Business Unpacked

We have talked enough about mining, tourism

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This week started on a good note for the Ministry of Tourism and the Ministry of Mining as they emerged inaugural winners of the Public Sector Innovation Challenge Award in their respective categories.

The awards, with monetary rewards worth $40 000 (about K70 million) each, are supported by the United Nations Development Programme (UNDP) and seek to promote innovation. The duo outclassed 17 other entrants to be recognised for their outstanding efforts in identifying challenges and opportunities to be more productive in their performance and enhance revenue generation.

Congratulations to the two ministries for their achievements. Please, do not slacken, but continue raising the bar in your fields.

Given the passion Minister of Tourism Vera Kamtukule has had in hyping the country’s tourism as does Minister of Mining Monica Chang’anamuno in ensuring that sanity prevails in mining, the awards did not come as a surprise. I salute the two distinguished ministers and their respective teams for the efforts.

Tourism and mining alongside agriculture form the ATM strategy which the Malawi Government has identified as priority sectors critical to transforming the country economic success as they provide huge potential for massive industrialisation.

The success of the ATM strategy in transforming the country’s economic fortunes lies in action, more than talking. I am saying this because for a long time, tourism and mining have been touted as “the next big thing” or “game-changer” to replace or complement tobacco in generating foreign exchange for the economy. However, what has lacked is to give the sectors enablers to achieve the desired goals. In the 2024/25 National Budget for instance, the two sectors have been allocated yet another shoestring budget.

Investors have, on their part, put up magnificent infrastructure both along the shores of Lake Malawi and in or close to some national parks and other areas. However, many areas lack enablers such as all-weather roads and even airports as well as electricity connection to fully achieve their potential. This is where the government should come in besides tax incentives.

In mining, the pace at which mining development agreements are being negotiated and developed also leaves a lot to be desired. There is a scramble for investors, but despite being a new player in the sector we seem to be taking forever to move. There is need for aggressiveness backed by the relevant laws.

Through mining and tourism expos, international exhibitors, business leaders, investors, international buyers and experts come in one place to showcase and discuss trends and opportunities. It is not how many of such events we host, but what we reap from these platforms, otherwise they become talking shops or road shows when nothing concrete is seen on the ground in the medium to long-term.

For tourism, marketing and packaging remain the weakest link despite the efforts being made. Marketing is directly linked to spending, you have to spend on promotions to get the benefits. I still long for the day Brand Malawi will have visible presence on the international scene as a tourist destination, but then before we do that, there are issues to be worked on including connectivity, infrastructure and taxes in the price build-up of most tourism products.

In the case of mining, the establishment of the Mining Authority and a State-owned mining company should help cut the bureaucracy in the processing of contracts and related issues.

We have talked for long, it is high time as a country we started matching the hype with tangible action on the ground complete with deliverables and time lines. The moment we will start doing that a turning point will be achieved.

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