Mining & Trade News

Small and Medium Enterprise Development Institute (SMEDI) has advised young entrepreneurs to venture into business partnerships as one way of dealing with challenges facing their businesses.

Speaking during 265 Pitch event in Lilongwe, CEO for SMEDI Rodrick Chattaika said young entrepreneurs in the country are facing challenges including lack of financial support and technical skills, which can be addressed through partnerships.

Chattaika said: “We want to encourage the entrepreneurs to rely on partnerships because one might have feasible ideas and another one resources. If these two merge, they can improve their image amongst themselves and therefore excel in their businesses.”

He said on its part, from the year 2018 to 2020 SMEDI has been working in partnerships with other stakeholders including National Bank, NBS Bank, Malawi Enterprise Development Fund, Synergy and other development banks.

Chattaika said through the partnerships, SMEDI is able to access services that entrepreneurs are lacking as well as giving the banks an opportunity of meeting upcoming business gurus.

SMEDI supported 265 Pitch event as one of its programs that gives courage to young entrepreneurs to showcase their ideas, and gain support from financial institutions.

Chattaika said the event also helps instill entrepreneurship spirit in people who get motivated by fellow entrepreneurs.

“As you know many youths in the country, even if they have the potential to innovate, are the ones who are highly affected in terms unemployment. So if we can harness their skills we can create more entrepreneurs in the country who will substantially contribute to country’s economy,” he said.

In her remarks, Deputy Minister of Labour Vera Kantukule concurred with SMEDI on the issue saying for someone to succeed in business, a partner is required.

Kantukule said: “We have people who are good at marketing while others at production. They have to come together to create a successful business entity.”

“If you look at western culture, a lot of enterprises are working as partnerships and are exceling on the market.”

She, however, said she is impressed with the growing number of young entrepreneurs in the country saying the development will help to reduce the unemployment rate which is growing at an alarming rate.

In the October 2020 265 Pitch, Mtengo Wakumunda company specialized in production of porridge flour emerged as the winner, seconded by Adamant Furniture with Adas Season Farms coming on the third position.

SMEDI is a parastatal under the Ministry of Trade, and was established in 2013 with three departments of business information and training; planning and research; and finance and administration.

Malawi’s rail operator Central East African Railways (CEAR) says it is making substantial progress in the the rehabilitation exercise for the Limbe-Makhanga railway line that was damaged by devastating floods in 2015.

CEAR Spokesperson Chisomo Mwamadi said in an interview that contractors who are working on re-installing the railways have completed 50% of the works.

Mwamadi explained that Limbe-Luchenza stretch of the railway is expected to be finished by April 2021.

He said CEAR has planned to rehabilitate a 72 km rail stretch from Limbe to Sandama while the rest of the line will be rehabilitated by the government.

Mwamadi said the Limbe-Luchenza rail rehabilitation exercise was divided into two phases with Phase 1 covering Limbe to Nansadi segment now 75% completed and Phase 2 covering the Nansadi-Luchenza stretch which is at 50%.

The works underway involve placing of ballast, replacing of bridge wooden sleepers, temping and bridge works at Nansadi.

Other works will include earthworks, installation of rails and track assembly.

Mwamadi, however, bemoans the impact of the coronavirus (Covid-19) pandemic saying it resulted in a five-month suspension of the works which has weighed in on the scheduled completion period.

He, nonetheless, said that CEAR has put in place strategies to speed up the rehabilitation exercise which will open up business in areas along the railway, which is a cheaper mode of transport compared to road transport currently widely used in Malawi.

Malawi’s President Lazarus Chakwera says his administration is committed to resuscitate the tourism sector currently on death bed due to the impact of the novel coronavirus (Covid-19) pandemic.

Chakwera said this when he officially  launched the Sogecoa Golden Peacock Hotel in Blantyre which has over 160 rooms, two restaurants, a shopping mall, a casino and conference rooms.

Sogecoa has invested an estimated K44 billion in the facility which covers an area of 1.6 hectares, with a total floor area of 22,000 square meters.

Chakwera said his administration will endeavor as much as possible to create an enabling environment for the tourism sector which has a strategic role to play in poverty eradication.

He said: “The facility will help in promoting local tourism industry, which is a critical driver of economy in the new Malawi which is currently taking its course.”

“My administration is fully committed in revamping the sector as it is resurrecting from shocks of Covid-19 pandemic, through fiscal stimulus packages.”

He explained that his administration will administer investment incentives packages that are comprehensive and accessible to both local and foreign investors to facilitate growth of the industry.

“We cannot run away from the fact that this sector caters for others such as Agriculture, Technology and Finance hence it is vital that we take good care of it for our own economic recovery and advancements,” he said.

He advised the Ministry of Tourism to conduct feasibility studies that will see development of new tourist cities in Mangochi, Salima, Karonga and Nkhatabay.

Minister of Tourism and Culture Michael Usi described the sector as an integral pillar for Malawi’s development as it offers 6.3% employment opportunities at present and it also contributes 6.7% to the country’s gross domestic product (GDP)

“Tourism is catalyst to unearth business opportunities for other sectors such as Agriculture. However due to the Covid-19 pandemic, a lot of jobs have been lost but as the pandemic situation is improving, the sector will also be revived”.

MD for the hotel group Mike Xhang said the launch of the facility is a milestone to local tourism business and job creation as over 1 thousand jobs were secured during construction works alone.

“We are in the process of developing Africa’s tourism sector, and this is one of the finest hotels in Malawi. This is the 16th hotel we have so far built in Africa with some in Madagascar, Mozambique and Zambia.”

Xhang said as Sogecoa they are committed to come up with creative and innovative solutions for developing economies.

Deputy Ambassador of Peoples Republic of China to Malawi Wang Shung Shen lauded the investment describing it as one of the major projects that Chinese investors have executed in Malawi in the recent years.

Shen said China is determined to do more in developing the Malawi economy owing to the mutual relationship existing between the two countries.

“As we are yearning for better bilateral trade, I believe more Chinese investors will come to Malawi to explore various sectors such as Agriculture and Technology to invest in.”

Renewable Energy Industries Association of Malawi (REIAMA) has advised the Electricity Supply Corporation of Malawi (ESCOM) to avoid the use of untreated poles for high voltage transmission lines.

REIAMA President Andrew Nkoloma said in a Press Release that his association has observed that some poles used under Rural Electrification projects are not to the acceptable standard to carry high voltage power lines as they are not well treated and strong enough to carry high voltage (HV) lines.

Nkoloma cited an incident that happened in Chiradzulu at Malele village, T/A Kadwere where a fallen pole carrying 11kV lines to Nsoni area was spotted with lines almost blocking the road.  He said a closer look at the pole revealed that it was eaten up by termites all inside but, apparently, the line is less than five years old.

“REIAMA has found this hazardous to the general public and immediate attention needs to be taken by ESCOM and any relevant authority,” he said.

Nkoloma urged players in the industry to urgently address the issue of substandard and not well treated poles, which was also raised by Minister of Energy Newton Kambala when he visited RAIPLY Limited.

He said: “REIAMA suggests that inspectors from Malawi Bureau of Standards and Malawi Energy Regulatory Authority (MERA) visit timber processing plants and certify the wood treatment processes for HV poles. Existing power lines must be inspected and certified fit to continue carrying HV lines.”

 “Any sub-standard and not properly treated poles in use must be replaced, every production batch of locally treated poles must be inspected and certified, and finally a toll-free phone number must be made available to the general public for reporting any such faults.”

Renewable Energy Industries Association of Malawi (REIAMA) is a membership association of players in Renewable Energy Industry in Malawi. One of their mandate is to provide a conducive environment for businesses and all players plying their trade in the technologies while at the same time protecting the consumer and general public.

Malawi’s Electricity Generation Company (EGENCO) says 95% of the 18MW Tedzani IV Hydropower Station is ready with all the civil works completed.

The Company says in a press statement that it has commenced electrical-mechanical works following the arrival of various parts and spares required for the project.

Egenco says it has expedited the works despite delays due to the coronavirus disease (Covid19) pandemic that resulted in works being suspended for 3 months, from March to May 2020.

Meanwhile, works have since resumed and it is expected that they will be completed ahead of time in February 2021, beating the official commissioning date of September 2021.

The Power Station is being built with a US$52 million Grant Assistance from the Japanese Government through the Japanese International Cooperation Agency (JICA) with EGENCO contributing US$4.8million.

Tedzani Power Station has a total generation capacity of 102MW comprising Tedzani I and II with 40 MW and Tedzani III with 62MW.

The addition of the 18MW Tedzani IV will increase its capacity to 120MW.

In a quest to mitigate power outages in the country, the company is also constructing 1.3MW Solar Power Plant that will see the livelihood of the people of Likoma and Chizumulu islands greatly improving with a 24-hour availability of electricity.

The solar power plant is part of a 3.1 MW Hybrid Power Plant comprising of 1.8 MW diesel generators and 1.3 MW solar power that was launched in December 2019 by EGENCO with the initial commissioning of only the diesel generators while the commissioning of the solar power plant is expected this year.

The solar power plant is being financed by EGENCO to the tune of K3.2 billion.

Malawi’s Ministry of Mining has dismissed claims on social media that there is occurrence of natural crude oil (petroleum) in Limbe, Blantyre.

A video went viral on the social media alluding to the occurrence of natural crude oil in the area that lies approximately 90 metres to the West of Limbe River and about 170 metres to the East of Limbe Free Market.

This prompted the Ministry of Mining through its Departments of Geological Survey and Mines to send a technical team of experts to the site on a fact finding mission.

Principal Secretary in the Ministry Dr. Joseph Mkandawire said the study revealed that the substance was a refined petroleum product, specifically, diesel.

Mkandawire explained the area is underlain by basement metamorphic rocks assigned to charnockitic granulites which are overlain by younger unconsolidated sediments.

He said; “The unconsolidated sediments were observed on site. To understand the sediments, pitting and augering was done. Water and soil samples were collected and analysed by the Malawi Bureau of Standards (MBS).”

“The pit profile and physiography indicated a gentle slope towards Limbe river; two soil horizons one rich in humus (top soil layer) and the other high in iron content (sub-soil layer). Oil contamination was more visible on the top soil layer and diminishing with depth. If oil had a natural source and pathway, the contamination would be increasing with depth.”

He, therefore, said the results from the standard sample analytical tests such as Distillation, Density, Flash Point, Pour Point, Grease and Oil; conducted in accordance with Standard Test Methods from MBS clearly indicated that the sample fluid collected from the hole at the alleged site was processed diesel and not natural crude oil. 

“The results provide sufficient evidence that some form of anthropogenic disposal of diesel took place in the area and members of the general public are therefore advised to desist from using an analysed spillage to avoid accidents.”

Blantyre City Council reportedly relocated vendors to the area for vending purposes. Land preparation for construction of the vending structures unearthed the alleged oil occurrence.

Lilongwe based travel agency African Global Travel Tours (AGTT) says it will be coming up with more innovations to promote tourism in Malawi.

AGTT CEO Francis Muleso said this when AGTT hosted a US-based vocal voice singing group, The Temptations, at Bingu International Convention Centre (BICC) in Lilongwe.

“The country has benefited from this show because as we are talking now, we have people from Zimbabwe, Zambia and other neighboring countries who have come here for the show, and have brought some foreign exchange into Malawi,” said Muleso.

He said his company also organized the show as one way of appreciating the support that it receives from its customers in Malawi and the region.

“We brought The Temptations because we knew that they have a large following in the region so they will bring here fun loving people from Zimbabwe and other Africa countries in so doing bringing forex into Malawi,” Muleso said.

He said in bringing the singers to Malawi, his company has helped to bring Malawi on the tourism map as some of The Temptations membersinformed him that they liked Malawi and are planning to come back with families and friends.

Muleso said his company will continue hosting such events in Malawi as it envisions Malawi with its natural beauty becoming a centre of tourism in the region.

“There is a very big announcement that we will make verysoon possibly in the next four weeks. Another bigger thing is coming, and we shall be doing this more often to promote Malawi,” he said.

AGTT started operating inMalawi in 2016 and, Muleso said, ever since that time, the Company has enjoyed enormous support from its customers.

The Temptations are an American vocal group which released a series of successful singles and albums with Motown Records during the early 1960’s and 1970’s.

 AGTT is a Malawian company but its headquarters is based in South Africa.

Electricity Generation Company (EGENCO) says it has commissioned a new feasibility study on Kammwamba coal fired power plant to update the feasibility study that was done in 2014.

 In an interview with Mining and Trade Review, EGENCO CEO Wiilliam Liabunya said the Company has engaged a German consultant Fitchner to execute the study

 “Kammwamba coal fired plant was given to EGENCO in 2019. It coincided well with the plans that we already had to put up a coal plant. We expect the feasibility study to take about six months, once that is concluded then we will finalize financial arrangements and embark on implementation,” said Liabunya.

 Liabunya said Kamwamba Coal Fired Power Plant is among other ongoing projects such as Kapichira dredging, dredging of the Nkula pond, Tedzani IV, Wovwe expansion, Likoma solar, and Mpatamanga Hydro Plant.

He also said EGENCO is working very hard to ensure that it rehabilitates the existing power stations as well as venture into developing new plants.

Commenting on the challenges that EGENCO is facing in establishing new power sources, Liabunya said every project is unique and consequently has different challenges.

He said: “Apart from issues of financing which are crosscutting, there are really no major challenges.”

“The delay in some of the projects is simply because we need as a public company to follow procedures in every transaction that we undertake, so sometimes these processes take time to complete.”

“What you also need to understand is that power projects unlike building a house take time and needs lots of permits and approvals. Lots of planning involved to get feasibility studies, get environmental permits, implement resettlement plans, negotiate connection and power purchase agreements with off taker, arrange for financing etc.”

Asked on what Malawians should expect in terms of power generation, he said this year they have put in place a number of measures to ensure that they sustain the current improved generation capacity.

Liabunya said: “Coupled to that is the matter of adequate water that has been harvested this year in the lake so that we can use during this dry season. As you may be aware, we now have a new barrage at Liwonde which is fully automated”

“Another important aspect is that we have been able to maintain all our machines, as of today, all our machines are in perfect working condition expect for one at Kapichira whose repairs could not be completed due to travel restrictions due to COVID 19. However, with continued opening of borders we hope to have commissioning engineers and equipment from Germany to be in the country by end of this month or early next month and have the machine back online”.

Recently, local mining experts called on government to consider setting up a coal fired power plant in the northern region in order to utilize locally sourced coal.

Government says it will work hand in hand with seed production company Seed Co. Malawi Limited to scale up the adoption of hybrids and improved seeds by the country’s famers to ensure higher yields.

Malawi lags behind in hybrid adoption by 37% in the Southern Africa Development Community (SADC) region.

Speaking during the first Inaugural Annual Growers Meeting organized by Seed Co, Minister of Agriculture Lobin Lowe applauded Seed Co. as a key stakeholder in agriculture saying the company plays a very important role in achieving food sufficiency in Malawi.

Lowe described hybrid and improved seed as key catalysts to improved yields in Malawi that would help to increase the current production of 1.8MT per hectare to around 5MT per hectare, closing the gap to match the regional average of 5MT per hectare.

He said: “The importance of hybrid seed to food security in Malawi cannot be overemphasized. Hybrids and improved seed are key to improving farmer yields. Unfortunately, hybrid adoption in Malawi currently at 37% lags behind countries in the region.”

“This is the more reason Government has introduced Affordable Input Programme (AIP) where over 4,200,000 farming families will benefit.”

“The development will increase the hybrid adoption rate and it is expected that all things being equal, Malawi will have a bumper harvest.”

Lowe also disclosed that the Government through the Ministry is developing and formulating the Seed Policy and Seed Bill.

He said the bill is being development to curb the proliferation of fake seeds and protect smallholder farmers from exploitation by unscrupulous traders.

“I pledge close working relationship between the Ministry, the Private Sector and Non-Governmental Organization (NGOs) active in the seed sector,” he said.

In his remarks, Seed Co. Managing Director Boyd Luwe said the conference was organized to act as a platform to address questions from people interested in seed multiplication business as well as informing them of what it takes to be awarded a contract in the industry.

He said Seed Co. brought into the conference six powerful presentations which tackled different aspects in the seed multiplication business.

The topics are: Meaning of Winning: -Farmer-Based Seed Multiplication Systems; Seed Production and Certification Systems in Malawi; Implications of Genetic Purity on Quality and Crop Varietal Performance; Unlocking the Hidden Potential of Serenade Soybean Variety; Pure for sure: -Seed Quality Assurance at a Glance; and Cutting-Edge Research: -Amazing Genetics Gains for Climate Smart Agriculture.

He also disclosed that Seed Co. has adopted transformative initiatives to assist farmers to get resources to ensure that their businesses are well capitalized.

Speaking on sidelines of the meeting, a Grower for Seed Co. Linda Goodman from Lisumbwi farm in Mitundu, Lilongwe said the conference helped them to understand some of the aspects that will boost their agribusiness.

Goodman said: “This year’s conference will help us understand some of the things that we were not able to understand and also interact with other farmers nationwide and share ideas about how we can go further in farming.”

“Not only that, the conference will motivate more women to get attracted to farming which is only taken as male’s work, and also taking farming as a business not just for consumption.

The 15-year agribusiness entrepreneur also urged Seed Co. to continue with the meetings saying they will keep them familiar with the new technologies being developed in farming activities.

Seed Co. plans to be hosting the Growers Conference every year.

This year’s conference also marked 80th anniversary of the company in the seed business industry.

Agriculture as the main anchor of Malawi’s economy contributing 30% to the National Gross Domestic Product (GDP) and 60% to Malawi’s workforce in sector.