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Mipa, Mepc merger awaits Parliament
By
Ephraim Munthali - 18-07-2002 |
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The proposed merger of the Malawi Investment Promotion Agency (Mipa) and Malawi Export Promotion Council (Mepc) will be effected after Parliamentary approval in September, the Ministry of Finance has said.
Public relations officer Patrick Zimpita said in an interview government will table a bill during the next sitting of parliament to accommodate the merger which, in principle, is effective from July 1.
“What it means here is that starting from July, government will be funding Mipa and Mepc as one organisation but for them to start working as one, there will have to be some changes in legislation because as you know the two were formed by Acts of Parliament. So come next sitting of Parliament everything will be through,” he said.
Zimpita said the merger’s objective is to improve efficiency and cut administrative costs of the two organisations.
“If you look at the activities of the two [institutions], you will see that both of them are doing promotion. In other words, we want jobs that appear to be duplicated to be as one. Instead of sending two people out of the country for example, we will send one person who will promote both exports and investments,” he said.
He said Mepc and Mipa are currently organising themselves into one entity with one general manager.
Zimpita said, however, there are no immediate plans to cut back on the number of employees.
But he said the restructuring processes the merged body will undertake might necessitate declaring some posts vacant.
Zimpita said the idea to merge the two institutions started over five years ago to allow consultations with other stakeholders.
But he said the name of the new body will be determined at a later stage once legal work has been finalised.
Meanwhile, Malawi Confederation of Chambers of Commerce and Industry (MCCCI) and the Manufacturers Association of Malawi (MAM) have described the merger as a welcome development for the economy and the business community.
“In fact it is us the private sector who suggested that Mipa and Mepc be merged to reduce costs and improve its efficiency. It is a good move. Our only hope is that only the right people will be appointed to run the new organisation,” said MCCCI president Jimmy Korea-Mpatsa.
MAM acting chairman Mahesho Kotecha said: “May be it is a good idea but the question is will it deliver? If it can consolidate the activities of Mipa and Mepc, then I think it is a good idea. May be it can be the answer to the dying manufacturing industry in Malawi.”
Mepc was formed in 1971 while Mipa was formed in 1991 and started its operations in 1993.
Mipa’s principal responsibility is to promote, attract, encourage and facilitate local and foreign investment in the country while Mepc is responsible for all policy connected with commerce, trade and industry. |
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