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SMES move to seize Export opportunity

National Small and Medium Enterprises (Nasme) has formed Nasme Exports and Imports to aggregate farm produce for export in Africa and beyond.

Nasme Exports and Imports business linkages chairperson Kettie Chisambi said in an interview in Lilongwe on Friday that the aggregated produce will be processed before being exported to enable SMEs earn more revenue from the exports.

She said the initiative is one way of preparing the country for the Africa Continental Free Trade Area (AfCFTA), which will require huge volumes if the country is to benefit from the continental free trade area.

Small businesses want to take advantage of Africa Continental Free Trade Area

Chisambi explained that under the Nasme, they have set up the exports group, which has 22 members already into export business, mostly from Lilongwe.

She said they are meeting all the SMEs to compel them to join the group to meet the demand for the market.

Chisambi said the initiative is targeting horticultural crops, pulses and grains, cotton, minerals and gemstones, cooking oil, dairy products, spices and herbs.

So far, she said they have already secured markets for chillies, paprika, onions, pigeon peas in Spain, Dubai in United Arab Emirates and South Africa.

Said Chisambi: “We are into this programme because the major drawback on the import and export initiative is access to markets. For most of Nasme members, getting international markets is quite a challenge because they lack knowledge on how to successfully search for the markets.

“Secondly, because of  heavy capital requirements for export transactions, most SMEs feel they can’t manage. Logistically, it is also a great challenge to export from Malawi because of high costs due to the geographical position of our country.”

Ministry of Industry, Trade and Tourism assistant director of trade Diamond Chikhasu said in an earlier interview  the ministry wants to promote non-traditional value-added exports such legumes, minerals, precious stones, arts and crafts and textiles.

He acknowledged that over the years, government has relied too much on traditional exports such as tobacco, sugar and tea.

“We want to widen the export base by including non-traditional products, which, in most cases are produced by the SMEs,” he said.

Chikhasu said at government level, they are working at initiatives that support their operations by providing matching grants where government through the Agriculture Commercialisation Project will be able to support the willing SMEs with 50 percent of working capital to enhance their operations.

National Working Group on Trade Policy chairperson Frederick Changaya recently said with no multiplier effect and a heavily subsidised manufacturing of food products in other countries, the country needs to revisit its trade policies. He said for the policies to work, there is need to focus on industrialisation to grow incomes for all.

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