Airline Business

It has been reported in The Daily Times of today that Kenyan Airways has been booted out of Lilongwe-Lusaka route following a long outstanding dispute between Kenyan Airways and Air Malawi. Kenyan Airways terminated the Commercial Agreement with Air Malawi in February, 2009 after just barely a year of its existence. However, KA continued to service the route on Fifth Freedom Traffic Rights and charged the lowest fair possible to attract customers. Malawi government department of Civil Aviation is the one that has resolved the dispute after sitting on it for a long time to the displeasure of Air Malawi, yet Kenyan Airways never paid any taxes or fees to the Malawi Government. The route will now be either serviced by Air Malawi or Botswana. Air Botswana is a new flight partner for struggling Air Malawi.

Kenyan Airways is one of the dominant and reliable airline in the region. Air Malawi which is 100% government owned is struggling to satisfy its customers as it finds it hard to maintain flight schedules. Efforts to find a private partner are taking time to materialise. Yet for Malawi to boost its highly potential tourism industry a reliable airline is a must. 

GET TIPS ON IMPORTS TO AND EXPORTS FROM MALAWI

Malawi has a population of about 14million people (2008 census). It mainly exports raw agricultural produce and semi processed commodities. It imports most of the manufactured products for either consumption or industrial use.

South Africa is the major supplier of the manufactured goods. Of course China is also making in-roads when it comes to  household  and construction materials.

Most of Malawi exports head to Europe and South Africa and some SADC and COMESA countries. It appears producers are either not aware of some existing lucrative markets for their produce or do not have enough confidence to breakthrough some new markets existing around. Of course some markets standards are very restrictive and such standards are indeed barriers to trade for most exporters in Africa.

Imports into Africa including Malawi, to the contrary, do not face much restrictions.  However, importers or those who export into Africa including Malawi do not have much information on the demand existing herein. As such sometimes we are denied quality and affordable products because our choices are limited.

This blogger may provide tips to both importers and exporters on specific issues regarding local or international markets and important requirements so that you may not encounter penalties or fines in case of failure to meet expectations of destination authorities. We can also help you find international markets for you products.

Thank you!

FRUIT CROPS COMMONLY FOUND IN MALAWI

Mangoes
Cassava
Chillies
Pulses
Paprika
Cotton
Coffee Macademia nuts
Strawberries
Irish potatoes
Sweet potatoes
Citrus fruits
Ziziphus Mauritiana (Masau)
Uapaka Kirkiana
Baobab (Andansonia digitata).

etc

For inquiry on quantities contact me

CHEAP FARM CROPS FOUND IN ABUNDANCE IN MALAWI

Maize
Rice
Pigeon peas
Tea
Tobacco
Cotton
Paprika
Macadamia nuts
Bananas
Sugar cane
Tangerines
Lemons
Sweet potatoes
Pine apples
Beans
Groundnuts
Soya beans
Coffee
Vegetables
Onions
Tomatoes
Pepper
etc

For inquiry you may contact me on email echirambo20xi@gmail.com or ezronn@yahoo.com

Malawi Kwacha has long at last been devalued

The former and late President Bingu wa Muntharika had rejected any advice to devalue the Malawi kwacha. He wanted the kwacha to remain fixed to a dollar so prices of goods should be affordable to poor Malawians. The time he died the kwacha was K164 to a US dollar. The IMF World Bank and donor partners failed to sway him to change his position. They stopped aid to Malawi and his regime came up with a zero deficit budget. Malawi struggled to make ends meet. Foreign currencies like US dollar, British pound and South African rand were in serious shortage in banks and exchange bureaus. That lead to the flourishing black market forex business. Companies downsized, folded, or opted to get forex on the black market in order to survive. That read to many people being rendered jobless. Pricess of basic commodities kept rising and the stock rarely available. People queued for things like fuel and sugar daily. The ques were too long and not all those on the ques were able to buy. The death of Bingu led to his vice to take over. So Joyce Banda took over presidency on 7th April 2012.On Monday the 7th of May people woke up to face new exchange rates in the banking halls. The US dollar was trading at K250 mid rate. The Kwacha had been devalued by 49%! By close of business on Tuesday the 8th of May 2012, the kwacha had depreciated to K168 to a dollar. Price tags are changing in the main supermarkets in response to the rate, reasonably or unreasonably. Is it confusion or business tactics? The economic weather has just changed and you will keep updated on other structural changes to happen including the new monetary policies. Donors say will open taps as soon as possible now! Should we hope for better life?

Are Exports Always Good for a Country?

Malawi produces more sugar than the demand of its population, of course below the extra demand of the region, I guess. Recently Malawi has faced acute sugar shortages in the distribution chain such that Malawians fight,que and buy sugar at higher prices, that keep on changing everyday. Yes few retailers and wholesalers,have taken advantage of this high demand to hike prices to make abnormal profits. Monopolistic behaviour at work. But why this situation when Malawi produces sugar in abundance to meet the demand of its people and quota exports under contract. It is said that most people have resorted into informally exporting sugar to neighbouring countries which is big business to informal cross border vendors. The impact of this is worse at this time because Illovo, the Sugar producing company, is now off season i.e. is not milling sugar as the machines have been shut down or idle (up to mid this month of April). Solutions- Finding solutions to the current sugar shortage is getting funny but serious considering that to the majority a good government is the one that ensures that people have food (food security which includes sugar). Illovo is now importing sugar from Zambia. The government, through the Ministry of Trade and Industry, has taken the responsibility of issuing sugar export licences from Illovo. Ministry of Trade and Industry is closing shops or withdrawing licences of those shops selling sugar at above recommended retail prices. Hopefully we will see more measures coming if the problem persists. What is the best way forward? Before addressing foreign markets companies should address local markets which is to say companies should well compute and estimate demand of their products and produce to meet that demand as this is good for their businesses. Government should also do its part by providing conducive environment for the private sector. Currently Malawi is still having serious forex and fuel shortages because of its poor policies . Yeah, or else traders out there know that demand for sugar is now very high in Malawi, albeit temporarily, you may tap this opportunity. Contact me.

Malawi Fuel Woes

The government is now very much uneasy with this persistent fuel problem. Now you can see that roads are empty (VERY LOW NUMBER OF CARS), markets are empty(VERY FEW SELLERS AND BUYERS), productivity is very low, companies are closing or retrenching employees, peoples faces are hopeless. The ambulances are mainly parked. Fuel, forex and electricity are indeed very very important to any country. Strikes are looming. The old thorn in the government flesh i.e the Judiciary strike of 2 months now is gaining momentum instead of ending. The Big Man feels that there is too much unpatriotic conduct in the country, yet he has the majority in Parliament. Now Parliament avoids discussing problems the country is facing. In fact, the parliament particularly the government side claims there is no problem, SAYING now the country is much better than the previous years because of the (monster-like) Zero Deficit Budget (ZDB) God save mother Malawi