MALAWI IS LOSSING OUT ON MAJOR INVESTMENT
Malawi is losing out on major investment deals because many exporters are failing to export in line with their given orders, officials of the Malawi Investment Trade Centre (MITC) have said.
MITC Chief Executive Officer Clement Kumbemba said this at the Trade Fair Grounds in Blantyre where the organization held an Export Orders Dissemination workshop for the Southern Region.
Mr. Kumbemba said the MITC has, for example, managed to secure huge exports orders in India, Zimbabwe, United Arab Emirates and Botswana, but not much is being done to meet the supply demand.
He when they visited the Dubai this year they secured exports orders of more than US$200 million (equivalent to K146 billion).
“We want to see the likes of ETG [Export Trading Group], Trans-globe, Rab Processors, the Mullis, taking up the export business. We’re also still pleading with the government to consider bringing back the commercial side of Admarc where they go into the villages and mop out all the produce from farmers and also help out on prices farmers are getting so that they’re able to continue their business,” he said.
He said they were happy that Auctions Holdings Commodity Exchange-AHCX has joined the market saying the many players go into the market, the better for Malawi.
Managing Director of one of the large exporters in the country, Lennie Enterprise, said Mr. Kumbemba’s sentiments are not entirely true.
Mr. Patrick Maseko said that the whole problem lies with the lack of information and over pricing.
“What we need to realize is that when a buyer asks for a quotation from us, he has also asked for the same from our neighboring countries so because many Malawians do not like to share information they end up overpricing and in the end losing deals,” said Mr. Maseko.
Mr. Maseko appealed to the MITC to consider sharing pricing information with exporters.
“I would also like my fellow Malawians to support and love each other so that we can move this country forward. When a buyer asks for quotations from you consult others so that you can offer fitting prices to your clients,” he said.
The MITC has pledged to increase its support to exporting companies which need more financial muscle in order to thrive on the market.
At the moment, exporting companies can access funding from the Malawi Development Fund and also OIBM and FMB Banks, according to Mr Kumbemba.
Some of the products attracting international markets include macadamia nuts, honey, coffee, chilies per and Malawi Gin.
Thursday’s workshop was among other things aimed at identifying who has the capacity to penetrate the identified markets, to share information and also act as a platform for the traders to network.