Malawi lobbies for investments in small factories

Malawi Minister of Industry and Trade Sosten Gwengwe has urged local communities to invest heavily in agro-processing through the creation of small factories.

But the minister has also called on local communities to ensure hygiene and quality of their products for them to earn relatively more income from their produce.

Gwengwe said this at Mitundu in Lilongwe when he officially opened Kampini Agro-processing Cooperative Society Limited, which is processing soya beans into milk with support from the One Village One Product (Ovop).

“In an effort to encourage local investment, my ministry is tirelessly encouraging investments in sectors including agro-processing and Ovop programme that is encouraging local communities to invest within their local communities through small factory unit,” said Gwengwe.

The minister said government believes economic empowerment of local communities through small scale businesses is key to economic development and poverty eradication.

Gwengwe said such a vision is clearly amplified in the second Malawi Growth and Development Strategy (MGDS 11).

He stated that poverty cannot be reduced through welfare transfers but through efficient utilisation of production capacities, direct creation of wealth and value adding to agricultural raw materials.

“This country can only be truly developed if we Malawians fully participate in the nation’s economic activities, by among other things, locally focusing on value addition of agriculture commodities and natural resources within our respective areas,” added Gwengwe.

He, however, commended members of Kampini Cooperatives for their determination and commitment to invest in the Soya Factory Unit which he said will likely increase their income levels.

Ovop national coordinator Kamia Kaluma-Sulumba said she was impressed with the value addition being done by Kampini Cooperative and assured the grouping of Ovop support in terms of certification in tandem with the Malawi Bureau of Standards (MBS).

During the official opening, it was revealed that the cooperative has invested over K4.5 million (about $11 250) in the construction of the factory and over K3 million in the machine.

The 29-member cooperative is expected to produce 350 litres of milk from soya beans per day.