Ministry for 50-50 market share

Ministry of Trade and Industry says it will engage retailers to ensure that their stocks comprise at least 50 percent of locally produced products.

Minister of Trade and Industry Mark Katsonga Phiri said this in an interview on the sidelines of the small and medium enterprises (SME) awards for best four business displays during the buyer—seller symposium organised by Small and Medium Enterprises Development Institute (Smedi) on Monday in Lilongwe.

The minister said the ministry’s assessment has shown that 80 percent of products stocked by retailers are foreign and 20 percent local.

He said: “Our SME products can equally compete with what we see on the shelves if adequately stocked in those chain stores. One wonders what the issues are, if any, we should address them.

“Failing to support Malawian SMEs by not allowing adequate space for their products in supermarkets is tantamount to being segregative and unpatriotic, a behaviour which cannot be tolerated.”

Katsonga Phiri said while government is taking such an initiative, local producers would also up their standards to make import substitution a reality.

Smedi chief executive officer Rodrick Chattaika said SMEs are producing Malawi Bureau of Standards certified products that meet international standards.

He said as a training institution, they will strive to build the capacity of SMEs to ensure all the gaps are addressed.

In his reaction, Consumers Association of Malawi executive director John Kapito said the country’s adoption of the liberalised market system, which removed direct government grip of controls on the market, was hurting consumers because they are left alone to deal with the market forces.

Ministry of Trade and Industry recently revealed that it is drafting the Buy Malawi Strategy Law to force retail outlets to adhere to calls to buy, stock and sell locally produced products.