Mining & Trade News

Government has woken up to the increased proliferation of counterfeit and substandard fertilisers, which has robed poor farming families substantial investments intended for this years’ farming season.
Unscrupulous agrodealers are reported to have flooded the local agro-input retail market. especially in the central and southern regions of the country, with maliciously adulterated and counterfeit fertilisers
Reacting, the Principal Secretary in the Ministry of Agriculture, Erica Maganga, has warned government-accredited suppliers of fertilisers under the Affordable Input Programme (AIP) against duping farmers saying perpetrators will face the law.
“Some unscrupulous suppliers are selling AIP beneficiaries fertilizer mixed with sand or sand packed in bags. The malpractices constitute crimes within this country’s laws,” she said in a statement that went on to stress that the Malawi Police Service had already made some arrests and that government would be deregistering and banning suppliers involved in the malpractices.
She said the Ministry in collaboration with the Malawi Bureau of Standards (MBS) have intensified tests to ascertain the quality of fertilizers being sold through AIP.
Maganga has also requested the general public, farmers and stakeholders to be vigilant and immediately report to the Ministry or nearest police when the authenticity of any AIP fertilizer is under question.
A toll free number- 3013, has been issued for both Airtel and TNM subscribers to use in reporting any suspicious activity in the process of distributing AIP.
Apart from selling counterfeit fertilizers, the absence of some private fertilizer suppliers on the market is also hampering progress of the AIP as quasi government ADMARC and SFFRFM remain the only reliable suppliers. The situation has resulted in long queues at available selling points.
Famers are further warned to desist from selling away their National ID cards, as this deprives them the opportunity to benefit from the AIP.
The current AIP was launched on October 16, 2021, by the State President, Dr. Lazarus McCarthy Chakwera. It is expected to improve household and national food security and will directly benefit 3.7 million farmers.

Sycamore Credit Limited, one of Malawi’s fastest growing microfinance institutions, has earmarked the country’s Micro, Small Medium Enterprises (MSME’s) as a priority sector for its wide ranging credit facilities.

The company’s Managing Director, Audrey Mwala, said the business growth experienced in the past year has necessitated expansion of services to accommodate a diverse range of clients seeking reliable and affordable services.

“In 2021, we introduced a new package targeting micro enterprises that are involved in selling of day to day consumables including vegetables,” she stated explaining that the initiative was one of the company’s biggest strides in ensuring financial inclusion.

Despite being affected by client failure to timely settle loan repayment targets, Mwala, stressed that Sycamore Credit Limited will continue to counter some of the Covid-19 knock-on effects on MSME’s by being more innovative.

“The unstable business environment experienced by our clients due to the pandemic has negatively reflected back to us,” she said pointing out that her company intends to expand its group lending facility to ensure that SME’s needing credits are adequately assisted.

She said Sycamore Credit Limited has since secured a special credit facility through the private sector led Malawi Industrial and Agriculture Corporation (MAIIC), which will facilitate access to financial services for deserving SME’s who have formalized their enterprises.

Mwala appealed to SMEs to formalize their businesses to win support from different microfinance institutions because they lack proper identification.

Sycamore Credit Limited opened its doors for operations in 2018 when it started to provide credit solutions to salaried employees, MSME’s as well as informal businesses.

The Malawi Government through its investment and trade promotion and facilitation agency, Malawi Investment and Trade Centre (MITC) will on February 12, 2022 host an investment and trade forum at the ongoing World Expo in Dubai.

The forum aims at showcasing trade and investment opportunities and the attractiveness of the Malawi’s business climate to the United Arab Emirates (UAE) business community and other potential investors from other countries patronising the international trade fair in Dubai, MITC Director, Cindy Kibombwe, says in a press statement.

Kibombwe says the forum is part of the Government’s economic recovery plans to mitigate against the negative effects of the global novel coronavirus pandemic on the local economy.  

She explains that the forum will bring together policymakers, private business and financial sector players and other relevant stakeholders to discuss Malawi’s business and legal environment and ways of channelling investments into key sectors like agriculture, energy,infrastructure, ICT, agro-processing, tourism andmanufacturing among others.

“This Forum will provide a platform for us as a country to interact and collaborate with potential investors that share our vision in improving investment flows into Malawi as well as positioning our export products in international markets,” she points out.

The director challenges investors to come and explore the opportunities that the Malawi possesses.

The discussions at the forum is will largely focus on Malawi’s business environment; key investment and trade opportunities; exploring funding and financial potentials for potential projects; and networking opportunities.

About 30 Malawian firms expressed interest to participate at the expo which started in October, 2021 and expected to end in March, 2022.

MITC identifies develops and packages investment opportunities in Malawi as well as markets the country as a viable investment destination.

MITC is also a One-Stop Service Centre for business trade and investment start-ups in the country.

The Malawi Confederation of Chambers of Commerce and Industries (MCCCI) has advised government to review some of the existing taxes in the forthcoming 2022/2023 national budget in order to stimulate private sector growth.

The recommendations were issued by MCCCI president, James Chimwaza, during a pre-budget consultation meeting called by the Ministry of Finance

MCCCI proposes the removal of some general and specific domestic tax measures such as excise tax, value added tax (VAT) and withholding tax.

He said government should also consider providing incentives that will promote usage of alternative sources of energy amidst the current power deficit due to lack of sustainable sources of energy.

Chimwaza further suggested the review of excise duty on alcoholic beverages to curb beer smugglings saying the current system is counterproductive. He also recommended the abolition on withholding tax on farm produces to bring consistency and fairness on the market.

“When ADMARC is purchasing produce from local farmers they do not deduct withholding tax while when private businesses do so they pay. This puts private business at a disadvantage,” he said

The MCCCI president further proposed the downward review of the 20 percent withholding tax on gross sales to 10 percent for small and medium enterprises (SMEs). He also observed that the export allowance calculated at 25 percent of profits from exports was not attractive enough for exporters

“To make export allowances attractive for exporters, we propose a review of the current provision which is based on taxable profits according to Taxation Act to change to export proceeds,” he noted

In his comment, Minister of Finance Felix Mlusu acknowledged the issues raised saying that government will rectify some of the concerns.

Mlusu reminded participants that his ministry recently launched the Domestic Revenue Mobilisation Strategy, as a tool to ensure transparency around the administration of tax and non-tax policies.

The minister stressed government’s desire to continue fostering inclusiveness of the private sector in national development through the creation of a conducive business environment.

He pointed out that for the country to address its foreign exchange challenges, government has launched the Second National Export Strategy which encourages the private sector to industrialise as well as to generate foreign exchange earnings through exports.

Malawi offers a wide range of tax incentives with the aim of encouraging development, enhancing output, earning and saving foreign exchange and expanding employment opportunities.

These tax incentives are aimed at enabling businesses to grow and expand their operations thereby contributing to the overall social-economic development of the country.

Environmental enthusiasts are planning to unleash the recreational potential of the Mudi river and its catchment area.

Inspired to restore the ecosystems across Blantyre city, environmentalists under the Mudi River Clean-up 2021 project have launched the 2021/22 tree planting season with combined zeal to plant ten thousand trees along the Mudi riverline.

Manota Mphande of Art Malawi (ARTMAL) and his partner Chris Walker of PaNthunzi Eco Solutions say they are committed to realise their joint vision to give Mudi river and its catchment area an environmental face lift that will offer city residents and visitors recreation activities.

The Mudi river and its tributaries are the source of water for the Mudi dam, which supplies treated water for domestic and industrial use in the city. Its catchment area covers approximately 890 hectares (8.9 sq kilometres) land from the spillway of the dam to the now-degraded Ndirande Mountain Forest Reserve, all the way to Makhetha, Maoni Park, up to the Blantyre/Zomba road.

However, poor cultivation practices along the river buffer zone and high deforestation rates have contributed to soil erosion leading to land and water quality degradation.

Studies further indicate that the sharp increase in urbanization combined with the high levels of erosion relate to the deterioration of the water quality along the Mudi River.

Sewage from blocked sewer lines, solid waste dumped along the banks, agricultural activities and domestic water uses such as washing and bathing along the river all contribute to the degradation of both the environment and water quality.

Chris Walker told Mining and Trade Review that the project identified the tree planting drive as a key component in revitalizing the Mudi river catchment area’s lost glory and restoring the ‘green’ beauty of the city of Blantyre as a business and tourist entry point into the country.

The Mudi catchment area was once famed for recreational activities such as camping, picnicking, fishing, boating, canoeing, sailing and swimming.

“Tree planting exercise will help restore the vegetative cover, ensure clean air and fresh and unpolluted water,” he said explaining that the project will embark on a mindset change campaign to orient people on better ways to interact with the environment such as in the management of solid and liquid waste, which mostly end in burning the vegetative cover or polluting the river.

He emphasized how critical the Mudi River ecosystem is to the preservation of the health and energy of the city’s residents as much as it is in preserving the beauty and freshness of tourist attraction spots such as Majete Wildlife Reserve and Elephant Marsh, whose lifeline are in part conserved by the Shire River, where Mudi river flows into.

According to Walker, river-borne waste from Blantyre City also contributes to oceanic pollution since the Shire River empties into the great Zambezi River which drains into the Indian ocean.

“it is, therefore, important to treat Mudi River against solid waste and liquid pollution as Blantyre is a key entry point for international and domestic business tourism,” he said

The Mudi River Clean-up project receives financial support from GIZ under the More Income and Employment in Rural Areas (MIERA), and has managed to provide temporary employment to over 120 personnel ranging from river cleaners, supervisors, wood carvers, stone sculptors, metal artists and many more.

So far, 35 tonnes of solid waste have been removed from a stretch of approximately 2.5km on the confluence with Nansolo River along the riverline from the Clock Tower Roundabout through Blantyre Market and Blantyre Sports Club.

Councilor for Blantyre City Central Ward, Chidika Nyumba, commended the project for the positive strides in keeping Blantyre clean and green.

He said the initiative compliments efforts by the City Council, which will be planting about 50,000 trees in this year’s tree planting season.

Business Computer Services (BCS) Managing Director, James Chimwaza, co-sponsor of the tree planting initiative called for collaborative efforts in shaping outlook of city to attract more trade and investment into the commercial city.

Malawi’s Roads Authority (RA) is seeking bids from eligible bidders for the supply and installation of ICT equipment at Mchinji /Mwami one stop border post.

RA explains in a Press Statement that the assignment, which will be financed by the African Development Bank (AfDB) as part of the Multinational Nacala Road Corridor Development Project, will be completed within four months.

It says bidding will be conducted through open competitive bidding procedures as specified in the Bank’s procurement framework and is open to all eligible bidders.

RA will hold a site visit and pre-bid meeting at the Mchinji/Mwimi border post on the Malawi side at 10 :00 am on December 17, 2021.

Interested eligible bidders may purchase bidding documents for a non-refundable fee of 20,000 Malawi Kwacha or its equivalent in a freely convertible currency. The mode of payment is cash or bank certified cheque.

The interested eligible bidders can obtain further information from the procurement section, Roads Authority headquarters, Functional Building, Lilongwe and inspect the bidding documents during office hours starting from November 29, 2021.

The deadline for delivering bids is January 24, 2022.

The works shall comprise supply and installation of ICT equipment in three different lots as follows

LOT 1: LAN and phone system, CCTV facilities, Access control system, Voice Evacuation system and Background music control

LOTS 2:  Fire Detection system

LOTS 3: ICT Equipment

Bidders are free to bid for one or any number of the above mentioned lots.

CONTACT:

+265 1753699

EMAIL

ipc@ra.org/mmalinda@ra.org.mw

The IPDC Chairperson, Road Authority, Functional Building, Off Paul Kagame Road

Private Bag B346, Lilongwe 3, Malawi

High cost of electricity by the Electricity Supply Corporation of Malawi (ESCOM) has forced government-owned water supply company, the Blantyre Water Board (BWB), to consider constructing a solar plant to power its water pumps, engines and decontamination equipment.

BWB made the revelation on Monday during the launch of its 2020 – 2025 strategic plan.

BWB board chairperson George Nnesa said the project, to be funded by the Reserve bank of Malawi (RBM), will help the parastatal save on electricity bills and invest the savings in improving services and ensuring institutional growth.

The water utility body incurs a MK1.2 billion monthly average bill, which is usually off-set from an average monthly earning of MK1.3 billion.

“We plan to reduce electricity bills, which eat almost 80 percent of our income,” said Mnesa as he assured that solar power will make the company more efficient in operations.

“Looking at the growing water demand across the country, we intend to expand our income base by reducing expenditures including on electricity which will be complimented by a solar plant to generate power from Nkula falls,” he said.

The Board chair then called on government to bailout the institution from an accumulated outstanding balance of about K24 billion owed to ESCOM over the past two years.

Nnesa also disclosed that BWB will, within the lifespan of the 5-year strategic plan, expand its water storage facilities such as the one in Nguludi in order to meet the accelerated demand of clean water.

In her remarks, Minister of Forestry and Natural Resources, Nancy Tembo, called on stakeholders to commit themselves and collaborate with the Board in implementing the strategy.

“The board has a sound plan and strategy of how it wishes to serve its customers better in the next years,” she said. “But there is need for it to take a serious step in ensuring it is implemented. This requires that all stakeholders should revitalize their commitment to see the strategy being actualized,” Tembo said

She added: “Among other things government expects to see BWB curb 54 percent of non-revenue water which is lost due to illegal connections and poor infrastructure.”

Tembo assured the parastatal of government’s commitment to supporting it in settling its financial problems through the Ministry of Finance, which she said will facilitate the bailout.

With an average of 3,000 hours of sunshine per year, Malawi has high solar radiance potential to compliment the country’s available green energy portfolio, such as hydro-power, in improving the lives of its people and stimulating economic activities.

With this potential in mind, PowerPlus Control Systems, a local company providing solar energy solutions, says it is set to transform the lives of people, especially those not connected to the national power grid.

Less than 10 percent of Malawi’s population of 18 million people is connected to the electrical grid, which makes the country’s power sector the most constrained in the sub-Saharan region.

Jonathan Mlauzi, the founder and director at PowerPlus Control Systems says despite making inroads in providing solar energy answers to the country, whose economy is agro-based, many people are still not aware how much solar can transform their lives.

He explains that currently his company is running the “Go4Solar, Go-Green, Save Bills” which encourages farmers to start solar irrigation and fish farming systems for high productivity and cheaper means of meeting the Malawi Vision 2063.

Mlauzi adds that the campaign also targets people and institutions connected to the national power grid such as hotels, schools, hospitals, banks among others to install solar power backups instead of diesel powered generators, which pollute the environment.

“It is possible to integrate solar and grid (Escom) power in a house and then choose which to prioritize,” says Mlauzi.

PowerPlus Control Systems is now engaged in scaling up the Nkhotakota Solar Energy project, a model for future private Investment into the solar sector. Under this project, the company will be supplying cheaper solar powered equipment across the country.

So far, PowerPlus Control Systems has installed solar submersible pump system to promote irrigation at Kalota Sugarcane Farm in Salima and Mtakatataka Police Training School in Dedza. It has also supplied domestic and commercial solar power systems as well as backup systems across the nation including installing 3× 60KW power backup UPSs in the Malawi Electoral Commission (MEC) data centres.

“We are also expecting to install solar Irrigation systems for cannabis farms,” says Mlauzi.

Meanwhile, the company says the COVID-19 pandemic has brought logistical challenges as it affected the importations of goods.

“It now takes several months to order our goods from abroad than was the case before the pandemic,” he says adding that the devaluation of Kwacha is another challenge.

However, Mlauzi is quick to point out that despite the challenges, PowerPlus Control Systems plans to introduce swappable electric batteries and scooters.

“People in the country have started owning hybrid bikes and cars but most do not know that these also use lithium batteries, which we will soon start supplying to help customers save on fuel consumption,” says Mlauzi, who is also an engineer.

He urges Malawians to embrace solar energy as it is now the “fuel to drive the economy of the country” when other sources of energy have proved unreliable and brought down industrial productivity. 

PowerPlus Control Systems designs, supplies and install In/Off Grid solar systems, power backup systems, solar pumps, irrigation systems, Uninterrupted Power Supply (UPS) and data centre power.

As Malawi joins the rest of the world in commemorating the World Competition Day, the Competition and Fair Trading Commission (CFTC) says a policy addressing concentration and abuse of market power is an indispensable tool..

Addressing a gathering when celebrating the day, CFTC acting executive director Apoche Itimu, said the advent of COVID-19 has seen a sharp rise in the misuse of market power by large business enterprises that frustrate smaller ones from participating and competing fairly in the country’s trade activities.

Itimu noted that as the socio-economic impact of the pandemic continues to erode the gains posted as a result of globalization, existing economic inequalities within and between countries are also increasing the gap between the rich and the poor.

“It has been observed that big enterprises have become bigger while small ones have suffered the most and in some cases have even collapsed,” she said and suggested the need to address abuse of buyer’s power under the fair competition law and policy regarding aspects of labour, farmer welfare and supply chain contracts.

She also expressed dismay over unfair trading practices that impede the achievement of an inclusive digital economy. “The boom in e-commerce is essential for economic recovery and inclusivity,” she said also observing the need to protect the digital space

Itimu further warned traders not to engage on any anticompetitive trade practices, especially during festive season when many traders take advantage of unsuspecting consumers to sell or buy goods at manipulated prices

The celebrations were held under the theme “Competition Policy for an inclusive and Resilient Economy”,

Commemoration of the Competition is a tradition that dates back to December 5, 1980 when the United Nations adopted the international standard for competition laws attributed as “the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices” popularly known as the United Nations Set of Principles and Rules on Competition.