Restricted Opportunities

pp-joyce-banda
via The Chief Mourner

While some were busy drawing amusing cartoons that mocked the presidency of Joyce Banda, I received a comment on a blog post I visited the other day, which reads:

Hi Sangwani, Thanks for your comment. We’ve observed how the children we met, who are pupils at rural schools around the Mulanje area, seemed to have restricted opportunities to fulfil their ambitions and abilities due to large class sizes and lack of teaching materials etc. It’s difficult for us to answer your questions having only been in the country a couple of weeks and not knowing a huge amount about the politics here, but if there was more money available to spend on government schools, then maybe the children we met would have more support to be able to achieve their goals?

I couldn’t agree with this more. As I hinted here, Africa in general is severely underresourced, not only in educational equipment, but also in terms of manufactured tools that can be used to efficiently and safely undertake important tasks or activities. While many western countries have phased-out old and redundant equipment, machinery and other ‘tools’ necessary for some function, and generally tools that contribute (or at one point contributed) to creating, building and growing a society, most parts of Africa don’t even have such redundant tools.

And books and teaching materials are just scratching the surface; on this list we have:-

(i) Medicines + Medical equipment  [ there are people dying because they cannot be airlifted to hospital] (ii) Construction equipment [to build functional schools fit for purpose] (iii) Manufacturing / Industrial equipment [to reduce reliance on expensive imported commodities]  (iv) vehicles (or at least motorcycles — which advantageously uses less fuel–for the police + armed services to provide adequate security) (v) Firefighting equipment  …

Yet, with such shortages, you find leaders and managers who should know better continuing to make the classic mistakes. Why for example would  Escom spend MK1.4 billion (£2,701,636.88 ) [ Mid-market rates: 2013-08-30 10:00 UTC on Xe.com GBP £1 = MK518.204) to buy a new fleet of vehicles in the current economic climate?? And when you hear reports such as these that there is a shortage of supplies and personnel in hospitals. Even United States government recently embarked on an initiative to help increase the number of medical personnel in Malawi…yet when the country is broke (the football team can’t afford to pay for a trip to a World Cup qualifier match) you have some people who think that money can be thrown around.

While Escom says  they bought the cars on credit, they will ultimately pay more for them than if they had sourced reliable second-hand cars, as I demonstrated here.

Beggars can’t be choosers.

Infrastructure

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While you’ll find several references to Infrastructure on this site, I think this time around I’ll leave it to the experts to do the convincing. Paja akulu anati mutu umodzi siwusenza denga

And if one takes time to browse through the cited references below (some of which are straight off page 1 + 2 of Google), it’s hard to argue against the fact that Infrastructure is one of the essential drivers of economic development. In this sense, and for the avoidance of doubt,  infrastructure is not limited to roads, railways, airports and buildings (for hotels, schools, Universities, hospitals, business centres, research facilities, etc), but also includes for example a good telecommunication network (internet, voice, data and the like) and power supply.

Infrastructure for sustainable development – European Commission

Intro reads: ” Good quality infrastructure is a key ingredient for sustainable development. All countries need efficient transport, sanitation, energy and communications systems if they are to prosper and provide a decent standard of living for their populations. Unfortunately, many developing countries possess poor infrastructure, which hampers their growth and ability to trade in the global economy. “

Infrastructure’s value to economic growth – Richard Lee, Partner, KPMG (via BBC)

which includes the statement : “…In fact, a recent KPMG International survey found that an overwhelming majority – 90% – of business executives said that the availability and quality of infrastructure affects where they locate their business operations…”

Needs For and Benefits of Infrastructure Connectivity – Asian Development Bank Institute
which includes the statement: “… The rapid economic and population growth of Asian economies in recent years has put huge pressure on its existing infrastructure, particularly in transport and energy, but also in communications. Asia’s infrastructure is world-class in parts, but is generally below the global average. This is a bottleneck to future growth, a threat to competitiveness, and an obstacle to poverty reduction.”
which includes the following statement: – “…An adequate infrastructure is a prerequisite to economic development. Transportation and communications are important in developing and strengthening social, political, and commercial ties. These ties must be developed before trade can be handled on a regular basis.”
Why Is Infrastructure Important – David Alan Aschauer, formerly Senior Economist, Federal Reserve Bank of Chicago, and now (at the date of writing/publication) Elmer W.Campbell Professor of Economics, Bates College
Infrastructure and Poverty – The Global Poverty Project
the Intro reads: “Infrastructure – physical resources like roads, telecommunication networks, schools and drains – is necessary for a society to function: people can’t access healthcare if there are no hospitals; trade can’t take place if there are no roads on which to transport goods to markets. Infrastructure facilitates the basic functions of a society that are necessary to transport resources and people, produce and trade goods, provide essential services and ultimately reduce poverty.”
it follows with ” Lack of infrastructure also leads to lack of employment by acting as a disincentive to investment. Companies who struggle to produce and sell goods in an area with inadequate roads, electricity or water supply do not want to set up the factories or businesses that could potentially generate employment, improve living standards and reduce poverty. “
and “Lack of infrastructure can also lead to poor health and high mortality. Where there are no clinics or hospitals available, or where lack of roads or bridges makes them inaccessible, people cannot access the medical services that they require to be healthy and productive. A villager in Mozambique explains “The most dangerous thing is that [cholera] has always appeared during the rainy season, and it is then that the river is in spate and boats cannot cross.”
The Broader Benefits of Transportation Infrastructure – Ian Sue Wing, William P. Anderson and T.R. Lakshmanan, Center for Transportation Studies and Dept. of Geography & Environment, Boston University [similar article here]
uses the term Meso-scale to describe their approach. A slide from their presentation is quite appropriate in summarising some of the developmental + ‘equilibrium’ impacts, and worth replication:-
infra-messo
Finance and Infrastructure: The Economic Benefits of Infrastructure Projects Procured with Private Finance –  Andrew W Morley, International Congress Washington, D.C. USA, April 19-26 2002.
Infrastructure – Engineers Against Poverty
Intro reads as follows: “Without significant progress in the provision of infrastructure services it will be impossible for many countries to significantly achieve the Millennium Development Goals (MDGs). Globally, more than 1 billion people have no access to roads, 900 million do not have safe drinking water, 2.3 billion lack reliable sources of energy, 2.5 billion have no sanitation  facilities and 4 billion are without modern communication services.”
which contains the paragraph “When it comes to infrastructure development, Thailand has done very well compared with some other Southeast Asian neighbors. In fact, appropriate infrastructure, including access to power and water, has helped Thailand fuel rapid economic growth during the past three decades. Good infrastructure has made Thailand attractive to foreign investment, helped facilitate international trade, and improved the efficiency of everyday business activities. All of these led to more jobs, and more jobs led to more income for the poor. For some not-so-poor people, good infrastructure also helps them improve productivity or fulfill their lifestyles.”
RURAL INFRASTRUCTURE AND ECONOMIC DEVELOPMENT –  Dr. Mohammad Tarique, Lecturer, University Dept. of Economics, B.R.Ambedkar Bihar University, Muzaffarpur.
Abstract reads: “Infrastructure development has a key role to play in both economic growth and poverty reduction. Failure to accelerate investments in rural infrastructure will make a mockery of efforts to achieve the Millennium Development Goals in poor developing countries while at the same time severely limit opportunities for these countries to benefit from trade liberalisation, international capital markets and other potential benefits offered by globalisation”
Private Sector Participation in Infrastructure:the case of Thailand – Deunden Nikomborirak – Asian Development Bank Institute Discussion Paper No. 19
Road Funding: Time for a Change :- Economic Growth Benefits of Transportation Infrastructure Investment – Dr. John C. Taylor,  Associate professor of marketing and logistics at Grand Valley State University and a senior policy analyst with the Mackinac Center for Public Policy in Midland, Michigan.
which contains the statement “…No, the key benefit and reason for transportation investment is from helping to make businesses and individuals more productive, across the geographic landscape. We rely on our transportation investments to increase the economy’s overall productivity – both in terms of making individual travel (business and personal) faster and more reliable, and in terms of the productivity benefits of making freight flows faster and more reliable…”
World Bank — Malawi’s infrastructure: A continental perspective: Vivien Foster; Maria Shkaratan, ISSN: 1813-9450.

As you can see, the above papers + articles present a credible argument that a good and functional infrastructure is essential for economic development.
But that’s not to say that there are no credible counter arguments against infrastructure. That’s not what I’m saying. I’m sure one can cite the prevention of deforestation or preservation of natural habitats as factors against excessive infrastructure. Also, there is the issue of encouraging tourism which could probably mean encouraging greater biodiversity, creating / preserving forests  and wildlife reserves (but even in such circumstances, you still need a world-class airport for a good first impression (the kind of impression you get when you first land at Hong Kong International); functional roads (at least 3 lanes on each side between major cities) that minimises journey times; and world-class hotels and resorts. Why should you give tourists (who in large numbers can be the source of much-needed forex revenue) less than what they are accustomed to, and expect that they will return to your country, or recommend a visit to their friends?). Never mind recommendation, how can you compete on the global stage, when your facilities are substandard? Further, why shouldn’t it be possible to build modern factories with reduced carbon footprint (see Marks & Spencer’s ‘eco-factories’ initiative here) side by side with wildlife/forest reserves?
So, considering all this, I find it hard to imagine a credible setting in which arguments against infrastructure may find pre-eminence, over arguments for infrastructure; especially for a poor country whose majority infrastructure was built  50-year ago; whose roads are littered with pot-holes, with virtually no world-class business centres; that has old airports – with poor facilities including smelly badly looked after toilets; a country that experiences intermittent blackouts almost every week; that is struggling to attract significant investment from abroad; a country where 74% of the population live below the poverty line; which is heavily reliant on agriculture and dwindling tobacco exports + has negligible industrial output; has few natural resources; has a large relatively unskilled young population and suffers widespread corruption and cronyism, even in the upper echelons of its government.

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My question to you then is: why are the leaders of such countries not investing heavily (sooner than later) into major infrastructure projects, when it is in fact a determinant factor in economic development and a serious game changer? Is it because they are in fact not cut out for the job and would be better followers instead of leaders?

Global 100 Voices: No 7 (Part 1)

My next guest is a true son of Malawi and a businessman who has done remarkably well for himself and his family. Based in South Africa, he is the founder and CEO of the Ulalo Group of companies, who have operations in South Africa, Malawi and China. He has a great desire to see Malawi and Malawians advance, grow and become economically independent, and I must say his experience in this regard is something we can all learn from. Mr Joshua Chisa Mbele, thank you for doing the 100 Voices interview.

[Note- this particular interview is a transcription of an audio file which will be available from this website soon]

Thank you very much for having me, my name is Joshua, Joshua Mbele, a Malawian by birth, I come from Salima, I’ve stayed in South Africa for almost 24 years, I’m married here, I have got kids, here, I have got businesses here and also in Malawi, I also have operations in China. I came to South Africa in 1989 or somewhere there, to seek I’d say I was an ‘economic refugee’; I was looking for greener pastures. Coming in 1980’s early 90’s it was not easy to settle in South Africa as you can imagine, it was a white South Africa, but I tried my luck, and persisted, buried my ways and settled, that’s the background. In terms of Malawi, I went to Robert Blake sec school, I went to Malawi Polytechnic to do Mechanical Engineering, and then I came here both to work and to pursue education. Today I am a fully fledged business person. As I indicated, I do have businesses in Malawi, I think if I’m not mistaken, I was the first Malawian who took hard-cash in terms of US$4 million then to invest in Malawian telecommunication industry, I have also invested in other sectors of the economy, we hold shares in Sunbird hotels, we hold shares in Mpico, we also hold shares in other sectors of interest and are still looking for opportunities in Malawi. Thank you.

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1.     As a Malawian, how important is Malawi’s Socio-Economic stability to you and your family?

The socio-economic stability of Malawi to me is of paramount importance. As you know that the building blocks of the society is a family, that’s the root. Now, where there is economic havoc, you have unstable family structures. To have a stable economy also stabilises family lifestyles. A family which is skilled, which has got a father and a mother as professionals, which can send their kids to school and educate them adequately, which can put food at the table every evening, it means that it has got a more meaningful role to play in the economy, an active family is a productive family. A productive family is part of a productive community, it’s part of a productive society, and the two, the productive society and social economic environment of the country, the stability of it are integral to each other, so it is very important that we stabilise both the social and political environment in Malawi. For me as a family person and as a business person those are fundamentals that we need most.

2.     After nearly 50 years since independence, what visible progress do you think Malawi has made since independence, and in your view, what pressing challenges remain?

Well, that’s very true…in chatting with my friends; I normally refer to myself as a founding father, to the amusement of many, what I mean by that, not that I founded the Malawi nation,  but I try to say that I was born just before the dawn of independent Malawi, because I was born in 1964, I’m as old as Malawi itself. Now, I know for sure that I have grown up seeing Malawi, we’ve grown up together I’d say so, from the dawn of the independence, Malawi made quite a lot of significant inroads, or there was significant tangible development so to speak, just to give you brief outline of that, since 1964, Malawi embarked on to be an agricultural country and Dr Banda established so many farms, tobacco, maize, cotton. We already had the established tea industries in Thyolo and Mulanje, and he went on to plant the forestry, you remember the Chikangawa forestry in the North, and not only that, he revamped what was then Farmers Marketing Board (FMB), into a corporate commercial ‘ADMARC’, which was there to serve both the growers and the market. It was the meeting point. And in terms of the infrastructure, things do speak for themselves. We upgraded what was the colonial rail from Luchenza, Nsanje, Blantyre, Salima, and later on, it was extended from Salima to Lilongwe and Mchinji under the Malawi Canada project. And also from Machinga, going out to Mozambique to Nacala port. We also had the development of the lakeshore road, not forgetting the Kamuzu International Airport. We should also not forget that Malawi established its own University of Malawi with the constituencies of Chancellor College, Bunda College, Kamuzu college of Nursing, Malawi Polytechnic  and he also planned for school of Medicine; those were Dr. Banda’s plans, not to mention the movement of the capital from Zomba to Lilongwe, to centralise administration. But, after 1994, the advent of the multiparty democracy, which I welcomed so much, to some extent we downplayed the development that we had, we did not insist to maintain the momentum of development, it seems that we threw away the bucket together with the dirty water, because we slowed down, from 94 to-date, very small tangible infrastructure projects that have taken place, compared to what Malawi achieved, from 64 to 1994, so there was progress during the era of the Dr. Banda and we have slowed down in development, even the quality of education has gone down, so  those are some of the areas that we need to look at very carefully; we can look at the congestion on the roads, roads with potholes, we can look at the dilapidated universities and schools, we can talk of the empty hospitals without medications, the clinics … up to now Malawians do not have continuous supply of electricity, not everybody has got access to clean running water. These are the basics that we should have had by now 50 years down the line, but we are still struggling, even worse we have fallen behind with our agricultural outputs, we are now a begging nation, no longer self-sufficient.

3. In view of those challenges, what do you think is the role of government and the people in tackling those challenges?

That’s a good question. I would start by saying that first, I’m not a public administrator but I would try as much as I can to define the role of the government from my personal perspective, experience as a citizen, and also experience as a business person. The government is there to take care of the social welfare of anybody that lives in the land, take care of the environment, okay; Now with that in mind, we need to bear that the first and foremost the duty of the government is to uplift the lives of its citizens; how can the government do that? That is by putting economic policies, okay, based on stable political environment, to make sure that there is tangible progress in the economy, because economy governs everybody, it also governs politics of the day; if we’ve got policies that are conducive for economic growth, the multiply effect is shared benefits for everybody, now the government role in this regard is to facilitate progress, prosperity and development; in our case to make sure that policies are in place that invites and ‘water’ the development of businesses from ‘nobody’ into ‘smaller businesses’, ‘smaller businesses’ into ‘medium businesses’, ‘medium businesses’ into bigger businesses’, that should be the trick; Private public partnership another aspect, where the government invites the private sector and say: look, these are the sectors that we would like to develop, it’s not the duty of the government alone, we want the private sector to come and join hands, here is an axe, lets join hands, so that we mobilise resources jointly and tackle the challenge together, so that we realise the benefit as a nation.

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4. As someone who has lived outside Malawi for a few years and has been exposed to modern and progressive ideas, what things in your present country of residence have had the greatest impact on you, and why?

Yes, that is very true, just a bit of a background; That as much as I’ve stayed in South Africa for so long, but I’ve reached South Africa as a spring-board. My profession took me from working for one big company to another big company; with this I had an opportunity in my areas where I worked with BHP Billiton, BHP Billiton is the largest mining company under the sun. And with them I travelled to countries and worked in those countries, for example I worked in Belgium and France, to master the aluminium technology with the Pechney company for their latest technologies, and I worked in Kwazulu-Natal for that. After that I left South Africa and went to the US to pursue some of my ambitions, so I know what life looks like in the US, I was in Miami for some time, and I commuted between Miami and Atlanta, Georgia.  But when I delved into my private business, I did consulting, in my consulting field I worked for telecommunication industries; I worked for companies like MTN South Africa, MTN Nigeria and I also worked for companies that develop the software, I happen to also work with that company in Athens, to do the Application developments for telecommunication industries, so I have seen quite a lot, I have absorbed a lot, to observe how ‘catchers’, and ordinary citizens behaviour to influence the economic development. Today I am in China, I understand where China is coming from. In 1949 it was the poorest, today it is the second largest economy under the sun. What is it that other nations are doing that we are not doing?  First and foremost is the access to skills, if we cannot develop our own skills, forget about any development, secondly innovation, creativity, skills development as a priority in whatever we do. We must re-align our educational curriculum to our prerogatives as to where we want to take the country in the next 20, 30 years; science and technology, very important; we cannot do anything without such skills.  Now, my observation is that we are lacking behind because we still believe in the ‘I am going to school so that I can be employed as a manager, as a supervisor, I’m hoping to be appointed as a CEO’ No! Each one of us, every Malawian is a CEO in his or her own right. If anybody [among] us has a hunger to succeed, we should be able to create our own jobs, and employ others. Examples are there in China, China is a thriving economy, it is solidly built on small businesses, of course there are big businesses [in china]; look at Brazil, look at India, you know, there is no major intellectual difference between them and us, it’s simply the attitude, we can be just like any other nation, which was once the poorest and today is one of the most successful. Just in History, just to compare Apples with Apples, Malawi and Singapore in 1964 were in the same basket; President Lee and President Banda were friends. Actually Lee visited Dr Banda in Malawi, in his book he (Lee) said [something in the lines of]: ‘One of my best friends which I visited was a country that was also under the British rule, Malawi’…the difference between Singapore and Malawi was the attitude of the citizens and commitment to develop themselves, long-term plans, long –term strategies, today Singapore is a first world [country], Malawi still remains the poorest under the sun, so the attitude, the drive from the government, skills development, access to resources, partnership, those things are key to take the country forward.

more-art golf early days

5.  When you last visited Malawi, what struck you the most as the greatest sign of improvement or development?

I go to Malawi very often, as I indicated that I do have businesses in Malawi so almost every year; in the recent past I used to go to Malawi almost every other month. I’ve seen the change of guards from the UDF government, 2004, to Dr Bingu Wa Mutharika, I must say I recommended him, he started very well, he did quite a lot of good work, he improved the road networks in the country, he had his own vision and I recommended him, I complimented him, you might be interested to know that I had a meeting with Dr Bingu Wa Mutharika on the 20th August 2007 at the state house, where he narrated his vision for Malawi by heart, which road will be linking which one, what building will be wherethe expanding of  Lilongwe capital city reaching the frontiers of the Kamuzu Central Hospital, creating the five-star hotels, building the new stadia,  the highways, I was very impressed, and true to that word, when you go to Malawi today, the skyline of Lilongwe has changed, you cannot miss the Malawi parliament, you cannot miss the five-star hotels, you cannot miss the convention centre, you cannot miss the road, the presidential drive that takes you from the city centre to area 18, the roundabout, it’s quite beautiful. And the roads connecting the other rural areas, Chitipa, Karonga road is there, in the south there are a number of roads going from Blantyre to Mulanje…, those are developments that happened under his first term of office. But as usual, things changed, things changed for the worse, apparently he decided also to reward himself, so what was intended for Malawi became for himself, and things went wrong I must say and its only today that we realise to what extent things went wrong, but he started very well, there is evidence to that, but unfortunately, it wasn’t like that at the end.

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5b. I note that in your description of your encounter with the late Bingu Wa Mutharika, you haven’t touched on anything to do with industrialisation – did Bingu’s plan have anything to do with increasing Malawi’s industrial output?]

I’m here to make an honest and objective assessment. If Dr Bingu drove his vision, the way he articulated everything, in the earlier days of his presidency, he was on the road to achieve that. What happened later on is that when things started going wrong, companies that were supposed to expand or small businesses that were supposed to grow were wiped out, one, It was difficult for people to have access to Forex to import machinery or to import raw materials, but most importantly, he played a cronyism card such that only those connected to his regime were developing; Now, you cannot develop a country based on family framework, or friends framework, it doesn’t work.

[Part B coming soon]

100 Voices is a collection of reflections, views, opinions, ideas and thoughts by Malawians across the world, regarding the past, present and future of Malawi.

Global 100 Voices: No 4

My next guest is a good friend and a brother who I have known for many years. Based in London, he is a true son of Malawi, and someone who I genuinely believe has a bright future ahead of him. Yet it was only recently that I discovered just how much passion and ‘fire’ he has for Africa. Mr James Woods-Nkhutabasa, thanks for doing the Global 100 Voices Interview!

[ Brief profile: James has several years’ of communications experience working for public and private organisations, in promoting achievement in African leadership, issues concerning global governance and development. He is also one of the founding members of Diaspora Capital LLP (dCAP), a members investment club which seeks to make socially impactful investments in Africa ]
  1. As a Malawian, how important is Malawi’s Socio-Economic stability to you and your family?

I believe a socio-economic stable environment is beneficial not only for the nation only provided government can create an arena of good governance, accountability, transparency and no corruption. This is also attractive for investors.

  1. After nearly 50 years since independence, what visible progress do you think Malawi has made since independence?

The visible progress for me is that Malawi is now a democratic nation, people have more access to goods and are also more connected due to the digital revolution. On the downside Malawi is still fighting the goals set at independence and poverty levels remain high. We still have a long way to go.  Maybe regional integration is key to addressing this weakness through the delivery of wider social and economic benefits that would benefit the country and drive its development further. We need to stop thinking of Malawi as a single unit but think of it as a major part of the remaining 53 nations on the continent. Only then will we sing our success story. But we need to get our house in order first.

recycleds      3. In your view, what pressing challenges remain and what should Malawi aspire towards?

Malawi, similarly to other African countries is facing major corruption issues and a lack of good governance. Our parliament is also filled with recycled politicians – what I aptly name – ‘The Kamuzu/Muluzi Giants’. It seems to me that our politicians change allegiances as much as they change suits. The political world, leading a nation, serving your people should be a vocation or ‘a calling’ but not a pension, as it currently seems to be for some.

Malawi should aim to be a success story in good governance.

  1. In view of those challenges, what do you think is the role of government in tackling those challenges?

Create an environment of patriotism, transparency and competence. The government needs to remember that they are there to serve their people: men, women and children and thus to run the country accordingly as it is their responsibility. We need strong leadership and this can be achieved collectively, through government and civil society. Malawi needs an enlightened and dedicated sort of leadership that looks forward and not backward. Most importantly get the right sort of people involved in government.

  1. As someone who has lived outside Malawi for several years and hopefully been exposed to modern and progressive ideas, what things in your country of residence have had the greatest impact on you, and why?

The competitive work ethic and drive that people have in London is absolutely brilliant. People have the desire and resilience to achieve the best possible outcome. This has taught me to continuously improve to keep up with this ‘rat race’ and be able to be significant in the growth and development of the nation.

  1. What lessons do you think Malawians and the Malawian leadership can learn from those ideas?

Malawi has extremely bright individuals who can contribute great things for the nation. The leadership needs to promote an open society – welcoming of all and not based on ethnicity, tribe or social standing, but instead on what you can offer to drive forward development.

  1. If you have recently visited Malawi, what struck you most as the greatest sign of improvement or development?

The amount of women and youth trying to make a living through a business; truly inspiring to see the entrepreneurial spirit and a can-do attitude, be it selling vegetables on the side of the road to managing small wholesalers. It is really amazing at how they have adopted technology such as the use of mobile phones to sell and place orders. This has inspired me.

  1. What struck you most as the biggest sign of stagnation or regression?

I believe the lack of good educational standards and opportunities have really been under-played. Youth are the future of Malawi, the leaders of tomorrow; they are being frustrated by the lack of opportunities and a lack good of education. These youth can be a curse or a blessing and rather sadly it has been a curse on the nation with increased criminal activity. If we do not invest in the youth and create jobs how are we to have a good future? Without the right investment we will continue to face the same problems of corruption, poor leadership and bad governance.

  1. Malawians will be going to the polls in 2014, to elect a president. In your view what kind of leader does Malawi NEED, considering the country’s current challenges?

I think we need a bit of the positive characteristics that our past and present leaders have shown but most importantly we need a leader who has an entrepreneurial spirit, a socio-entrepreneurial impactful spirit. We as African’s are natural-born entrepreneurs…we need a leader who will use an entrepreneurial approach to create sustainable development and leadership in so doing promoting a culture of hard-working, ambitious young people to drive forward development. A leader who has innovative ideas and simply not just focussing on what has been done, but looking at what can be done. We need a leader who will deal with disparities in wealth that exist between the poor, the middle class and the rich. High on their specification will be better business and financial acumen, infrastructure, education, employment and better health services.

  1.  Specifically, how should that leader approach the top job in terms of sustainable development and reducing aid dependency?

I believe aid is still vital to Malawi for the next few years at least, but our president needs to really focus on the fruit of a stronger regional economic integration across the continent; and build economies of scale to enable Malawi and Africa to better compete in the global economy. Malawi seems to be attracting a lot of investors to the vast minerals in the country ranging from bauxite, gold, limestone (marble), monazite, niobium and uranium…then we’ve got oil and agriculture. The key aspect to ensuring the leadership moves away from aid dependency is to create a strong and efficient financial system that could support high levels of investment…also the need to eliminate the tax breaks these foreign investors have in the country as we are losing millions of US dollars annually.

Malawi can have a wonderful future. By strengthening its financial and legal systems respectively, and focusing on regional integration, Malawi has the potential to become one of Africa’s fastest growing economy by the end of this decade provided that political stability, social protection, quality education, private sector and good governance are implemented.

  1. Looking at the problems that have plagued the tobacco industry – which is our biggest source of export revenue– in recent times, what alternatives do you think Malawi has besides Tobacco, and why are they viable alternatives?

There is a major problem by relying on tobacco. Let us look at the bigger picture – tobacco farming is a major employer in Malawi where it employs 70% of the nations workforce – in terms of providing a living to the population it plays a big part.

The country does need to diversify and not only focus on tobacco as the international controls on tobacco are surely having or going to have an effect on the economy.

I think a strong emphasis should remain on agriculture produce such as tea, coffee, macadamia nuts, groundnuts, sugar, cotton, soya and timber. The potential for agribusiness is there but we need the right mentality in promoting good practice to increase efficiency and bring in investment and expertise to help scale up production but also go into agroprocessing, where higher prices for commodities can be achieved.

Infrastructure development is vital for Malawi’s economy to flourish. There is a need for better roads, airports and aviation, rail, ICT, water and sanitation.

Stronger focus on the extractive industries and corporate realisation of Malawi’s objectives in oil found in Lake Malawi. Mining currently accounts for only around 2% of GDP, with tobacco, sugar and tea remaining the main exports by value, but we all know the short and long-term potential of the mining industry if we play our cards right.

Tourism is another sector to focus on. This would bring the needed foreign exchange and foreign direct investment and importantly raise the profile of the nation as truly ‘the warm heart of Africa’. I do not know if you are aware but Malawi was recently crowned runners up in the 2012 Safari Awards “Best Africa Tourist Board” beaten by Kenya. This is definitely an important space.

12. Considering our troubled history with donors and funders such as the IMF and World Bank, how do you see Malawi progressing from this relationship in view of the criticisms these organisations have received in the media across the world?

Malawi, is still too fragile to sustain herself – as mentioned earlier I believe once the powers that be start developing the nation, attracting more investors and regional integration is in place Malawi will be on the right path to stand with the rest of Africa as partners and not rely on these international bodies.

13. How do you think the government is doing regarding managing Malawi’s natural resources?

Problems are there, such as issues to do with mining legislation. The main legislation governing mining is the Mines and Minerals Act 1981.

The Mines and Minerals Act 1981 states that companies operating in Malawi need to employ and train local staff but this is left at the discretion of the company, thus local workforce are often found to be losing out. There is lack of regulation, think of the people who are displaced by the mining companies? There is no protection for these people – regulatory framework for resettlement only requires compensation to be given for land, livestock etc…but nothing is in place to give those people back land of same quality. Most people living in villages where these mines are based do not own the land through purchase but through living there for generations thus when the mining companies come, these people are evicted and not titled to any compensation. Most importantly there is a lack of transparency – mining companies are not revealing their profits in line with expenditure and taxes. The mining companies are not required by Malawi government to reveal their spending in Malawi.  

14. Can the government do better to manage natural resources? If so how?

Government needs to address the points I’ve just raised and ensure something is done to curb this behaviour of secrecy. They need to tighten legislation, this will be achieved by revising the Mines and Mineral Act 1981 – I understand that this is being done.

15. What is your answer to increasing transparency and eradicating corruption which is plaguing most governments across Africa?

African governments need to be accountable to their citizens. The responsibility for dealing with corruption and transparency falls equally on all parties from governments and donors, to civil society and citizens. We all have to fight to ensure we can develop better leadership with the tools of good governance.

We have to remember, when we the people have information; we have the power to hold our leaders and governments accountable to improve the systems, tackle corruption and have transparency.

16. Any famous last words?

Let’s continue driving our country and continent forward. In the words of Kwame Nkrumah ‘’We face neither East nor West: we face forward’’.

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