Mining & Trade News

There is need for the Malawi Government to enter into partnerships with private sector players in order to develop decent public infrastructure which will facilitate economic growth.

Governor of the Reserve Bank of Malawi Dalitso Kabambe made this observation when he launched a high level public private partnerships conference at Bingu International Conference Centre in Lilongwe.

“Government needs a hand from the private sector to build infrastructure for the country’s economic development. For example, the public can build a school with limited hostels and a private company can intervene by building more hostels and start generating business from the same school by renting out the hostels to students,” said Kabambe.

He said good infrastructure is required in different sectors of the economy including education, health, transport, agriculture, tourism, energy and mining in order to attract international investors.

The public private partnership conference, which was held from February 24 to 26, was organized by the Public Private Partnership Commission (PPPC) under the theme ‘’Malawi`s Next Big Thing.”

Kabambe, who launched the conference on behalf of State President Arthur Peter Mutharika, said PPPs are crucial in eradicating poverty through developing the country’s education sector by providing necessary infrastructure to increase the number of people attaining tertiary education.

 ‘’It is sad that only 2.3% of Malawians have university degrees while 70% from the age of 15 have a Primary School Leaving Certificate of Education [PSLCE], 11% have the Junior Certificate of Education [JCE] and 6% have the Malawi School Certificate of Education [MSCE] as highest qualifications,” he said.

On the health sector, Kambambe explained that there is a need for private investors to partner government in procuring equipment for specialized treatment of a number of diseases which prompt patients to seek treatment in hospitals in foreign countries.

“We have many patients travelling to countries like India and South Africa for medical attention. Government needs the support of the private sector to provide equipment to treat such medical cases,” he said.

On the energy sector, the Governor cited development of the Mpatamanga Hydropower Plant as a role model of how PPPs can work to develop the energy industry.

Power utility Electricity Generation Company (EGENC0) is currently scouting for a strategic equity partner to develop the Mpatamanga Plant on the Shire River through a PPP arrangement.

In the tourism sector, Kabambe said the private sector players need to partner government to construct more hotels in the country’s places of tourism attraction to attract international tourists who bring foreign exchange into the country.

The conference attracted foreign delegates from Africa, Europe, Asia and USA, and officials from World Bank and United Nations Economic Commission for Europe (UNECE). 

In her speech, a Ugandan national Beatrice Ikilai who represented UNECE said Malawi stands to adequately benefit from PPPs if it embraces an appropriate model, and her organization is ready to assist Malawi on the course.

Director General for the Nation Planning Commission[NPC] Dr Thom Munthali commented that Malawi can move out of the poverty trap if it commercializes its activities.

Munthali said: ‘’For instance, we have initiated a programme called Agricultural Transformation Initiative, and under this initiative we are educating the farmers to modernise farming practices and commercialise the trade.”

‘’We are almost ready to start the project in Machinga District, the Liwonde area, the area which has been selected because of its suitable soil status.’’

Greg Toulmin from World Bank also commented that the Malawi Government needs to implement new strategies that takes on board private sector financing when developing public infrastructure.

‘’There is need for the private sector to support government by playing a major role in improving the lives of people of Malawi in different angles of life including energy and trade,’’ said Toulmin.

The Ministry of Industry, Trade and Tourism has released the official results of the national hotel star grading exercise which the Tourism and Hotels Board conducted in the 2019/2020 financial year.

The Tourism and Hotels Board had its 125th meeting that was held on December, 13 2019 where it approved the star rating of hotels and lodges in accordance with its assessment.

Chairperson of the Tourism and Hotels Board Connie Msiska says in a Press Statement that in the hotels category, the Board awarded 5-Star status to Amaryllis Hotel in Blantyre and 3-Star to Sunbird Lilongwe Hotel.

On lodges, Msiska says the Board awarded 3-Star status to Sunbird Nkopola, Game Haven, Kayak Africa and Leslie lodges. Mikoma lodges and conferences was awarded 1-Star status.

“The hotel star grading exercise indicates to consumers the property’s commitment to quality service and standards as indicated by the stars. The hotel grading system leads to an overall improvement in services levels and physical facilities of a property,” says Msiska.

The Board started conducting the hotel grading system in 2010.

Lack of top class hotels and other tourism facilities is one of the problems which the local tourism industry is facing.

Malawi is famously dubbed the Warm Heart of Africa, and has considerable potential for tourism as it boosts of several tourist attraction sites including its most exquisite freshwater Lake Malawi, several national parks, game reserves, and the scenic Mulanje Mountain.

The tourism industry in Malawi has significantly grown since the mid-1970s, and government is attempting to expand it further by implementing a number of projects designed to attract more international tourists.

Currently, the sector’s contribution to gross domestic product stands at around 7.7%, and government believes the sector can register significant growth with more investments in tourism support infrastructure, improved quality of tourism products and services as well as improved conservation and management of cultural heritage resources.

The Malawi Government recognises tourism as a priority sector that can be used as a vehicle for economic growth and poverty alleviation as outlined in the Malawi Growth and Development Strategy (MGDS) III.

The Ministry of Finance, Economic Planning and Development says it will in April this year start implementing the Enhanced Public Works Pilot Programme (EPWP) under Phase IV of Malawi Social Action Fund (MASAF) project.

The Ministry will implement the eight months’ programme through the National Local Government Finance Committee.

Executive Director of the National Local Government Finance Committee Alufeyo Banda explains in a Press Statement that Malawi Government will implement the public works programme with funding from the World Bank and the German Government through the German Technical Cooperation(GIZ).

Banda states that the objective of EPWP is to enhance the effectiveness of the regular public works programme which was implemented in 35 Local Authorities in the country by addressing key challenges faced during the implementation works.

He says some of the challenges include; lack of capacity for frontline staff which affected their ability to deliver quality supervision, non-adherence to sector norms and standards which led to poor quality community assets, lack of community ownership for public works programme assets and inadequate supervision and monitoring of resources by council officials.

The public works programme will be piloted in 10 districts of Blantyre, Balaka, Chiradzulo, Chitipa, Dowa, Karonga, Kasungu, Lilongwe, Nkhotakota and Phalombe.

In selecting the districts, the pilot considered several factors including poverty levels and food security, degree of land degradation and availability of the Unified Beneficiary Registry (UBR) data.

“The targeted number of the EPWP is 10,000 participants in a phase in all the 10 districts with 1,000 participants per district. The 1,000 will be selected from 5 micro-catchments in each of the 10 districts with every micro catchment not exceeding 230 acres,” Banda says.

The EPWP will focus on land resources conservation as its aim is to contribute towards conserving natural resources.

Participants will work for 12-days a month and receive a safety net wage paid bi-monthly.

In addition, 4000 beneficiaries will be linked to sustainable livelihoods interventions to enhance their capabilities.

“Sustainable livelihoods interventions will be implemented through a strategic linkage to the Community Savings and Investment Promotion Programme (COMSIP) and the District Community Development Office in the pilot districts,” says Banda.

There is need for transparency in the procurement process for Malawi government projects to ensure that selected groups such as the women and youths have the opportunity to successfully bid for the contracts.

Assistant Director of Public Procurement and Disposal of Assets Authority (PPDA), Timothy Kalembo said this at a training for women on open contracting which Civil Society Agriculture Network Malawi (CISANET) in partnership with Hivos held in Mzuzu.

Kalembo said: “The training was very important because women cooperatives and the youth are part of Micro, Small and Medium Enterprises (MSMEs).”

“The role of PPDA is to promote targeted procurement, where procurement and disposal of entities is focused on certain selected groups of people be it women or the youth with an aim of developing the group.”

The women were drawn from from the media, Purple Innovation and Mzuzu women entrepreneur cooperatives.

The training dwelled on open contracting, and the Public Procurement and Disposal Act and its provisions.

Executive Director of Purple Innovation Patricia Ntengela described the training as significant in terms capacity building as imparted skills and knowledge on the participants.  

“The training has helped in empowering women to ensure that they have the competencies and capabilities to take part in competitive bidding processes which are dominated by their male counterparts.” she said

CISANET and Hivos Malawi conducted the trained as part of the Empowerment of Women in Agriculture in Malawi Project.

The project will also provide women cooperatives with startup capital for agricultural related businesses.

The first round of Agricultural Production Survey conducted by the Ministry of Agriculture has projected an increase in cereal, legumes, roots and tubers, livestock and fisheries production in 2019/2020 growing season.

The survey has forecast that maize production will increase by 8.8% from 3.4-million metric tonnes in 2018/2019 growing season to 3.7-million in the 2019/2020 growing season due to favorable weather conditions and increased access to inputs by farmers.

According to the statement released by the Ministry, rice production will also increase by 9.8%, millet 8.9% and sorghum at 3% due to availability of seed, increased wetlands as well as support programmes by government and other stakeholders.

“Most of all cotton production has also increased tremendously from 25-thousand metric tonnes in 2018/2019 to 52-thousand metric tonnes in 2019/2020 growing season representing a 106.8% increase due to intensive promotion campaigns, favorable weather, seed availability and good market arrangements,” says the Ministry.

On livestock, the survey says production will increase as follows; cattle at 4%, pigs 7.7%, Sheep 3.2%, Goats 7.5%, Rabbits 5.5% and Quails at 192.5% due to improved livestock management practices such as good housing, feeding, breeding and disease control.

However, fish production is to register a decrease by 19.1% from 202-thousand metric tonnes to 169-thousand due to low catches, migration of fish and severe water stress.

During the 2019/2020 Mid-year Budget Review statement, Minister of Finance Joseph Mwanamveka said government has earmarked a total of K9.2 billion for maize purchase from smallholder farmers.

Mwanamveka said government will promote structured markets through commodity exchanges, warehousing systems and establishment of cooperatives as well as putting in place mechanisms to curb pilferage and illegal exportation of the country’s farm produce.

Government says there is need for a majority of Malawi’s young population to play a role in agricultural development if the country is to address food insecurity and expand its export base.

Minister of Agriculture, Irrigation and Water Development Kondwani Nankhumwa said this on his return from a 3-day long Global Forum on Food and Agriculture (GFFA) Conference held in Berlin, Germany.

“We agreed at the conference that there is no way food security for a nation like Malawi can be achieved if the youth, who form the majority of the population, are not taking an active role in agriculture,” he said.

The conference which was held under the theme “Food for All! Trade for secure, Diverse and Sustainable Nutrition” brought together Agriculture Ministers from 71 countries to discuss long lasting solutions to food insecurity.

Currently more than 820 million people suffer from hunger, and 2.5 billion suffer from some form of micronutrient deficiency, while the world’s population is growing fast and projected to reach nearly 20 billion people by the year 2050.

Nankhumwa told Mining & Trade Review that the conference was vital for Malawi’s Agricultural transformation drive as it has set another benchmark on how the country is fairing in ensuring risks of food insecurity are mitigated.

“We have discussed how trade in food and agricultural commodities and trade in services for Agriculture can contribute towards achieving food security for the world’s increasing population, as well as improving farmer’s livelihoods and income,” he said.

At the conference, it was also observed that most of the strategies governing agricultural sectors in many countries are outdated making it difficult for present farmers to sail through the current waves in the sector brought by numerous natural and technological changes.

Nankhumwa said: “A policy is a living document which must be regularly monitored and changed over time as the world is dynamic.”

“Malawi must follow suite to ensure we are at par with our trade partners and competitors.”

He noted that over the past few years, Malawi has not been able to maximize agricultural production to satisfy the local and international demands which calls for the need for adoption of new policies to advance mechanisation and commercialisation systems.

At the conference, the Ministers had sessions with Agriculture youth representatives from various countries, who presented their petitions lobbying governments to create conducive environment for youth participation in agricultural activities.

Nankhumwa pledged to implement more youth-centred projects to supplement Youth in Agriculture project which his ministry is currently running in some districts.

Government is advancing with preparations to start rehabilitation of part of M1 Road from Kamuzu International Airport road junction to Mzimba Turn-Off, and the Kacheche-Chiweta section.

Minister of Finance, Economic Planning and Development Joseph Mwnamveka announced in his presentation of the mid-year National Budget Review that Government has finalized financing agreements for the road project totaling K140 billion with the European Investment Bank and the European Union (EU).

“Works on this road are expected to commence anytime soon as procurement of the contractor is at an advanced stage,” said Mwanamveka. 

He also said government has signed a 27.2 Million units of accounts loan agreement with the African Development Bank (AfDB) for the Liwonde-Nsipe road project, which is part of the Nacala Road Corridor Project, and procurement of a contractor for the road project is underway.

He said government allocated $47.9 billion to Roads Fund Administration for the completion of various road projects.

“I wish to emphasise that the focus of Government is to provide resources to finish existing projects rather than embarking on new ones,” he said.

The Minister reported significant progress on the Njakwa-Livingstonia road where completion of the second phase is expected to end by June this year.

Other road projects in progress include Ntcheu-Tsangano- Neno- Mwanza road which is expected to be completed by October this year and Nkhotakota- Dwangwa road rehabilitation expected to be completed by September this year.

Government is also in discussions with a number of donors for the financing of the Salima -Nkhotakota road, Jenda – Edingeni road, Mangochi – Makanjira road, the Lirangwe -Chingale – Machinga -Liwonde road, the Nambazo – Nasiyaya – Mswang’oma road, the Nkando – Mulomba – Phalombe road, and the Balaka – Chilipa – Mangochi road, among others.

Among other infrastructure developments, Mwanamveka said government has signed

loan agreement of US$90.0 million with the World Bank for the Equity with Quality and Learning at Secondary Schools Project.

“The project has already commenced,” he said.

Minister of Agriculture, Irrigation and Water Development Kondwani Nankhumwa has hailed the Kutukula Ulimi m’Malawi (KULIMA) project being implemented by an international civil society organization Self Help Africa and its partners saying it is assisting the government in overcoming challenges that Malawi’s agricultural sector is facing.

The Minister made the remarks yesterday in Lilongwe during the learning event of the project, which was organized by Self Help Africa Malawi.

Nankhumwa said the sector is facing challenges such as dependency on rain fed agriculture, post-harvest losses, limited agricultural diversification, small land holding sizes, land degradation, lack of formal markets, among others.

He said: “I commend the KULIMA project for empowering local farmers with relevant knowledge through conducting the Farmer Field School, an approach that is playing an important role in improving and strengthening the delivery of extension services in the 10 KULIMA Project districts.”

“The approach allows farmers to experiment with new agricultural technologies without putting their own food security at risk.”

He said weak delivery of agricultural extension services due to among other factors, high farmer and extension staff ratio and ineffective coordination is one of the major problems affecting the country’s agricultural sector as it weighs on progress on dissemination and adoption of recommended farming technologies by farmers.

 “The situation has been worsened by the increasing prevalence of pests and diseases, including the emergence of the Fall Armyworm which has impacted smallholder farmers across all regions,” he said.

He, therefore, hailed the Farmer Field School approach as an innovative extension approach that is empowering farmers to identify their problem and find solutions through learning.

Self Help Africa is implementing the KULIMA Better project in 10 districts across the country in coordination with four organisations namely Adventist Development and Relief Agency, Actionaid, Plan International and Evangelical Association of Malawi with funding from the European Development Fund.

The objective of the project is to contribute to increased growth of Malawi’s agricultural sector, expand commercial agriculture base and improve food and nutrition security.

Nankhumwa also commended the project for its efforts to integrate gender, nutrition and financial inclusion through the Farmer Field Schools approach in which it provides training to farmers on various topics.

Under the KULIMA BETTER project, a total of 4, 970 Farmer Field Schools have been established and are going through a season long training focusing on different study topics which among others include integrated pest and disease management; crop variety performance; integrated soil fertility management and soil and water management.

The learning events are conducted to ensure that the lessons drawn from the Farmer Field School studies are shared with the wider community and stakeholders at community, district and national levels.

This year’s National Learning Event was conducted under the theme of ‘Finding local solutions to sustainable agricultural production, diversification and climate change through Farmer Field Schools.’

Agriculture is the main stay of the economy of Malawi contributing close to a third of the country’s GDP and employing majority of the labour force.

The Malawi Energy Regulatory Authority (MERA) says it is set to meet the needs and expectations of various stakeholders in Malawi through implementation of its third Strategic Plan and Customer Service Charter for the period of 2020 to 2024.

Speaking in Lilongwe during the launch of the strategic plan and customer services charter, Board Chairperson for MERA Joseph Bvumbwe said the strategic plan articulates the vision, mission, core values and an implementation matrix that will help the body to focus on the terms to deal with expectations during the four years.

“During the four years MERA will focus on the following priorities that have been termed as strategic pillars: positive contribution towards an energy secure nation; financial sustainability; efficient and effective service delivery; and public trust,” Bvumbwe said.

Stakeholder’s expectations include: timely processing of applications; strict enforcement of Performance and Safety Standards; continuous professional development of energy industry players; consistency in the enforcement of regulations; enhanced information communication and education of stakeholders especially regarding to MERA roles and functions; and improved efficiency in operations.

Bvumbwe said MERA desires that regulation of the industry should result into predictable and reliable energy supplies to ensure that the country has energy security in terms of supply, quality and distribution.

He stressed that during the planned four-year period, MERA will make more efforts to increase and diversify its revenue base to achieve the estimated budget of MK36.2 billion for the implementation of the plan.

He said: “We shall strive to be efficient for effective service delivery and we shall adopt best practices and provide services in accordance with governing statutes.

“We desire to enhance our transparency, open communication, and demonstrate high standard of ethics.”

The Board the board has identified potential risks and strategies to mitigate any setbacks to reaching the desired destination.

He said launch of the MERA service Charter and 2020-2024 Strategic Plan is an important landmark for MERA, in particular, and the energy sector generally. 

“The Board commits to work with the CEO, Management and staff to ensure that MERA works in such a way that is not only responsive to the needs of consumers and industry players but also facilitates the overall quality implementation of the Service Charter and Strategic Plan,” he said.

Bvumbwe pleaded for continued support and cooperation from the stakeholders stressing that that is the only way to make the plans have true meaning and bear results.

In his remarks, Minister of Natural Resources, Energy and Mining Binton Kutsaira, who was the Guest of Honour at the ceremony, said availability of adequate energy is a key catalyst to the country’s development and MERA is at the very heart of the solution to deal with energy crisis in the country.  

Kutsaira said the strategic plan has come at an opportune time when Malawi’s energy sector is undergoing transformation as the country races towards a middle income status that requires more energy to power up economy.

He said: “The 2020-2024 MERA strategic plan has set out a comprehensive roadmap for reform of the energy sector. Its objectives are to ensure that the sector becomes more performance oriented, more flexible and more responsible.”

Kutsaira urged management of MERA to continue engaging with all stakeholders as they implement the plan.

Energy is of the key priority areas (KPAs) outlined in the Malawi Growth and Development Strategy III.