Dont let IMF dictate policy, we have ourselves to blame for not leading

IMF’s Christine Lagarde was in the country last week, in what I call a moral support mission. Her trip has also taken her to some African countries. In all her travels, she has commended countries that have taken liberal economic reforms such devaluation and removal of subsidies. In the country, the media has been awash with various commentaries, mostly demonising the IMF for the current mess. Similar sentiments have been echoed in the social media, particularly twitter and facebook. Malawians are quite engaged it appears. But we cannot always blame the IMF for the mess we have found ourselves in. While we are a member of the IMF, we must also remember, that this institution is more concerned with its “bigger” members, the US and Europe, than poverty stricken countries like Malawi, undiplomatic as it appears. That is why its CEO is always European, and its sister agency, the World Bank is always headed by an American. We were not there when they created these institutions at Bretton Woods in New Hampshire, half a century ago. The issue at hand however, is whenever we have an economic crisis, IMF is not always to blame. It is easy to point a finger at the IMF, but in the process we ignore fundamental issues that have led us into an economic abyss. We have to grow and man up and accept responsibility and hold our leaders to account for their actions. In 1992, most of our developing partners withdrew financial support citing human rights violations. The kwacha could not hold for very long, and a huge devaluation followed in 1994. Similarly, in August 1998, another devaluation of around 68% happened. Factors were a mix but human rights violations and misuse of donor funds motivated withdraw of financial support. Remember the story of the Danish and their Danida? Then the rants by President Muluzi at the opening of the Japanese funded Mangochi bridge. The recent devaluation has hallmarks of bad governance effects under the DPP regime. July 20killings, arrests of journalists, procurement of a presidential jet without parliament approval, oppressive laws and the general intolerance of dissent are classic examples. When development partners withdraw such support, devaluation is always a matter of time, no matter how long you fix a currency. Bad governance is not acceptable and in our case, it has historically led to massive devaluations of the currency, given our reliance on foreign aid. The weak export base complicates the problem. We learnt that you can chase tobacco buyers or suspend tobacco sales, but cannot influence the price. So how does IMF come in? I don’t think the IMF has ever had a hand in advising the government of Malawi to enact laws to limit the rights of its citizens. Neither has it ever recommended suppression of free speech. Most of our foreign resources come from bilateral donors who have their own ambassadors in Lilongwe and make their own assessments on matters of good governance, cardinal to the aid they give. We should remind ourselves that all donor inflows are basically foreign tax payers’ money. Specifically, not all foreign tax payers are filthy rich, but folks that simply work hard and value accountability in which public resources are used. It does not require IMF to tell us MPs do not need an allowance for simply sitting in parliament, yet they have a salary and a subsistence allowance while away from their homes. Such resources can be channelled to developing new energy sources or equipping empty pharmacies in public health facilities. What does this lead us to? While the IMF is often an easy target, we usually forget that it never participates in elections. Neither does it involve itself in electing leaders that run this country. Malawians elect leaders to govern, and are ideally expected to lead this country to some level of prosperity. Instead of turning our anger on the IMF, I reckon it is important that we focus our attention on elected political leaders or those that aspire for public office. Malawi’s rank on ease of doing business index is 129 out of 144 countries. If we are to have a readily available supply of forex, instead of blaming the IMF, we need to work our way up to become a major destination for doing business. The onus is on our political leadership to not only think, but act strategically beyond their political life span. We cannot point our fingers at the IMF for hourly power cuts that scare away potential investors capable of producing for the export market. Neither can we point a finger at the IMF for shady mining deals that are costing us much needed foreign exchange. Similarly we cannot point a finger at the IMF for a financial system that is not easy for tourists to easily transact and eventually keeps them away. It is not the mandate of the IMF to ensure that all Malawian kids have a good education irrespective of the financial status of their parents. It will not require the IMF to reform our public service to effectively deliver and reduce costs of doing business. Consider some of the most incompetent public institutions, the Road Traffic Department. It takes over 5 months to get a registration to run a car hire business unless you corrupt a few guys. Similarly, it will take many months to renew a driver’s license unless you pay a bribe. Consider the case of another world class incompetent institution, ESCOM. It takes over a year, unless you pay a bribe, to have a property connected to electricity even when the electric pole is a few meters away. The level of corruption remains appalling. Such are simple examples but if you factor in productivity losses by businesses, it makes Malawi a costly destination to do business, unattractive to be precise. Consequently, we are losing out on all potential foreign capital inflows needed to drive exports from non-traditional sources. And blame IMF? IMF is not responsible for the mess we are in, but I still don’t believe their textbook experiments. While it is fashionable to make them an easy target, it is important that leadership of the country is responsible for governing . Like we discussed a week ago, our issues revolve around strong political will to take brave decisions. IMF should follow our agenda, we are a sovereign member state.

Malawians are not lazy as portlayed

In a Johannesburg suburb, some years ago I tumbled on a community newspaper. Curiously I checked the classified adverts section and found something interesting, mind breaking for a less travelled freak like me then. Prospective employers were looking for gardeners, security guards as well cooks or child minders and something like that. More interesting was the fact Malawians were being greatly sought in such jobs yet branded lazy recently in their own turf. Maybe prophets have no honor amongst their peers, I doubt though. Greeks and Macedonians still fight over the origins of Alexander The Great. I suspect he remains a Molele myth of Thyolo highlands like the Kahuna. Naturally an employer looks for a hard working, honest and those that abide by the rules. It’s that that simple. I was amazed, but not surprised, even though if I put aside any element of nationalistic bias of any citizen. Some bluff as you would call it anyway. Some few days ago, based on some media reports, a well politically schooled dinosaur raised some laziness issues based on so called undeserved perennial French leave questions. The tirade goes like most of us are lazy; hence bear unquestionable responsibility about the state of this God loving country, despite manifestos of all forty six kangaroo policy political parties. Malawi has hallmarks of poverty ridden country despite its corruptly few, but unexplained riches of its aristocracy. That we farm for three months or thereabouts reminds me of winter crop estimates that the farming ministry goes to town about, when, and if suits them. Funny enough, a walk or a drive along M1, despite the state of your car, Mercedes or better than walking tin on public rubber, I often see fruits of some hard work, not laziness, and abuse of a social contract. Put it simple, I often see women with babies and their partners, on their backs at Jenda, Lizulu, Dedza and other places along the M1 road all year around for 24hours selling fruits of their hard work and expecting more from their elected leaders that doesn’t come. Well rounded Malawians will take some recourse in any form of local adages like the “mudya nyemba and mtaya makoko” stuff to ignore, apparently at their own peril, the arrogance that publically elected leaders bring to define laziness. All I know is that the economy of this country is agriculture based, precisely run by the so called lazy citizens that continue to pay taxes to finance corrupt behaviours of privileged cats that drain our health system of its limited resources for their demise at some mzansi expensive clinic for their cool cat funerals, an obsession of some bat brained Kenyan legislators. It is quite easy to think that most Malawians are lazy, but soberly difficult to collaborate a diaspora line of our citizens being jealously sought after, in this narrate. It is not surprising that most of our folks, unskilled, but full of determination are being sought after to work in some of the countries around us. What work do they do there any way? Some basic stuff that they can do here but apparently our systems have grown at the pace of some hard steel. Our national censuses have shown that rural-urban migration is increasing at a very fast rate yet key decision markets thins a census is a mere NSO decade undertaking. Our quota wars in the University bear enough testimony for education cravings, yet we fund special undefined activities to some astronomical figures in the budget. Some anecdotal evidence points to the fact Malawi is one of the most urbanizing countries in the world. Such a story is collaborated by most of our people leaving rural areas for the cities in search of opportunities. While it is not the job of government to employ, Capital Hill bears a lot of responsibility in creating such an enabling environment such as infrastructure. If takes a decade to construct a 101 Karonga-Chitipa road, yet Admarc trucks can move tones of maize year in and out from Chitipa, grown by a lazy farmer at the expense of the tax payer, lazy on the same line. Arrogance is a simple concept I think but you know why. While primary schools had some lessons in handicrafts such as making hoes or axes, I don’t think it condemns Malawians to four month farming. Irrigation farming is not new. The folks at Likangala, Limphasa, Hara and Lufira with the golden Taiwan, the legacy that lives on, are prime cases of perennial rural hard-workers existing in this country and taking care of their lives while politicians preach some rhetoric, glorifying undue old fashioned successes. The spirit of entrepreneurism is vivid and well sunk in the average person that is not abusing the privilege of being in control of tax payers money. I don’t think anyone should preach success simply because they have had a privileged position of allocating themselves undue wealth at the expense of public trust. Unless we stop, doubtful in contemporary circumstances, elected public figures and their surrogates from stealing public funds, all talk about raising living standards is nothing but old colonial school colonial talk under the skin of the guy next door. We are not lazy but deserve more. Now if we are to make our labour force productive, a few basics. Being agrarian economy, I think it is important we position ourselves to encourage investment in value adding activities. But this can only work, partly if cheap finance is accessible to able entrepreneurs and not political sophomores aligned with a powerful dude whose obsession is with a next election. If roads to rural Malawi remain cheap budget talk, our citizens are tired of the fertilizer subsidy even though the school curriculum defines agriculture as crop growing for food and enjoyment. If you can cant access markets because Admarc resources have been allocated to some secret non-agricultural vote, the arrogance of calling each one of use lazy becomes a concocted norm, unfortunately not the reality of common sense.

The Malawi Diaspora prefers informal channels, banks are just too uncompetitive

Over the years various governments and international institutions have recognised the role diaspora citizens play in developing their home countries. Put it simply, nationals working overseas do regularly remit funds to their families back home. Malawi is no exception. Philippines is well renowned for its diaspora community to the extent remittances constitute over half of GDP. A proliferation of the money transfer businesses across the country, particularly Western Union and Money Gram is a great sign funds are coming in the country. Government recently established a diaspora desk in its Foreign Affairs Ministry, though the venture remains unfunded to-date. Nonetheless, it is a candid recognition that Malawian citizens beyond the border, irrespective of their jobs, are a critical aspect, particularly in addressing foreign exchange shortages. With tobacco revenues, fast a thing of the past, the Malawian diaspora is infact our export of labour. Bankers have also recognised the diaspora as a key player in their business. Former Reserve Bank Governor made some visits to some countries abroad and met Malawians. The gist of Ligoya’s meetings were to encourage Malawians living abroad to open foreign currency denominated accounts in Malawian banks. To make issues attractive, RBM relaxed some controls to the extent holders of foreign currency accounts can withdraw their money in a currency of their account and not necessary the kwacha equivalent. Standard Bank Malawi bankers too joined the fray and went abroad to market foreign currency accounts to citizens living overseas. One is not sure the impact of such efforts with respect to a surge in foreign currency denominated accounts. There are a number of issues our diaspora community struggles with. Nonetheless there is a lot of money coming into the country, but outside the banking system. It remains crude reasoning that people will open foreign accounts simply because they are Malawians or better citizens. Other factors are considered such as interest rates on offer and the expected return on their money. Usually, the people we are encouraging to open foreign currency our accounts in our banks have alternative banks wherever they are. Rationally, their funds will be put in a bank or a country where it earns more interest, and easily accessible. Nationalism is not a factor and therefore foolhardily to use it as a tool to woo potential clients to transact in uncompetitive foreign currency products. The world has become so global and everyone is looking for a bargain somewhere, not necessarily their country of origin. Currently no bank offers more that 2% on foreign currency accounts in this country. Now consider the way banks transact their international business. All banks have various foreign currency accounts with their correspondent banks all over the world. Usually the foreign currency expected from diaspora citizens is held in such accounts where our banks earn more with respect to interest rates. Rationally it makes sense for a Malawian diaspora in Australia to keep their money in Sydney where some Malawian bank has an account, and both earn a higher rate. It doesn’t make sense to let a local finance institution bank on your behalf in a competitive market and pay you peanuts in return. In the same way banks behave, individual persons act similarly, rationally to be precise. Sometimes we need not be surprised that despite calls to encourage our diaspora to open accounts, responses remain lukewarm given the uncompetitive nature of foreign currency banking in our institutions and the tedious processes of opening such accounts to existing customers. Informal channels of money transfer have increased as a result of the way the banking system operates. It is an open secret that people make arrangements to procure goods and services overseas using their diaspora networks and simply transfer cash to family member or friends. For instance a Malawian in London might simply purchase equipment on behalf of a friend in Lilongwe at their own agreed exchange rate. The person in Lilongwe simply gives kwachas to a family member or relation within town. Goods arrive from the UK and duty is paid at Mwanza, and the deal is done. The Malawi banking system consequently looses out on forex simple. It is norm of transacting to avoid the uncompetitive rates currently on offer. And recently, Minister of Information went all over town schooling us on the importance of information technology in national development. Now I find such talk very cheap particularly with respect to issues of the diaspora as potential sources of foreign exchange. No government business is transacted online at this stage, a loss of foreign exchange to the guy on the street. Just a few examples. For instance, if diaspora citizens can pay for certain services online such as driving licenses, utility connections among others through various credit cards linked to Malawian banks, forex would find its way into our official system, not informal channels as the example I narrate above. Otherwise public offices are more than happy for someone to travel from London and queue to pay some kwacha. Banks are also part of the equation in the way they deliver some of their services. All Malawian banks up to this day do not have a facility where an existing customer can open an account online. I am talking about clients that have accounts and have been identified through all the screening that comes with opening a first account. Such clients are known by the bank and some even use their internet banking facilities. If they are in the diaspora, and intend to open foreign currency accounts, our banks expect them to print some PDF forms, ink filled, scanned and emailed to some manager that will take days before attending to them and weeks before an account is opened. It’s a long process but can be made efficient if technology is properly embraced and old habits of paperwork are thrown into the bin. Potential clients of such accounts have no reason to open the not only uncompetitive foreign currency accounts, but also avoid a tedious archaic application process. Otherwise the Malawian diaspora is remitting money in this country on a daily basis, unfortunately outside the banking system.

Malawi Housing Crisis

There is an acute shortage of housing in the urban areas of this country. Lilongwe is proving to be the worst and there is no end in site. The other three cities are no better. Rentals are skyrocketting beyond the reach of average persons. Add to the fact earnings are generally low and a majority of city dwellers have no job or large families. Factor in our naturally extended families as a means of social protection. There is no end to the housing plight of average citizens that struggle to earn a decent living. Somewhere, someone is not doing their job or simply do not care. The process of allocating land to build houses has institionalised corruption to some extent. Malawi Housing Corporation, City Assemblies and the Ministry of Lands seem highly contented with the status quo. Looks like they take pride in our desperation and ques that we make in their offices. The master slave relationship it has become. We pay taxes. Either they are clueless on what they are supposed to do or do not care as long as they collect corrupt rents from the connected. Unfortunately, it is not easing the housing crisis. People are suffering.

What have we seen over the last decade or afew years? Emergence of peri-urban areas such as Njewa, Lumbazi in the outskirts of Lilongwe, Chileka in Blantyre and along the Nkhata-Bay road. Malawians dream to own homes or invest in residential property but the process is doggy and very corrupt. I dont need to provide proof, but potential home owners, average hard working Malawians, have resorted to buying land in customary areas in the outskirts of our cities. Pathetic situation. Again who has more cash gets such land.
I dont need to provide proof to the anti-corruption bureau, but the mere existence of codes against such malpractices in the land management institutions is enough. There are three, if not two classes of people that are often favoured in land allocation in our cities by assemblies, lands minsitry and the Malawi Housing Corporation. Politicians, often the powerful ruling elites. We have tales of the recent sale of housing units in Blantyre that would even stun a lookie public procurement assistant. Secondly, we have the super-rich-Malawian oligarchs, often connected to the regime and sometimes willing to pay high bribes. Then a bunch of rich foreigners through shady and dubiosu connections. The rest of us are condemned to scramble for the existing houses for rent. I dont know whether this amounts to a housing policy of any kind, but I believe the political leadership should do more. The lands ministry is headed by a capable bloke.

The land grab outside our cities is moving at alarming levels. The poor are being forced to sell their land to rich foreigners or the relatively well off urban dwellers that cannot access land to build homes in the cities for reasons i narrate. The poorer someone becomes, it appears, there are two options. Being forced further out of town so that you pay a much higher bus fare to city and remain in that state forever, or come to city and live in squalor/slum, remain in a similar situation, welfare wise. Vicious cycle it appears. Is our hosuing policy deliberately trapping our poor/middle class and condemning them into perpetual poverty or hell? Maybe we have a silent class war.

There are lots of benefits from making land allocation easy, effective and more important efficient. I see no point in filling forms and paying fees to Malawi Housing Corporation, Minsitry of Lands and City Assemblies and staying for over 20 years without any allocation. Worse still, not even an acknowledgement that your application is unsuccessful for any dubious reason atleast. Sounds like revenue collection of some kind to screw us even more. If these process are efficient, our people can easily access loans to invest from financial institutions. The people we are pushing out of the city to customary land, struggle for years to get a title to their land. To the financial institutions, this land cannot be used as collateral. Issues of title to property are also quite common in the cities where sizeable properties do not have title deeds even in the low density suburbs----reason, there is alot of corruption in the allocation processes. While the cost of borrowing from banks is already high, accessibility to finance can be enhanced if there was a transparent way in which property rights are adminstered by the these three major institutions. Owning land or a property is not a priviledge of the rich few, but a right of every citizen in our “God/Donor fearing nation” as the Republican constitution stipulates.

I believe JB and her government will take heed of the rising population. With limited opportunities in the rural areas, everyone is flocking to the cities. Lilongwe city is now a million plus people. Population growth remains high and will continue to do so. Its time to look at the population numbers seriously rather than simply funding the census for electrol reasons. Malawi population is still very young and predominantly in the reproductive age group. Conveying messeges of family planning will not change the high population growth. We will still grow at high rates and migration to the cities will continue. A comphrensive rethink of how we manage land and housing is required, particularly transparency through electronic databases. It should not favour the rich, politicians and those with a tendency to palm oil bureacrats. There are heaps of urban poor living in uninhabitable conditions. Such things fuel crime. How long are you going to live in getted communities with electric fences? Such things will not protect you. There are constant power outages that render your electric fences useless.

The benefits of a transparent, corrupt free land and housing allocation are many. Not only does it allow easy access to loans, but can help fight urban crime as well.

Feedback: anyasulu@yahoo.com

What sense have we made out of Vision 2020, MPRSP and MGDS?

Its not a question of allocating a lions share of the budget to a particular sector, but rather what the money actually does. Does it make Malawi a competitive country to do business, attract foreign direct investment, create jobs and improve welfare of our people? Our planning strategies seem to have been a pre-occupation of the former than the latter. Courtesy of shambolic politics of course. Our lives are still dependent mainly on “wooden hoe” farming.

In the mid 1990’s we took national planning to serious levels with all sorts of strategies but I fail to make sense of them. Nothing much seems to have changed. Sometimes I am tempted to think that the after independence 5 year cycle “Statement of Development Policies” were quite effective planning tool and the political leadership implemented most of the ideals.

I recall, just like many others, airing views to the vision 2020 team that visited Chancellor College sometime. Aspiring young students. One thing that I remember about the vision is to attain a middle income status by 2020. Put it simply, by 2020, Malawi will be at the level of Mauritius, Kenya, Botswana, Zambia and Ghana ( the latter two being latest additions to the group). The per capita incomes will average roughly over a thousand us dollars at purchasing power parity. Are we there yet? Does anyone still talk about the vision? You will be surprised that the document itself is not even easy to find in the planning departments and our political leaders don’t even know of its existence. You will be surprised if ever you had a chat with one of them and ask simple questions. Often you will end up with a sweeping response….”to reduce poverty..” as if they know who the poor are.
Then came the Malawi Poverty Reduction Strategy (MPRS), a World Bank obsession with its five pillars. One key thrust was poverty reduction through pro-poor growth. It became the back of national budgeting, atleast the way we were meant to believe, but I have serious doubts whether budget formulation changed. UNIMA still remained closed for long spells. Power outages a norm. Nurses and doctors still fled the country in record numbers. Teachers remained unpaid. These are all growth factors that benefit the common man.

Fast forward. Malawi Growth Strategy that matured into Malawi Growth and Development Strategy (MGDS) in the last reigns of Bakili Muluzi and then to his successor, the title laden Bingu wa Mutharika. Its resurgence was premised on the inadequacies of the MPRSP to address economic growth and is the new obsession. Do we expect a different outcome?

What sense have we made of all of them and what can we learn seriously? Firstly, I cannot lay blame on technicians in the public service whose sole duty is to translate political ideals into reality. They are great folks mostly under a very tough environment.

Just for once, we can think of our politicians as without any meaningful ideals. It has rendered these strategies somehow meaningless. Examples abound. How does one explain a politician’s mind that defects to PP from DPP even before the late president is buried citing PP great policies? They have not even read PP manifesto, if it exists, and spent much time casting the new found love. Could it be a zero-political ideology, whose objective is nothing other than winning an election?

I believe that in all these strategies we have not got our priorities right. We seem to prioritise everything and in the process, things remain the same. Our political leadership has always been pre-occupied with winning elections as an end rather than a means to formulate policies that lift us from poverty. Maybe it’s a question of one has to be rich simple because the other guy next door is poor? I see that through podium benevolence where tax payers money is handed out to buy votes. It keeps them in a permanent position of being rich with no regard to empowering the underprivileged. No priority or development strategy at all but to win an election. Possibly the JB government will set priorities in a different way , akin to needs of a modern aspiring nation. We might wish to note the Asian tigers of Singapore, Hongkong, Taiwan and Malaysia path to growth was partly a result of their investment in education.

Middle income countries are characterized by a sound education system at all levels with a lot of school-related investment put to good use. While the free primary education was a good measure, we failed to bring to justice all culprits in the 187million kwacha scheme at Education ministry. Wasted resources. Tales of Unima closures, underfunding of Mzuni, closure of the Polytechnic Board of Governors are some clear examples of how we value education. Unfortunately, it is only an educated population that can effectively participate in the 21st century labour market and compete at global levels. Failure to expand the capacity of technical colleges and a range of programs offered is symbolic how short our strategies have failed to deliver. An educated population is well informed and can make better choices. And when foreign companies fail to recruit locally we cry nationalism and racism. An educated woman for instance can make better choices about fertility and contribute to better health outcomes. Healthy kids too. They can concentrate and spend more time in school than the ill-equipped hospitals.

This is not the end of the story but to say that countries that are fast progressing have attracted a lot of foreign direct investment, not just opening a new mine or exploring for oil. A wide range of reforms. While the MDGS has focused on export le led growth, institutional reforms and infrastructure development remain very poor. It is not just a just of having export led growth, but rather the ability to attract foreign capital to produce for export. To me this does not require a whole bunch of a document but simple decisions that show seriousness about what we really aspire and want to be. A prosperous future for our kids. An energy crisis that seems not to end but has been known for ages is surely a recipe to scare away any potential investor. Unnecessarily bureaucratic procedures to set up businesses and repatriation of profits to foreign countries just scare away any potential capital injections, necessary to induce export led growth. Remember Kenya and Ethiopia airlines ticketing issue? You simply don’t get into foreign markets, a global brand, and experience through global networks is paramount. That is the knowledge foreign capital brings plus the ability to create jobs. But if we live in environments where we even stifle our companies like Nation Publications, for simply telling a story, it scares investors.

To achieve meaningful growth, we need capital and labour, and more important its efficacy. Our education is shambolic and that is where we train our labour force. Similarly, we need a very effective health care system to ensure our labour force remains effective once they choke in the line of duty. Technology and innovative systems of production can easily be absorbed if our workforce is educated and healthy. These are key social functions that government must provide effectively. It will definitely pull us out of “wooden hoe farming”, a tenet that seems to define our way of life. An enabling environment such as energy, roads, telecommunications and reform of business rules is a must.

In short, I must say, the three strategies have been great works but have not articulated our priorities in a manner that reflects our vision and priorities in a global competitive environment. We seem to have been overtaken or hijacked by interest and lobby groups plus certain rogue external elements with their one size fits all approach. The basics are obvious and should be priotised. Education, health, infrastructure and reform of business laws and the banking system.

Malawi Tourism Requires Mindset Overhaul

Sounding harsh, but in my own right, I consider myself well travelled and competent enough to talk about tourism business mediocrity in my country. An industry that has potential but is beset by our business as usual mindset, get rich quick-ponzi scheme mentality, horrible service delivery, disorganization and rampant overcharging. We need a huge overhaul in how we can develop this industry and appropriate potential gains.

Tobacco earnings have been falling for some years. Tourism has been touted as a potential money earner. The mining business at Kayelekera has become a talk amid cries of a not so impressive deal. Fukushima nuclear disaster in Japan stepped in, closure of nuclear energy in Japan followed, European countries too are considering the same, and Germany has just shut down some nuclear reactors. Prices of Uranium have since gone down. We cant bank our hopes on a clandestinely negotiated Kayelekera 15% stake in the right of global downturn in uranium prices. We need to take our diversification seriously and walk the talk on tourism. The tune is now boring, if not monotonous. We are in a global world and events that happen elsewhere affect us.

Tourism remains a potential if we get things right. However, Malawi is not the only country in the world or SADC. Others countries are there and a potential tourist will surely weigh options. It might include service delivery, cost of services such as accommodation, health, general use of credit cards amongst others. Remember a tourist is not necessarily a rich person. Some are mere students that save for many years to travel the world. Don’t overcharge. But we love to overprice our stuff.

In Malawi we have a whole ministry of tourism, proof that we take this industry seriously, at-least on paper. If I may ask how many people know about Malawi out there? You would be amazed at how little is known about this country. Sometimes, I am at pains to explain that we are surrounded by Tanzania, Zambia and Mozambique, which apparently are better known. Is it because we are a “God” fearing country? Others know Malawi as “that country where pop star Madonna adopted David and Mercy”. Comical indeed. But what does the ministry of tourism do? Take local journalists in their 32 seater bus around the country visiting doggy night clubs? Is that what you call tourism promotion and how you sell your country? Or is it the obsession to collect the so called tourism marketing levy and justify such tours? Even journalists are tired of these trips.

You will be amazed at how other countries use international cable television to market their destinations. Ever heard of “remarkable Indonesia, incredible India, the South African Shabeen queen, Malaysia truly Asia slogans” on CNN? I last saw a documentary on National Geographic Channel on Malawi, unfortunately it was showcasing how Marijuana is grown in the Northern Highlands.. Why not sub-contract to an international marketing company if we can’t do it? There are lots of international travel companies such as Expedia, Flight Centre and many more. Our embassy staff are busy welcoming visiting politicians or those connected to the regime at any point, and cannot be entrusted with marketing our country. In earnest.
For instance where are tourism offices? Ministry head quarters at city center and the regional office in Blantyre. Not sure whether there is another one in Mzuzu. And the usually unmamaned desks at KIA. If for instance I visit Mangochi, I need to find a tourist office that has information about all I can see in Mangochi and surrounding areas. There is none. If I visit Karonga, there ought to be a tourism office there fully equipped to inform me of things to do in Karonga. Its not enough to say we have a lake and overpriced hotels along the shores of Lake Malawi. Google does not have all solutions.

Do we really have an idea what tourists want and therefore market the country accordingly? I don’t need to talk about Malawi embassies. The story is not new. They have outdated websites and there is little information for any prospective visitor apart from a list of countries that are visa exempt or link to an out-dated MIPA website. Check the Ministry of Tourism website. It has the name of the minister, their plan and mandate or objectives something like. Who really cares about these things? A would be visitor doesn’t require such information but what Malawi has to offer, and it has to be up to date.

Then there is the private sector whose mannerism is as outdated as 1616 Jasper Boccaro. When you visit a hotel, restaurant or any other place of interest, you are often treated as a bother. The service delivery seems to be reserved for a privileged few. In most cases, it is considered a privilege to partake in some of the services yet one is paying his or her own money. Customer service in this country is a new thing and we are too bossy,yet we expect someone to pay for the services. If you have flown Africa’s Most Friendly Airline on a number of occasions you probably know what I am talking about. Cases of cabin crew shouting at passengers in disrespect for simply asking an extra pint of an over-diluted glass of Sobo. You do that to a client, and if they were foreigner, and you expect them to come to this country? “God fearing or Satan trodden” nation. In their sedated state presumably. I doubt.

And the ponzi get rich quick scheme of Malawian businesses. Why would one pay US100 a day for renting a car? This not a flat rate, but add charges per kilometer and daily insurance. And then factor in USD300/night Hotel room. Then a USD50 lunch per person in our hotels. This very beef from Chikwawa or cows that have walked hundreds of kilometers from Mzimba, or mudfish (kampango) from Lake Malawi really? We probably need to know that being a tourist does not necessary mean one is stinking rich or they have won a mega Euro lottery. Most of the blokes that come to visit are just average guys that have worked so hard, saved to travel. But our businesses are so obsessed with making quick bucks from potential tourists thinking they are madly dollar endowed.

We need to understand that other countries are better off than us and offer reasonably priced packages. There is more and much better out there and reasonably priced. A tourist would rather go to Mauritius, Zanzibar, Kenya, South Africa, Namibia or Zambia, where services are reasonably priced but of relatively good quality. Not the screaming front office personnel, neither red eyed angry waitresses or bossy hotel managers, loan-shark minded car rental operators. There is no need to revisit the theory of demand and its determinants. But for the sake of rookies, I will say price and quality of service go hand in hand to attract a potential tourist to this “God fearing country”. We cant always blame “Mose wa Lero (RIP). He found this and left as it is.

To colleagues in the Ministry of Tourism (including the Minister) and various umbrella organization like Tourism Association of Malawi I have some questions. What have you done in the last 2 years to market Malawi as a destination for tourism? What media of marketing Malawi did you use? Why should a tourist come to Malawi and not other countries in the region? Why don’t we have tourist information centres across all the districts and main border posts? This is how you do it.

Job creation must underpin devaluation

The Malawi Kwacha has been finally floated. It is now time for government to focus on creating employment opportunities for the struggling average person. Critics of devaluation have on many occasions argued that resulting higher prices will affect poor people. Even the late president held the same view. But on many occasions we have not come clear and open to identify these “poor”. The most vulnerable group in the event of high price increases, are the unemployed, usually unskilled and often reliant on the extended family system for survival. If there are numerous job opportunities, a general high level of skill, I think we would be less concerned about devaluation, particularly with respect to basic needs. At least a steady income ensures a reasonable degree of certainty, comfort, security than none when a devaluation strikes. How big is the unemployment problem? Since the advert of “multiparty democracy” in 1994, emerged many private secondary schools as we adopted a liberal approach to education. Free primary education was introduced and enrollments skyrocketed. Schools were overwhelmed, ill prepared. There were not enough teachers, and government undertook a massive recruitment drive for teaches. Jobs got created. Unfortunately, Mzuzu TTC was turned into a University, but nonetheless we managed to get most of young into school. But it appears we have not thought much about what they would become. But nonetheless it gives a quick snapshot of how a major targeted government policy can create jobs and future unemployment. We needed to seriously think beyond kids completing Standard 8. We seem not to get that yet.A child that was aged 5 in 1994, is today 23.This is the free education child. They are supposed to have graduated from University or completed some tertiary education. We have so many of such young people that have not had an opportunity to pursue University or tertiary education. Opportunities have been limited. A majority remain unskilled and unemployable. They just loiter around. Our ill-preparation is reflected in the quota policy, a fire fighting tactic. During the same period, the Malawi Government closed the Polytechnic Board of Governors. An institution that trained various technicians. Offereed opportunities for skills training outside the University of Malawi. While TEVETA took force, capacity of Technical Colleges has been static. Various private colleges have mushroomed, but often beyond the reach of average students whose parents are so poor or deceased. So what do we have?Huge multitudes of young people that are unemployed and have only completed an MSCE or none at all. But they can be turned into useful citizens. They are the ones that will bear the huge cost of a devaluation mentally. Financially, most of their families if they have a job, will swallow the hard devaluation pill. Now we cannot talk of Malawians lacking a saving culture if unemployment is not critically addressed. A devaluation will become senseless if we cannot bring our young into the skilled job market. I hope JB, can explore various policy tools to deal with the situation. I have in mind a-few tips that our government can pursue in-order to have a sustainable job market.In the case of skilled but unemployed Malawians, government can consider giving some tax incentives to private businesses that recruit any of jobless persons. Even more if they recruit straight form colleges. For example, if a business recruits 20 or so chaps that have good qualifications and commits to keep them for some period, a 1% reduction in corporate taxes can be offered with strict monitoring by Ministry of Labour and the Malawi Revenue Authority. Such companies can be monitored throughout the tax- paying periods. It can even be extended further to businesses that recruit straight from Technical Colleges or other non-University tertiary institutions.On the other hand, I believe increase spending in technical or vocational education is key. We can be surprised that most of the houses being built in our cities have the hands of untrained brick layers. Even electricians or plumbers have learnt their trade on the job. Not a reason to smile. There is not enough space or room available at the technical colleges. At the interim, I would contend that increasing capacity of the few technical colleges is worthwhile. Our innovation can go further to introduce more trades and programs for apprentices that extend the pool or range of skill, and in turn increase employment chances. The government can even consider building more technical colleges across the country to offer various courses. Just imagine at the moment we have Mzuzu, Lilongwe, Salima, Nasawa, Namitete and Soche Technical colleges. Not enough to train various skills in trades. Government can even support private institutions such as Phwezi Rural Polytechnic just like they do with grant aided secondary schools or nursing colleges to increase their capacity and range of trades. Talk to our development partners.In short, devaluation and removal of restrictions on forex trading the Reserve Bank of Malawi announced are bold and shrewd monetary policy. However, on the fiscal side, the government can deal with unemployment by giving businesses incentives to recruit. It would enhance a range skill development opportunities to the youth. If we address the critical problem of unemployment we will care less about a devaluation. It will also help reduce the dependency ratio of an average Malawian family, that cannot simply save for the future. Now is the time to think seriously about job creation or else our young people will continue resigning to fate. Consequences are disastrous on the health budget. Need I elaborate? I leave it to you.Feedback: anyasulu@yahoo.com