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Companies advise on business environment
by Herbert Chandilanga , 09 May 2005 - 14:17:44
Processing and manufacturing companies have asked government to seriously address factors that are stiffling the country’s business environment.
The appeals were made on Friday during familiarisation visits by the deputy minister of Industry, Science and Technology Charles Mchacha to look into issues that the industries need redressed.
Nzeru Radio Company managing director Mohan Mankani said he country’s business environment was unfriendly to local investors who, he said, given a chance would play a role in transforming the country’s economic stand thereby uplifting people’s livelihoods.
Mankani said Nzeru, which had 150 people of which 147 were Malawians, had a capacity to produce 40 million batteries a year. He said that with the current market situation it is only producing about 12 million batteries.
He said the company was currently threatened by substandard imported products whose producers had taken Malawi for a dumping ground.
Mankani observed that importers had taken advantage of people’s weakened buying power to offer low prices as a bait to woo them into buying substandard products.
“Imported substandard batteries have affected us a lot. Nzeru is struggling to survive and we are begging for government’s help. We have knocked on almost every door but nothing has been done to rescue us.
“The government could do better to enforce proper import procedures and level the playing field. It is unfair not to exempt us from surtax when people from other countries can fraudulently export batteries into Malawi without paying tax on their products,” he said.
Mchacha said government would ensure that the issue of cheap but low quality batteries was addressed appropriately to safeguard local production of quality batteries.
“My ministry will therefore consult with relevant stakeholders to ensure elimination of restrictive trade practices,” he said.
Earlier on, Mchacha visited Commodity Processors who he lobbied to offer farmers good prices to encourage them grow more to ensure they produce adequate crops saying that would check unnecessary importation of crops the country could produce.
The company’s managing director Abbas Mukadam said he was aware of the need to offer farmers fair prices and that there was more to help farmers to benefit a lot.
He said the government should help commercial farmers focus on crops that had secure markets like aromatic faya rice, pigeon peas and chalimbana nuts rather than “try to reinvent the wheel and venture into growing crops processors were not ready to buy.”
He said a good starting point would be to rehabilitate stalled projects that had basic infrastructure like irrigation schemes in disrepair before embarking on totally new projects that would cost more.
Mchacha said he found the tour very helpful as it had helped government solicit concerns as part of its plan to understand issues that the processing and manufacturing industries want it to redress.
 
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