Malawi needs development 2

I read a report from COLEACP/UNCTAD on success factors in exports’ logistics for Africa, Caribbean and Pacific (ACP) countries and wondered where Malawi is towards a successful environment in the participation in global trade. To say the least, we cannot ignore export as a vehicle to economic growth of this country. We have a great potential in the fresh produce sector because most of our produce is almost organically produced hence easily accepted and comply with the European Union strict requirements.

The general factors as outlined in this report to successful export regime include favorable economic and political environment in the producing country, liberalization of transport traveling abroad, existence of satisfactory airport, port and road infrastructure and competitive rates, a critical volume for exports which permit the organization of a weekly logistics’ programme, existence of a leading product for exports, competence on the part of exporters in terms of logistics, planning and organization of exports, negotiations with transporters, ability on the part of exporters to develop an exports’ strategy which takes into account the possibilities for local production, the needs of the consumer markets, cost prices and ways in which to access boats or planes, and possible cooperation between exporters to organize and manage logistics’ systems in common.

Other factors mentioned are the existence of local industries to provide consumables for exports and services to exporters: such as lorry businesses, transit means, cold rooms, etc, capacity for receiving technology transfers in terms of logistics and to be able to implement them, possibility of beginning the cold chain in the exporting country, simple administrative procedures with, if possible, an administrative office dedicated to exports, policy for monitoring exchange rates adapted to the needs of exporters and possibility for exporters to arbitrate amongst themselves on strong currencies.

When you look on the ground, we should be Megameters away from realizing the dream of becoming an exporting nation. For example, our infrastructure requires modernization. Our air transport requires a lot to be desired. It is still more expensive to use air transport say to export horticultural products in Malawi than in South Africa. It is therefore common knowledge that a South African farmer will have an edge over a Malawian counterpart. Land transportation requires good roads and our riddled roads are just a mess. We really require well maintained and up to scratch roads.

Train and water transports are other avenues that offer attractive alternatives. The state of these in Malawi is deplorable. We associate train transport to rural transportation and water transport is undeveloped to transport huge volumes of cargo reliably. However the situation is not gloomy. We have the political will to turn things around.

One of those projects that can about turn the sullen situation is the Shire Zambezi waterway project. If implemented, and listening from the President’s speeches and dreams, it seems we need more of these projects. The inland port will ensure streamlined inland handling of our goods before exports including cold storage management. I am sure this will improve the competitiveness of our products with others with ports.

The road network has to complement such a project so that transportation costs should be minimized. These roads should be state of the art roads not the kaunjika ones. Hopefully, trains will lead to the same port. The presence of an airstrip will complement all the requirements for a vibrant export environment in Malawi. This will offer a market to other airlines hence competitive rates for chartered flight to international markets.

I am just sharing the dream here, however, as the situation stands now, we can compete on the export market and reading from the Nali Chief Executive interview in the Nation, these fears are founded. No wonder no Malawian company appears on the top 200 successful firms in Africa this year. With the waterway project and improved supporting infrastructure Malawi would really become an exporting country.