ICT firms decry local procurement system
Information and communications technology (ICT) firms have decried government’s procurement of ICT solutions, saying it favours foreign firms at the expense of local start-ups, thereby draining foreign exchange.
In an interview on Friday, Sparc Systems Limited chief executive officer Wisely Phiri said despite the problem extending to the private sector, it is more prevalent in the public sector.
He said there is low confidence on the market on locally developed ICT solutions, citing the firm’s solutions that have been embraced by other African countries but not Malawi.
Phiri, who is also Malawi Confederation of Chambers of Commerce and Industry president, said: “We have seen local industries still preferring to buy from outside the country with government being the major culprit despite the various policies that have been put in place to support local businesses.
“Simply put, the policies are on paper and are not being implemented.”
But he said there is notable growth in confidence by the private sector with efforts to increase uptake of local ICT solutions.
Ntha Foundation founder Nthanda Manduwi, whose firm is one of the technology hubs, said low market confidence continues to impede the sustainable development of the local tech industry.
“The lack of confidence is a barrier that local developers continuously face and it impacts the growth and sustainability of our tech industry,” she said.
Manduwi said ICT has immense potential to drive the country’s economic growth and can enhance productivity across various sectors, create new job opportunities and stimulate innovation.
She said: “By leveraging ICT, we can improve service delivery in health, education, agriculture, transportation and governance, thereby fostering an inclusive and sustainable economic growth model.
“The digital economy is a critical frontier for Malawi and investing in it can yield substantial long-term benefits.”
Public Procurement and Disposal of Assets Authority spokesperson Kate Kujaliwa said in a written response the current legal provision provides a solid foundation for encouraging the use of locally developed solutions.
She said the law is also undergoing review to strengthen it.
“The authority conducted comprehensive and transparent stakeholder consultations where ICT industry was represented and their concerns were taken on board,” said Kujaliwa.
She further said the PPDA shares the view on the need to increase confidence in local suppliers, including locally developed ICT solutions. “This is essential for fostering a robust ICT industry,” said Kujaliwa.
