BusinessBusiness Columns

Opportunity for indigenous business?

With Alick Nyasulu

 

The Indigenous Business Association of Malawi (Ibam) is quite vocal in fighting for the rights of their members. One line of its arguments is that foreign businesses externalise money to parent countries.  Along this argument, such groups justify their warranted claim to government contracts using the externalisation thought.

On the other hand, local businesses, presumably, the so-called indigenous have also been caught in the mix of collecting billions of taxpayers’ money without supplying any goods or services. Now get me right. This is open day theft and, sadly, victims are the majority of the indigenous villagers that such organisations or interest groups claim to care about. It is illegal just as it for any businesses to externalise foreign exchange without due procedures.

Apparently, I notice that no business group or organisation has come out in the open to condemn the wanton theft and deceit by some of their members that may be implicated in the plunder of the system. I would think that these business groups, before they champion their cause and indeed claims a fair share of the taxpayer cake, must be at the forefront of championing ethical standards that promote a business culture that is modern and in conformity with the law. It is not just a question of making noise and lobbying government to give tenders, but to sensitise members that fraud, bribery and deceit are not acceptable means of doing business in the 21st century.

Consequences can be dire. Not long ago, the Malawi Government got a loan or grant from the Indian Government for some projects. Local businesses cried   foul since all the companies tasked to undertake the project were Indian. The new hotel in Lilongwe was built by a Chinese loan using a Chinese company. And similarly, the same can be said about the Karonga-Chitipa Road. No local companies were involved.

I can fault them. As an interest group they must ensure they get government contracts. Their opponents are ruthless too, and have their own ways. If cornered they do come out once in a while. Remember the electronic value added tax (VAT) system.

But my issue is not whether contracts go to foreigners or locals. The taxpayer or indeed the citizen is more concerned about the delivery of a service. It doesn’t matter who is providing it.

This week Malawi joined most members of the African community to ratify Africa’s largest free trade block. Our indigenous businesses must realise that this is another great opportunity to get their act together instead of waiting for an Escom tender or some transport tender. It’s an opportunity that must be consolidated.

The history of free trade deals or preferential trade access is not new. We have had trade deals with South Africa, the European Union (EU) and the United States. We have not benefited much in the sense that we have never taken ourselves too seriously.

Why can’t our own indigenous businesses become the enemy indigenous groups in other countries by investing their? We can as well bring that forex that we claim is externalised by capitalising on the free trade deal just signed. Nico Holdings has managed to show that a Malawian company can invest beyond the borders and many can replicate the case.

The trade deal will benefit the consumer and Malawians with cheaper products. I guess all of us realise the power of the consumer to choose their products. High taxes don’t stop people buying what they love.

While we may expect an increase in foreign products, our own indigenous businesses must unblock their noses and smell the coffee. It’s an opportunity that must be exploited and this is where we miss it big sometimes. Government contracts are not the best business model and do not bring the foreign exchange we treasure.

For now, government has paved a way but do not expect capital to export something. Their business is providing you an environment where you can be competitive instead of being baby sat for eternity.

 

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