Mining & Trade News

Malawi Milk Producers Association (MMPA) has expressed concern over low milk and dairy products consumption among Malawians.

The organization which is a mother body for all milk producers associations in the country says local milk intake has stagnated for over two years now which it says is a worrisome development to the local dairy products manufacturers.

Herbert Chagona MMPA National Director said in an interview that it was worrisome that most Malawians do not take milk and its products as part of their essential daily diet since they perceive it as a luxury.

According to Chagona, Malawi is the lowest milk consumer in the Southern African Development Community (SADC) region where the highest milk consumer only consumes eight litres per year which he said is against World Health Organization’s recommended quantity of 100 litres per person per year.

Chagona explained that besides perceiving milk consumption as a luxury, there are also other prominent factors leading to the decline in dairy products consumption including high poverty levels which forces people to use their income on basic commodities.

He, however, asked Malawians to change their perception on milk and dairy products, which he said are crucial in human development.

Chagona also asked dairy products manufacturers to ensure that prices for their products are affordable to most poor Malawians.

“Most people think that milk and other dairy products are designed for the rich just because their prices are usually exorbitant. Let me therefore ask dairy products manufacturers to make prices of their commodities affordable to people with diverse economic strengths,” said Chagona

He also asked dairy products manufacturers to establish their industries in all parts of the country in order to make their products accessible to all people across the country.

Chagona expressed concern that the northern city of Mzuzu does not have any milk processing and dairy products manufacturing industry, despite that the region is one of the highest milk producers.

He said the unavailability of milk processors and dairy products manufacturers in the Northern Region forces farmers to sell their milk to vendors at very low prices.

” The establishment of dairy processing industries in the Northern Region would help dairy farmers have access to reliable markets, while providing people in that area with dairy products which are important to their health,” said Chagona.

MMPA recently imported dairy cattle and goats which were distributed to the organization’s members in a ploy to meet the demand for dairy products in Malawi.

MMPA was established to coordinate all dairy farmers in Malawi and provide them with technical skills on how best they can benefit from their work.

In an attempt to mitigate challenges being faced by women entrepreneurs in the country, the Malawi Government has embarked on institutionalization of a number of business and industrial reforms.

Speaking during the first Annual COMESA Federation of Women in Business (COMFWB) Trade Fair in Lilongwe, Minister of Trade Sosten Gwengwe said the reforms have been instituted in a bid to change the country’s trade composition and promote industrialization realizing the major role women has in the business sector.

He said: “The Government of Malawi is implementing the National Industrial Policy (NIP) and National Trade Policy (2016 policies).

“The NIP has the objective to maximize domestic value addition and structural transformation which is a theme adopted at the continental level, the Tripartite and regional levels.

“Particularly, in setting a new path for the structure of the economy from dominance by agriculture and towards a larger share of manufacturing in Gross Domestic Product (GDP), the NIP adopted the clusters that were identified in the country’s National Export Strategy and adds clusters that Malawi has capacity in and vital for import substitution.”

He said the Government has instituted National Trade Policy to address constraints on the supply side in order to grow the economy at national level.

Gwengwe added that the policy will also build the country’s business sector to respond to improved market access and build a competitive economy.

The Ministry of Trade is implementing a number projects with assistance from various development partners such as the European Union, World Bank, United Nations Development Programme (UNDP), UK’s Department for International Development (DFID), United States Agency for International Development (USAID), among others.

The projects include the Enhanced Integrated Framework, Export promotions, the Micro, Small and Medium Enterprises Business Incubator, Malawi Enterprise Productivity Enhancement Project, Trade Related Facility, among others.

He stressed that the projects will provide capacity and technical support programmes to businesses including Small and Medium Enterprises so that stakeholders can improve their knowledge and skills in value addition activities as well as build linkages with both domestic and international markets.

Gwengwe urged local entrepreneurs to be participating in the regional trade fairs and exhibitions saying such creates a platform to integrate into regional value chains and overcome some supply side constraints.

In his remarks, Minister of Agriculture Robin Lowe said there is need to resuscitate agribusiness development in the country as it has potential to spur socio-economic development and growth.

“However, this is possible if all players in the agriculture sector, including financial institutions and farming communities get committed towards investing and improving their performance in agribusiness and pulling in the same direction, “ he said, “This requires collaboration and coordination of various interventions including banking services that can benefit agribusiness and agriculture sector growth in Malawi.”

Lowe said the country requires employment of some strategies for it to restore its glory in agribusiness.

The strategies include: promoting agribusiness financing; promoting savings and investment culture by having rural based campaigns and awareness meetings; facilitating innovative financing mechanisms and arrangements for farmers; facilitating provision of risk-reducing initiatives in the agriculture sector including crop insurance, warehouse receipt system and other initiatives and; promoting electronic banking initiatives.

He also said the country needs to institute promotion and financing anchor farm model initiatives which heavily relies on financing.

Lowe said farmers and all players in the agriculture sector lacks support from the banks for them to excel in the industry.

He said the country also needs to invest in developing skills of managing various processes across value chains and value chain development; and promote development of the market infrastructure.

The aagricultural sector employs 85% of the population, contributing 65% of export earnings and 28% of Gross Domestic Product (GDP).

Rainy season is finally here, the time farmers are usually busy in their gardens growing various types of crops, for sale and consumption. But in Malawi, the number of tobacco growers during this year’s season has drastically gone down.

Malawi, whose economy is agro based has relied on tobacco as the main revenue earner for many years but for some time, the industry has been going down drastically, something that has affected the country’s economy.

Commentators say anti-smoking lobby championed by the World Health Organization (WHO) and poor market prices for the leaf are the major factors affecting the local tobacco industry.

Tobacco Commission’s (TC) recent report revealed that the number of farmers who registered to grow the leaf during 2020-2021 season had gone down by 15 percent, the development the organization described as worrisome and retrogressive to the development of the industry.  

The report explained that by September 30, 2020 only 45,000 farmers had registered to grow the green gold during 2020-2021 season, the figure which is lower compared with 53,000 farmers who registered in the previous season. TC extended the period to October 14, in a bid to woo more farmers and there was a slight improvement in the number of farmers who registered after the extension.

“The Commission extended registration and licensing period after realizing that the number of farmers who had registered previously was small. Extension of the period was done in a bid to entice more farmers for the exercise,” reads the report.

But some farmers have said, they are no longer interested in tobacco growing because the industry is no longer lucrative as it used to be previously, something they have majorly attributed to reduced market prices for the commodity. They have therefore said, instead of investing their energies in tobacco growing, they would invest it in the production of other crops that might benefit their families.

Farmer Hananiya Chimala of Mitundu in Lilongwe, said he has been in the industry for many years, but has never experienced the kind of nightmare they are facing these days. He said the many challenges faced have forced him to drop. He cited wretched market prices for the leaf as one of the major challenges faced.

“I have decided to quit tobacco farming because it is no longer paying me sufficiently as it used to be at the time I was joining. Generally, the industry started staggering soon after the World Health Organization (WHO) started the Anti-Smoking Lobby saying smoking is a health hazard,” said Chimala.

While Henderson Chinyama another farmer from Nathenje in the same district, accused buyers of favoring contract farmers than individuals, so he has decided to quit tobacco farming which he said is no longer reliable.

“I feel that we are cheated by our leaders, who cannot make solid decisions on tobacco pricing. Almost all the presidents we have had assured us that, they would do anything possible to improve the leaf prices but nothing is done to that effect so I am fed up with their rhetoric,” complained Chinyama.

Malawi realized K125 billion from the sales of 110 million Kilograms of the leaf in the just ended tobacco growing season.

Poultry Industry Association of Malawi (PIAM) has expressed worry over the increase in cases of illegal poultry importation, the conduct the institution says weighs on business for local farmers and government’s revenue collection.

PIAM, which is the mother body of all poultry associations in Malawi has expressed the concern following the increase in the number of cases of illegal importation of poultry and poultry products. The organization says, if the malpractice is not checked, it might have grave effects on local poultry industry and the national economy.

PIAM Technical Advisor Eric Chuma lamented the organization receives reports of people bringing into the country birds from other countries every week.

He said most people smuggling chickens into the country sell the birds at cheaper prices than those produced locally which negatively impacts on business for local farmers.

Chuma revealed that smugglers use unchartered routes thereby evading import duty which is a loss to the country in terms of revenue collection.

“As a country, we should vigilantly ensure that illegal poultry importation is halted. The practice is killing the local poultry industry and impacting negatively on collection of taxes,” said Chuma.

Most chickens are smuggled from Zambia and are locally offloaded in Lilongwe at Area 25, Mtandire, Mtsiliza and Kauma. While in the North, the birds are offloaded at Mzimba boma and Jenda.

Chuma, however, expressed optimism that the issue will be addressed saying his organization is working in collaboration with the Ministry of Trade, Police and Malawi Revenue Authority (MRA) to arrest the situation.

He asked local consumers to support the local poultry industry which, he said, contributes about 11% to the country’s Gross Domestic Product (GDP).

There are also worries that illegal poultry importation may lead to transfer of infectious diseases into the country.

Meanwhile, PIAM has asked the Malawi Government to remove tax on the importation of products used in poultry production in order to support the local industry.

“PIAM believes that if products used in poultry farming are cheaper, cases of smuggling of chickens will be minimized because the local products will sell at cheaper prices compared to imports,” he said.

Police in Mchinji recently intercepted trucks smuggling poultry into Malawi from Zambia.

The construction of a solar power plant to supply Likoma Island with 24 hours of uninterrupted electricity has earned the Electricity Generation Company (EGENCO) praises.

Before the solar energy supply, Likoma and Chizumulu Islands were powered by 14-hour long diesel generated electricity.

Speaking during the opening ceremony of the power plant at Likoma, Traditional Authority (TA) Mkumbwa III thanked EGENCO saying that the new electricity supply plant will go a long away in developing Likoma Island.

He stressed the need for business people and even the government to invest in Likoma through the construction of hotels and other businesses so that the island develops through tourism.

CEO for EGENCO William Liabunya said that the power utility constructed the solar powered plant to do away with the high environmental risk associated with diesel generated electricity as well as to avert the danger of using and storing diesel.

“It was costly to bring diesel to the Island. The logistics of getting the diesel in drums, into a ship then offloading and floating them to land. It was very costly and dangerous.” he said

Liabunya remarked that the coming in of the 24 hours’ solar electricity has improved the socio-economic life of the people of the two islands while ENGECO has reduced the costs of managing diesel engines.

ENGECO was using 17 million Kwacha every month to supply electricity to the islands for 14 hours only.

EGENCO has invested K3.2 billion in the solar project but Liabunya said that the project is worth the investment as the power plant will operate for many years.

Energy Minister Newton Kambala said that his ministry is commitment to supply energy to the nation and that he was very happy to supply Likoma Island with 1000 kilowatts while Chizumulu Island has received 300 killowatts.

Kambala acknowledged the developments activities that the power supply project has triggered for the islands and has since promised to liaise with the Ministries of Public Works and Transport, Tourism, Education and Health to coordinate on development activities for the islands.

He said Likoma Island is a beautiful place that can bring a lot of revenue to the country through tourism and hence the government will ensure that it develops.

“This is a very good place where we can attract a lot of tourists if we can invest in proper infrastructure in terms of hotels and good roads, this can bring into the country the much needed forex,” he said

EGENCO has so far pleaded with the people of Likoma to take care of the power plant and not to vandalize the panels in order to ensure a sustainable power supply. TA Mkumbwa has since said that the Chiefs of the area will see to it that the power plant is safeguarded.

The 3.2 billion project started in August 2019 and was expected to end in July 2020 but was delayed by logistical complications related to the Covid-19 outbreak which restricted some technical teams from coming to the country. The solar plant was constructed by NR Electricals, a Chinese Contactor.

Minister of Energy Newton Kambala says the Malawi government is working on scaling up energy production through a diversification drive from overdependence on hydropower to embrace various sources of energy.

The Minister said this at a press conference held Saturday by the Ministry in conjunction with power utilities the Electricity Supply Corporation of Malawi (Escom) and Electricity Generation Company (EGENCO) to give an update on the country’s efforts to ensure adequate supply of electricity across the nation.

The minister clarified that government has plans to connect people without electricity to the national grid using power generated through hydro, fuel, solar, gas among other sources of energy.

“The energy situation is currently progressing well since when the grid is fully loaded, it only remains with a deficit of about 50 MW,” Kambala said.

He said as the demand for electricity continues to grow, government is coming up with more interventions to deal with the demand and take care of any inefficiencies.

He said there is progress on the construction of a coal fired plant at Kammwamba in Neno, which is meant to give the country about 300 Megawatts of electricity and Mpatamanga Hydropower Plant that is to provide 350 Megawatts.

“Once done, these projects have the capacity to generate in excess of a gigawatt,” he said stressing; “with this, we will see more investors coming to the country.”

Kambala said that his ministry has plans to decentralize the Department of Energy’s activities for more efficiency on the ground.

To achieve an efficient decentralised structure, the minister said that there are plans to recruit energy officers who will be placed in each and every district of the country with an aim of meeting goals of Malawi Rural Electrification Program (MAREP).

“These officers will fill an existing void where the rural areas do not have qualified personnel responsible for determining where to connect electricity,” said the minister assuring the nation of accountability and transparency in the process of accessing electricity.

Forestry conservation on Malawi’s highest mountain massif, Mulanje Mountain, faces huge challenges from massive encroachment, plundering and illegal trafficking, says Mulanje Mountain Conservation Trust (MMCT), a conservation crusader.

MMCT says encroachment and deforestation, triggered by overpopulation and increased demands for forest products for domestic use is fast diminishing the mountains’ vegetation and cover.

Charcoal burning, illicit logging and transfer of timber as well as the highly protected cider trees and other forest products by community members are some of the major activities that have negatively affected natural resources conservation on Mulanje Mountain.

The Trust’s Programme Officer Kondwani Chamwala says the progress being made by MMCT constantly encounter frustrations from encroachers and illegal loggers.

“Encroachment and destructive bushfires suppresses growth of forest plants,” he say.

Chamwala, however, points out that his organisation is not relenting on exploring awareness campaigns through community outreach programs using drama and other interactive approaches to educate the masses on conserving the mountain’s natural resources.

Meanwhile, the Trust says it has plans already in place to preserve the mountain’s greenery, especially now that the rainy season has arrived.

Chamwala says for the past three rainy seasons, the Trust has been promoting the planting of the endangered Mulanje Cider, which has earned itself an accolade as the National Tree.

MMCT is also planting other tree species on the mountain to provide community members with alternative benefits away from the endangered species and immature plants.

Mulanje Mountain, Malawi’s largest and Africa’s third highest, is one of the country’s biggest tourist attractions.

One of the Africa’s non-profit organisations working on fostering the agenda of emerging entrepreneurs, Kukaya Foundation, will Saturday host a luncheon for participants gracing the Global Entrepreneurs Week (GEW) commemoration currently underway in Blantyre, Malawi.

Speaking in an interview with Mining and Trade Review, CEO for the Zimbabwe based foundation Ruzivo Chipeta said the luncheon will be held at Dzuka hub in Blantyre.

She explained that the event will create a platform for local entrepreneurs to share ideas and experiences to inspire future innovators and entrepreneurs in Malawi.

“Our mission as an organization is to inspire people to dream, believe, design, create and own their life stories in a way that impacts the world positively,” she said promising that activities during the luncheon will not only inspire future entrepreneurs but will also create networks that can bear powerful collaborations and partnerships.

Chipeta explained that the word ‘Kukaya’ means ‘home’ and in the context of the Foundation, it represents an African proverb that says; “Children are raised by the village where everyone in the society has a role to raise, mentor and empower young people to become responsible adults”.

Kukaya Foundation operates in 12 African countries where it promotes innovation, creativity and leadership among high school youths.

The GEW commemorations are held across the globe for one week every November. Participants are inspired through campaigns to explore their potential as self-starters, innovators and job creators who can bring ideas to life, drive economic growth and expand human welfare.

As part of commemorations, local entrepreneurs will also be given an opportunity to take part in the #IAmAnEntrepreneur  40 seconds video challenge and the winner will receive a free trip to the next Global Entrepreneurship Congress in Riyadh, Saudi Arabia in March 2021. 

The Public Private Partnership Commission (PPPC) says construction of the 350 MW Mpatamanga hydro-power plant will start mid-next year.

PPPC Acting Executive Director Audrey Mwala said procurement of a prospective investor for the new hydro-power plant on Malawi’s biggest and longest river, the Shire, is currently underway.

“We rolled out the procurement exercise mid-2020 and we are hopeful that everything will be completed by the end of the year,” Mwala said.

She explained that upon completion of the procurement process, the selected investor will have six months to identify a contractor with expertise and capacity to construct the power plant as planned.

Mwala said PPPC is committed to speeding up the processes in an effort the rid the country of the intermittent power outages it continuously faces and boost its trade and industrial sectors.

Construction of the Mpatamanga power plant site is expected to last for not more than four and a half years.