Mining & Trade News

As one way of retaining and expanding trade and export activities and links opportunities, Malawi Investment and Trade Centre (MITC) has announced that it has identified potential export markets for various commodities through its various export promotion efforts.

In a press statement, CEO for MITC Paul Kwengwere says the demand for the commodities range from 10 metric tonnes to 120,000 metric tonnes.

The markets are for commodities like soya beans, groundnuts, rice, tea, coffee, macadamia, sunflower, pigeon peas, sesame, chick peas, tomatoes, mangoes and pineapples, among others.

Kwengwere says: “As MITC our mandate involves promoting Malawian products on the international market with the intention of identifying viable export markets for such.”

“So through the trade fairs, trade missions and expos that we attended in the last financial year of 2021-2022, we have managed to identify these export markets.”

“These market opportunities are from verified potential buyers who are ready to discuss pricing and tonnage issues with those that are interested.”

“We are encouraging those with the said commodities to contact our office so that we link them to the potential buyers for further engagement.”

Kwengwere explains that the potential export markets are in countries such as Mozambique, Zimbabwe, South Africa, India, Democratic Republic of Congo, Zambia, Tanzania, Botswana, United Arab Emirates, China, Japan and Indonesia.

Recently, MITC announced a funding opportunity, worth €25 million, for players in the horticulture sector.

The funding is part of the Caribbean Pacific Liaison Committee (COLEACP) framework programme on agricultural value chains under the Fit for Market+ programme financed by the European Union.

The Fit for Market+ programme is aimed at providing technical support to African, Caribbean and Pacific (ACP) countries like Malawi to maintain and improve the capacity of smallholder farmer groups and horticultural Micro, Small and Medium Enterprises (MSMEs) to access

domestic, regional and international markets.

Public Relations Manager for MITC Deliby Chimbalu described the funding as a great opportunity for business people in the horticulture sector.

“One of the key challenges facing our businesses is lack of finance or funding to implement their projects that could benefit the country’s economy. So opportunities like these need to be utilized that is why we are encouraging those operating in the horticulture sector to apply for this funding.”

“This Fit for Market+ programme under COLEACP will run for five years and it is very

important because the technical assistance that they provide focused on building capacity of

MSMEs in areas of developing export market plans, preparing business plans, export standards

awareness and improving their access to national, regional and international horticulture

markets among others.”

COLEACP designs and manages development programmes in the agriculture and food sector funded by donors, mainly the European Union (EU) and the organization of African, Caribbean and Pacific (ACP) states.

MITC is an investment and trade promotion and facilitation agency in Malawi.

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.

The Malawi government and its development partners have signed a binding Relationship Agreement that will see the completion of 350MW Mpatamanga Hydropower project.

The power project to be constructed at Mpatamanga gouge on Shire River is expected to have two power plants – a 309MW Peaking Plant at the Main Dam and a 41MW Base Power Plant at the Regulating Dam.  

The development partners that include; World Bank’s International Finance Corporation (IFC), Scatec ASA’s Hydropower Joint Venture, and Électricité de France (EDF) have signed the Relationship Agreement, under Malawi’s Public-Private Partnership (PPP) scheme.

The PPP model will see finalization of procurement and selection processes undertaken by government for a private partner and will officially award the role of project sponsor and lead developer to the Scatec and EDF Consortium.

Once completed, the project is expected to reduce energy deficit in the country as the 309MW Peaking Plant with its 261 million cubic metres water reservoir is designed to provide much needed energy during peak demand hours of the day and overall grid stability with its ability to ramp up/down production to suit actual demand.

Speaking at the agreement signing ceremony held at Sunbird Capital Hotel in Lilongwe, Minister of Energy Ibrahim Matola explained that government is committed in the development and implementation of the flagship Project which doubles the installed hydropower capacity in Malawi.

Matola said; “The 350MW Mapatamanga Peaking Hydropower Project will improve the power supply security, provide opportunities for increased renewable energy generation capacity in the country and contribute to the controlling of the flow of the Shire River downstream the power plant. The government is indebted to its partners in achieving this milestone which is a major step in the development of this Project.”

Eastern Africa Regional Director for IFC Jumoke Jagun-Dokunmu asserted the finance corporation’s commitment in helping government to increase access to affordable clean energy across the country.

He said: “IFC supports the Government of Malawi’s goal to accelerate access to affordable clean energy. The Mpatamanga Peaking Hydropower Plant has the potential to grow Malawi’s electricity infrastructure and connect thousands of rural and remote households while also spurring green, inclusive, and resilient growth in the country.”

Scatec CEO Terje Pilskog also said; “This is a significant development in the realization of the Mpatamanga Project. We are excited to build on our hydro portfolio in Africa – and are proud to have finalized development plans alongside our partners. The country of Malawi will receive a significant investment into its power sector, which in turn will stand to benefit a major portion of the nation’s population. We look forward to reaching further development milestones for this project – and contributing to Africa’s renewable energy journey,”

In the project, Malawi government has 30% shareholding, the IFC 15% while Scatec and EDF have joint majority shareholding of 55%.

The World Bank also supported the development of the project through a Project Preparatory Advance facility while United States Agency for International Development (USAID) is supporting the development of the project through the Southern Africa Energy Program (SAEP), a Power Africa initiative with a goal to add at least 30,000 MW of new electricity generation capacity and 60 million connections by 2030.

Assignment: Supply of used motor vehicles   

Client: Centre for Environmental Policy and Advocacy

Bidding procedure: National Competitive Bidding

Deadline: 20 September, 2022

Contact:  The Chairperson, Internal Procurement Committee, Centre for Environmental Policy and Advocacy, Globe House, Raynor Avenue, Plot No. CC365, P.O Box 1057, Blantyre.  

Tell: +265 (0) 212 700 104

Email: info@cepa.org.mw

Website: www.cepa.org.mw

Assignment: Request for expressions of interest for external audit services 

Client: Centre for Environmental Policy and Advocacy

Bidding procedure: National Competitive Bidding

Deadline: 16 September, 2022

Contact:  The Chairperson, Internal Procurement Committee, Centre for Environmental Policy and Advocacy, Globe House, Raynor Avenue, Plot No. CC365, P.O Box 1057, Blantyre. 

Tell: +265 (0) 212 700 104

Email: info@cepa.org.mw

Website: www.cepa.org.mw

Assignment: Consultancy services for development and preparation of urban structure plan for Blantyre City Council (BCC)

Client: Ministry of Water and Sanitation

Bidding procedure: National Competitive Bidding

Deadline: 9 September, 2022

Contact: Malawi Resilience and Disaster Risk Management Project, Lilongwe Old Town, Off Kamuzu Procession Road, Opposite Lilongwe Town Hall, Private Bag A192, Lilongwe, Malawi.

Tell: +265 1 753 163 

Email: kadewere@yahoo.co.uk / skazembe@gmail.com / obedryan30@gmail.com  

Assignment: Consultancy services for establishment of community based flood early warning systems (CBFEWS) in selected districts in Malawi

Client: Ministry of Water and Sanitation

Bidding procedure: National Competitive Bidding

Deadline: 9 September, 2022

Contact: Malawi Resilience and Disaster Risk Management Project, Lilongwe Old Town, Off Kamuzu Procession Road, Opposite Lilongwe Town Hall, Private Bag A192, Lilongwe, Malawi.

Tell: +265 1 753 163 

Email: kadewere@yahoo.co.uk / skazembe@gmail.com / obedryan30@gmail.com  

Assignment: Consultancy services for development of disaster risk management plan for seventeen local authorities in Malawi

Client: Ministry of Water and Sanitation

Bidding procedure: National Competitive Bidding

Deadline: 9 September, 2022

Contact: Malawi Resilience and Disaster Risk Management Project, Lilongwe Old Town, Off Kamuzu Procession Road, Opposite Lilongwe Town Hall, Private Bag A192, Lilongwe, Malawi.

Tell: +265 1 753 163 

Email: kadewere@yahoo.co.uk / skazembe@gmail.com / obedryan30@gmail.com  

Assignment: Consultancy services for assistant procurement specialist

Client: Ministry of Water and Sanitation

Bidding procedure: National Competitive Bidding

Deadline: 9 September, 2022

Contact: Malawi Resilience and Disaster Risk Management Project, Lilongwe Old Town, Off Kamuzu Procession Road, Opposite Lilongwe Town Hall, Private Bag A192, Lilongwe, Malawi.

Tell: +265 1 753 163 

Email: kadewere@yahoo.co.uk / skazembe@gmail.com / obedryan30@gmail.com  

Assignment: Supply, delivery, installation and commissioning of chlorination system at walkers ferry treatment plant    

Client: Blantyre Water Board

Bidding procedure: National Competitive Bidding

Deadline: 3 October, 2022

Contact:  The IPDC Chairperson, Blantyre Water Board, P.O Box 30369, Chichiri, Blantyre 3.

Assignment: Provision of landscaping services 

Client: Blantyre Water Board

Bidding procedure: National Competitive Bidding

Deadline: 3 October, 2022

Contact:  The IPDC Chairperson, Blantyre Water Board, P.O Box 30369, Chichiri, Blantyre 3.

Assignment: Supply and delivery of desktop computers  

Client: Ministry of Education  

Bidding procedure: National Competitive Bidding

Deadline: 16 September, 2022

Contact:  The Chairperson, Internal Procurement Committee, Ministry of Education (MoE), Headquarters Building, Capital Hill First Floor, Tender Box placed near the conference, Private Bag 328, Lilongwe 3, Malawi. 

Assignment: Printing and delivery of various textbooks

Client: Ministry of Education 

Bidding procedure: National Competitive Bidding

Deadline: 16 September, 2022

Contact:  The Chairperson, Internal Procurement Committee, Ministry of Education (MoE), Headquarters Building, Capital Hill First Floor, Tender Box placed near the conference, Private Bag 328, Lilongwe 3, Malawi. 

Malawi’s largest publicly-listed conglomerate Press Corporation Limited (PCL) says it is advancing a scoping study for the construction of a 50MW solar power production plant.

PCL has announced this in a summary of unaudited financial results for the six months period ended June 30, 22.

In the report signed by PCL Chairman Randson Mwadiwa, the conglomerate says in the first half of the year 2022, business has been challenged by numerous risks including electricity blackouts, scarcity of foreign exchange, the pressure on inflation and; Covid- 19 pandemic.

Mwadiwa, however, says despite the challenges the Group is ensuring steadfast delivery of its strategy.

The Press Corporation Plc’s strategy emphasizes on the growth and sustainability of the companies in which it holds stakes. The strategy further embraces new sectors earmarked for future investments like tourism and energy.

Mwadiwa says: “The Group will continue implementing turnaround strategies in companies whose performance is unsatisfactory.”

“Further investment opportunities are also being explored in various sectors to further diversify the Group and its portfolio mix market presence.”

Despite the challenges, the Group has registered profit after tax for the period of MK15.98 billion, representing a 24 percent growth above prior year profit of K12.87 billion.

Mwadiwa says the growth in profitability was driven by an 11 percent growth in revenue, improved gross profit margin growth by 4 percent and successful implementation of cost containment measures.

He also says the disposal of Peoples Trading Centre (PTC) has contributed to the improved results as losses associated with this investment are no longer part of the Group results.

Meanwhile, in a separate summary for unaudited results for the same period, NICO Holdings Limited, a financial service Group, says despite facing similar challenges, it has registered profit after tax and other comprehensive income of MK12.7 billion representing 76% above the MK7.2 billion recorded for the same period in 2021.

The statement signed by NICO Chairman Gaffar Hassam and Managing Director Vizenge Kumwenda explains that other compressive income for the period was MK913 million higher than the MK12 million loss reported in 2021 due to translation gains in the current period on consolidation of NICO Zambia.

The statement reads: “The general insurance business in Malawi registered premium of Mk12.6 billion in the six months to 30 June 2022. The lack of premium growth was due to reduction in insurance covers and policy extensions by some clients in the first half of the year.”

“The Business registered profit after tax of MK236.7 million, a turnaround from the MK922.2 million loss recorded in the same period in 2021,” reads the statement.

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.