IF MALAWI CAN CAPITALISAING ON OPPORTUNITIES

By Pacharo Felix Munthali
By the 2007 Africa was in its fourth year of strong economic growth. With higher oil revenues, strong commodity prices, and increased debt relief, Africa has continued to enjoy economic growth above five percent. Africa's GDP in the past six years, has outpaced global average. IMF says Africa is enjoying "its best period of sustained growth and lowest inflation since independence."
The outlook looks rosy. The forecast for the year 2008 is encouraging. During the world Economic Forum in South Africa, Trevor Manuel, South African Finance Minister said the forecast by the African Development Bank that Africa's economy will expand by 5.9% this year can be an underestimation. "The outlook in Africa is exceedingly bright," he said.
This is a clear picture that is in the offing. Just like Malawi, which has recently experienced tremendous economic growth in the democratic period, Africa's economic growth will be exceeding five per cent for the fifth consecutive year.
Amongst SADC countries Malawi came second to Angola, a country that relies mostly on huge oil reserves, in terms of economic growth last year. "For three successive years, Malawi has attained growth rate of over seven percent," Goodall Gondwe, the finance Minister had told parliament during the presentation of 2008/09 budget session.
Despite the country finding itself in political mudslinging and pull downs, the economy of the country has kept on growing. Between 1980s and 2004, said the Finance Minister, the country's exports "stagnated at between US$400 and US$500 million. But in 2007 a record of US$ 700 was reached. This entails that more than be done to achieve even more.
At a time when the world is facing all economic ills, the landscape for Malawi looks promising. Perhaps apart from oil crisis and soaring food prices, there is one impediment in Malawi's path – 2009 general elections. This is a time for economic make or break. As President Thabo Mbeki pointed out during the World Economic Forum political instability is one of the major risks that impacts Africa negatively. Kenya is most recent example. Malawi needs to tread meticulously.
The just ended 18th World Economic Forum which attracted more than 800 participants was aimed at looking at the challenges that Africa has to deal with if "it is to be seen as a reliable and competitive partner in global economy." Thus Africa believes that for it to capitalize on opportunities on the global market, its "globally-attuned agenda" has to be built on five core pillars namely, re-engineering growth, unfinished business, innovate or perish, partnership without borders, and licence to lead.
According to experts, with all these pillars, and put into good approach, a boom of buzzing economic activities is likely to accelerate economic growth.
"Building on the tremendous progress Africa has made over recent years, opportunities abound despite existing obstacles," BØrge Brende, Managing Director of World Economic Forum, said.
President John Kufuor of Ghana said that the opportunity for Africa was immense, with President of Burundi Pierre Nkurunziza saying Africa is a rich continent and it has no right to be poor.
These are sentiments Malawi leader has now and again said. The president has always said Malawi is not poor but it is the people who are poor.
The outlook of Malawi is very clear. "The international experts," according to Goodall Gondwe, "forecast that the figure [exports] could exceed US$ 800 million this year and when Kayelekera becomes fully operational, total exports could pass the US$ one billion mark by 2010."
Malawi has for long been perceived as having no minerals. Today the story is different – there are more minerals. In a decade to come, subject to power availability and political will in relevant issues, mining activities will be buzzing. In recent years Malawi's economy growth has managed to outpace those countries having abundant minerals.
Malawi needs to capitalize on opportunities as they are coming. Agriculture is that good area that Malawi is trying. For long time the country despite having abundant water and land resources, hunger has always hit her. At times the country has been importing more than the exports.
This year the Ministry of agriculture has a lion's share. But it is unique as well. The irrigation sector tops the allocation within the ministry. A fully-fledged irrigation needs to be undertaken. There are many opportunities. The minimum tobacco and cotton prices have been encouraging. In his return from Japan, the president challenged Malawians: "every grain of rice produced will be sold."
Diversification to counter all sorts of risks is important. With the coming of China, another door has opened for Malawian products. Japan is interested in Malawi, of course, like never before. The market for Malawian products looks to be widening.
Japan currently is helping Malawi in her quest for road network expansion. A good road network and vibrant agriculture sector, coupled with government's good relationship with donors, especially in a country where minerals are promising, is a good march towards the land of Canaan.
The opportunities are enormous. As president Kufuor said during the just ended World economic forum, good coordination is vital for Africa to realize its potential to the opportunities available.
Local business players must emulate Mulli Brothers. Some few months ago, the brothers were in the Middle East, where they took part in a trade fair. There, they exhibited their products from Malawi. When they came back to Malawi, they were afraid. Malawian products are on high demand. They capacity is limited. In Japan the same story emerged – more products are needed. More local investors need to be encouraged to take part. More needs to be empowered. Government and other relevant players can help these local business men, especially those that have the will to expand like the Mulli brothers. These are opportunities the nation needs not to miss.
As African countries are pondering on the next step – how to maintain its economic growth, more work is expected. There is the challenge of translating the economic growth to the welfare improvement of the people. This probably one of the hurdles the fast growing economies are facing.
Relying on raw commodities is another hurdle that exposes Africa's economy to the harm of world commodity prices fluctuations and haphazard and hazard climatic unpredictables. In the report dubbed Africa@risk released before the forum, the experts of Global Risk Networks, said Africa was facing twenty-six interconnected global risks, out of them four are said to be critical for Africa's future. These include food insecurity, political instability, external economic shocks and climate change.