Scrap metal export bandraws mixed reactions
Malawi Government’s move to suspend exports of scrap metal and revoked export licences has drawn mixed views, with some saying it is long overdue while others argue it could affect generation of foreign exchange.
In a joint statement on Saturday, ministries of Trade and Industry and Homeland Security announced a six-month ban on exports of scrap metal following the increased incidences of vandalism of Electricity Supply Corporation of Malawi (Escom), water boards, telecommunication and transport infrastructure, especially railway lines.
The ban, which has been effected under the Control of Goods (Import and Export Licence) Regulations 2020, seeks to sanitise the scrap metal trade.
Reads the statement in part: “There is empirical evidence that those involved in the malpractice, sell the materials as scrap metal to fulfill their business requirements which is not in tandem with our national development agenda.”
But in an interview on Saturday, Malawi Confederation of Chambers of Commerce and Industry president Lekani Katandula, while observing that the government cannot sit and watch when assets are being vandalised, said there is need to look at accelerating rather than slowing down exports.
“We can only hope that the government can quickly resolve the criminality and restore the export licenses of honest businesses,” he said.
National Working Group on Trade Policy president Frederick Changaya observed that though not entirely good, the ban is necessary and probably long overdue.
He said: “Authorities need to subject scrap metal yards to extensive search, strengthen police prosecution and the justice system. Such crimes should attract hefty penalties.”
But Small-scale Business Operators Association of Malawi general secretary Tennyson Mulimbula welcomed the move with reservations, saying they want government to intensify screening of scrap metal dealers and give stiffer punishment to those involved in the malpractice.
Chamber of Small and Medium Enterprises executive secretary James Chiutsi said authorities should look at ways of protecting infrastructure while allowing the scrap metal export business to continue. In a statement, Escom , one of the affected entities, has welcomed the ban, saying: “We would have loved to have this extended even to local trading in scrap metal to pave way for thorough investigations and get to the bottom of this challenge.”
