Mining & Trade News

The Electricity Generation Company (EGENCO) will from September 8th to 10th host the 2019 African Hydro Symposium (AHS) at the newly built Sunbird Mount Soche Hotel’s SocheInternational Conference Centre in Blantyre.

The theme for this year’s symposium, which is the 29th, is “Quality Power for Sustainable Development in Africa.

Senior Public Relations Officer for EGENCO Moses Gwaza says in a Press Statement that EGENCO is currently inviting various organizations and individuals in the country to participate in the symposium which is a beneficial platform for sharing vital information with foreign hydro energy experts.

“The symposium which is held annually, is a regional forum where hydro power plant operating experts              representing various electricity utilities and Independent Power Producers (IPPs) in Africa, meet to share experiences and deliberate on developments, operations, maintenance and management of hydro power plants in the continent,” Gwaza explains.

He says the meeting will attract approximately 150 delegates from power utilities across Africa and some international stakeholders from various energy sectors, equipment manufacturers and suppliers from Europe, Asia and America.

Gwaza says the hosting of the great conference is a collaboration of both EGENCO and the Secretariat of the African Hydro Symposium based at Kafue Gorge Regional Training Centre in Zambia.

He urges organizations wishing to participate as joint sponsors and organizations in the power and related industries to register their individual employees as delegates to attend the symposium.

Meanwhile, various companies and organizations in the country have come up to provide financial assistance to the event.

The companies include the NICO Group which donated K4.5-million to the power utility for the event, which will explore strategies to develop the energy sector for economic growth.

EGENCO CEO William Liabunya thanked NICO for the support saying it manifests that the insurance company is a good corporate citizen who want to help EGENCO overcome the country’s power     generation woes.

The symposium will provide a room for sharing of viable ideas to move Africa’s electricity access from an average of 30 to 35%.

EGENCO was founded in 2017 as an electricity generation utility after the unbundling of the Electricity Supply Corporation of Malawi (Escom) into two entities with Escom responsible for power transmission and distribution.

The company, which recently launched its strategic plan, has planned a number of power generation projects including the construction of Mpatamanga hydro plant on Shire River.

EGENCO is seeking financing to execute the US$473-miillion project which will be supplying 309 MW to the national power grid.

German Consulting firm, Fichtner GmbH and CO KG, already conducted a feasibility study for the project with funding from the World Bank as part of the Energy Sector Support Project.

Besides Mpatamanga project, EGENCO is also sourcing funds for three other generation projects including the 138MW Kholombidzo Hydroelectric Power Plant which will be constructed on the Shire River upstream of Zalewa Bridge.

The US$511.5-million plant to be constructed over a period of 5.5 years will be uppermost in the cascade of the hydro-plants in the river.

Egenco is also planning to construct the 180MW Songwe Hydropower Plant on Songwe River through        cooperation between the Governments of Malawi and Tanzania.

The utility is also working on the expansion of Wvowe Mini Hydropower Scheme to add 4.5MW to the power grid.

EGENCO also plans to install a solar PV plant close to a load center at Nanjoka in Salima to maximize benefits to the national grid and satisfy the afternoon peak demand. The project scopes installation of a 20MW solar power plant to increase the generation capacity and introduce a diverse power mix in the generation system.

Trash interruption is the one of the contributing factors hindering power generation in the country so EGENCO is also conducting trash river diversion projects in many power stations on the Shire River.

In September 2017, the company commenced an 18 months project of dredging and diverting a tributary that was depositing a lot of slit at the Tedzani intake pond, a project that consumed about MK5-billion.

With funding from the US government energy compact through the Millennium Challenge Corporation, in January 2019 EGENCO acquired a brand new dredger for Kapichira power station to remove silt which covered over 70% of the generating dam.

Siltation lowers the water levels in the dams making it difficult to generate electricity matching the demand.

Currently the country has 406.6MW installed generation capacity but only 335.15MW is available to cater for 18.63 million people.

The utility’s hydro-power plants include Nkula A and B, Kapichira I and II, Tedzani I, II and III and Wovwe. 

EGENCO is also planning to construct a coal fired power plant as one way of diversifying the power sources.

The Malawi Energy Regulatory Authority (MERA) has established a new Installer’s Permit Committee (IPCO) and mini-grid egulatory framework which it has described as a vital tool in preventing accidents that occur due to poor electrical installation.

Board Chairperson for MERA KhwauliMsiska said at a sensitization workshop for the new framework in             Lilongwe that the revised electrical installation assessment framework recognises that installers are usually good at specific installations that need to be certified for the safety of the installed buildings.

He said in the old framework experience was missing as criteria for certifying installers but the new framework will be considering both experience and qualification as chances for upgrading and certification of the installers.

“In order to reduce incidences in form of fire, electrocution and equipment damage, those doing                installations need to be only those that have the right qualifications and experience,” Msiska said.

He urged all the electrical installers to acquire permits from MERA observing that many electrical installers in the country are operating without possession of valid permits which is putting people’s properties at high risk of catching electric fire.

Msiska also expressed concern over the existence of a number of mini-grids developed by both Government and non-governmental organizations which have been handed over to communities, without relevant training, on management, operation and maintenance.

 “You can agree with me that mostly ownership and organizational structures of the mini-grids are not clear and accountability and transparency procedures are not clearly defined, which presents challenges for authority institutions to manage supporting and regulatory structures,” he said.

Msiska said the new framework for mini-grids intends to achieve sustainable development and operation of the mini-grids in Malawi in strides towards providing modern energy to remote areas where grid extension does not offer an economically feasible extension solution.

He said MERA recognizes the significance of engaging Government and stakeholders in ensuring effective regulation of the energy sector and understanding on matters relating to the regulation of the mini-grids.

Msiska thanked United Nations Development Programme (UNDP) country office for financial support towards the development of the mini-grid framework.

“The preparation of the regulatory framework for mini-grids in Malawi was a commitment and devotion   from many stakeholders of whom we are highly grateful for their valuable contributions,” Msiska said.

Commenting on the development, an electrical contractor PempheroNazombe lauded the new framework saying it will assist experienced electrical engineers in upgrading their licenses.

“This workshop is important as the new permit has included experience as one of the aspects for one to upgrade while the past permit only centered on qualifications like university degrees leaving out the experience that one has,” Nazombe said.

He said the development will also assist in marketing brands of certified installers since organizations will be considering legal permits before deploying the contractor.

Nazombe pleaded with fellow electrical contractors to comply with the framework in so doing assist in preventing people’s properties from electrical accidents.

MERA is mandated to regulate the energy sector in Malawi in a fair, transparent, efficient and cost effective manner for the benefit of the consumers and operators.

The Electricity Generation Company (EGENCO) says it is exploring alternative power sources to supplement power that it currently generates from hydro-plants.

EGENCO CEO William Liabunya said in an interview at the launching ceremony of the Company’s 15 years strategic plan in Blantyre that EGENCO wants to have diverse sources of power in order to do away with load-shedding due to unsteady supply of power as the hydro sources are prone to climate change related problems including diminishing water levels in the Shire River.

Liabunya said: “There are a lot of avenues which EGENCO is exploring to boost electricity generation and one of them is diversification.”

 “We strongly believe it is time to diversify to other sources of power because as you are aware 90 % of the electricity being generated is hydro-electric power.”

“The biggest challenge we have is that each time the water level goes down, electricity generation is affected and in-turn power supply is affected. We, therefore, need to find alternative sources that are sufficient and reliable.”

Board Chairperson for Egenco Lloyd Muhara told Mining & Trade Review at the same function that as stated in its strategic plan, EGENCO will explore and promote the use of clean energy in order to deal with the problem of deforestation due to excessive use of biomass as a source of energy.

“We want to start generating reliable and diversified power by investing in new power plants in a sustainable manner,” he said.

In the plan, EGENCO has set an ambitious target of increasing its installed electricity generation capacity from 367.37 to 1,687.5 MW by 2033 and overcome the country’s electricity woes in 14 years. The strategic plan is for 2018 to 2033.

Meanwhile, the Economic Association of Malawi (ECAMA) has asked the Malawi Government to increase funding to the energy sector starting from the next budget in order for EGENCO and Electricity Supply Corporation of Malawi (Escom) to achieve their plans of ensuring stable and adequate supply of electricity.

ECAMA president, Chikumbutso Kalilombe made the statement during a pre-budget consultation meeting which was organized by the Ministry of Finance, Economic Planning and Development in Lilongwe and was presided over by Minister of Finance Joseph Mwanamveka.

Kalilombe said EGENCO’s ambitious plan to increase power generation will only be fully implemented with adequate funding.

“It is high time government invested directly into power production. Even if we do not sort out all woes now, we will have started,” he said.

He also said the government needs to be aggressive in its campaign to attract investors in power generation by speeding up the ongoing policy changes to accommodate independent power producers.

Malawi’s electricity demand is expected to grow to 600 MW in 2018, 950 MW in 2020, and 1,200 MW in 2025.

The energy sector spending as a percentage of GDP remained below one percent between years of 2016/17 and 2018/19, and is projected to average around one percent by 2030.

Though only less than 12% of the Malawi population is connected to the electricity grid, blackouts are the order of the day as Escom conducts a load shedding programme to ration power supply especially in dry season when water levels are low in Lake Malawi and the Shire River.

Various studies have identified lack of reliable power as the main factor hindering investment in major economic sectors including mining and manufacturing.

Egenco, which was born from the unbundling of Escom into two entities in order to enhance efficiency in the power sector, started its operations in 2017.

Since its formation, the Company has been active in carrying out maintenance and expansion of power plants including the Nkula A which has been modernized with funding from US’s Millennium Challenge Corporation.

EGENCO is also constructing Tedzani IV with funding from the Japanese Government and has planned a number of generation projects including the setting up of a coal fired power plant to generate 300MW.

Imports grab 30% cement market share Local manufacturers cry foul

There is a growing influx of imported cement brands, mainly the popular Dangotecement, on the Malawi market which is continuing to pose stiff market competition to the local brands in so doing threatening the future of Malawi’s cement manufacturing industry.

Investigations by Mining & Trade Review have revealed that Dangote Cement is emerging as a dominant foreign brand on the local market mainly in the major cities of Blantyre, Lilongwe and Mzuzu, squeezing out brands for local producers Lafarge Holcim Malawi, Shayona Cement Corporation and Cement Products Limited (CPL).

Statistics from local cement manufacturer Lafarge Holcim Malawi indicate that the imported cement has grabbed up to 30%   cement market share.

Malawian traders are mainly importing Dangote Cement from Zambia where the African giant manufacturer has a plant in the City of Ndola.

Cement shop owners Mining and Trade Review interviewed in Lilongwe said the diminishing presence of locally produced cement on the market is due to higher prices of the local products as compared to imported brands of similar quality and strength.

“In my shop, you would find that a local cement brand of lesser strength is being sold at MK6500 which is the same price for Dangote cement with a grade 42.5R. So the local buyers prefer Dangote other than the local brands which entices us to order more quantities ofDangote cement,” said a cement distributor interviewed in Lilongwe Old Town, who preferred anonymity.

Mining & Trade Review got similar sentiments in random interviews with shop owners in Blantyre where besides Dangote there is an influx of other foreign cement brands including Ultra-Semi, PPC, Shuwa Cast and Sinoma, whichis manufactured by China Materials Company Limited Group – a Chinese multinational with branches in a number of African countries including Tanzania and Zambia.

Our investigations in Blantyre also revealed that some foreign cement brands are being smuggled in huge tonnage into Malawi from Mozambique, mainly through the Muloza boarder in Mulanje.

We also established that Dangote is a preferred choice for some construction companies which are hired by government to undertake large-scale construction projects which manifests that the government is issuing licenses to traders to import huge quantities of the foreign brand.

“We, contractors, opt for Dangote because of the pricing aspect. Ordinarily, the difference in prices between Dangote and local cement of the same strength needed not to be that much,” said a Blantyre-based Construction Entrepreneur Christopher Beula.

In Mzuzu and Mzimba, our investigations showed that though local brands mainly for Shayona Cement are in abundance in shops, Dangote is also emerging as a big    competitor.

The Mzuzu Hardware shops are selling DangoteCement 42.5R at K7,000 and Shayona’s brands Thanthwe 42.5R and Akshar 32.5N at K6,000.

“We are used to the popular brands such as Akshar here though over the past few years Dangote seems to be winning a market share,” said a consumer in MzimbaVincent Gondwe.

Shayona Cement Corporation Operations Manager PrajeeshPadmanabhan commented on Mining & Trade Review readers’ forum that locally produced cement brands are encountering stiff competition from foreign brands because the taxation regime in countries such as Zambia from where most of the Dangote cement is imported is more favourable to manufacturing and export business while that of Malawi supports imports.

Padmanabhan said: “Zambia is already charging surcharge and duties if you have to import cement but Malawi does not charge any other tax a part from VAT (Value added tax).”

“Countries such as Zambia are also giving long tax holidays to manufacturers so any investor will be interested to invest in Zambia and export to its neighbouringcountries where there are no any duties.”

“Already Zambia has an excess production capacity while Malawi continues to saturate the market with imports that are draining foreign exchange.”

Responding to comments by Mining & Trade Review readers who raised the point that Malawi Government is not protecting the local cement industry as a way of abiding by the Common Market for Eastern and Southern Africa (Comesa) and Southern Africa Development Community (Sadc) free trade rules, Padmanabhan said it is possible for Malawi to protect the local industry by charging surcharge or through licensing as countries such as Zambia are doing.

CPL Chairman Aslam Gaffar concurred with    Padmanabhan in bemoaning the current business scenario for local cement manufacturers describing it as unhealthy.

Gaffar said: “There is a problem with Sadc and these other regional treaties. Imports are tax free and yet locals in same field are heavily taxed.”

“Malawi will remain forever a dumping ground if we do not activate the Anti-Dumping and countervailing rules provided in these treaties.”

“Zambia charges a 40% import excise duty, plus 5% surcharge then 16% VAT for any cement imports, in Malawi not even VAT because our country has got its own Guptas.”

Lafarge Holcim Malawi’s Head of Marketing and New Solutions ChikondiNg’ombe said it is imperative for the government to ensure that there is a level playing field so that cement imports do not get an upper hand over locally produced products and also for Malawian exports to be   supported.

“The level of cement imports into Malawi has risen over the recent years to account for close to 30% of Malawi’s cement market. While we appreciate the importance of competition, an unfair playing field in favour of imports will have the adverse effect of discouraging local manufacturing investments with consequent negative impact on employment and other manufacturing-linked economic activities,” she said.

Ng’ombe explained that in order to ensure that there is a level playing field on the market, the government needs to deal with smuggling by traders who do not pay taxes hence have undue advantage over local production, and crack down on apparent dumping of product from foreign players.

“As an example, cement brands coming into Malawi from Zimbabwe are sold at prices that are below the selling price in Harare. It would appear that such players are simply aiming at extracting the already scarce forex from Malawi into Zimbabwe,” she said.

Ng’ombe also said the government has to address the issue of uneven tax regimes between Malawi and its neighbours which is there in spite of belonging to the same Sadc bloc.

She explained that imports of cement into Malawi are not subject to any special tariffs but in spite of Sadcmembership, most of the neighbouring countries have placed cement on their list of sensitive products and apply special tariffs on the same to protect their local industry.

Ng’ombe said: “Malawi must look at the treatment by the different countries and, at the minimum, apply the same treatment to achieve a level ground. Failure to do this will continue discouraging Malawian exports while giving undue advantage to imports from those countries.”

She urged Malawian customers to keep up with Lafarge cement as their product of choice despite the market challenges saying the company places a heavy focus on quality to ensure that it has repeat business from its customers.

Ng’ombe said as a locally based cement manufacturer Lafarge ensures that local (MBS) and international            accreditations (ISO 9001:2015) are maintained.

She said: “Importers cannot be subjected to the same level of scrutiny and accountability as it is difficult for customers to trace what they have bought back to the manufacturer.”

“Having said this, it should be notedthat the cement industry has in Malawi brought down prices significantly in real terms over the recent years. This is in spite of major escalation of key cost items such as power and fuel and other challenges such as power rationing. We hope that lasting solutions can be found on these issues in order to allow the industry to bring down production costs and make cement more affordable.”

However, spokesperson for the Ministry of Industry and Trade, MayesoMsokera, told Mining & Trade Review in an earlier interview that government gives licences to traders to import some cement to supplement the deficit from local production.

Msokera said, “As Government, we have the mandate to balance the needs of both the producers and the consumers with regard to availability of this essential commodity as well as its price, and the current cement importation does not amount to an influx.”

He explained that it is the government’s duty to stabilize supply and prices of cement so that they do not destroy the construction industry, which also employs many people and is an integral part of Malawi’s infrastructure and industrial development as it provides a growth impetus to other sectors of the economy through backward and forward linkages.

“We have had situations where cement prices rose to around MK12000 in 2017. Therefore, it is, essential that, cement availability and affordability is safeguarded for the healthy growth of the Malawi economy,” he said.

He, however, acknowledged the fact that some cement is being smuggled into the country and said, as Government, they are considering additional measures of curbing the problem.

“The Ministry is discussing with other Government agencies such as the Malawi Revenue Authority and the private sector stakeholder institutions so that issues of smuggling are addressed holistically. As a Ministry, we would like to appeal to the private sector to hold hands and collaborate with Government in order to loot out this malpractice bedeviling our manufacturing sector,” said Msokera.

He advised local firms to extend their distribution channels to supply their cement to all angles of the country including bordering districts where traders prefer importing from neighbouring countries as a cheaper option.

Msokera assured the local industry of Government’s   support saying the Ministry is advocating for growth and development of local industries through the Buy Malawi Strategy, which encourages consumers to purchase locally produced products which are equally of good quality.

Both Shayona and CPL have invested in multibillion-kwacha construction of clinker producing plants at their factory areas in Kasungu and Mangochi respectively.

Shayona, which has a workforce of over 1200 mostly locals, has a comprehensive CSR programme which has seen the company constructing school blocks at a primary school    close to the Kasungu factory, making drug donations to government hospitals and clinics, and planting trees annually in the factory locality to assist in environmental conservation.

Though its factory is relatively new, CPL also boosts of a CSR programme that has involved donating cooking oil making machines to members of the community in the factory area, constructing school blocks and procuring a transformer to electrify the area that hosts the factory.

Shayona Cement Corporation produces cement brands of various strengths including: Akshar, Buildplast and Thanthwe while CPL’s brands include Mkope and Njati.

Lafarge Holcim Malawi, whose cement brands include Khoma, Kumanga, Duracrate and Supaset, has continued   to show commitment to Malawi with recent investments of close to MKW 1.5billion in a Soil Stabilized Blocks factory (14 Trees) in partnership with the Commonwealth Development Corporation (CDC).

The company is executing the investments in line with its ‘Kumanga Malawi’ programme which is aimed at supporting the Government and other stakeholders in developing Malawi.

Pillars in this program include sustainable building solutions, Small and Medium Enterprises support, Road and Workplace Safety, Employee empowerment and Product usage awareness/ training.

Records from the National Statistical Office indicate that in 2017 alone, imports of cement and clinker amounted to MK28.76-billion.

Dangote Cement, owned by Nigerian billionaire AlikoDangote, is Africa’s largest cement producer with a production capacity of 45.6-million tonnes per year.

Government is progressing with preparations to construct an international airport in Mangochi as part of its plans to turn the district into the centre of tourism in Malawi.

This is contained in the State of the Nation Address that State President Arthur Peter Mutharika delivered in parliament in Lilongwe at the opening of the 2019/2020 budget meeting.

He said: “My Government recognizes that we need more investment in the tourism sector, In that regard, I want to report to this House that we will vigorously pursue our program to transform Mangochi into a tourism capital of Malawi.”

“We have a plan for a five-star hotel, an international airport, a golf course, shopping malls and modern roads and other top facilities.”

He also pledged to develop tourism facilities on Mulanje and Zomba mountains including cableway cars to attract more visitors to Malawi.

Mutharika said as part of tourism development, his government has also undertaken extensive rehabilitation at Chileka International Airport.

“The resurfacing of the main runway is underway in order to improve the airport so that we increase its air traffic activity,” he said.

Mutharika told the House that his government has also rehabilitated and expanded the Kamuzu International Airport (KIA) using proceeds of a grant from the government of Japan.

The project involved the expansion of the current terminal building, construction of international and domestic departure and arrival terminals, and installation of a radar system.

Mutharika said government’s plans to construct new international airports in Mzuzu and Mangochi are also on course.

On water transport, Mutharika announced that his government has started construction of a MK10 billion port at Likoma Island, and the works will be executed in 18 months.

He said the project comes in the wake of the recent improvement of NkhataBay Port and the installation of light beacons which have enhanced the safety of passengers and vessels.

He said plans are also underway to link Nkhata-Bay and Mbamba Bay Ports under the Mtwara Development Corridor which is 400 kilometres shorter than the Dar-es-Salaam route in order to have additional access to the Indian Ocean.

On rail transport, Mutharika said his Government, in collaboration with Central East African Railways (CEAR) Limited, is rehabilitating the 399-kilometre railway section from Nkaya in Balaka to Mchinji.

“Under the same arrangement, we are also in the process of reconstructing the 72-km Limbe-Sandama railway,” he said.

On road construction, he said his government is working on construction of several major roads including Zomba-Jali-Phalombe-Chitakale,  Thyolo-Thekerani-Muona-Makhanga Road, Njakwa –Livingstonia, Dual Carriage way between Parliament     Round-about and Bingu National Stadium in Lilongwe,  Thabwa-Chitseko-Seveni     Road,  Ntcheu-Tsangano-Neno, Lirangwe-Chingale-Machinga, Lumbadzi-Dowa-Chezi, Kawere-Mkanda, Jenda-Edingeni, Rumphi-Nyika turn-off-Hewe Road, and Blantyre Ring Road.

Introduction

Currently several small wind power generators are installed and supplying power to Villages in Thyolo, Chiradzulu, Ntcheu, Nkhotakota, Nkhata Bay and Mzimba. Under this Village Electrification Project the total installed capacity is 132 kW of which 90 kW is from wind. The wind/solar hybrid installations are supplying up to 150 homes within a 2km radius in each village. However this shows that there is potential for large wind turbines which can generate electricity up to 5MW each.

Project Sites for Wind Power Generation

 – Lilongwe

Four sites were visited around Lilongwe old airport and Kamuzu international airport (KIA) where the Department of Climate Change and Meteorological Services has measured wind speed at 10 meter height for more than 10 years. Out of the four sites assessed, a place near Luke Daeyang Hospital was identified as potential site. The site is 12 km from Lilongwe; 2 km from the existing grid at Kanengo and the area is bounded by M1 road and the road going to Malawi Institute of Management. The average wind speed was 5M/s at the time of the visit to the site.

Ownership of the land is not yet known but it is suspected that it belongs to Kanengo Northgate Project. Efforts are underway to check with the Commissioner for Lands to determine ownership of that piece of land.  The site is near a hospital, but it is on the wind-ward side so the noise is unlikely to have much effect on the hospital. Adjacent to the hospital is a proposed site for a nursing school, but it is still recommended that the site should be assessed further because it is near to power grid, can easily be accessed by road and both the hospital and the nursing school are on the wind ward side.

Looking at the size of land available, it is recommended that four turbines of 2 MW each can be erected on this site making a total of 8 MW installed capacity. This is based on the fact that the spacing between adjacent wind turbine towers is 7-15 times the rotor diameter. This recommendation is based on the assumption that this piece of land stretches to the east where wind speed is anticipated to be the same.

 – Mzimba

A site in Mzimba was identified at Kanombo Hills, 8 km North West of MzimbaBoma. The site has an average wind speed of 8m/s at a height of 2 metres. The site is 8 km from the existing power grid at Mzimbaboma. The hills are under customary land therefore ownership of the land may not be an issue. Houses are far from the site and therefore there will be no effect of noise pollution on the population.

Based on the same principle that the spacing of wind turbines is done in relation to the rotor diameter, four turbines of 2 MW each can be erected on this site making a total of 8 MW installed capacity.

 – Mzuzu

Kaning’ina Hills were identified as a potential site for installation of wind turbines for power generation. The site has an average wind speed of 9m/s at 2 metres height. It is about 10 km from Mzuzu city and the existing grid.  Kaning’ina Hills are gazzetted under natural forest reserve hence the land is controlled by the Forestry Department. It is situated far from residential areas.

In view of these facts therefore, there will be no noise pollution effect on the population of Mzuzu City. The only problem would be the high cost of constructing access road to the top of the hills to deliver and maintain the wind turbines.

On this site, 5 turbines of 2 MW each can be erected giving a total of 10 MW installed capacity.

 – Chileka in Blantyre

Four sites around Chileka in Blantyre were visited and assessed. Out of the four sites, a place on top of the hills near Andiseni Primary School,  west of Chileka Airport, was identified as a potential site. The site is 20 km from Blantyre and 2 km from the existing power grid. The average wind speed is 3.5m/s.

The Andiseni Hill is under customary land which means ownership of the land for installation of wind turbines may not be a problem at this site. Houses are far from the site and therefore there will be no noise pollution effect on the population around Andiseni Primary School.

Two turbines of 2MW each can be erected on this site making a total of 4 MW installed capacity.

Government says it is implementing a master plan to develop the tourism sector, which involves putting up necessary infrastructure to create a conducive business climated for existing players in the industry and intensifying promotional activities to attract more tourists and investors.

Chief Secretary in the Office of the President and Cabinet, Lloyd Muhara, said at the launching ceremony of this year’s three day Takulandirani Malawi Tourism Expo that the masterplan will be implemented over a period of 25 years and will guide planning, zoning and promotion of tourism investment in the country.

Muhara said as part of the plan, the government has constructed two access roads in the tourism district ofSalima connecting lakeshore resorts to the main road and acquired over 17 hectares of land along the lakeshore for development of public beaches which will act as a model for tourism development along the lake.

He said the Ministry has also upgraded the Kamuzu international Airport with assistance from the Japanese Government through the Japanese International Cooperation Agency (JICA).

The chief secretary also said government is implementing the Promotion of Investment and Competitiveness in the Tourism Sector (PICTS) project with financial support from the African Development Bank (AfDB) to the tune of US$10-million.

Muhara said: “The project seeks to build and strengthen institutional capacity in tourism statistics development and implementation of Tourism Satellite Accounting system for Malawi.”

“This will improve collection of tourism statistics to provide a better case to Government for public funding of the sector.”

The project will also build capacity of 500 Small and Medium Enterprises (SMEs) in the tourism sector through training and provision of loans to the SMEs.

It will as well enhance law enforcement in Kasungu and Lake Malawi National Parks to reduce wildlife poaching and strengthen the Malawi Tourism Council, which is the voice of the tourism private sector so that it serves its members more effectively.

He said the project will involve development of an Eco-tourism strategy to ensure sustainable utilization of Malawi’s unique nature-based attractions, support review of culture legal framework and instruments and develop tourism infrastructure at Chongoni World Heritage site which projects Stone Age rock art.

Muhara explained that with these interventions the project will not only boost Malawi’s capacity to attract foreign investment in the tourism sector but it will also enhance the country’s capacity to satisfy tourism needs.

Malawi’s travel and tourism sector contributes 7.7% to the country’s gross domestic product (GDP).

Malawi’s leading mineral sector consultants Akatswiri Mineral Resources in collaboration with Zomba-based Enviroconsult have successfully completed an environmental and social impact assessment (ESIA) study for oil exploration in Blocks 4 and 5, which are held by prospecting firm Rak Gas MB45.

The study, whose report has been submitted to the Department of Environmental Affairs for approval, involved community consultations in districts covered by the two blocks which include Machinga,        Mangochi, Dedza and Salima, and national consultations in the Capital City, Lilongwe.

Rak Gas contracted Akatswiri and Enviro-Consult to conduct the ESIA in preparation for seismic operations which will be conducted in the blocks to identify oil and gas traps.

Project Coordinator Hilton Banda says: “The seismic studies entail using a vibrator truck that sends a signal from the ground and recording truck to detect sediments and their depth. The technology uses geo phones mounted on the cable that transmits a signal to a computer.”

“There was, therefore, a need to undertake the ESIA to assess the environmental impact of the seismic exploration work and develop an environmental management plan that contains mitigation measures.”

Banda, who is CEO for Akatswiri, explains that the ESIA involved studies on Geology and Soils, Air Quality, Water and Hydrology, Waste Management, Noise and Vibrations, Transport and Energy needs, Flora, Fauna, Fish, Habitats and Land use, Archaeology and Cultural Heritage and Social Issues as key parameters that require baseline assessment in order to determine potential impacts and their mitigation approaches.

Geology and Soils

The Akatswiri CEO, who is a seasoned geologist, explains that the team conducted geological field mapping in which major lithological and soil units were mapped and sampled for subsequent mineralogical analysis.

He says the team recorded systematic measurements of structural features, field relations and cross-cutting relationships and in addition to field mapping they used existing geophysical data to interpret structural features which could not be seen on the ground as the ground is mostly covered by sediments.

The area is overlain by recent sediments of lacustrine in nature and has been affected by rift faulting which defines the Malawi Rift Valley. NE and NS trending faults, and shear zones present in the area may render critical insights into the structures which might trigger potential landslides or earthquakes.

The project site is dominated by the presence of marsh and agricultural soils. The soil fertility status is augmented through fertilisation to sustain crop production, and soils are moderately acidic.

“The impact assessment shows that the proposed project will have a low to moderate impact on the geology and soils in the study area,” Banda says.

Air quality

He says the air quality assessment was intended to characterize the existing environment and identify the environmental and social hazards associated with the seismic activities on air quality, assess the magnitude and significance of the risks (the likelihood of the hazard and the severity of the impact) and provide a description of the proposed control techniques to eliminate or mitigate the likelihood of the hazard or severity of the impact and development of plans / procedures to manage consequences of exceptional events.

“The results from the baseline survey show that levels of the major air quality parameters (total suspended particulate matter, SO2, NO2, CO and H2S) were below the guideline values according to Malawi Standards (MS737:2011) and World Health Organisation (WHO) guidelines. However, in most of the cases, levels of methane were noted to be significant, mainly arising from decomposition of livestock excreta,” he says. 

Hydrology and water quality

Banda says in order to assess hydrology and water   quality, water samples were collected from block 4 and 5 from boreholes, shallow wells, rivers and analyzed for physical-chemical parameters: temperature, pH, Total Dissolved Solutes (TDS), Electrical Conductivity (EC), Turbidity, F-, Cl-, NO3-, SO42-, carbonates, Na, Ca, Mg, Cu, Mn, Zn, K, and total hardness.

“The results were compared to the World Health Organization (WHO) and Malawi Bureau of Standards (MBS) standards to ascertain the water quality. Analysis of the data indicates that the major water quality parameters are deemed within guideline limits indicating that the water is generally unpolluted. The impact assessment shows that the proposed project will have a low to moderate impact on water resources in the study area,” Banda says. 

Waste Management

The ESIA Project Coordinator also assures that the   seismic surveys are not expected to generate waste streams with high environmental and social impact.

The common sources of waste streams pointed out in the study include presence of workforce, seismic survey activities and vehicle maintenance wastes.

Banda says the expected non-hazardous wastes include domestic wastes (garbage and sewage) and effluents, paper, line cables while hazardous wastes include pharmaceuticals, waste oils, spilled fuel and lubricants and used batteries. The potential impact of wastes is deterioration of water and soil quality affecting terrestrial and aquatic ecosystem (fauna and flora).

In mitigation, he says Rak Gas will implement a Waste Management Plan (WMP) in line with Open Government Partnership (OGP) guidelines for waste management (OGP, 1993; 2008).

Banda says: “As far as practicable, Rak Gas will use existing sanitary facilities in the target areas (otherwise mobile toilets should be used). Solid wastes will be segregated at source in terms of recyclable, reusable, biodegradable and non- biodegradable, hazardous and   non-hazardous, or disposal as appropriate. The Seismic Team will make sure that it does not leave behind any solid waste during the seismic activities.”

“Buffer zone distances between water and seismic lines, sanitary and biodegradable garbage pits will be observed as per International Association of Geophysical Contractors (IAGC) guidelines in order to protect the surface water bodies. Non-biodegradable, flammable wastes may be burned and the ashes buried with the non-flammable wastes. This burial should be at least one meter deep, with due consideration to the area’s water table.”

“All hazardous wastes will be isolated and collected for disposal in regulated municipal facilities. Although, the likelihood of major impacts from accidental spills is low, it is recommended to ensure that requirements of oil spill and emergency plans must be met before operations commence.”