Mining & Trade News

Marketing firm, Marketing Minds, has stressed the need for market research and adequate financial backing in igniting successful business ventures in the country.

Widdey Nsoma, the firm’s Director of Marketing and Sales highlighted this in an interview with the Mining and Trade Review ahead of a brand management session targeting marketing professionals, small and medium enterprises (SMEs) and sales professionals slated for September 11.

Nsona observed that most start-ups enter the market without researching their market, a development that compromises product quality and packaging and in return affect business growth.

“Start-ups experience difficulties to access finance and access markets because of lack of research to understand their markets,” he said adding “After a good market research it is advisable to have a business plan and a brand positioning strategy.”

During the seminar, Marketing Minds will orient attendees on brand image and equity, brand identity and value, brand audit and strategy development, brand positioning, brand crisis management and personal branding among other things.

He said: “The attendees will benefit because they will be able to use this knowledge to make their brands more vibrant and marketable. They will be able to add value to their brands. As individuals, they will also learn personal branding which will make them more marketable in the job market,” he said.

“Brand marketing is very crucial to start-ups because, how customers perceive your brands from launch or inception determines the longevity and profitability of the brand.”

Established in 2018, Marketing Minds is a consultancy firm that offers extensive range of services to catalyse business growth including strategic planning, social media management and brand Management.

Standard Bank Malawi says the coronavirus (Covid-19|) pandemic and foreign exchange supply shortages are giving unnecessary pressure on Malawi’s currency, the Kwacha..

In summary results statement for the six months ended June 30, 202 signed by CEO Phillip Madinga, the Bank observes that the Kwacha continued to weaken against major currencies in the first half of the year on account of foreign currency supply shortages.   

“Foreign currency supply constraints will likely continue to exert pressure on the Kwacha. Inflation rate is therefore, being expected to remain elevated due to pressure on non- food inflation rate drivers since the recurring COVID-19 waves will likely going to have adverse impact on the economic performance,” reads the statement.

It, however, states that in the first half of the year, the group showed resilience in operating in the challenging environment.

The Bank’s total assets grew by 30% year on year due to the growth in loans and advances to customers and banks which grew by 25% and 80% respectively.

“The loan book growth resulted in a corresponding increase in interest income which also grew by 27% year on year while the growth in customer deposits of 29% year on year was a result of the group’s focus on growing its funding base which in turn supported its lending drive.’’

The Bank also registered strong growth on non-interest revenue which grew by 43% year on year.

It states that due to Covid-19 impact, customers were deeply affected to the extent that they failed to service loans.

The Bank’s profit after tax for the first half of the year was down by 8% year on year.

CDH Investment Bank says it is upbeat that the country’s business environment will improve due to government’s provision of the vaccine for the coronavirus (Covid-19) pandemic, moderate improvement in foreign exchange availability and containment of other economic pressures on inflation.

In a summary of financial results for the six months ended 30th June signed by the CEO and MD Ngando Moukala, CDH laments that Covid-19 and foreign exchange shortages have slowed down economic activities.

It, however, says despite a challenging environment, the bank remained resilient in the first half of 2021 and will continue to provide novel solutions to its esteemed clientele.

Reads the statement: “It is expected that the bank’s growth momentum will continue in the second half of the year as the operating environment continues to improve with the roll out of Covid-19 vaccination programme, a moderate improvement in the forex availability, and containment of other economic pressures on inflation.”

“The business will leverage on the positive business outcomes experienced during the period under review. Capital optimization, cost discipline, compliance and risk management remain the pillars for the sound financial performance.”

The bank realized a profit after tax of K2, 8991 million against prior year performance of K927 million representing an increase of 212%.

The operating income before impairments on loans and advances grew from K5,012 million to K5,919 million mainly on account of growth in net interest income and non-interest income by 18%.

The total assets increased by 54% from K109,051 million to K167,916 million mainly due to increase in customer deposits by 48% and the investment funds by the 69% as the bank continues to propel innovate financial solutions for its clients.

“The bank continued to leverage on the benefits of integrating investment banking solutions and traditional commercial banking services to drive performance,” reads the statement.

A capacity building workshop for media and civil society organisations (CSOs) held in Blantyre on Thursday has described existence of robust and knowledgeable media and CSOs as vital in ensuring transparency and accountability in public procurement procedures.

Speaking during the event, Public Procurement and Disposal of Assets Authority (PPDA) Board Chairperson Joel Suzi Banda said that it is important that the media, as the fourth arm of government, and CSOs understand the role PPDA plays in regulating public procurement processes.

According to Banda, there is a huge information gap on the role of the PPDA which needs to be filled for the general populous to have a better understanding on procurement systems.

He said the two stakeholders have to be equipped with the relevant knowledge and understanding of the rules governing various officials whose work falls under the Public Finance and Management Act under which the PPDA also falls.

“Public procurement is decentralized and there are various players that are involved in the process so it is crucial for the media to understand so that they can be able to disseminate appropriate information to the masses,” Banda said.

Meanwhile, the Authority is set to roll out diverse projects aimed at curbing corruption in procurement procedures including Open Contracting, Tip-Offs Anonymous line and E-government procurement.

In his remarks Pemphero Musowa a journalist working with Kulinji.com described the workshop as a success having acquired deeper understanding on the country’s procurement systems which he says will enable him to engage relevant authorities on diverse issues relating to public procurement.

Musowa said: “This training is important as it gives me insight into how things work and basically gives me understanding on how to approach and report on issues to do with procurement.

Sugar group IllovoMalawi Plc has registered a net profit of Mk6.1 billion for the six months’ period to February 28, 2021, compared to MK2.0 billion that the company made for the corresponding six months to February 29, 2020.

In an unaudited financial statement for the six months, Illovo explains that despite being hit by Covid-19 challenges, company sales revenue remained relatively flat with six-month sugar and molasses sales totaling MK74.5 billion.

Reads the statement co-signed by Chairman Gavin Dalgliesh and MD Lekani Katandula:  “Both factories completed their crushing seasons in December 2020 with agricultural operations performing well in terms of cane yields and overall sucrose content from both own and smallholder farmers cane.”

“Investment in drip irrigation at Nchalo delivered improvements in cane yield in line with targets.

“Engagement continued with the Government on the need to dissuade the rampant smuggling of sugar and other products.”

The statement also said in January 2021 the company experienced very dry weather which triggered high irrigation demand and a rise in aphid infestations.

It says good rainfall at both factories received in February 2021 partly helped to relieve the dry conditions.

Milling operations for both factories achieved consistently high throughputs prior to closure of their crushing seasons and commenced their respective off crop maintenance programs in December 2020.

It says the programs were completed successfully and both plants resumed production in mid-April this year.

States Dalgliesh and Katandula: “Despite the domestic market being under significant pressure through a combination of general instability, a slowing economy exacerbated by the Covid-19 pandemic, currency depreciation and influx of informal imports, domestic sugar sales reflected a welcome return to more normal levels supported by active marketing and logistics improvement initiatives and sustenance of our reduced domestic pricing since mid-December 2019.”

“Export sales revenues were however below expectations with covid-19 hampering both inter-continental and intra Africa exports.”

“Quality remained a key focus area to ensure superior delivery of our customer experience.”

The company has generated operating profit of MK10.6 billion against MK5.0 billion the company made for the last period.

Despite the hiccups that the company faced in the last period, Illovo eyes improvements in terms of agricultural production and electricity supply.

According to the statement, it is envisaged that there will be a return to more stable weather patterns in the next six-month period.

It says: “With regard to the commercial environment, the business will continue to build on the successful route to consumer initiative with a focus on product pack sizes, branding, affordability and quality.”

“Sugar exports, in what is expected to be very challenging markets, will also continue to be an area of attention for the commercial teams especially in light of the receding Covid-19 induced logistical challenges as global vaccination programs gather momentum.”

“The interplay of stable domestic inflation, moderate exchange rate depreciation, stable interest rates and improved national food supplies could provide a platform for a better second half provided that there are no further covid-19 related downsides.”

It also says Illovo has embarked on various initiatives that will help to improve cane crop yields, plant reliability and people productivity across the business value chain.

The initiatives include: the ongoing factory recovery improvement; optimal use of field irrigation systems; standardizing sound agronomic practices and; embedding of the workforce transition project.

Despite businesses being whipped by the global coronavirus pandemic, about 30 Malawian firms have expressed interest to participate at the 2021 Dubai International Expo that will take place in Dubai in United Arab Emirates (UAE).

A statement by Malawi Investment and Trade Centre (MITC) indicates that the trade fair will run from October 2021 to March 2022.

Responding to an emailed questionnaire MITC Investment Promotion Manager Modie Chanza said companies from different sectors of the economy have expressed interest in both exhibition, participation and also sending goods for retail at the Malawi pavilion.

Chanza said participation at the expo is free and that the participants will only be responsible for transport and accommodation of which she said MITC has already courted airline and hotel owners to offer fair prices.

“The expo organizers have negotiated for discounts on flights with Emirates Airlines and also selected hotels in order to make participation more affordable.”

“Participation at the expo is going to be beneficial to both the country and for the businesses that take part.”

“It provides an opportunity for Malawi to sell her brand and position herself on the international market with her unique investment and trade opportunities,” Chanza said.

Chanza also said strategic marketing is a necessary factor to the success and growth of businesses especially in difficult times of the Covid-19 pandemic.

She believes the 2021 Dubai Expo will provide the needed strategic platform understanding that it is the first large scale international business and trade event to take place during the era of the pandemic.

Chanza said the expo will be an eye opener to local investors and exporters to start thinking outside the box in order to excel and compete even in difficult times.

She said: “Furthermore, such platforms provide opportunities for exposure and impactful relationships created through networking.”

“We expect that there will be strong growth in the global economy once the pandemic is fully under control and by taking part in this important global event we anticipate that Malawian businesses will be in a position to take advantage of opportunities in Trade, Investment and Tourism.”

Amongst the expected participants is a local gems and jewelry firm, Nyasa Mining Cooperative (NMC) which will carry unprocessed stones and jewelry for retail and exhibiting. 

Speaking in separate interview, NMC Chairperson Percy Maleta said the expo will also act as platform to sell their ideas planned for the Year 2021.

According to Maleta, NMC plans to open Nyasa Unique Gallery in May 2021 in Area 43 Lilongwe; Nyasa Lapidary and Jewelry Centre to start last quarter of 2021 also in Lilongwe and; Nyasa Tile Making and Ornaments Factory to start operating in the last quarter of 2021 in Mzimba district.

“We will be selling these businesses at the Expo; the idea is to get strategic partners. We are also taking to Dubai a tone of different varieties of gemstones and minerals including gold produced by Artisanal and Small Scale Miners (ASMS) across the country; these will be showcased and some given as samples to potential investors.”

“The Expo is a platform where Malawi gemstones and other minerals will be showcased and to announce to the world that the country is ready and inviting those that are looking for investment in the mining sector especially the sub sector,” Maleta said.

From the list of the participants, NMC is the only ASM cooperative expected to showcase at the international trade event.

Responding to why many ASMs are reluctant to take part in international expos of which some can be answers to their challenges, Maleta said players in the subsector have a mindset of taking the expos as expensive ventures to participate using their own resources.

Maleta said the majority of ASMs have the tendency of participating in international events that are fully sponsored.

He said: “This is where Nyasa Mining is different from the word GO. We funded our own training to be taught by the Ministry of Trade on cooperative education, got registered and started participating in all the international events with our own resources except for the time Export Development Fund partially supported us when we went to the Beijing 2019 Expo in China.”

“I should also mention that MITC sponsored our accommodation for 30-days in Beijing and the booths in Beijing and Shanghai otherwise all other expenses like air tickets, accommodation and yet all was on us.”

“This alone scares most ASMs yet these events are the place where we meet and interact with the best of the mining industry; these are the events that teach us new ways of doing things in the sector; these are the events where we network and promote our products as they are normally attended by tens of thousands of people and chances of clinching deals are high.”

The expo is organized under the auspices of the World Expo and the next event is expected to be held in Yokohama, Japan in 2025.

MyBucks Banking Corporation says it expects Malawi’s macroeconomic stability to continue in 2021 supported by the stable food prices and lower than prior year project global oil prices.

In a financial statement signed by Board Chairperson Francis Pelekamoyo, the Banking Group explains that it expects the impact of the novel corona virus (Covid -19) on certain sectors of the economy to be felt in the medium term.

The statement reads: “Despite that the Covid -19 Pandemic is with us here, the group will remain vigilant in monitoring and managing risks related to Covid -19.”

‘’The group has implemented a new digital banking system after year end. With the new system in place, will drive the digitization agenda to grow the business as well as enhance customer experience.’’

‘’We will also focus on cost rationalization, prudent management of risk and liquidity, diversification of the balance sheet, whilst maintaining a healthy capacity position.’’

During the year, the Group conducted the acquisition of Nedbank Malawi and fully integrated the operations of Nedbank into MyBucks. This acquisition has enabled the group to serve its stakeholders from additional points of representations and also continue to offer unique products to its focus customer segments.

Meanwhile, the Group will continue to focus on achieving growth through acquisitions, mergers and organic means where necessary.

However, the group continues to show strong performance year on year. The revenue grew by 26% driven by a 65% growth in loans and advances and 25% in treasury investments.

 ‘’The group’s profit after tax of Mk2.2 billion was 53% above prior year. This was due to growth in interest generating assets, mainly the 65% growth in the loan book,’’ the statement reads.

Beverage manufacturer Castel Malawi has launched a new beer brand dubbed “Doppel Munich”.

Speaking to Mining and Trade Review at the launching ceremony  held at Amaryllis Hotel in Blantyre, Castel MD Hervé Milhade said the launch of the new brand is part Castel’s positive strides to ensure maximum satisfaction to its customers.

Milhade said: “As you are aware, in Castel’s history we always yearn for consumer’s satisfaction through wide range of products and the launching of this brings solely echoes all the forces we have embarked on to serve our customers better.”

He also explained that they have launched the new brand during the time the country is suffering from the aftermaths of the novel coronavirus (Covid-19) pandemic which has left many people seeking new varieties of beverages.

“This beer is very strong, tasty and unique in a special way from ingredients to packaging to satisfy consumer’s tastes,” he said.

A customer, who was available during the launch, Stela Kulemeka hailed the company for introducing the Doppel Munich beer sayng it has come at a right time to offer an opportunity to customers to choose from range of beverages available.

Malawi’s Ministry of Foreign Affairs has advised Malawians who make online vehicle importation transactions with Japanese dealers to ascertain credibility of the firms before making any financial commitments.

In a Press Statement, the Ministry expresses concern over the increase in the number of complaints Malawi Embassy in Japan receives in relation to failed or mishandled processes of importation of used vehicles.

The failed transactions have apparently been leading to importers being duped or being sent wrong vehicles.

The Ministry, therefore, advises Malawians intending to import vehicles from Japan to ensure that they get right information about dealers they are transacting with, to avoid being duped by unscrupulous merchants.

The statement says investigations Malawi Embassy in Japan has conducted have revealed that some firms Malawians deal with in the importation of vehicles from Japan are either non- existent or unregistered with Association of Dealers of Used Vehicles in Japan.

It says most of the unscrupulous dealers involved in the malpractice cannot be accessed through any means of communication, and usually provide false information to their unsuspecting victims.

 “It has further been observed that in majority of the cases, such unscrupulous dealers deliberately offer very low and attractive prices for their vehicles to attract unsuspecting buyers,” reads the statement in part.

Most of the car dealers Malawians transact with through on line media, the statement reads, feign to be Japanese but are from South West Asia.

The ministry has therefore advised vehicle importers to use reputable dealers rather that those who are unrecognized and unregistered.

 “In view of this, the Ministry wishes to advise that, while online trade provides a great opportunity for less costly business transaction, every caution has to be exercised when using the digital platform.”