MCCI says Manufacturing Industry is the way to go

The Malawi Confederation of Chambers of Commerce and Industry (MCCCI) say the country can move forward economically if it adopt and priotise Industrialization and Manufacturing sector.

MCCCI has come clear that Malawi economy to succeed like China, Malasia among others it will have to be driven by the manufacturing sector, as it produces high value exportable goods, and maintains sustainable meaningful employment.

BAM ask government to create conducive environment for doing business

BAM ask government to create conducive environment for doing business

Misheck Esau CDH MD/CEO
 Picture taken from:
 www.cdh-malawi.com.

Bankers Association of Malawi (BAM) have asked government to create better conditions for business and investment so that Malawian businesses are not lag behind from what other business from other countries within the region are doing.

BAM president Mishek Esau made the call when presenting a topic ‘Doing business in Malawi: a financial sector perspective’ where he indicated two key annual reports on doing business by the World Economic Forum (Malawi: 132/144) and the World Bank (2015 Mw: 160/189) and the local key report produced by MCCCI have clearly shown that “Favourable conditions expected by the business community to be present in a country for business and investment to flourish in relation to other countries”

“We might do well this year and move a step, but also other countries are also on the move and that’s the most important thing. So we are in competition with each other” said BAM President Mishek Esau

“Countries are in competition with each other for foreign direct investment and also trade opportunities. Malawi needs to create a conducive environment to be able to compete on the world stage. Bankers are saying Malawi as a country we are too disorganised to compete on the World stage!”

BAM has among others mentioned that the country must improve on address challenges that business community are experiencing including unstable economic environment which makes long term planning problematic and cost of doing business which is too high. He in this respect mentioned high interest rates, high inflation rate and unstable exchange rate.

Esau said the solution is to create an enabling environment by a complete overhaul of monetary policy to one that reflects the realities, enhance fiscal discipline as well as reviewing of Monetary policy transmission mechanism.

BAM president also mentioned poor infrastructure of roads, energy, water and telecoms. He urged government to accelerate public sector investment programme through alternative ways of financing such as bond issues, Ring-fencing of statutory levies for investment like road levy, MAREP levy to service bond issues for development and invest in toll gates on roads where people must pay whenever they enter into a district or a city.

“Almost all commercial parastatals like Blantyre Water Board where we are experiencing frequent disruptions in water supplies can raise money in this way if they were well managed!” he said

BAM also indicated that there is under-developed capital market and that Security lapses is threatening confidence to businesses which MCCCI Chief Executive Officer Chancellor Kafera Panjira when making his presentation on ‘Cost of doing business’ also mentioned similar concerns including water disruptions particularly Blantyre Water Board, as areas consistently remain key constraints to economic development.

But speaking on some of these areas before engaging in camera discussions with the business community, President Mutharika gave hope to the business community that his government is trying to address these issues.

On security President Mutharika said “Recent high profile insecurity incidents may sow seeds of panic but this will not derail Government’s commitment to protect the economic interests of all companies against criminal activities.”

He said his government is making sure that security institutions have adequate resources “Additionally, Government will continue to enhance the capacity and professional competence of our security institutions to enable them to respond adequately to the security needs of the private sector.”

On Energy President Mutharika also mentioned that “Our Government will increase availability of reliable, sustainable and affordable energy. The current lack of access is one of the main obstacles for productivity growth and industrialisation. Therefore, this Government is in the process of enhancing the efficiency of the services of the Electricity Supply Corporation of Malawi (ESCOM) by separating its functions into electricity generation, distribution and marketing.”

He said “A US$ 350.7 million grant from the Millennium Challenge Corporation has been secured and is funding a Power Sector Revitalisation Project (PSRP). Furthermore, we are incentivising private sector companies to invest in the Energy sector through PPPs. At the end of this process, we shall see a thriving electricity sector that supplies enough energy to all Malawians.”

And concerns on infrastructure President Mutharika has assured the business community in the country that “Our government will improve transport infrastructure for traffic by road, rail and air and will prioritise those with economic drive.”

“We recognize that good transportation infrastructure can be a catalyst for agricultural development, industrialisation and trade. Therefore, this Government plans to improve road infrastructure through the resuscitation and construction of a number of roads, the rehabilitation of railway networks that can link all of Malawi to the Nacala corridor, and the construction and upgrading of international airports.”

“Government is committed to operationalize the Nsanje Inland Port. I am convinced that these projects, if successfully implemented, will significantly increase the attractiveness of Malawi as a destination for investors and tourists.” Said President Mutharika before engaging holding discussions with the business community in camera

President Mutharika declares war to tax noncompliance

President Mutharika declares war to tax noncompliance

The Malawi President Professor Arthur Peter Mutharika has warned that the law shall take its course on individuals that are running away from paying tax. He said his government is ready to pursue and track down any individual trying to avoid paying tax liability, and once found shall face the penalty of the law.

President Mutharika was speaking at Kamuzu palace in Lilongwe on Wednesday during the launch of Projects Compendium and National Dialogue on Private Sector Development.

The Projects Compendium is a compiled project opportunities available in Malawi which presents some of the immediate opportunities the Government is offering to both local and international investors to this country. The compendium was formed following his directive that the project opportunities available in Malawi be compiled so that investors are aware of the numerous investment opportunities Malawi offers.

But speaking on how his government is strengthening the economy and ensure that all taxable businesses and individuals are not escaping their required task, Mutharika said he will not tolerate any person who running from their tax liabilities.

“Let Malawians pay their taxes,” he said “and let Malawians not take money from Malawi to hide it outside.”

“From today I declare war on all Malawians who are evading taxes and who are taking money out of this country. Your days are numbered!” he underlined

President Mutharika therefore called on business communities and Malawians to partner with government and do their roles in sustaining the economy.

“As an economy let us focus on strategic directions hence priotise and match actions accordingly. Therefore let the manufacturing sector work beyond the domestic markets let government pursue the pro-business policies and regulations. Let the donors fulfil on their commitments let the general public contribute to the Malawi economy by enhancing productivity and promoting governance and the private sector takes up the challenges as the engine of growth.”

The president has promised good economic governance, security, avoid disruptive policy reversals by review of some unpredictability policies, fair competition by empowering Competition and Fair Trading Commission to fulfil its role, and make good Regulatory Environment so that it is easier and less costly to operate a formal business. He also said issues of energy, transport infrastructure and access to credit facilities will be worked out so that there is a very conducive environment for operating business in Malawi.

President Mutharika has declared this war few days after Malawi’s Former Budget Director Paul Mphwiyo, a business man Shiraz Ferreira and Nelson Kauwa were arrested over tax evasion.

BAM, MCCI wants Performance Contracts in Public Service

BAM, MCCI wants Performance Contracts in Public Service

The business community has asked President Professor Peter Mutharika to add to public sector reforms a term ‘Performance Contract’ to enable government track performance of every person working in public service and hold accountable to every state enterprise and parastatals.

The call was made on Wednesday evening at Kamuzu Palace in Lilongwe during the launch of Projects Compendium and National Dialogue on Private Sector Development a business community interface with the president where they discussed in camera with the President several challenges they are facing as well as outline ways to enhance good business environment.

Speaking before the meeting was held in camera, Bankers Association of Malawi (BAM) President Mishek Esau said lack of provisions that force state enterprises and Parastatals to periodically publish their performance, is a big challenge that is encouraging poor governance of such institutions and its employees.

He cited the Judiciary as one of the public service which is affecting Banks and other institutions when they try to access justice.

“We are facing slow justice system” he said “We need to improve the court system to make the work of courts more transparent.”

Esau said their proposed reforms on access to finance can see success if justice system is efficient “We would like to emphasise that the success of all these reforms also depends on the speed with which the justice system delivers judgments. We have the problem with this area your Excellency.”

If this is not dealt with he warned, “Our world rankings on doing business will not move because there is logjam in the courts. Nothing is happening. And the statistics on court cases that companies are waiting for is alarming.”

He therefore said Banks are proposing that President Mutharika should direct that there should be publication of judgments & injunctions delivered per judge and proposed that this could be done per half year. He added that, there could also be introduction of Performance contracts for judges just to ensure that judges are working hard.

BAM president also raised concern of poor governance in state enterprises and parastatal, “We believe this retard public and private sector development, lack of accountability is a major issue the result is everyone is a looser.”

“We reiterate the introduction of performance contracts for all state enterprises and parastatals and the publication of performance by state companies. One of the good example is what MRA (Malawi Revenue Authority) does. MRA publishes how well it has done in a month. So MRA is one such parastatal that is accountable to all of us. Is it because it deals with money? We are proposing that all the parastatals should account to all of us.” He said

“We need to introduce service charter for ministries. Ministries should account what they have done. We need to improve the work ethics in this country. Currently people don’t want to work, they want money” said Essau

Speaking on challenges affecting Private Sector by Malawi Confederation of Chambers of Commerce and Industry (MCCCI) Chief Executive Officer Mr. Chancellor Kaferapanjira also bemoaned on the same but dwelled much on administrative delays and said must be dealt with.

“I think every worker must be given targets and must be monitored in terms of achievement and must deliver. For whatever they paid, there must be a value for that kind of money. You cannot just keep people idle just coming to work without necessarily earning the money. Whatever some of us earn we actually proven that we have delivered the service in exchange.” said Kaferapanjira

“Thank you your Excellency for the public sector commission and we hope that after some time we will start seeing the results. But holding people and parastatals accountable, I think this is extremely important. Set targets and everyone must deliver!” he said

Mutharika promises strong govt, private sector partnership... launches Projects Compendium

Mutharika promises strong govt, private sector partnership

President Peter Mutharika

President Professor Arthur Peter Mutharika has finally launched Malawi Investment Projects Compendium which he promised to make it happen some two months ago.

The President launched the Compendium on Wednesday evening at Kamuzu Palace in Lilongwe during National Dialogue on Private Sector Development an interface with business community where they discussed in camera with the President on several challenges they are facing as well as outline ways to enhance good business environment.

The compendium has been formed following President Mutharika’s directive to all Ministries to put together a compendium of investment opportunities in Malawi. And the president said he is glad that the task has been done on time and has described it as a “very high quality compendium.”

“After 50 years of independence, today the Government of Malawi and the private sector are launching Malawi’s first ever Bankable Projects Compendium” he said

On the importance of engaging with the business community, President Mutharika said “Taking into account the current economic situation, there is no better time than now for Government and the private sector to share notes for the good of our beloved country Malawi.”

He promised that his government has an ear for grievances and suggestions that business communities have and can work together to find solutions.

“Today I ask you to speak freely about the challenges that you are facing in view of the investment opportunities in Malawi, as they are challenges that this nation faces as a whole. Today shall be a day where we speak with one another, rather than at each other. Today we will be speaking in year 2064” said President Mutharika

He said government continues to give high priority to developing and strengthening the capacity of the private sector to participate effectively in investment, production and trade.

He hailed the private sector for paying taxes without which the Government of Malawi would be unable to secure the health, education and safety of citizens. “Therefore, this Government is thankful for your commitment to Malawi and for the time and capital that you invest.”

The president acknowledged that private sector is engine of economic growth and poverty alleviation of Malawi and that given right conditions, it can play many critical roles including partner with government on improving welfare of the nation, and seize the export opportunities arising in non-traditional products and sectors to generate foreign exchange.

President Mutharika however said there is need for both sides to partner and deliver on their respective roles.

“This Government recognises that the private sector can only fulfil its role if the state provides the right environment for it to thrive. We have sustained a number of pro-business reforms and continue to introduce more. What we must realize is that this ‘business environment’ is a complex set of rules and institutions that can work in favour or against the interests of the people that operate within it.”

“At the moment, the business environment is undergoing an evolution. It is time for adaptation. In this regard, Government is operating on a zero-aid budget. In the same vein, I wish the private sector adopted the net-exporter drive. It is up to the existing private sector to demonstrate that there are also opportunities that can generate enough returns to overcome these constraints. The Government also believes that more of these opportunities have to be seized so that we can transform the economy of this nation.”

Mutharika promised the private sector that it will ensure that there is good environment for doing business in Malawi. He promised good governance by design and implementation of sound macro-economic policies, tighten security by giving adequate resources to security institutions, effective regulatory frameworks where certain laws that are riddled with discretion shall be reviewed and replace them with predictable provisions including providing an improved business regulatory environment.

But he urged the Private Sector to dwell on making realistic demands from Government “As an economy let us focus on the strategic direction, hence pritoritise and match actions accordingly.”

MW Govt Eager to End HIV/AIDS by 2030… Ready to implement Fast Track Report targets

MW Govt Eager to End HIV/AIDS by 2030… Ready to implement Fast Track Report targets

Malawi Government is optimistic to end AIDS pandemic by 2030 as targeted by the recent UNAIDS report ‘Fast Track Strategy to end AIDS by 2030’.

Secretary for Nutrition and HIV/AIDS in the Office of President and Cabinet Edith Mkawa in an interview said the government is ready to ensure that it is more aggressive on HIV and AIDS issues through intensifying awareness campaigns and implementation of the UNAIDS Fast Track strategy.

She said starting this month of December where the world commemorate HIV and AIDS effects, Malawi will intensify its activism beginning Monday 1^st December with World AIDS day event in Karonga, by focusing on spreading information on benefits of male circumcision.

“This year’s World AIDS day we are focusing on three zeros. Zero discrimination, zero new infections and zero deaths due to HIV. Along with that we are also going to be talking a lot on male circumcision because we have found that with Medical Male Circumcision there is a lot of progress.” Said Mkawa

She said from these messages men will also be warned that medical male circumcision does not protect them fully from HIV but it is just one way of helping to protect them from HIV and they need to maintain following other protection methods like having one sex partner, condom use.

On Fast Track report she said “We will be implementing what they are recommending so that we give more information out there to the communities. We will be more aggressive in the way we approach HIV so that at least there are more people that go for testing, put on treatment, and that some of the issues like stigma and discrimination that affect people and prevent them from going for testing and receiving treatment we deal with them by 2030.”

“So we are hoping that by 2030 we should make progress”

However, Mkawa urged every Malawian and every institution to take part in supporting government in the fight of HIV pandemic saying government alone cannot make a great impact.

But Malawi must to do a lot in achieving this dream considering that Malawi still rely on donor support on HIV response where 90% of funding comes from Global Fund.

As UNAIDS Fast Track to end AIDS by 2030 urges all low- and middle-income countries to bring domestic funding into line with their national wealth and HIV burden, there is fear that Global Fund might delay funding to Malawi following alleged misuse of HIV and AIDS response funds at National Aids Commission (NAC).

Recent media reports reveals sum of K57. 4 Million for HIV response at NAC was donated to institutions not involved in HIV response where, the Malawi First Lady’s initiative ‘Beautify Malawi Trust (BEAM)’ received up to K5 Million, National Intelligence Bureau (NIB) got K43 Million and Mulhako Wa Lomwe received K9.4 Million when the said institutions requested NAC to fund their activities.

Five CSOs CHRR, Cedep, Mehen, Manet+ and Manelela are demanding Country Coordinating Mechanism Committee of the Global Fund (CCM) to swiftly investigate and bring those responsible to book and immediate dissolution of NAC Board and be replaced by one with sober minded individuals.

As the world is embarking on a Fast-Track strategy to end the AIDS epidemic by 2030, Malawi is among Low-and Middle-Income countries that account for 89% of all new HIV infections.

“To reach this visionary goal after three decades of the most serious epidemic in living memory, countries will need to use the powerful tools available, hold one another accountable for results and make sure that no one is left behind.” Reads the UNAIDS report

The report indicates that without scale-up, the AIDS epidemic will continue to outrun the response, increasing the long-term need for HIV treatment and increasing future costs.

“There is a strong global consensus that the tools now exist to end the AIDS epidemic. This confidence is based on a combination of major scientific breakthroughs and accumulated lessons learned over more than a decade of scaling up the AIDS response worldwide. The achievement of targets built on these tools now needs to be fast-tracked.” Says the report

The report further indicates that HIV treatment can dramatically extend the lifespan of people living with HIV and effectively prevent HIV transmission. And condom programming, behaviour change, voluntary medical male circumcision and programmes with key populations are opportunities that have capacity “to sharply lower” rates of new HIV infections.

“HIV infections may not disappear in the foreseeable future, but the AIDS epidemic can be ended as a global health threat. To achieve this by 2030, the number of new HIV infections and AIDS-related deaths will need to decline by 90% compared to 2010.” Adds the UNAIDS report

APM Donates Minibus To Former School Dedza Sec…Set Aside K15million For Painting, Road Rehabilitation

APM Donates Minibus To Former School Dedza Sec…Set Aside K15million For Painting, Road Rehabilitation

President Professor Peter Mutharika has donated a minibus to his former school Dedza Secondary popularly known as Box 48.

Mutharika’s Special Personal Assistant Ben Phiri handed over the vehicle worth K5million to the school on Monday.

The donation is going to ease transport problems that the students and the staff at the school have been experiencing for so many years since the institution has only single lorry and an old grounded school bus.

President Mutharika donated the bus following the requests by the school management and students when Mutharika paid them unannounced visit few weeks ago.

“The president is an alumni of Dedza Secondary School and he within his own will decided to make a surprise visit to the school because he believes that what he is today is because of what he learnt during those days at Dedza Secondary school.” explained Phiri

“When he came here he discovered that there are quite a lot of challenges and one of which was transportation problem. Again the other problems were to do with the road to the Boma and again the state of the school as it stands right now.  So he had to pull his resources together to purchase the bus just to make sure that the transport problem is sorted out”

Phiri further said by donating the bus to his former school the president felt that as alumni it is important that he leads the way for others to follow the good example of what he is doing.

He said the starting next week the school will be painted and that Mota-Engil will begin to rehabilitate the 6Km dilapidated road from Dedza Boma to the school. He mentioned that the road will be an all season gravel road.

“The president will be rehabilitating the road from the school to Dedza Boma and again the school will be painted and all starts next week. I must mention that this has got nothing to do with the government. It’s not government money! He has used his resources to do it and at some extent his friends have come in to help him.”

Phiri also indicated that the whole road construction project and painting of the school infrastructure will cost MK15 million. Therefore the whole project including minibus donation total’s to MK20 Million.

Receiving the minibus donation, Deputy Head Teacher for the school Edness Banda thanked the president for living up to his promise at a short period of time. She said this help will bring back the lost glory of Dedza Secondary School.

Banda said the school has for a long time been using a lorry to pick sick students to Boma and that it was difficult for the staff to travel to important functions at division offices and in Lilongwe education headquarters offices.

“We are proud of receiving the donation and we are also proud of our president for assuring us that he is going to rehabilitate the school and the road”

The deputy head teacher also promised that the school will take care of the bus and the school property.

Dedza secondary school which was opened in 1951 has produced a lot of leaders including current Finance and Economic Development Minister Hon. Goodall Gondwe, current Chief Secretary and former president late Professor Bingu Wa Mutharika.