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Egypt to host Intra-African Trade Fair

Egypt will host the first ever Intra-African Trade Fair (IATF) from 11-17 December 2018, which is being convened by the African Export-Import Bank in collaboration with the African Union. In a letter, The Intra-African Trade Initiative has invited Malawi to participate in the inaugural African Trade Fair and to consider submitting a proposal to bid for the IATF Country Day Programme. “The fair which has been themed “Transforming Africa”, is indeed the first of its kind in the continent. It is intended to provide a unique platform for promoting Intra-African trade and facilitating information exchange in support of increased intra-African trade,” Reads the letter The fair which was launched in 2018 at the 10th Extra-Ordinary Summit of the African Union seeks to solidify implementation of the recently signed African Continental Free Trade Area (AFCFTA) The letter further said, the concept of the country days at the IATF is to provide each country a prominence platform to promote its business sectors, trade credentials, best products and services on offer to export markets and opportunities for capital markets. Reads the letter: “The concept is a vehicle that will enable designated countries to have a day where they can enjoy prominence and a special focus to fall on their business representation at the IATF giving these businesses an unencumbered opportunity to seek joint venture partners, launch new products and services, showcase their export readiness and meet potential distributors for their products,” The letter further said the country day program will also provide high visibility branding opportunity and will deliver an opportunity to make an exclusive pitch for direct investments and turnkey project financing. The minimum contribution for participation per country per day is USD 300,000 but countries are allowed to submit joint bids.

Oil seed producers association formed

A newly formed association, Malawi Oil Seeds and producers Association has elected Lake Shore Agro Processers Enterprise (LAPE) and Capital Oil Refineries (CORI) as its Interim Chair and Vice Chair respectively at an elective conference held recently.

Other interim executive members include: Sunseed Oil as Secretary deputized by ETG while Parrogate was elected Treasurer and Dwale Supplies, NASFAM/FUM, Rab Processors and Inkupechi Trading were elected committee members.

 The association which has been formed under the facilitation of the Ministry of Industry, Trade and Tourism is expected to help in driving the industry by being a platform for discussing issues pertaining to the oilseed industry.

The Ministry of Justice will help in ensuring that the Association is legally established by assisting with constitution drafting.The association’s formation follows the SADC and EU launch implementation of Trade Related Facility (TRF) projects in members states.

 The Ministry of Industry, Trade and Tourism is implementing the TRF project with financial support from the European Union (EU) through SADC.

 The main components of TRF are Upgrading and Modernization of the Oilseed Cluster in Malawi.

The SADC Trade Related Facility is an innovative programme to strengthen implementation of existing regional trade agreements at the national level.

Malawi and Tanzania committed to eliminate trade barriers

 

Tanzanian Vice President Samia Suluhu Hassan, said her government has taken up initiatives that will eliminate trade barriers and ease cross border trade between Tanzania and its neighboring countries.

She made the remarks when she officially opened the first ever Malawi-Tanzania Trade Forum held in Mbeya, Tanzania recently.

She said: “Railway availability between Zambia and Dar-Es-Salaam, the dry port that is under construction in Mbeya, the national road network in Tanzania and a cargo ship which will be ready in December 2018 are some of the opportunities available to ease doing business with Tanzania,”

In his remarks, Honorable Henry Mussa said that it is important that both countries are committed to eliminate cross border challenges.

Mussa Said: “We need to deal with challenges and create ease in doing business between the two countries by eliminating trade and investment barriers. Cross-border trade between the two countries should be smooth due to proximity and similar cultural values,”

He said both governments are committed to work together to enhance and strengthen cross-border trade as evidenced in the signing of business deals at the event.

Some of the SMEs that attended the forum said the B2B meetings helped them to identify business opportunities.

Homes Industries of Karonga, African Women in Agribusiness from Lilongwe, Innovative Fish Farmers Network, Yavinde and Perisho Agro & Packaging Enterprise are some of the SMEs that have identified business opportunities in Tanzania.

Delegates from Ministry of Industry, Trade & Tourism, Malawi Embassy to the Republic of Tanzania, MCCCI, Malawi Bureau of Standards, Malawi Chamber of Mining, MRA, Malawi Fisheries and Press Corporation Limited represented Malawi in Government to Government meetings. The next Malawi-Tanzania Forum will be held in malawi in 2019.


MITC organises trade mission to zambia

The Malawi Investment and Trade Centre (MITC) has organised a trade mission to Zambia Lusaka from 19th to 24th August 2018.

In a statement, MITC Chief Executive Officer Clement Kumbemba, said the purpose of the trade mission is to identify potential markets for Malawian value-added products in Zambia. 

“Business to business meetings will be arranged between Malawian exporters and potential buyers in various sectors,” Said Kumbemba.

MITC is calling upon interested companies who would like to explore and expand their market reach in Zambia to register by emailing: This e-mail address is being protected from spambots. You need JavaScript enabled to view it by 10th August 2018 or call 0997079719.

Three institutions chosen to lead establishment of land forum

Malawi Confederation of Chambers of Commerce & Industry (MCCCI), Tea Association of Malawi and Interlaken Group have been chosen to spearhead the establishment of a platform where Civil Society Organisations (CSOs) and Companies will discuss community land rights issues as a way of reducing conflicts between local communities and investors.

 This was agreed at a Land-Based Investments and Community Rights informational workshop on Customary Land Act held in Lilongwe recently organized by the Interlaken Group (IG).

The Interlaken Group is a network of stakeholders whose aim is to expand and leverage private sector action to secure community land rights.

 The Group noted that there is need for a multi stakeholder dialogue to enhance collaboration and ensure tailored strategies to address land tenure risks and reduce tenure-driven conflicts.

 Said IG: “Tensions between local communities and investors pose significant risks to local communities, companies and their investors and risk frustrating government’s objectives for sustainable development,”

The workshop oriented participants with the new Customary Land Act and its enabling legislation with an emphasis on implications for investors and communities.

 “The new Customary Land Act promotes tenure reforms that guarantees security of tenure. As such land-based investments are expected to be profitable for companies, respect land rights of communities and enhance relationship with communities,”

 Participants at the workshop noted, long term investment but with limited tenure, unavailability of patient capital vis a vis long term investment and start-ups- years of costs before income as some of the land related risks to investors.

 

They also bemoaned long lead time where companies have to work with communities before they can start investing hence increasing costs, compromise investment viability, delay projects and cause reputational damage to investors.

 

 

Lilongwe Trade Fair award winners

MCCCI in conjunction with the Ministry of Industry, Trade & Tourism in the spirit of celebrating and encouraging excellence and innovation in trade exhibitions, awarded best exhibitors which were selected by a panel of judges at the Lilongwe Trade Fair on 26 July 2018.

Lilongwe Dairy received the 3rd Best Exhibitor award, 2nd Best Exhibitor award went to Rose Farms and Mosanto won Overall Best Exhibitor award.

CONGRATULATIONS!!!


 

Industralization essential for development

The Ministry of Industry, Trade and Tourism Acting Principal Secretary Dr Joseph Mkandawire said industrial development and diversification is essential to enable African countries including Malawi to trade amongst themselves and to benefit from signed free trade agreements.

He made the remarks when he officially opened the 3rd Lilongwe Trade Fair on 26 July 2018 in Lilongwe.

He said his ministry has developed the National Industrial Policy (NIP) which has looked at industrialization enablers in the country and proposed the type of interventions Malawi requires to put in place in the short, medium and long term.

He said: “These industrialization enablers include access to finance for Micro, Small and Medium Enterprise Development (MSMEs), enhancing the use of railway transport for exports for products, and capacitating institutions vital to industrialization such as the Ministry of Industry, Trade and Tourism; the Malawi Investment and Trade Centre (MITC); Small and Medium Enterprise Development Institute (SMEDI); and the Malawi Bureau of Standards (MBS), amongst other initiatives,”

In his words, MCCCI’s Councillor, Andrew Chinguwo said The Lilongwe Trade Fair had adopted the theme for the Malawi International Trade Fair: Industralisation: Basis for Trade Competitiveness, to underscore the importance of industrialisation for the country’s inclusive and resilient growth adding that Industrialisation must be a key priority for Malawi

Said Chinguwo: “The bottom line is that we need to produce more and we need to produce better. Most of all, we need to add value to our resources and raw materials, and turn them into processed products. That is the end goal! We must not slow down.”

Chignuwo said, no country or region in the world has achieved prosperity and a decent standard of living for its citizens without a robust industrial sector.

 

Three organisations chosen to spearhead establishment of platform

Malawi Confederation of Chambers of Commerce & Industry (MCCCI), Tea Association of Malawi and Interlaken Group have been chosen to spearhead the establishment of a platform where Civil Society Organisations (CSOs) and Companies will discuss community land rights issues as a way of reducing conflicts between local communities and investors.

 This was agreed at a Land-Based Investments and Community Rights informational workshop on Customary Land Act held in Lilongwe recently organized by the Interlaken Group (IG).

The Interlaken Group is a network of stakeholders whose aim is to expand and leverage private sector action to secure community land rights.

 The Group noted that there is need for a multi stakeholder dialogue to enhance collaboration and ensure tailored strategies to address land tenure risks and reduce tenure-driven conflicts.

 Said IG: “Tensions between local communities and investors pose significant risks to local communities, companies and their investors and risk frustrating government’s objectives for sustainable development,”

 The workshop oriented participants with the new Customary Land Act and its enabling legislation with an emphasis on implications for investors and communities.

 “The new Customary Land Act promotes tenure reforms that guarantees security of tenure. As such land-based investments are expected to be profitable for companies, respect land rights of communities and enhance relationship with communities,”

 Participants at the workshop noted, long term investment but with limited tenure, unavailability of patient capital vis a vis long term investment and start-ups- years of costs before income as some of the land related risks to investors.

 They also bemoaned long lead time where companies have to work with communities before they can start investing hence increasing costs, compromise investment viability, delay projects and cause reputational damage to investors.

 

 

 

MRA to introduce new export management procedures

The Malawi Revenue Authority (MRA) plans to introduce New Export Management Procedures which will come into effect on 1st August 2018. In line with the development, the Authority will be holding Regional Workshops to engage exporters in Blantyre, Lilongwe and Mzuzu. The workshops are intended to equip exporters with the requisite information and knowledge on the new export procedures to ensure compliance and efficiency in exports management.

 The workshops will be held as follows:

 Blantyre @ Ryalls Hotel on 23rd July 2018

Lilongwe @ Sunbird Lilongwe on 25th July 2018

Mzuzu @ Sunbird Mzuzu on 27th July 2018

 All sessions will start at 8:30 – 11:30 am.

 Register your participation with Dorothy Mataya on +265 999-921 234 0r email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

ESCOM applies for electricity Tariff increase

The Electricity Supply   Corporation of Malawi (ESCOM) has applied for an increase of base tariff which is projected to raise end user tariff from current average of MK73 per kWh to around MK112 per kWh in the first year of implementation,representing 53% increase.

 ESCOM’s objectives for the increase which will be   implemented from July 2018 to June 2022,  are to generate revenues for procuring power/electricity to meet current demand and future demand growth and increase access to electricity in line with government goals from the current 11% to 19% by 2022.

 Said ESCOM “The average purchase cost for energy from EGENCO,independent power producers and power imports is expected to move from MK29.92 per kWh to MK65.35 per kWh over 2018-2022 Base Tariff period.

This will result in a significant increase to the end user tariff in a form of a pass-through cost arrangement with the purchase cost accounting for around 55% to the proposed end user tariff. Subsequently, the average tariff is projected to steadily increase at 2.5% per annum up to 2022 to reach MK123 per kWh,”

 ESCOM’s application is coming following amendments of the Electricity Act in 2016 which demands that ESCOM submits new applications to MERA once every four years on Base Tariff, Bulk Customer Supply and End user tariff for consideration and approval.

 ESCOM said the increase is supported by a Cost of Service study which established that the current cost of supplying individual customer cannot  support investments.

 “The study established that the current average cost of supplying a customer with   electricity in Malawi is MK126 per kWh.  This figure is on  average 42% below existing average tariff. This current tariff cannot therefore support the electricity industry in Malawi in terms of increasing investments and improving customer      service,” Said ESCOM.

 The recommended tariffs will allow ESCOM to charge cost recovery tariffs to support settlements of energy purchases from power producers/sources, operation and maintenance costs of   existing and new infrastructure, investment in system growth and improvement in customer service.

 

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