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Lester Tandwe could be to Malawi what Bill Gates is to Americans. This is because both men have had to take risks to become successful computer entrepreneurs. While Gates had to drop out of Harvard University to start what has become the world’s leading computer software firm—Microsoft Corporation—Tandwe on the other hand shocked many a peer when he dumped a lucrative job at Stanbic Bank, to start his own computer networking firm. Today, Tandwe’s ICT Networks Limited has become a force to reckon with on the local and regional information, communication and technology (ICT) market. I caught up with Tandwe to learn more about the fruits that his risky venture bore him.
Who is Lester Tandwe?
I am a man who likes to take challenges. I was born on October 23, 1965 in Blantyre, the sixth child of the late Jollam Tandwe and Ellen Khanga. Mother is 75, but sadly father, a former civil servant, passed away in 1991. Of the nine children in the family, only four of us have survived. I come from James Village in Traditional Authority Nsamala in Balaka District. I did my primary school at Mzuzu CCAP, Chitawira in Blantyre and later Mponda Full Primary from where I was selected to Masongola Secondary School in 1980. In 1984, I was the only student to be selected to the Polytechnic from Masongola. It was not easy going to college from my school in those days because we did not have enough teachers and resources were very scarce. I had to borrow books from friends at St Mary’s and Box 2 (Zomba Catholic Secondary School), and it seems this persistence paid off. I am married to Maria and have four children—Vanessa, William, Janet and Khumbo.
How did ICT Networks Limited come into being?
It was in 2000 when I thought I needed a new challenge after working in computer software and engineering at National Cash Register (NCR) and Stanbic Bank, then Commercial Bank of Malawi (CBM), respectively. After graduating from the Polytechnic with a Bachelor’s Degree in Electrical Engineering in 1990, I joined NCR, an IT company better known for supplying Auto Teller Machines (ATM). At NCR, I worked as a Trainee Engineer and later Service Support Manager. In 1995, I decided to go for a new challenge and joined CBM as Assistant Manager (Engineering Support) and later rose to the position of IT Manager. During my days at the bank, I developed a liking for computer networking. I also got more exposure in this field when I was attached to Dimension Data (Didata) in South Africa. A chance to prove myself came when the bank launched a project to install a computer network that linked all its branches and operations. I was in the fore-front of the project. After this project, everything at the bank was running smoothly, and I thought time was ripe to take another challenge. That was when the idea to set up my own practice came into being.
What was your initial capital and how did you get by?
It is hard to mention an amount. I can say I started from scratch, with zero capital. Many people were surprised to learn that I was resigning from a well-paying job which offered every cosy benefit one can dream of. I took a risk and had to abandon these pleasures if I was to take on my next real challenge. My first office—a one room block—was in a building opposite the Ryalls Hotel in Blantyre. A month after going solo, I employed two people to assist me with installations. Some of our first customers to whom the company is greatly indebted include Celtel, Unicef Lilongwe and Bunda College of Agriculture. During the initial years, most of the proceeds were ploughed back into the business. I must also point out that the initial name of the company was Ethertech Networks. We had to change it to ICT [Information, Communication and Technology] Networks Limited in 2004 because we wanted a universal name that encompasses all our activities.
How big are your operations now?
We have two offices—the head office at Cable Tech House near Kristwick on the Masauko Chipembere Highway in Blantyre and the other in Lilongwe at Aquarius Building. We have a total staff of 29, the bulk of which (24) comprises professionals in various fields such as software engineering and hardware technicians. One member of staff—Towera Nyirenda-Jere is a PhD holder, and she is now being considered as a future partner with an option to sell 15 percent of the company’s shares to her. She is working as Technical Director.
What is the main line of business for ICT Networks Limited?
We are a specialist computer networking company and offer services in this field to a diverse base of clients. Ideally, networking is a process whereby two or more computers are connected with the aim of sharing their resources. These resources may include data, information and internet. Almost all the commercial banks come to us for their networking needs. We also work with Internet Service Providers (ISP) like MalawiNet to connect organisations. Because the IT industry is so dynamic, we’re diversifying into dealership of related products and services. Consequently, we’ve been appointed agents of Siemens and will deal in Siemens installations such as PABX systems. We are dealers of CISCO Networking products and Molex Cabling Systems.
ICT is a fiercely competitive industry and Malawi as a market has seen many local and multinational dealers of ICT products. How are you coping with such stiff competition?
We’re in a business that requires brains and tact. Our secret lies in providing high-quality technical services to our customers. Our services and products are not cheap, because we cannot afford to compromise quality just because we want to do a quick job. To ensure quality is achieved, we invest a lot of money in training the staff. We send specialist staff for training in South Africa at an institution called Torque IT. As IT is a dynamic field, we are aware of the need to adapt to the changes that are coming. We note that different technologies are merging. For instance, we are now finding ourselves having to combine telephony (voice, data and video) with existing technology, so constant training is a must. I am proud to say that even in my absence; my workers can effectively run the company because they have the necessary skills.
What key challenges do you face as a company?
The biggest challenge is access to capital. Banks are very difficult to lend money to indigenous entrepreneurs. I once risked losing a big deal with Dimon Limited in 2002 because one of the banks (name withheld) refused to lend us K3 million, insisting that I show proof of collateral. That proof to me was cash-flow statements and receivable invoices. But this bank insisted on a house as collateral, and I had no house at the time. They simply refused to help, and it was such a painful experience. Fortunately, Dimon understood my predicament and offered to make a part pre-payment and this allowed us to proceed with the contracted job. Without access to finances, indigenous companies cannot go far despite the many big ideas.
Do you think the policy environment is conducive enough to help ICT companies like yours to flourish?
I think the government has a lot to do here. First, government must stop underrating local ICT firms. We often see it contracting foreign companies at the expense of locals. This is a drain on forex. The second critical issue has to do with tax. Government slaps a duty of 30 percent on imports of all computer accessories, yet a finished computer unit is duty-free, which in turn kills innovation and makes local ICT firms uncompetitive to the multi-national computer firms. As ICT Networks Limited, we’ve demonstrable know-how to manufacture computers that would satisfy local demand, but we are hindered by the heavy cost of importing accessories. Production is mainly based on engineering functions, which can aid mechanisation as opposed to manual operations. If President Bingu wa Mutharika’s vision of transforming the country into a mass producer and exporter is to be realised, we need a re-think on policy, and not policies that hinder production.
What is your happiest moment?
In this business, the happiest time is when you scoop a big contract. In my case winning the Dimon contract was a major break-through. I competed with big multinationals like Didata, listed on the Johannesburg Stock Exchange, and beat them at their own game. I am also happy to realise that my efforts have helped to create employment to at least 28 families.
What do you like to do in your free-time?
I play lots of golf and social football. My handicap is 14.
FACT FILE
EDUCATION
1984-1990: Bachelor’s Degree in Engineering (Malawi Polytechnic)
1992-1994: Post-graduate Diploma in Management (Malawi Polytechnic)
2006: Pursuing Master’s Degree in IT (University of Pretoria
EMPLOYMENT
1990-1994: NCR (Senior Support Manager)
1995-1999: Commercial Bank of Malawi (IT Services Manager)
BUSINESS
2000-to date: Managing Director and Founder (ICT Networks Limited)
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