Minister Mumba on his tour of Mach Milk
* Expressed anger at treatment on such an SME company owned by locals being deliberately pulled down by those meant to promote them as off-takers
* Thus demanded a refund with interest and inflation consideration and CFTC to fine Sana for the discrimination and unfair treatment
By Brenda Nkosi, MANA
On his visit to Mach Milk Ltd — the only powdered milk-producing company situated at Mpemba in Blantyre, Minister of Trade & Industry, Vitumbiko Mumba was told that the company was forced to pay K500,000 to Sana Cash ‘n’ Carry at Ginnery Corner to have their milk stocked on its shop’s shelves.
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Mumba expressed anger at the treatment on such a small & medium enterprise (SME) company owned by locals being deliberately pulled down by those meant to promote them as off-takers.
Mach Milk Company Managing Director, Madalitso Phiri appraised the Minister of the challenging the business environment was for the company, that included operating with a low capacity transformer as Electricity Supply Corporation of Malawi (ESCOM) was not interested in providing a high capacity transformer — as well as Malawi Revenue Authority (MRA) not exempting them on tax as directed by the President.
This was after Mumba had been taken on a tour of the company’s production line and he said SME companies, such as Mach Milk, need support from the business system.
He emphasised that if Malawi had more companies locally producing household commodities such as Mach Milk, it will reduce imports, thus saving forex.
“They are producing very high quality powdered milk, which is the only company in the country,” Mumba said after tasting the products. “Even their yoghurt is very nice, yet shops are deliberately blocking them.”
Mumba, therefore, went straight to Sana at Ginnery Corner in person and demanded they refund the K500,000 the shop demanded from Mach Milk, which in essence is an extortion.
“I demand a refund with interest and inflation consideration,” Mumba ordered. “Officers from the Competition & Fair Trading Commission (CFTC) will be here tomorrow to fine you for this discrimination and unfair treatment.”
The Minister warned Sana against treating local companies unfairly, saying the government will not tolerate such a tendency and he also directed his office to write ESCOM immediately over the provision of the transformer.
The meeting with Sana management
The Minister further asked MRA to comply with President Lazarus Chakwera’s order on small & medium enterprises’ tax reduction.
Mach Milk Managing Director, Madalitso Phiri said they were happy that the government is able to recognise that they are struggling to establish the business.
“The visit was fruitful as the government has taken up our problems for us to thrive and grow,” he said. “We operate in an abnormal business environment, that is why Malawians are failing to operate companies.”
On his Facebook page, Minister Mumba described Mach Milk Ltd as “a great success story and testament to the notion that Malawians are hard working despite the hurdles they face”.
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But instead of getting excited with what he discovered in Mpemba, Mumba said he got sad and that holy anger creeped in, saying he was appraised that one financing institution ignored the Malawian businessman’s application for a business loan — “even after assessing his business plans, and after he had submitted all the necessary documents”.
“Later, he got a call from a Malawian of Indian origin who asked questions about the factory,” Mumba writes. “The local businessman was surprised because only those who had access to the business plan could have asked the questions the caller was asking.
“The Malawian businessman figured out the financing institution sold his business plan to this Malawian of Indian origin.
Mumba disclosed that Mach Milk Ltd then submitted his loan proposal and business plan to Malawi Agricultural and Industrial Investment Corporation (MAIIC) who funded part of the project.—edited by Duncan Mlanjira, Maravi Express
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