What can you tell us about the export climate of the last three years?
So far so good! But it is unfortunate that our production market is not as it should be. We have been asking the large companies to go into production, because the export business is now ready to move steadily forward. Every country, I believe has to have a equal balance: Malawi exports are mainly Tobacco, Sugar ,Tea. Unfortunately, Tobacco now is declining not due to our initiative but due to the world market, anti-smoking campaigns. It really is not doing well in Malawi: We have been asking our people, what alternatives do we have? If the Tobacco export is going down like that, what else can we do. We feel there are so many areas to go to. The fastest growing area we have is Textiles. Everyone around the world wants to go into Textiles. For the last three years we have attracted people to come and invest in textiles, bring in their machines, export promotion zones but most importantly, we have a strong bi-lateral agreement with South Africa. I believe this is one of the future industries in Malawi and it is progressing very well.
It is interesting to note that there is a lot of foreign participation in this industry, Could you name any of the companies that are present but that are not from Malawi?
We have Chilima Garments Ltd, which is from Taiwan. Haps Investment which is also from Taiwan. Lilongwe Textiles which is from South Africa. We have full Moon Garments from South Africa and about twenty more other important players.
From the point of view as a Minister, What is the future looking like for the Ministry?
If I can solve the problem With South Africa then I will have a lot less worries but I am also looking for other markets, we need to diversify our whole industry and grow that way.
What incentives are you providing in order to open up to new markets?
Quality. But behind this we need to be able to export this quality to outside markets. For example With Europe we can send our products, as much as we want to free of duty. The market is open for us, which not only acts as witness to our quality but also to our future economy.
As far as your strategy is concerned what other markets are we looking at?
All the European markets and the United States of America.
Your relationship is obviously very good with the European Community? How important to you is the relationship with the USA?
It is very important for Malawi. For the Survival of Malawi depends on this particular industry. We are offering ourselves to open doors and invite people into Malawi to invest in other areas. Electricity needs long- term investment. I was recently in Germany and made it clear that we were offering the possibility for companies to invest. The main reason is that if there is electricity potential then we can create a more efficient and productive sector. Telecommunications, also is a very strong potential leader in the development process. We need to invest in these, either Cellular or traditional networks. Communications have to improve and are of basic importance in the basic infrastructure.
Forbes Global magazine is known to be the capitalist tool in all the worldwide markets. In Latin America for example, there have been various recent privatizations in the Electricity sector. We helped with the promotion of the sector with the government which has gone very well. The result has been that the sector has created investment, employment and is bringing the price down………
This exactly what we are looking for. I met with other officials and the truth is that we agreed that it is good timing for investment. We want the sector truly privatized. The Minister of Energy will surely explain in full what is happening with electricity. We already have an interest from South Africa. There is a privatization in the pipeline.
When exactly will it be ready for initial tenders?
For the moment I cannot confirm a date. The Minister in charge of Energy has to take the issue first to parliament, the electricity sector is manned by a government act and therefore has to be amended or scrubbed and a new act created. This will set out the rules, either distribution or generation etc.
What is your mission as Minister, what would you like to see accomplished by the end of your term in office?
What I want to see myself is the government giving all it’s facilities to the private sector and allow the private sector to operate as freely as possible. I want to see the increase of production, of exports.
| This is one of the most important ministries when it comes to seeing the future of the economy, it’s role is to be a driving force of the economy where do you see the necessary changes in industry?
When I see the ESCOM members, you are not doing as well as could be expected, Water needs to be in abundance and of course my personal enemy, infrastructure. You don’t expect a foreigner to come here and experience danger between Lilongwe and Blantyre. We need to improve infrastructure heavily. We promote investment but also we need to be helped.
Q How are you communicating your message to the international community?
Malawi in this region is the most stable politically, there is no language barrier and the country is safe. This is the underlining message. "Come and invest".
As far as investment is concerned what are the major issues on the Agneda?
Power generation, infrastructure, Farming- we have a lot of opportunities near the lake….so much water and we are not using it to it’s full potential. We need to promote irrigation. This in turn will help with the production of agricultural diversity.
Who have been traditionally you closest trade partners?
The U.K, South Africa and Zimbabwe.
We are now living in global village, The growth of technology has made the corners of the world come closer, how much awareness has the government shown in order to be included in the speed of change?
I think that Malawi is terribly behind in technology. I was recently in Germany and I asked them to come and support us and invest. Information is lacking and we need to move forward.
Can we talk about price development?
The only thing we ask our colleagues is to strive always for a stable currency. This will enable the prices to be stable. But of late the Kwacha has been going down. The prices change constantly. The Petrol commission has decided to put the prices up which in turn make everything else more expensive.
Is it just an artificial way of controlling inflation?
In Malawi, the consumers suffer with the increase of fuel. Public transport goes up. How do we make sure that the prices keep balanced?
What is the solution.?
We are subject to markets from outside. Once this happens outside, it is impossible to decide on the prices.
What are the official inflation rates and interest rates?
The last figures were much higher than had been hoped for. They are in between 45-50%. We are planning to get them down between 5-10%.
What are your expectations for the next three years?
In the next three years we will see an increase in GDP and to have lower inflation. I want to see the infrastructure, Telecom and Electricity really improved. I want to be able to leave my term in office and say that the standard of living has vastly improved.
What is the relationship like with your neighbouring countries?
We are members of the SADEC. In the Sadec region we are working very well. We are also members of COMESA. Together we all strive to find solutions.
What is your message to the Forbes Global readers?
We can develop trade here now that it has been liberalized and all investors are welcome. There is a challenge here but a worthwhile one. We have so much potential.
|
MINISTRY of COMMERCE and INDUSTRY