By Duncan Mlanjira
The famous steel products manufacturers, Mike’s Trading—The Welding Centre, situated in Chitawira along Kenyatta Drive, has been closed as announced in a public statement issued by its owner, industrious entrepreneur Mike Chilewe.
The short public notice did not indicate reasons for the closure and only added that the offices and warehouses will be occupied by new owners.
Mike’s Trading, started humbly by manufacturing steel windows frames, door frames and steel gates before diversifying into making vehicle trailers, vehicle canopies as well as truck bodies and boats that saw the company register tremendous financial growth.
A post on social media by Malawi Analytics Think-Tank (MANAT) says the name of Mike Chilewe and his Mike’s Trading Group always resounded the giant success story of indigenous ingenuity in the local industrial and business world.
“Chilewe started from very humble begginings, founded Mike’s Welding company, Mike’s Steel and later grew to Mike’s Trading Group,” MANAT says.
“There are no reasons given [for closure]. However other social commentators have cited bankruptcy, that may have resulted from competition with proliferation of welding shops in Malawi localities, failure to compete with international manufacturers of trailers i.e. China who provide cheaper prices, non professional workforce and other personal financial reasons.
“Whatever reason may have dragged this company to the fall, Mike’s Group is a loss to the local business discourse and pride,” says MANAT.
Commenting on Facebook, Louis Uko said Malawian business leaders need to focus on succession models for business sustainability.
“We need our businesses to understand business sustainability — the management and coordination of environmental, social and financial demands and concerns to ensure responsible, ethical and ongoing success.
“When we establish a business, we must know that it is for the people and generations to come and not our business — we need to be thinking beyond oneself.
“In a broader context, social, environmental and economic demands are considered the three pillars of business sustainability. Within the business world, they are sometimes referred to as the triple bottom line (thus add value to profits, people and planet).
“The concept is a departure from the traditional concept of the bottom line (profits alone), which evaluates all efforts in terms of their short-term effect on profits.
“Our businesses just look at short-term profitability — now, what was a local brand is now gone,” Uko said.
Arthur Chihana agrees with Uko that when entrepreneurs start up businesses they should consider that it is for the people and generations to come not to think about themselves.
“If we managed our businesses with that mindset our businesses would thrive beyond us,” he said.
Jones Mawerenga believes doing business in Malawi isn’t easy because entrepreneurs are heavily burdened by debts and consequently, the banks repossess their assets and sells to someone at a cheaper price to offset to the bank loan.
Luther Misomali likened this closure to the history books of other entrepreneurs such as the Chinsimas, the Phekanis, the Chimberekos and the Khondowe.
“Indigenous businesses need to learn a thing or two from Indian counterparts on sustaining businesses for the long term.”
Hamilton Deleza felt sorry for Chilewe and hastened to say: “There’s always a story behind every business closure. Sadly, the story doesn’t capture the real reasons for that closure.
“Sometimes it’s failing to manage stiff competition, poor executive decisions, failure to diversify one’s product portfolio, failure to make appropriate investments in equipment and technology that meets the fast changing world.”
Emeritus Mhango said 2019 has been hell for most businesses as more companies laid off staff or even closing.
“Government has never or couldn’t come to the rescue as there are busy putting on measures of milking these companies in form of tax instead of coming up with policies to ease the economic situation.”
Denis Mitole came to the defence of Chilewe, asking the commentators to withhold their judgment and maybe wait for Chilewe to announce why he sold the company.
“We know he has sold. We know he’s moving on. None of us knows why. Maybe he has found something better and more exciting.“
Ishmail Wadi said: “I am disheartened by the news of the sale. All hard work, all innovative ideas, all the sacrifice, all the excellent marketing strategies, put to an end like this?”
Mike’ Trading came to the fore when national steel products manufacturers Brown & Clapperton (B&C) was folding up and when it finally closed the public turned its attention to Chilewe.
Other commentators believe Chilewe might pick himself up and come up with other something big because he is good in business.
Oman Sakala said: “Businesses always open and close if the market is not friendly or if it can’t cope with competition. This is not the first or the last to close.”
Fatsani Mbuna said: “Once a soldier always a soldier. He has business blood in him. He’ll come up with something new.”