On Sunday, March 18 2017, it was exactly one year after the launch of the Buy Malawi strategy. The Nutcracker\u2019s reaction to the launch of the strategy was to caution that it is not only about where it is made, it is also about how much it costs.<\/p>\n
It is ironic that in the week leading to the March 18 2017 when Malawians should be proud and buy Malawian products, it was also the same week that Malawi\u2019s biggest and most successful conglomerate Press Corporation was celebrating the opening of another Spar franchise in Blantyre. Seriously, do we need foreign companies to teach us how to shelf and pack goods in Malawi? What added value will Spar bring to Malawi apart from increasing the number of South Africa made products Malawi?<\/p>\n
The Buy Malawi strategy is commendable but what has not been done is an assessment of why and how do Malawian made products still cost more than those made outside Malawi. Why are Malawian manufacturers still complaining? As some have put it, the cost of production depends on so many factors. Without reliable electricity, without properly priced capital, the Buy Malawi strategy will simply be reduced to a parade every Friday where people wear any African looking attire irrespective of where it was made and claim it is their contribution to the Buy Malawi strategy, even though the whole year it is the same attire that they wear every Friday. They bought only one or two sets I guess!<\/p>\n
One year down the line, what has been the authorities\u2019 response to the assertion that it is also important to recognise that for most Malawians, they do not choose what to buy based on where it is made or produced. For them, the decision to buy is dependent on availability and price. People simply buy items they need if those items are available at affordable prices.<\/p>\n
It is also possible that people do not buy goods made in Malawi due to the warped mindset this nation has. The notion that everything foreign material is superior to local ones. Patronising local products is a mindset problem and Malawians should begin to realise that buying within has an important role to play in reviving this crashing economy. The Buy Malawi campaign tries to change this mindset; however, The Nutcracker sometimes empathises with Malawians. They should not be blamed solely for preferring foreign products. The standard of some of the things Malawi produces is nothing to write home about. However, this is not to suggest that all Malawian products and services are poor. That would be a reckless exaggeration.<\/p>\n
Government also has an important role to play in changing things. They should start by supporting manufacturers with conducive environment and, of course, loans and then put policies to reduce the importation of certain things that Malawi can produce within. Is that too much to ask? Of course, it is not easy for Malawian products to attain export standards in the current environment where at every stage they are faced with a multitude of obstacles.<\/p>\n
With daily power supply interruptions, there can be no major leap in local production. What type of manufacturing does Malawi expect when the cost of capital is as prohibitive as it is? How can any production be profitable at interest rates of 35 percent and higher, when in other countries cost of borrowing is a maximum of five-10 percent?<\/p>\n
Up to now most manufacturers and service providers complain that they are still owed money by the government. The level of infrastructure development in Malawi makes a huge contribution to production costs. Finally, there is this stinking tendency of politicising everything which has kept the local industry retarded and struggling for decades. This explains why certain corporations flourish only when certain political parties are in power and once that party loses power the corporation completely disappears.<\/p>\n
The manufactures in Malawi should look in the mirror and not only complain of the lack of support from government and the unconducive monetary and fiscal policies while not paying attention to the capacity and capability of the Malawian manufacturers. Malawi has the potential to be a major player in the region; it has probably the cheapest labour costs in southern Africa. In addition, Malawi\u2019s productivity needs to improve. The productivity of the average Malawian worker is one of the lowest in the world.<\/p>\n
It is therefore not enough to just conceive, shout and parade or set aside a day and call it Buy Malawi day without pre-requisite policies that will spur the growth of Malawian manufacturing industry. Malawi\u2019s policies on trade, tariffs and taxes should be working for and not against the Malawian manufacturer. How does the government expect the Malawian manufacturer to compete with a foreign-owned trader who brings already manufactured goods and only packages them in Malawi and at the same time get the benefit of massive tax incentives in the name of attracting foreign investment? Indeed, the products might have Malawian names but are not made in Malawi. The Nutcracker has bought caps with Malawian names like Lilongwe, Blantyre, Mzuzu and Malawi and only to be disappointed that the label says made in China. Now those sold at Mount Soche have the labels removed, what a shame!<\/p>\n
This country needs infrastructure and affordable and accessible capital combined with proper border controls to fight the influx of smuggled imports. And perhaps then Malawians will afford goods made in Malawi.<\/p>\n","protected":false},"excerpt":{"rendered":"
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