. I would therefore like to ask the government to continue with the program which was modelled in a way that allows participation of companies that trade in seeds. Through this program farmers are also given a wide choice of seeds,” he said.

Nyama said STAM works with government in many fronts and said that the association hopes that the existing partnership between the two parties will continue so that together they can promote and take agriculture to higher levels.

Taking his turn, agricultural extension coordinator for Mikundi Extension Planning Area (EPA), Eliya Denis, said the field day helped farmers to appreciate and select best seed varieties that can do better in their localities.

He said the field day was a welcome development and that his office encourages such activities.

“I understand that Malawi is not spared from climate change. So we emphasize much on demonstrations and also field days for the farmers to select best seeds that can suit a particular area,” he said.

He, however, bemoaned the use of recycled seeds in his area by most farmers, saying the practice negatively affects the volume of their harvests. He also complained that some farmers are duped by some traders who sell to them counterfeit seeds that consequently have a negative bearing on the yields.

“We deal with this practice through advising farmers to use only certified seeds for them to realize higher productivity. There are some traders who sell fake and uncertified seeds to farmers, but I commend government for the job well done in conjunction with STAM to curb the malpractice by putting security features on seed packs to ensure that farmers use certified seeds,” he explained.

One of the farmers who attended the field day, Agatha Siveriyani from Kapalamula Village in the area of Traditional Authority (T/A) Nyoka in the district said, the event was helpful because it was an eye opener to farmers particularly when making decision on the types of seeds they should use in their area.

“In the past, we were just buying seeds without knowing their attributes which consequently affected our yields. The demonstration farm, has helped me to select right seeds and I am expecting more yields this season,” said Siveriyani.

One of the profound hiccups that prevent local farmers from realizing their dream of creating for themselves heaven on earth through farming is their inability to access high-quality farm inputs. Financial and cash flow constraints exacerbate the situation and for local farmers, getting such inputs on credit has tremendous potential to boost their activities. One Acre Fund is working in Malawi to bridge this very gap.

One Acre Fund has been operational in Africa since 2006 and came to Malawi in 2013. The organization is passionate about alleviating local farmers’ plight and therefore allows them to access farm inputs on credit to ease the hurdles they experience. Currently, One Acre Fund is operating in the southern region of Malawi: Zomba, Machinga, Mulanje, Blantyre, Chiradzulu, and Thyolo districts, serving over 62,000 farmers and is planning to expand to other parts of the country as well so that more farmers can benefit from its credit schemes.

One Acre Fund Client Acquisition Lead, Nandi Bwanali said in order to ensure that farmers benefit from their activities, the organization closely follows up with its clients throughout the year with pieces of trainings. According to her, through One Acre Fund’s service, maize farmers are able to improve their yields by up to 50 percent.

Over and above the provision of farm inputs to farmers on credit, One Acre Fund strives to provide farmers with access to alternative profitable markets through its commercialization program. Bwanali elaborated that One Acre Fund facilitates the sale of harvests from farmers at premium prices: providing them with a cut and dry market.

“We ran a trial where we partnered with private buyers to buy eight (8) metric tons of groundnuts and 136 metric tons of paddy rice in 2021, mostly from Zomba and Machinga rice schemes,” Bwanali said.

In a ploy to serve the marginalized, underserved, and rural-based farmers, One Acre Fund concentrates its credit program only on people in rural areas.

“We welcome competition from other organisations that provide credit to farmers because it means that our farmers get the best, most pocket-friendly product and ever-improving service. We try to set ourselves apart by going a step further to provide training and additional extension advice after we provide the inputs on credit,” she mentioned.

The organisation does not only offer inputs on credit but also delivers them to farmers; thereby making their products easily accessible and affordable. She explained that taking the product to the farmers’ doorstep reduces the time that they invest to acquire the inputs as well as ensures timely access to the high-quality inputs.

On guaranteeing that farmers get genuine fertilizer, One Acre Fund only buys from reputed companies, ensuring that each lot or batch of fertilizer comes with the right quality certificates and lab reports. The organization does not have its own brands of products but procures fertilizers which it sells to farmers from national and global suppliers. The organization abides by the relevant standards set by the Malawi Bureau of Standards in order to ensure that there is good stock management and quality checks so that farmers get the best and most cost-effective products.

“We track each lot down to the site so that we know that no ‘outside’ fertilizer has suddenly entered our supply. One Acre Fund stores all fertilizer centrally and then delivers it directly to farmers, meaning that the fertilizer does not pass through many hands – we maintain the chain of custody very tightly, essentially reducing the chances that any counterfeit fertilizer could enter our chain,” she elaborated.

Bwanali added that the organization has a very engaged client base that is supported by its field officers, all of whom are empowered to call ‘Customer Engagement,’ toll-free number immediately if there are any issues.

“We are proud to say that in eight years of operating in Malawi, we have had almost no cases of fertilizer quality problems. This is also a testament to the established manufacturers and suppliers in the Malawi market, most of whom are Fertiliser Association of Malawi (FAM) members,” Bwanali said.

The organization is thankful to its customers for choosing to buy farm inputs from them, out of the other available players on the market. They plan to reach more farmers and bring more impactful products and services to farmers.

One Acre Fund is a non-governmental organization that aims to serve smallholder farmers through the provision of inputs on credit, agricultural training services, market access services, and the provision of high-value trees. Its sole purpose is to help reduce hunger and poverty in the lives of those it serves and to ensure higher levels of resilience among farmers.

Hospitality group Blantyre Hotels plc says it is progressing with preparations to construct a hotel in Lilongwe as part of its expansion plans.

In a summary of audited consolidated and separate financial statements for the fifteen months ended 31st December 2021 signed by Board Chairperson Emily Makuta, the group says it has finalized a subscription agreement and capital raise in respect of a majority portion of the estimated project cost.

Makuta states: “During the year, the project was granted planning permission approval by the Lilongwe City Council to develop the property.”

 “The Malawi Environmental Protection Authority also granted the approval to proceed with the project in accordance with the requirements of the Environmental Authority Act (no 19 of 2017).”

“The project developer is now finalizing the main contractor agreement and planning for site mobilization in fourth quarter of 2022 based on the revised development agreement.”

 The group said it is committed to the implementation of the project, despite challenges caused by the Covid-19 pandemic and the recent devaluation of the local currency.

“The Group is finalizing the planning for its capital raise for the purpose of funding furniture and equipment for the new hotel,” says Makuta.

She also says the first four months of 2022 have started off positively as the group has performed better than projections for both revenues and expenses.

“We will continue to build on this strong momentum,” she says.

Makuta also says the macroeconomic outlook for the next twelve months looks promising as domestic and international travel gradually resumes and with the Government relaxing Covid-19 protocols therefore 2022 will be a year of recovery for the group.

“Our strategy is to drive operational excellence while personalizing the experience for our guests through the Marriot Bonvoy rewards loyalty program which will grow our business and drive profitability. We will continue to deliver excellent food and beverages and also improve efficiency,” she says.

Group revenue for the 15 months amounted to K1.97 billion which was 6% lower than the revenue realized in the 12 months ended 30 September 2020. Hotel occupancy averaged 23% in the period compared to 20% in the previous period. The decrease in revenues was due to the impact of the Covid-19 pandemic.