CAN MALAWI GET ON THE ROAD TO PROSPERITY?

I hate reading "Malawi is one of the poorest countries in the world," yet it is true. Those who have been given chance to lead Malawi have tried all sorts of tricks and tactics within their reach but have failed to make a break through leaving their subjects in abject poverty. So before answering the question of this article I need to first answer why Malawi is failing to get on the road to prosperity that it is still moving in a circle of the poverty trap.

Most commentators: political, economic, historical, etc have put the blame on various elements that stops our economic and social economic progress. Among the highlighted ones are colonialism that did not want natives to be empowered; dictatorship that stuck to retrogressive policies and banished rich families; education that some democratic leaders got dizzy and lost in macro-economic management; corruption that institutional managers  have not been the best in terms or merit in managing institutions but could better be used as vehicles for corruption thereby enriching participants mostly the elite; governance that the democratic system disrupts government strategies as each new regime overhauls senior government controlling officers at starts from scratch  and many more....

I believe Malawi need to address the following salient issues if it is to get on the road to prosperity

1. To motivate Malawians who are hard working in terms of industrialisation buy not milking them too much through horror taxes
2. Keep interest rates and inflation at minimum through sound economic management - any government regime that threatens this should be impeached
3. Malawians should be properly helped and encouraged  in undertaking joint ventures and partnerships to be able to make big investments in growth  potential areas locally or internationally
4. Help Malawians  to as much as possible penetrate the SADC, COMESA, AFRICA, EUROPE, USA and ASIA where they can either trade,  learn skills, do professional work etc so that Malawi can have a critical mass of wealthy people, economic and  policy influencers too.
5. Expose Malawians to motivational speakers
6. Help half of Malawians to learn above average ICT skills, to own and use them 
7.  

The nation can better develop  and be lead by empowered citizens. When citizens are not empowered and majority live in abject poverty yet they vote and influence elections, politicians will always manipulate them to enrich themselves by always using the donkey and carrot tactics as this case in Malawi.

MALAWI TO CHAIR SADC FROM AUGUST 2013

It is at least an opportunity for Malawi to Chair SADC. Why? Malawi will have the chance to push for issues that it feels hinder it to benefit from this peculiar regional integration. Malawi mainly trades with South Africa in the region for both exports and imports. It should, therefore, push for an agenda that could unlock its export to the immediate  neighbouring countries as well. These countries are Zambia, Mozambique and Tanzania and even Zimbabwe.

It is a fact that Malawi trades a lot more than what is captured in statistics with these neighbouring countries but most of the transactions are informal hence unrecorded. The porous borders are conduit for such informal trade. Otherwise why is it that after every bumper crop harvest Malawi suffers from food insecurity despite the various export bans of food crops.
 
Anyway, I would suggest that Malawi should push for issues that could lower cost of exports such as competitive transportation, telecommunication, flight and ICT services (but other countries could laugh at this because its own policies are anti-competitive in these sub-sectors); quick development ant launch of Zambezi Waterway Inland Port as well as rail network to Zambia and Mozambique ( but this could lead to influx of imports as it will be cheaper to bring them in too); joint tourism 'package' promotion (but what if payments are made in the more tourism developed countries): free movement of production resources( but Malawi ease of doing business is appalling few my opt for it as a destination) etc

Yeah, the chairpersonship will give Malawi visibility but its own leadership and policies will help it  gain from the preferential regional market. This is true with the other struggling SADC countries. Mining is not the best option. The best option is knowing the tricks of value addition and value chain linkages- upward and downward linkages that support SMEs.

IS MALAWI ECONOMY RECOVERING?

It is now one full year since Joyce Banda started ruling following the sudden death of the former President Bingu wa Muntharika. Then the economy was shrinking following tightly managed monetary policies that led to influx of imports on the local market and scarcity of locally produced products because most companies either scaled down production or closed production facilities. The raw materials and fuel were had to get because enough forex for raw materials and fuel was acutely scarce. Foreign exchanged almost dried up! Key donor partners and IMF stopped supporting the Muntharika a

JB's administration came up with economic recovery measures: kwacha devaluation, floatation and floating fuel price, yes and an insignificant safety nets. The other administrative measures were to repair relations with the donor partners and foreign governments with which the relationship were strained, as well as complying with the IMF fiscal management dosage.

Today, 12 month later, after much pain and sweat, finger pointing and much wider criticism, the economic activities are gliding forward and upwards though at slow pace. On the negative side Kwacha value is deeply low such that earnings particularly salaries have been trimmed to pulp and workers can hardly buy their basic needs, prices are daily rising and importers are facing foreign exchange losses in international transactions. However, on the positive side, the horizon is promising: foreign exchange and fuel are available and  the private sector is active, slowly rising. Development partners are supporting government as much as they are able to do so. Investors are coming into the country with much hope.Imports have slowed pace. Public capital projects have been reactivated.

Economically I feel the administration has done better of course with some more gaps to be filled. Politically the measures have been dangerous because they have made people poorer by reducing the value of their disposable income.In the short term, political solutions may be provided but need careful handling to avoid disrupting the positive progress. This is where wisdom and intelligence ought to bridge and work as a pair!

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