(NYASATIMES) Malawi holds SME summit, honours top local business icons

Malawi holds SME summit, honours top local business icons
By Nyasa Times
Published: October 20, 2009

Business Consult Africa (BCA), a Malawian consulting and business development service provider, has organized a three-day unprecedented Small and Medium Entrepreneurs (SME) summit in the commercial city Blantyre where delegates from across the country are expected to discuss and share ideas on their business growth, among others.

As one way of inspiring entrepreneurs in the country, BCA in conjunction with the Ministry of Industry and Trade presented special awards to top 20 Malawian business players that are putting efforts towards the development of Malawi economy through diverse sectors.

Some of awardees include Prof. Jack Wilima (Mwaiwathu Private Hospital), Rose Mankhwala (Ntonya Private Schools), Gospel Kazako (Zodiak Broadcasting Station), Mike Chilewe (Mikes Trading), Jimmy Korea-Mpatsa (Mpatsa Trust), Denis Mitole (Inc Media), Alisha Ashani Makawa (Alexander Hotels), Mark Katsonga (AGMA Holdings), Cheryl Karimu (Mzuzu Panel Beaters), Monica Kholomana-Unyolo (Nali Group of Companies), Gilder Munthali (Hill Top Foundation) and Mike Mlombwa (Country-Wide Car Hire Ltd).

In an interview with Nyasa time on the sidelines of the meeting, BCA Managing Director Henry Kachaje said “the private sector is the engine of economic growth and recognizing some of the businesses in Malawi is very important as this will inspire them to continue working hard towards transforming the country’s economy.”

Added Kachaje: “This is also one way of inspiring businesses that are just starting up because in any country you need to have people who are role models, people who small businesses can learn from and make it to the top.”

Welcoming the honour Jimmy Korea-Mpatsa said “it is very gratifying being recognised for contributing ‘quite a bit’ to the Malawi economy. For this economy to grow, more Malawians need to be involved in controlling our own destiny than leaving it in the hands of foreigners [and] it is encouraging to see a number of Malawians that have succeeded in businesses and contributed to the well-being of the country getting this recognition.”

While emphasizing “one cannot succeed if you don’t understand the industry you’re operating in”, Korea-Mpatsa pointed out that in order to thrive, “small entrepreneurs need to understand their businesses.”

“Read as widely as possible, understand it fully and take full advantage of every opportunity that exists in that industry. It is also imperative that any entrepreneur, especially the young who’re still energetic must spare no effort for them to succeed in every venture they’re undertaking,” advised Korea-Mpatsa.

Concurring with the Chair of Mpatsa Trust and speaking about her secret in her business growth, Managing Director of Alexander Hotels Alisha Ashani Makawa admitted “it’s not an easy thing to be an entrepreneur because there’re a lot of hardships, ups and downs but you just have to be focused and determined. Business is a game of taking risks and looking at what some of us have achieved, small businesses will be stimulated to work hard.”

Industry and Trade Minister Eunice Kazembe, who officially opened the summit, said she was very pleased with the celebration of Malawian entrepreneurs through award recognition.

“This is a culture that we need to develop in Malawi, to celebrate the success of others. I am glad that all awardees are indigenous Malawians [who’re] doing great things. This proves that as Malawians we can do it in business.”

Singling out Professor Wilima whose Mwaiwathu Private Hospital provides medical services not only in Malawi but also neighboring Mozambique and Tanzania, the Minister said it was high time local investors started “thinking exports” to achieve government’s vision of turning Malawi to an exporting nation.

“I am very confident that when SMEs in Malawi challenge themselves, they can go exportation in a big way. We have neighboring countries, for example Mozambique, our standards are the same [and they’re doing big exports], so as Malawi we can also export but we need to think innovation,” said Kazembe.

Just like other African countries, a number of developments and long-standing issues have combined to hinder the survival and growth of SMEs in Malawi, where the Minister cited lack of access to financial support, low competitiveness, poor access to markets, insufficient business management and technical skills, as some of the challenges.

Kazembe said that was why her ministry introduced business cooperatives such as One Village One Product (OVOP), Malawi Rural Development Fund (Madef) and the Business Growth Scheme (BUGS).

“BUGS support businesses by giving them 50 percent of the course for consultancy and 50 percent of cost of this SME [summit] has been underwritten by the BUGS, so I want to invite small and medium enterprises to make use of these available schemes,” said the Industry and Trade Minister.

She added: “We’re very keen to support SMEs because we realize they’re very critical to job creation, exports and trade as well as innovation in this country so we would like to put a lot of effort.”

Meanwhile, Kazembe (pictured) has called upon financial institutions to “put a window” for SMEs’ finances so that the problems facing the small and medium enterprises, in terms of inadequate funds, “can be minimized.”

Small businesses in Malawi point out inadequate capital as the greatest constraint in growing their ventures. They say procedures for securing business loans from banks are cumbersome, and the collateral demanded for such loans unwarranted.