Featured News

Local rice millers are eager to expand into international markets, but energy challenges and aggressive competition from foreign buyers threatens their growth aspirations.

This was disclosed this week during a Financial Inclusion Entrepreneurship Scaling (Fines) project media tour.

In an interview, Karonga-based TG Rice producers, Mphanga Holdings Limited said while they plan to increase product base and explore new revenue streams through value addition, competition from foreign buyers is enormous.

Currently, the firm processes 10 tonnes of raw paddy per day at full capacity.

The firm’s general manager Victor Gwaba Msonda said they got a K150 million loan from Fines which helped them to improve product quality through the purchase of a secondary grader and polisher and increased grain stock in preparation for exproring new markets.

He said: “Tanzanians procure raw paddy from Malawi, export it after value-addition and sell at higher prices, leaving us unable to compete due to currency weakness and export constraints.”

On its part, Karonga-based Chambayika Milling Limited says it is positioning itself for the regional market, but unreliable power supply remains a major setback.

The company ‘s c h i e f operations officer Walekani Mhango said they process and package 10 tonnes of rice per day, but frequent electricity outages make it difficult to meet demand.

Once a small rural operation, the firm has grown into a major supplier to top hotels and urban markets after receiving K360 million from the World Bank–funded Fines project, enabling it to build a warehouse, buy modern equipment and expand its workforce and farmer network.

He said: “To grow, we need access to reliable power, quality packaging, and fair trading conditions at the borders.”

On his part, Emmanuel Joseph Mseteka, director and owner of Lilongwe-based Food Empire Limited, which got K100 million loan from Fines, said late payments are the major setback to their business, which supplies about 40 metric tonnes (MT) per month to surrounding supermarkets.

Recognising the importance of r ice crop in Malawi’s overarching 2063 vision, Sustainable Development Goals (SDG), and national food security and economic development; Government of Malawi established National Rice Development Strategy (2014/18).

However, owing to its cooperative business model, implementation of the NRDS-1 were often scanty and the impacts are very limited.

To reinvigorate the developments in rice sector; NRDS-2 (2024/30) was developed. It envisions the rice industry in Malawi to become regionally more competitive and socio-economically sustainable.

It aims to double domestic rice production from 155 433 MT in 2022 to 330 000MT by 2030.

Meanwhile, Fines project manager Ralph Tseka said the initiative, funded by the World Bank, came in to bridge the financing gap by bringing in affordable financing, and that “many Malawians have benefitted”.

Since 2021, the project has disbursed K75 billion in affordable loans to 48 830 micro, small and medium enterprises (MSMEs) across Malawi, easing one of the sector’s biggest challenges—access to capital.

The loans, offered at the rate of 14 percent, have been offered to 32 396 women-owned businesses, 9 201 youth-led enterprises and 7 233 run by men.

Source : mwnation