‘Transports costs make local goods uncompetitive’

Malawi Government has said it realises that the economic growth of country hinges on improved transport sector.

Deputy Minister of Transport and Public Works Sosten Gwengwe said this over the weekend at Monkey Bay where he addressed students and staff at Marine College.

He said the importance of transport sector cannot be overemphasised; hence, its inclusion as one of the pillars of the Malawi Growth and Development Strategy (MGDS).

He said Malawi is a country with high costs of transportation and this makes its exports uncompetitive on the international market.

“As you may be aware, transport costs account for about 56 percent of landed costs of commodities imported into the country,” said Gwengwe.

He, however, said government has embarked on a number of reforms to improve the sector.

“The aim of these policy reforms is to encourage the private sector to get involved in the development and operation of an economically and socially justifiable aquatic transport system.

“That can only be done if there are qualified personnel to operate and manage the infrastructure and shipping services.

“This is why the college is crucial in government’s overall strategy of achieving the efficiency and effective service delivery,” said Gwengwe, asking all stakeholders to find solutions to challenges rocking the water transport system.

Marine College principal Captain John Mhango said the college is the only institution that train people in inland water ways in the Sadc as well as Comesa regions and this creates pressure on its resources.

“While the college has seen improvements in terms of enrolment and infrastructure, it still lacks key facilities such as a recreation hall, offices, cafeteria and others,” he said.

Mhango, however, assured government that the college will continue to train students in line with internationally accepted standards.—Mana