Mining & Trade News

The construction of a solar power plant to supply Likoma Island with 24 hours of uninterrupted electricity has earned the Electricity Generation Company (EGENCO) praises.

Before the solar energy supply, Likoma and Chizumulu Islands were powered by 14-hour long diesel generated electricity.

Speaking during the opening ceremony of the power plant at Likoma, Traditional Authority (TA) Mkumbwa III thanked EGENCO saying that the new electricity supply plant will go a long away in developing Likoma Island.

He stressed the need for business people and even the government to invest in Likoma through the construction of hotels and other businesses so that the island develops through tourism.

CEO for EGENCO William Liabunya said that the power utility constructed the solar powered plant to do away with the high environmental risk associated with diesel generated electricity as well as to avert the danger of using and storing diesel.

“It was costly to bring diesel to the Island. The logistics of getting the diesel in drums, into a ship then offloading and floating them to land. It was very costly and dangerous.” he said

Liabunya remarked that the coming in of the 24 hours’ solar electricity has improved the socio-economic life of the people of the two islands while ENGECO has reduced the costs of managing diesel engines.

ENGECO was using 17 million Kwacha every month to supply electricity to the islands for 14 hours only.

EGENCO has invested K3.2 billion in the solar project but Liabunya said that the project is worth the investment as the power plant will operate for many years.

Energy Minister Newton Kambala said that his ministry is commitment to supply energy to the nation and that he was very happy to supply Likoma Island with 1000 kilowatts while Chizumulu Island has received 300 killowatts.

Kambala acknowledged the developments activities that the power supply project has triggered for the islands and has since promised to liaise with the Ministries of Public Works and Transport, Tourism, Education and Health to coordinate on development activities for the islands.

He said Likoma Island is a beautiful place that can bring a lot of revenue to the country through tourism and hence the government will ensure that it develops.

“This is a very good place where we can attract a lot of tourists if we can invest in proper infrastructure in terms of hotels and good roads, this can bring into the country the much needed forex,” he said

EGENCO has so far pleaded with the people of Likoma to take care of the power plant and not to vandalize the panels in order to ensure a sustainable power supply. TA Mkumbwa has since said that the Chiefs of the area will see to it that the power plant is safeguarded.

The 3.2 billion project started in August 2019 and was expected to end in July 2020 but was delayed by logistical complications related to the Covid-19 outbreak which restricted some technical teams from coming to the country. The solar plant was constructed by NR Electricals, a Chinese Contactor.

Sugar group Illovo Malawi has forecast a positive business outlook owing to reforms it is undertaking at its Nchalo and Dwangwa sugar factories, and predicted normal weather patterns.

In its audited financial statements for the year ended August 31, 2020 signed by its Chairman Gavin Dalgleish and MD Lekani Katandula, Ilovo says the continuing positive effects of the Nchalo agricultural recovery plans, the ongoing structural changes within the agronomy sections at both estates, together with a return to more normal weather patterns have contributed in creating buoyant prospects for its business.

It says another positive attribute is the continuing improvements in Electricity Generation Company (EGENCO) electricity supply coupled with the ongoing focus on grower sustainability and viability.

Illovo says: “All we want is to continue to impact positively on the overall agricultural performance on both own and smallholder farmer operations.”

“In terms of milling operations, both Dwangwa and Nchalo factories will continue to address plant operational and performance parameters to build on the good work presently underway in terms of milling capacity and reliability.”

On the commercial front, Illovo says it will continue its various initiatives in the local direct consumption market and extend delivery footprint to the wider consumer market supported by an ongoing focus on the route to consumer strategy including affordability, quality and warehousing and logistics.

“Sugar exports, into very challenging regional and deep water markets, compounded by the Covid-19 related logistical challenges, will continue to be an area of focus for the commercial teams who will strive to optimize value in every ton of sugar sold and will develop markets to fully exploit all revenue growth opportunities,” reads the statement.

It, however, says the country’s economic environment including inflation, exchange and interest rate fluctuations together with the internal debt levels of the company, exacerbated by effects of Covid-19 pandemic will continue to have marked effect on the overall business profits.

Minister of Energy Newton Kambala says the Malawi government is working on scaling up energy production through a diversification drive from overdependence on hydropower to embrace various sources of energy.

The Minister said this at a press conference held Saturday by the Ministry in conjunction with power utilities the Electricity Supply Corporation of Malawi (Escom) and Electricity Generation Company (EGENCO) to give an update on the country’s efforts to ensure adequate supply of electricity across the nation.

The minister clarified that government has plans to connect people without electricity to the national grid using power generated through hydro, fuel, solar, gas among other sources of energy.

“The energy situation is currently progressing well since when the grid is fully loaded, it only remains with a deficit of about 50 MW,” Kambala said.

He said as the demand for electricity continues to grow, government is coming up with more interventions to deal with the demand and take care of any inefficiencies.

He said there is progress on the construction of a coal fired plant at Kammwamba in Neno, which is meant to give the country about 300 Megawatts of electricity and Mpatamanga Hydropower Plant that is to provide 350 Megawatts.

“Once done, these projects have the capacity to generate in excess of a gigawatt,” he said stressing; “with this, we will see more investors coming to the country.”

Kambala said that his ministry has plans to decentralize the Department of Energy’s activities for more efficiency on the ground.

To achieve an efficient decentralised structure, the minister said that there are plans to recruit energy officers who will be placed in each and every district of the country with an aim of meeting goals of Malawi Rural Electrification Program (MAREP).

“These officers will fill an existing void where the rural areas do not have qualified personnel responsible for determining where to connect electricity,” said the minister assuring the nation of accountability and transparency in the process of accessing electricity.

Forestry conservation on Malawi’s highest mountain massif, Mulanje Mountain, faces huge challenges from massive encroachment, plundering and illegal trafficking, says Mulanje Mountain Conservation Trust (MMCT), a conservation crusader.

MMCT says encroachment and deforestation, triggered by overpopulation and increased demands for forest products for domestic use is fast diminishing the mountains’ vegetation and cover.

Charcoal burning, illicit logging and transfer of timber as well as the highly protected cider trees and other forest products by community members are some of the major activities that have negatively affected natural resources conservation on Mulanje Mountain.

The Trust’s Programme Officer Kondwani Chamwala says the progress being made by MMCT constantly encounter frustrations from encroachers and illegal loggers.

“Encroachment and destructive bushfires suppresses growth of forest plants,” he say.

Chamwala, however, points out that his organisation is not relenting on exploring awareness campaigns through community outreach programs using drama and other interactive approaches to educate the masses on conserving the mountain’s natural resources.

Meanwhile, the Trust says it has plans already in place to preserve the mountain’s greenery, especially now that the rainy season has arrived.

Chamwala says for the past three rainy seasons, the Trust has been promoting the planting of the endangered Mulanje Cider, which has earned itself an accolade as the National Tree.

MMCT is also planting other tree species on the mountain to provide community members with alternative benefits away from the endangered species and immature plants.

Mulanje Mountain, Malawi’s largest and Africa’s third highest, is one of the country’s biggest tourist attractions.

One of the Africa’s non-profit organisations working on fostering the agenda of emerging entrepreneurs, Kukaya Foundation, will Saturday host a luncheon for participants gracing the Global Entrepreneurs Week (GEW) commemoration currently underway in Blantyre, Malawi.

Speaking in an interview with Mining and Trade Review, CEO for the Zimbabwe based foundation Ruzivo Chipeta said the luncheon will be held at Dzuka hub in Blantyre.

She explained that the event will create a platform for local entrepreneurs to share ideas and experiences to inspire future innovators and entrepreneurs in Malawi.

“Our mission as an organization is to inspire people to dream, believe, design, create and own their life stories in a way that impacts the world positively,” she said promising that activities during the luncheon will not only inspire future entrepreneurs but will also create networks that can bear powerful collaborations and partnerships.

Chipeta explained that the word ‘Kukaya’ means ‘home’ and in the context of the Foundation, it represents an African proverb that says; “Children are raised by the village where everyone in the society has a role to raise, mentor and empower young people to become responsible adults”.

Kukaya Foundation operates in 12 African countries where it promotes innovation, creativity and leadership among high school youths.

The GEW commemorations are held across the globe for one week every November. Participants are inspired through campaigns to explore their potential as self-starters, innovators and job creators who can bring ideas to life, drive economic growth and expand human welfare.

As part of commemorations, local entrepreneurs will also be given an opportunity to take part in the #IAmAnEntrepreneur  40 seconds video challenge and the winner will receive a free trip to the next Global Entrepreneurship Congress in Riyadh, Saudi Arabia in March 2021. 

The Public Private Partnership Commission (PPPC) says construction of the 350 MW Mpatamanga hydro-power plant will start mid-next year.

PPPC Acting Executive Director Audrey Mwala said procurement of a prospective investor for the new hydro-power plant on Malawi’s biggest and longest river, the Shire, is currently underway.

“We rolled out the procurement exercise mid-2020 and we are hopeful that everything will be completed by the end of the year,” Mwala said.

She explained that upon completion of the procurement process, the selected investor will have six months to identify a contractor with expertise and capacity to construct the power plant as planned.

Mwala said PPPC is committed to speeding up the processes in an effort the rid the country of the intermittent power outages it continuously faces and boost its trade and industrial sectors.

Construction of the Mpatamanga power plant site is expected to last for not more than four and a half years.

Barely two weeks after the Indigenous Business Persons Association of Malawi (IBAM) called on the State to support Small and Medium Enterprises (SMEs) affected by Covid-19, Minister of Industries Roy Kachale says government is monitoring the situation and geared to offer different rescue interventions.

In the wake of a steady drop in the number of Covid-19 positive cases, IBAM challenged government to inject stimulus financial packages to resuscitate struggling businesses that have the capacity to meaningfully contribute to the national economy once the pandemic is gone.

 “We cannot specifically point at one area in the industry that has been negatively affected by the pandemic, but for sure SMEs have suffered a lot,” Kachale said.

He pointed out that access to finance and markets are major solutions towards the challenge being faced by the SMEs.

“Government is working hand in hand with development partners to bail out the country from the siege,” he said explaining that developing partners are willing to finance the survival of the country’s SMEs.

 “Since the future looks brighter and that there is interest to support the industry, we need strict measures to ensure that the money is used for its intended purposes,” he said.

The Indigenous Business Persons Association of Malawi (IBAM) says it is optimistic that business prospects will pick up in the wake of the slow-down in number of people testing positive for coronavirus (Covid-19) pandemic in the country.

The Covid-19 pandemic depressed Malawi’s economy as businesses slowed, productivity was reduced, and companies downsized and closed operations while tax revenue decreased.

Malawi’s economy is dominated by the informal sector characterized by small and medium businesses which account for 89 per cent of the country’s labour force.

IBAM president, Mike Mlombwa, says when the pandemic broke out in the country, small and medium enterprises (SMEs) panicked and were forced to borrow money and obtain goods and services on loan to sustain their operations.

Following the declaration of a State of Disaster on March 20, government announced Covid -19 preventive measures which included suspension and reduction of some social and economic activities as well as regulating access to public places, buildings and structures including business premises.

“We now have seen that Covid-19 cases are dropping and we have higher expectations to see our members bailed out from financial hiccups,” Mlombwa says in anticipation that government will put in place measures to cushion and spur small indigenous businesses from the effects of the pandemic.

At the peak of the pandemic, the Monetary Policy Committee of the Reserve Bank of Malawi (RBM) released a K12 billion stimulus package through the commercial banks to support private sector businesses hard hit by the pandemic.

Commercial banks and Micro-Finance Institutions were also directed to observe a three-month moratorium on interest and principal repayments on all loans contracted by micro, small and medium enterprises.

Following the launch of a national cleanup campaign by President Lazarus McCarthy Chakwera, the Ministry of Energy plans to boost energy production in the country by promoting recycling of wastes into various forms of energy.

The energy ministry says the launch will help put in place waste management systems that support use of biomass for household and industrial productions.

Spokesperson for the Ministry, Saidi Banda, says the ministry is in the process of reviewing its Strategic Plan to reflect new developments in line with the Energy Policy 2018 and the Malawi Renewable Energy Strategy 2017.

“The ministry will facilitate processes to remove taxes on waste-to-energy production equipment. It will also facilitate trainings for small entrepreneurs and youth groups among others,” he explains adding that the initiative gives Malawians an opportunity to convert garbage from landfills into raw material for renewable energy like biogas, electricity and briquettes.

Banda says the ministry is currently encouraging companies to start generating power from waste in an effort to reduce the amount of waste the country produces.

A UN report reveals that one-third of the food produced world-wide every year is lost or wasted. In Malawi, it is reported that fresh food waste is a major health and urban management problem, especially in open-air markets which produce a great deal of waste.

Meanwhile, as the U.N.’s 2030 Agenda for Sustainable Development has set targets to reduce the amount of food waste by half, Blantyre City Council transports organic wastes like over-ripe tomatoes, banana peels and cabbage leaves which are generated each day from the city’s open markets to turn it into organic compost which is later sold to farmers and gardeners.

President Chakwera introduced the National Cleanup Day campaign with an aim of curbing littering and to promoting cleanliness and safe environments.