MALAWI: Bill Boosting SMEs & more – 24th Sep 2024

th of September: 2024

It is called the SME Bill of: 2024

Some of the most notable aspects of the bill include the establishment of the Small and Medium Enterprises Development Corporation (or Smedc), which will provide regulatory oversight and support for small businesses. Smedc will also help provide tax breaks, access to finance, and better access to programs to develop technology in research institutions that offer technological solutions for SMEs.

Local news said the law is a response to a World Bank Report - the Digital Opportunities in African Businesses - which showed that a lack of digitalization in low-income countries like Malawi limits their capacity to compete with their middle-income peers in regional and international markets.

Another legislation that is making the headlines is the National Arts and Heritage Bill. Creatives lobbied to have the bill enacted for nine years, and it finally happened on Friday the 20th.

The country’s arts industry can finally have a Council that overlooks the creative industry, The Council will be called the National Arts and Heritage Council (or Nahec).

Vita Chirwa, the President of the Music Association of Malawi, told local news that Nahec will be crucial in creating policies that support the growth of the creative industries. He expects that it will contribute to job creation, tourism and the preservation of cultural heritage.

Last week, many districts had sunny and hot weather with maximum temperatures reaching forty degrees Celsius or 104 Fahrenheit in areas like Ngabu. However, the weather changed over the weekend and now people can be seen in sweaters and coats.

The Department said that from Wednesday the 25th through to Sunday the 29th, the weather will make another dramatic shift back into the sunny weather that the country just got out of, because of a warm easterly air mass. They think the air mass might have arrived a bit earlier than expected.

Changing weather conditions like this caused poor harvests for farmers across the country, leading to hunger.

To help reduce the impact of the hunger, the Department of Disaster Management Affairs (or Dodma) launched the Food Relief Distribution program on Wednesday the 18th. It is targeting 5.7 million people.

Dodma marked the launch of its program by distributing maize to over one thousand people in Neno and Blantyre districts. Lyson Nkhata, the Director of Administration at the Blantyre City Council, said that the district has over fifty thousand food-insecure households.

Moses Chimphepo, the Director of Preparedness and Response at Dodma, said the program was supposed to start in October but they had to launch it early due to the hunger situation in the country.

ty and commercial purposes by: 2030

During the launch held on Thursday the 19th in Lilongwe city, Sam Kawale, the Agriculture Minister, said Malawi has the potential to produce ten metric tonnes of rice per hectare, but it currently produces 1.5. A lot of farmers shun rice farming as it requires too much water, and most of them don’t have access to it or other farm inputs like quality seeds, fertilizers and equipment.

The Ministry is working with the Coalition for African Rice Development - a consultative group of bilateral donors and regional and international organizations that collaborate with African countries that produce rice.

Speaking of fertilizers, Malawi is set to launch its first organic fertilizer manufacturing plant. Its owners, the Rural Development Investment Initiatives Trust Holdings Plc, said that seventy percent of it has been completed, and it will be ready for operations by December.

Hastings Bofomo Nyirenda, the company's chairperson, said the project is meant to improve rural development in Malawi. He also said that it falls into the country’s broader vision to create jobs.

Malawi is also expected to be the first country to roll out the national Electronic Single Window and Electronic Certificate of Origin as it will be launched in November.

Christina Zakeyu, the Principal Secretary at the Ministry of Trade and Industry, said the Electronic Single Window would reduce the time it takes for an exporter or importer to file documents, certificates and licenses. The Electronic Certificate will improve efficiency by storing trader’s files electronically and making them easier to access.

She revealed that these developments are part of the Common Market for Eastern and Southern Africa (or Comesa) and the European Development Fund Trade Facilitation Programs at the Mchinji-Mwami One-Stop Border Post. Both projects are expected to boost the country’s trade facilitation by improving inclusive regional economic growth, deepening regional integration, and enhancing the competitiveness of the twenty-one Comesa member states.

The country may have more, similar developments because the African Development Bank gave Malawi grants worth fifty-four million dollars for various development projects.

Meanwhile, Simplex Chithyola Banda, the Finance Minister, has already started making plans for the funds. He said thirty million dollars will be allocated for Budgetary Support; twenty-three million will be for the Agriculture Productivity and Commercialization project; while the remaining one million will be given to the Department of Disaster Management Affairs to help with Emergency Response.

Meanwhile, the Reserve Bank is worried that the government has borrowed too much money and may be unable to repay the loans. The Reserve Bank said that the cause of this issue is the rising domestic debt, which is nearly five billion dollars.

In its September Financial Stability Report, the Bank said the deteriorating fiscal space will force the Treasury to borrow more money, even though it is at high risk of default.

Firas Raad, the Country Manager for the World Bank, told local news that the debt is so bad that the government currently has the highest budget deficits in Africa. He said this can limit private investment and stifle the growth of the most vulnerable citizens.

Given such news, it comes as no surprise that most Malawians do not trust the government.

The Institute of Public Opinion and Research (or Ipor) conducted the Citizens Perceptions on Parliament and Parliamentarians Survey, which included 2,800 respondents from all the districts excluding Likoma. The survey revealed that eighteen percent of Malawians trust the President, Members of Parliament and Councillors, fifty-eight percent trust religious leaders, and forty-four percent trust traditional leaders.

Dr Michael Chasukwa, the Ipor Director of Training and Research, said Malawians’ lack of trust in the government comes from elected leaders failing to meet voter expectations. He warned that this could lead to voter apathy, and urged those contesting in the twenty twenty-five elections to set realistic expectations for voters.

Next, the President is at the United Nations General Assembly which is taking place in New York. On Tuesday the 24th, local news announced he signed a diplomatic agreement with Vietnam that is aimed at promoting and strengthening relations and cooperation in political, economic, social, and humanitarian fields.

Nancy Tembo, the Foreign Affairs Minister, said the agreement will lay a foundation for both countries to collaborate and partner in various areas of development.

And to close this edition, the Public Procurement Disposal of Assets Authority (or PPDA) forbade eight companies from supplying goods or services to the government or any state-owned bodies.

According to the statement from the PPDA released on Wednesday the 18th, the companies were suspended for three to six months.

The eight companies include Ele Construction, L&C General Dealers Limited and Weto Stationary. They are being punished for various offences, however the most common were providing false information during public procurement proceedings and breaching contractual obligations.

Aaand that’s it for this week!

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Pitani bwino!