Kamwendo Cooking Oil Cooperative is seeking a K12 million financial bail-out for a power supply transformer to enhance production.
Government and some development partners procured the factory machines for the cooperative as part of Public Sector Reforms Community support to enhance rural livelihoods through socio-economic activities like production of value-added products.
Kamwendo Cooking Oil Cooperative chairperson Maximiano Zembeni said Electricity Supply Corporation of Malawi (Escom) advised them to pay K12 million for the procurement of the power transformer that would help to step up power for the running of the factory.
He said currently the factory is producing less cooking oil from the use of diesel power using a generator, but is not profiting.
Said Zembeni: “This time we are asking the government to assist us with the transformer because we cannot afford to buy it at K12 million, as a cooperative we cannot raise that amount now.”
He said the cooperative is currently producing 10 000 to 15 000 litres of cooking oil per month but plans to have around 4 000 metric tonnes of raw materials that can enable them to produce about 80 or 100 metric tonnes given the reliable Escom power supply.
Director responsible for technical services at Public Sector Reforms Management Unit in the Office of President and Cabinet Emmie Galafa said the cooperative’s project success needs to be promoted.