Malawi commit to rural industrialisation

Malawi government says it is committed to rural industrialisation through the establishment of factory shells to add value to agricultural produce.

Industry and Trade Minister Sosten Gwengwe said this during his visit to Bwaila Meat Processing Cooperative in Zomba on Monday.

He noted that policy emphasis is usually put on big companies leaving out rural industries that can create employment and markets, and encourage an inclusive economy.

Gwengwe, during the tour of the K26 million (about $65 000) factory shell which is funded by One Village One Product (Ovop), pointed out that the current government is committed to cottage factories and has earmarked 37 similar factories to be completed this year.

“In an effort to encourage local investment, my ministry is tirelessly encouraging investments in sectors, including agro-processing and the Ovop initiative that is encouraging local communities through small factory units.

“We have the funds for the installation of the processing machines [here at Bwaila]. For example, this cooperative will be given a processing machine worth K12 million [about $30 000] which is ready to go. We have also allocated K3 million [about $7 500] for the completion of the factory shell and to connect to electricity,” said Gwengwe.

He explained that the cottage factory projects earmarked for completion this year range from rice milling, soya processing, bakeries, and meat processing.

He added that Ovop has a total of 261 machine units to be given to those that are eager to use them.

Speaking at the function, Ministry of Industry and Trade Principal Secretary Alex Gomani said the aim of Ovop programme is to elevate the lives of communities by empowering them through community participation to use local resources to create value added products.

“The programme supports the cooperatives with machinery, business development, marketing and quality control training. [Bwaila] meat product factory will ease demand of meat products in the area, help reduce the unemployment levels and also increase the income and standards of living in the area. It will also increase the income and standards of living of the members which will trickle down to the community,” said Gomani.

He added that the cooperative was formed to produce meat products for sale locally, regionally and internationally.

According to the ministry, the project’s total cost to date stands at K8.1 million and K6 million is expected to be spent towards completion of the factory shell including electricity connection. Construction is expected to end this October after which the K12 million worth machine will be installed.