The Government of Malawi has introduced licence fees for the cultivation of medicinal/ industrial Cannabis, but some Malawians are unhappy

If there is one example of a country whose people are so engaged in it’s Political and Democratic process, but also so easily enraged that at the slightest whim they’ll publicly criticise any decision from their government – when such is deemed wrong or unfair, look no further than Malawi.

Recently the Tonse Alliance government of Lazarus Chakwera gazzeted cannabis licence fees for the cultivation of industrial or medicinal hemp (cultivation, storage, distribution & selling), as part of it’s commitment to implement the legalization of cannabis cultivation and processing (following a bill which Malawi’s parliament passed in February 2020), and take advantage of the huge opportunities that exist within the sector.

However the decision has sparked a huge national debate, with some Malawians complaining angrily that the fees are too high and unaffordable for the average Malawian farmer, whereas others disagree with this complaint and are saying that the fees present an opportunity for groups of farmers to work together in cooperatives, managing larger and more efficient commercial farms, instead of the archetypical small subsistence farms common in Malawi.

Among the complaints being made is also the assertion that since the fees are beyond the affordability of ordinary Malawian farmers, it will in fact be those with deep pockets and foreign investor companies who will ultimately come to dominate the market, creating another monopoly that is controlled by a select few, and which is beyond the reach of ordinary Malawians.

The government has missed an opportunity to empower farmers in the villages – some of whom have been cultivating cannabis illegally in hidden farms for years, who would have otherwise been legitimised had the licence fees been affordable.

The government has missed an opportunity to empower farmers in the villages – some of whom have been cultivating cannabis illegally in hidden farms for years, who would have otherwise been legitimised had the licence fees been affordable. – one person told me.

Sameer Suleman, chairperson of the Parliamentary committee on Agriculture, described the cannabis licence fees as a deliberate move to prevent Malawians from benefiting from hemp farming.

A Malawian tobacco farmer

It’s unfortunate that many Malawians cannot afford the licence fees for the cultivation of medicinal / herbal cannabis, but it is not surprising seeing Malawi’s weak economic standing on the global stage. It is also true that several large industries in Malawi (Rubber, Coffee, Tobacco & Sugar to name a few examples) have come to be dominated by deep-pocketed individuals or well-resourced foreign companies, some of whom demand cheap labour and low tariffs on the raw materials they export. For this reason, my sympathies lie squarely with those who are calling on the government to do more to help Malawian farmers, the great majority of whom would struggle to raise $10,000.

One way of achieving this would be a Cannabis Cultivation & Processing Loan Scheme that would be extended to a group of farmers, say a minimum of 3 farmers who get together to collectively cultivate the crop. The way it would work is that a ‘Commune‘ of 3 or more farmers would get together and register their interest for a licence with the Cannabis Regulatory Authority, including providing details of the size of the land that is to be used, it’s location(s) and what crop(s) are normally grown on it.

The government would then record these details and after a verification / inspection process, would issue the licence, stipulating that the licence cannot be transferred / sold to a party other than those to whom it has been issued; that only the farmers named in the commune can use that licence.

The farmers would then be assisted with technical know-how, training, equipment (Fencing, solar panels, irrigation equipment, etc.), or other essential inputs that are required for the optimal cultivation of the crop. All this would be part of the loan. A small collateral would probably be required, although such would need to be means-tested, in that poorer farmers should be exempt.

A Cattle auction

Once the crop is ready, an Auction House or stock exchange operating under the auspices of the Cannabis Regulatory Authority could be established that deals with marketing various grades of the crop to buyers, both local and international, both physically and online. The licensing fees (or a part thereof) for the licence issued to each commune, and other capital costs, would then be deducted at this stage, or over several years.

I believe such an approach would lessen the financial burden of raising the licence fees, and capital costs, on impoverished farmers, and would ensure that Malawians are not unfairly prejudiced by their economic circumstances.

I think this would be a better model of taking advantage of the opportunities in the sector, while not excluding Malawian farmers, however, an alternative approach could be the use of public private partnerships.

But to be fair on the government of Malawi, this sector is being seen as one way which can help them balance the country’s books. When Tobacco sales (Malawi’s largest source of export revenues) have been declining (they were down 31% recently) and the country’s economy has been negatively impacted by COVID-19, a fresh in-demand crop with established international markets presents a rare opportunity.

Our view as regulator is that if we get honest investors, the hemp industry can supplement export revenues from tobacco, and in some cases, surpass it. But it will not immediately replace tobacco” said one Boniface Kadzamira, the Board chair of the Cannabis Regulatory Authority.

So I don’t necessarily think the licence fees should be slashed by too much. As a compromise, maybe an explicit distinction needs to be made between “Private applicants” and “Corporate applicants”? Done this way, the licence fees for corporate applicants can actually be increased to say $25,000, helping subsidize the private applicants.

Malawi among other things is also famed for its recreational Cannabis sativa strain known as “Malawi Gold” , which is extremely hardy, and according to a World Bank report is among “the best and finest” marijuana strains in the world.

Same **** different players

So the cowboys have finally taken to the dock. After that fateful night in April plotting to effectively hijack the presidency, an unconstitutional coup that was only prevented by the combination of the fury of discerning Malawians, and the true patriotic knight that is General Odillo – a man every Malawian should be thankful to – the midnight six are now facing charges of treason.

But putting aside the case itself, what I’ve never been able to comprehend is this: While this case is ongoing, why are DPP supporters still betting on Peter Mutharika for leadership? Is DPP’s part of Malawi really that short of people, and leadership, such that they continue to fawn at a man who flew the dead and rotting body of his brother to South Africa, and count on him as a presidential candidate?

NewsTo be frank, as a Malawian, I really wouldn’t want to be associated with a country whose president has such a dodgy and inhumane history. Not in a 21st century post dictatorship democracy.

When Bingu was a president, I supported him. I’ve never believed in the backward, cheap and regionalistic politics of only supporting people from your village or region because such is what causes underdevelopment in Malawi, since people vote for incapable candidates because they are ‘Mwana wakwithu’. Mwana wa Mayi…its absurd, and Malawians must move away from this type of thinking to a logical position where they vote for competency, not along tribal or regional lines.

Anyway, despite being a northerner, I supported Bingu, after he began DPP, because he represented a fundamental shift from the cheap, corrupt and brutish voter-rigging, empty rampaging charade of acheya’s UDF. Having said that , my family didn’t like Bingu  because they didn’t know him and thought he would turn out to be just like the others before him, making promises he wouldn’t be able to fulfill. They had their reasons.

But Bingu did well in his first term of office. He began to actively target corruption (see this brilliant tribute by Yves Kalala), and indicated an interest to spark economic development and improve education and research. Despite the high expense, the FISP programme proved a success, and from around 2006 created a huge surplus (1.3 million Metric tonnes) for Malawi, increasing food availability and transforming Malawi into a grain exporter. Malawian harvests became a global model. Bingu began promoting gender equality and had several female politicians hold high political office – including Joyce Banda. Bingu made a stand against some western policies, which at times have been selfish and not exactly in the best interest of poor Malawians.

But when his second term came, after a 66% majority, and the whole Mulhako Wa ALhomwe thing (which to me is a divisive initiative a sitting president shouldnt involve himself too much in); add  Mulli and Mota Engil to that and I found myself doubting where the man was going.  I couldn’t support a figure who was increasingly becoming divisive.

There were some things I still believe Bingu was right about, even towards the very end. The issue about currency devaluation was a hotly debated topic, and even experts disagreed on whether devaluation was the best course for Malawi to take, considering its circumstances. Then there was the story about energy generation – to buy from Mozambique (and be  a recipient of electricity which you didn’t control, while the Mozambicans made money off your head – kutidyela masuku pamutu) or for Malawi to generate its own energy(he chose the latter – and he was absolutely right)

What he was wrong about was becoming a divisive figure, the attacks on civil liberties and CSO’s, including the question marks over the death of Robert Chasowa. The intolerance  and heavy-handedness that led on July 20, 2011, to the death of 19 demonstrators. The blind eye paid to corruption that saw millions of dollars looted. The close links with Mota-Engil and Mulli – companies which under Mutharika’s leadership won many substantial contracts. All this isolated many well-meaning Malawians who had initially supported Mutharika, when he fell out with UDF. Bingu’s own indiscretion blurred his reputation even more.

Today, we have a different problem in Malawi that is somewhat linked to the problems of those days. When Bingu ignored the advice he received regarding the IFMIS, he either did so knowingly, or he did so because he was trying to appease some people within his circles. Whatever his intention, he was wrong not to address the issue, which today we are told is in fact responsible for the looting of millions of dollars, this time under Joyce Banda’s government.

The plot is intoxicating and the revelations keep pouring in. Yesterday another version or appendage to the story sprang up. Here, I would call upon the auditors looking into the cashgate scandal to take note of what Mphwiyo’s wife is alleged to have said. After all, wives generally do get to know a lot of their husbands’ dealings:

What Ralph Kasambara knows and the reason he wants JB [Joyce Banda]. Mpinganjira,Cecilia Kumpukwe to be his witnesses [ in his court case] is that Lutepo withdrew K4 billion with the help of Chuka and together with Cecilia deposited the money into the Joyce Banda foundation accounts.

Ralph’s role was to explain to Chuka the legal implications of disobeying the president if he was going to say no and consult regulatory bodies. Zonsezi zimachitika [All this was happening] the same week Mphwiyo was shot.

Nde Now aMphwiyo asked Ralph for his cut since he had to be made aware of the transaction and Ralph refused to comment citing presidential confidentiality agreement.

Mukumva? [Are you listening]

thats when they labeled him a liability and had to be eliminated.This is according to Mphwiyos wife… Who also mentioned Manganaue Mphande to be one of many people who visited him in an SA hospital…nkhaniyi ndiyayitali [this story is long]….

a few days ago, someone else said:

Mr. Lutepo had a joint contract with Roy Kachale, to supply transformers to ESCOM. They were supposed to be paid K1,356,000,000.00 (K1.3Billion). Transformers were delivered on 13th September, 2013. Allegedly, award of this contract flouted some procedures and ACB was supposed to interrogate officers at ESCOM headquarters on Monday, 21st October, 2013 after a tip-off from ESCOM employees. Those doubting this information can cross check with MRA, where Mr. Lutepo cleared four 40 feet containers of ESCOM Transformers. AMALAWI TSEGULANI MASO! (Malawians open your eyes!)

And it gets worse, with another group here speculating that they may have been responsible for burning down Escom house???

Who do you believe in a country where some opposition journalists live in fear, or are under intimidation, so cannot do their job properly!

Hopefully, time will tell what is true or what of everything I’ve written regarding this scandal is infact mere speculation. At that point count me in as one deceived by liars!

Time will tell where Malawian politics goes from here, however, knowing how  things have worked in the past, we may never know the full story…we may never know the whole truth. Especially with shady PR organisations being hired (see here) at a cost of millions of tax payers kwachas (at a time when there are no medicines in hospitals, and thousands of teachers have not been paid) to paint false reputations, how should anyone be able to distinguish fact from fiction, or indeed put their leaders to task?

teachers

My message to anyone outside Malawi who truly wants to  know what is going on in Malawi is this: –

IF YOU CAN AFFORD IT, PLEASE GO THERE, AND SEE FOR YOURSELF!

DON’T TRUST ANYONE, CERTAINLY NOT THE MEDIA AGENCIES ACROSS THE WORLD OR IN MALAWI – there are strong indications of a conspiracy going on. Mercenaries with devious intentions are about, pulling strings.

DON’T TRUST ANY NEWS AGENCY-SOME OF THE VOCAL ONES (INCLUDING ONLINE PORTALS) HAVE ‘SOLD OUT’ AND ARE ON THE PAYROLL OF POLITICIANS, OR HAVE AGENDAS.

DON’T EVEN TRUST THIS BLOG! PLEASE DON’T.

GO INTO THE HOSPITALS, THE VILLAGES AND THE SCHOOLS, GO AND SEE FOR YOURSELF WHAT IS HAPPENING IN MALAWI TO KNOW THE TRUTH

HEAR IT FROM THE PEOPLE, AWAY FROM PR GURUS ON POLITICIANS’ / GOVERNMENT PAYROLL, AWAY FROM COMMENTATORS,  PARTY SUPPORTERS OR SPIN DOCTORS WITH QUESTIONABLE AGENDAS

International Labour Organisation advises Malawi to value add to Groundnuts and Soya beans

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Via Mana Online here

It’s a topic on which many have written much on (On this blog alone here and somewhat to a lesser extent here). And it all boils down to a simple concept:

In order to increase the actual value of your commodity / service over the cost price or production price – you must improve or enhance it, or tie it to another product / service – to the benefit of your customer(s).

But why should you increase the value of your products? Because doing so means that you can receive greater revenues from the sale of the products, and in the case of a predominantly agricultural economy such as Malawi that additional revenue means more funds available for poverty alleviation, wealth creation and social initiatives.

A slide that demonstrates value addition is most appropriate:

What is Value Added Products  which also has slides on similar topics such as advantages of high value products for a firm

By the way, the ‘Decent Work Food Security’ being referred to on the article on Malawi News Agency is the programme outlined in this report.

Similar links:

Black Sigatoka Ravages Caribbean

Black Sigatoka Ravages Caribbean.

via Black Sigatoka Ravages Caribbean.