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Sunday, 1 April 2007

Five Companies Bid for Malawi Mobile License

Malawi's telecoms regulator, Macra has announced in a statement that five companies have applied for the country's third mobile operator license. Three of the bids came from local firms, while the other two came from South Africa's Econet Wireless and USA-based Millennium Global Telecom.


"Out of the 11 companies that obtained bidding documents, only five submitted their applications. Macra will be evaluating the submissions," the regulator said in a statement.

The Mobile World subscriber database estimates that Malawi ended last year with around 534,000 subscribers - representing a population penetration level of just over 4%. Celtel is the market leader with two-thirds of the customer base, with Telecom Networks Malawi taking the remainder.

Tobacco Industry Going Up in Smoke


by Pilirani Semu-Banda

BLANTYRE, Mar 31 (IPS) - Tobacco prices and production levels are dropping amid pressure from the anti-smoking lobby and the general downturn in agricultural produce markets. But Malawi has still not made adequate progress in promoting crops to replace its primary foreign exchange earner.

Green gold is the term that Malawians use for the country's tobacco. The nation derives up to 70 percent of its foreign exchange earnings from the crop and 80 percent of the country's labour force works in the tobacco industry. Historically, the leaf has been regarded as an economic lifeline in a country without rich mineral endowments.

The southern African country is a major tobacco exporter in the world, accounting for five percent of the world's total exports and two percent of world's total production. In terms of burley tobacco, Malawi produces about 20 percent of the world's total, according to the World Bank.

The Tobacco Association of Malawi (TAMA), which promotes and protects tobacco farmers' interests, says that the leaf also accounts for 13 percent of the country's gross domestic product and makes up 23 percent of the tax base.

The crop is treasured because of historical associations. Commercial production can be traced back as far as 1889 when it was introduced by settlers from Virginia in the United States.

However, in recent years the tobacco industry has been struggling for survival. It is fighting global anti-smoking campaigns led by public health activists, backed by the World Health Organisation. Poor auction prices and a dearth of buyers are also among the challenges that Malawian tobacco producers are grappling with.

Caught in the middle of these challenges are the country's small-holder tobacco farmers. One of them is 55-year-old Dongo Msiska. All his life he has known nothing but tobacco cultivation.

At the age of 24, he took over a 50-hectare farm from his father. Since then the livelihoods of his family and those of his 33 employees have depended on the production of the leaf.

In the past three years, Msiska's income has dwindled rapidly in the face of poor auction floor prices. He has since been forced to cut production by half.

''I could not afford to buy enough production inputs with the little money I got for last year's crop. I had to reduce production and have since had to let some of my workers go,'' he says.

Msiska's woes were a result of last year's catastrophic decline of 15 percent in tobacco sales. Sales figures from the Tobacco Control Commission (TCC) indicated that the crop raked in 162 061 893 US dollars in 2005 but only 137 834 528 US dollars in 2006.

Malawian president Bingu wa Mutharika, himself a farmer, has admitted that the tobacco industry is not as viable as it used to be.

He and the ministries of agriculture and trade have urged tobacco farmers to consider diversifying production to cotton, cassava, pigeon peas, ground nuts, soya, dairy products, beans and rice as alternatives to tobacco.

Up to 40,000 farmers have heeded the calls to diversify in the past six years and have since abandoned tobacco production, according to the TCC.

But despite his calls for diversification, Mutharika has continued to fight for the survival of the tobacco industry. Major buyers of Malawi's tobacco were last year ordered by the president to leave the country or offer better prices on the auction floors. He accused them of running a cartel and fixing prices.

Mutharika imposed a minimum price of 110 cents per kilogram and, for higher grade leaf, 170 cents per kilogram but the buyers boycotted the market, forcing the government to concede defeat. The president has no kind words for the buyers and has since branded them ''thieves'' and ''exploiters'' for defying his price setting.

Meanwhile, Malawi is pursuing a deal that addresses issues of collective marketing as well as value-adding with the other tobacco-producing countries of Zambia, Tanzania, Zimbabwe and Mozambique. They aim to position the industry better in the world markets so that the countries can reap more from the crop, says the trade ministry.

The government is optimistic that handling the problems dogging the tobacco industry at a regional level will yield more positive results than working in isolation.

Despite the pressure on the industry the majority of Malawian farmers, through TAMA, have resisted a diversification strategy that excludes tobacco because the commercial value of the crop still remains the highest.

TAMA executive secretary Felix Mkumba argues that the leaf has a readily available market which is well guaranteed since everything that they produce is still sold, despite the low prices. ''Accepting total diversification will be suicidal.''

David Mkwambisi, a lecturer at the Bunda College of Agriculture at the University of Malawi, disagrees with TAMA. He does not consider tobacco to be the backbone of the country's economy anymore.

This is because the government and stakeholders have failed to introduce measures which would enhance crop production, he argues. The growers have been penalized with taxes which have not been ploughed back into the sector.

Therefore Mkwambisi contends that the global problems besetting the tobacco industry are not the primary concern. Domestic politics is the source of much of the tobacco industry's difficulties.

He also has questions about how the government is approaching the issue of diversification. ''Even though cotton was identified as a crop to replace tobacco, nothing has been done to promote cotton.

''Why did the president rush to announce the diversification towards cotton? Do we have markets for cotton, cassava, soya and beans? Why should we expand cultivation to those products if we have not found the markets yet?'' asks Mkwambisi.

He says that even if tobacco was not facing the current public health campaigns, it is extremely bad planning to depend on one crop for economic growth. ''As a country we have been standing on a slim edge economically by relying on tobacco only,'' warns Mkwambisi.

Meanwhile Malawi's tobacco production levels are plunging. The TCC has indicated that tobacco yields this year (2007) are down by 18 million kg from 158 million kg last year. The country's international buyers are demanding 170 million kg, which means that the supply from Malawi is short by 30 million kg. (END/2007)

A couple stories from my trip

From Jaako's blog:

Name: Jaako Polkki
Location: Thunder Bay, Ontario, CA
I'm 9 years old. I want to help the children in Malawi. I pay alot of attention to poverty and I want to help them.

Poverty

Hey Guys,The poverty here is incredible, the need here is big. If you have a bike here, you are considered rich. I've bought 5 bikes so far and given 2 of them away already. All of the kids clothes have holes in them and some don't wear clothes and their shoes are not good at all. Not many kids even have shoe's. The have many cuts from falling down. And there are alot of disease here. It's hard to believe. Bye for now. Jaako



Hi everybody, this is Sue, Jaako's mom now. Jaako says it great when he says it is hard to believe. The need here is bigger than I ever imagined. We went to a small market place and handed out some candies and Bags of Hope to the children there and they were just amazed. At 2 other markets we started handing out gum and sweets and we were literally mobbed by the children. We were pushed back against the vehicles by the kids trying to grab the bag and crying Madam or Boy Please!!! Give me some!! It was horrific. All for candy. Every where we go we are asked for money. By all ages, not just the children. The market places are the worst. You try to buy from every one just so they can have a next meal!! I'm coming home with lots of African carvings and bowls!!!! But they all beg you to buy, some have not eaten that day and need a sale. Some of course use that to make the sale. You kind of get to know who is being sincere or not. The Malawians can't lie. If they are smiling big - they are not telling you the truth!!! Please pray for us as we try to help people. The need is so great and our funds are sooooo small in comparison - we hate being the ones to decide who gets and who doesn't. Sometimes God tells ones of us very strongly to buy something so we do. We bought 57 shoes for a small village because they were mostly bare footed there!!! Thanks for your prayers and support and can't wait to come home and share with all of you our pictures and stories. God Bless you!!!! Love, Sue


Thoughts about Malawi

Today we were at Starbucks and we bought a couple snacks and a coffee and a hot chocolate and we were joking around that the hot chocolate cost so much money and it only costs $1.35. So then when we started to think about it more we could have sent two children to school in Malawi and like just think about it, your coffee everyday can send a child to school. Just one little coffee, approximately a dollar can send a child to school and still have $.35 left. And $.65 can just buy a note book and a pencil and their salaries are only about $1.oo a day so they don't have the money to do that. To spend all their money that they get in one day to send their child to school so they just don't educate them. Just a few thoughts to think about. Thank-you very much for supporting me and my trip.Thank-you, Jaako.

Hi, Today I'm gonna talk about some cute little stories about things I saw in Malawi. One time this little boy was looking at us confused because we were white and we were just looking at him and all of a sudden we saw a yellow liquid coming out of his pants. And if you are wondering about what I am talking about, I'm talking about the boy peed. That happened alot to us where we saw little boys pee their pants and all these different kids would walk through it and sit in it and not even care. There were a couple of times where kids would look at us for about 5 minutes and all of a sudden would start crying if we came to them. All the younger kids were really scared that we were white. It made us sad that they felt so scared.I'm really missing being in Malawi. I can't wait until next time and I will write to you again next week. Jaako

Malawi

Hey Guys, Did you know that Malawi is the 2nd poorest country in Africa and 7th in the world? Did you know that in Sub-saharan Africa a child dies every 3 seconds? And Malawi is right in Sub-saharan Africa. Have you ever wondered what it would be like to have HIV/Aids it's not very pleasant. Did you know that almost every child has lost one or both of there parents? They usually live with there grandparents if they have any. Not very many adults make it past the age of 37 or 38. And 43% of the children don't make it to the age of 5. That's why I really want to help these children. And I really want to help them with what they need. And just buy them what they want and just bless that country. They have such severe pain. I'm just so excited to go and help them. We are so lucky to live in Canada where there is medicine to help with all these diseases.Bye for now. Jaako

A Difficult Journey

James, 12, lives with his mum in a small room in Blantyre, the biggest city in Malawi (southeastern Africa). His mum never went to school and can’t get a good job. When James’s parents split up, there was no money for food or school fees. James was so hungry and sad he eventually ran away to live on the streets. “It was dangerous and I was threatened with knives. I remember asking myself, why am I sleeping on the streets when all my friends can go to school?”James survived doing jobs like selling plastic bags. “Sometimes I’d beg outside the supermarket but I’d bump into people I knew. I felt so embarrassed, I’d hide.”Thanks to the UK’s Red Nose Day charity, an international relief agency, James is now back at home and his school fees are paid by a local project. “I’m happy now. My favorite subject is English. I’m the class captain.” James has taken up gardening too—thanks to the project—and grows vegetables to eat and sell. “It’s good exercise and means we can buy things we need, like soap.”Charities like Red Nose Day help thousands of children in poor countries get an education, but there are approximately 80 million children around the world still missing out. The Red Nose Day charity’s vision is a just world free from poverty. Log onto www.rednoseday.com.

Group of 153 refugees leave Malawi for New Lives in Denmark

UNHCR News Stories
DZALEKA REFUGEE CAMP, Malawi, March 29 (UNHCR) – Each week a group of refugees in Malawi collect a grant from the UN refugee agency and make an unlikely search for clothes that will keep them warm in Denmark's northern European winter.
Life for 153 refugees is changing drastically: the weather, the food in the shops, the schools their children will attend, the homes they will live in. Above all, in Denmark they will have a chance to again take charge of their own lives.
"Life will be different but it will be better," said Michelin Kakonge, shortly before leaving Malawi for Denmark with her three children on March 19. "Here, I am just sitting waiting to get monthly food rations, but there I will be able to work and support myself."
The 44-year-old Congolese widow and her three daughters – aged 14, 13 and 10 – had been living in Dzaleka Refugee Camp, which is operated by the government and UNHCR, since arriving in Malawi in September 2000. Her husband had been killed by government soldiers, who then came looking for her. With no one to help support the family, she sold most of the monthly food ration provided to refugees to buy other essentials.
Refugee camps are welcome sights to anyone escaping war and persecution; but they are not places where many people would choose to spend their lives. Malawi has been generous in accepting refugees, most from around the Great Lakes region further north, but it is a poor, crowded country that presents few prospects of a normal life for refugees. Chances to work or grow their own food will always be limited.
"Life here is very difficult," said Lisette Kabange, whose husband was targeted over his work monitoring human rights abuses in the Democratic Republic of the Congo (DRC). "We are not working; we are just waiting for rations."
Kabange was due to move with her husband, her three young children, two sisters and a brother-in-law in the next of the staged departures to Denmark. The 32-year-old Congolese woman, who wants to study nursing, said she would start by adding Danish to the French, Swahili and tribal languages she speaks.
Danish officials selected the Burundian and Congolese refugees late last year from cases presented by UNHCR. Most were victims of the violence that has plagued their home regions or were at continuing risk – widowed women heading families, people fleeing persecution.
Resettlement is not offered to every refugee, or even many. The solution for most of the millions of refugees around the world is voluntary repatriation or integration in the host country. Only when there is no possibility of that outcome, or clear risks in remaining, is resettlement the desired solution. The decision to accept refugees for resettlement is made by receiving countries, not the refugee agency.
UNHCR emphasises that the number resettled – less than 30,000 worldwide in 2006 – is limited and is anxious to ensure resettlement programmes do not act as magnets attracting applicants who will never qualify. Although UNHCR resettled 635 refugees from Malawi in 2006 – a high number for a country with only about 9,000 refugees – the number will drop this year.
"We are looking at refugees who are victims of violence or torture and people at risk," said Dawn Sparks de la Rosa, a consultant in UNHCR's Malawi office who has overseen the resettlement to Denmark. "Most refugees would not meet the criteria for resettlement."
The 153 refugees destined for Denmark – including two born since interviews for resettlement were conducted – began moving on February 19. Further departures were set for March 5, 12, 19 and 20 with the final group leaving on April 2.
UNHCR provides those departing with a grant of US$70 to buy warm clothing, though they need more on arrival because shops in Malawi – with daily temperatures around 30 degrees Celsius – would never stock heavy coats.
On arrival, they are dispersed to towns around Denmark and begin the process of integration – including two years of language instruction. It is likely to be successful; after the suffering these refugees experienced, they are anxious to start new lives.
"I will integrate because I have no intention to return to my country," said Elias Ekyamba, a 34-year-old French teacher who fled DRC in 2001 after his mother was killed and he was targeted for being from the wrong tribe. His wife and four children stood smiling outside their grass-roofed hut, beside a door covered in flattened food aid tins. "I intend to be part of Danish society," he stressed.
By Jack Reddenin Dzaleka Refugee Camp, Malawi

Signs of a Growing Climate Divide

The world's richest countries, which have contributed by far the most to the atmospheric changes linked to global warming, are already spending billions of dollars to limit their own risks from its worst consequences, like drought and rising seas.
But despite longstanding treaty commitments to help poor countries deal with warming, these industrial powers are spending just tens of millions of dollars on ways to limit climate and coastal hazards in the world's most vulnerable regions - most of them close to the equator and overwhelmingly poor.
Next Friday, a new report from the Intergovernmental Panel on Climate Change, a U.N. body that since 1990 has been assessing global warming, will underline this growing climate divide, according to scientists involved in writing it - with wealthy nations far from the equator not only experiencing fewer effects but better able to withstand them.
Two-thirds of the atmospheric buildup of carbon dioxide, a heat-trapping greenhouse gas that can persist in the air for centuries, has come in nearly equal proportions from the United States and Western European countries. These and other wealthy nations are investing in windmill-powered plants that turn seawater to drinking water, in flood barriers and floatable homes, in grains and soybeans genetically altered to flourish even in a drought.
In contrast, Africa accounts for less than 3 percent of the global emissions of carbon dioxide from fuel burning since 1900, yet its 840 million people face some of the biggest risks from drought and disrupted water supplies, according to new scientific assessments. As the oceans swell with water from melting ice sheets, it is the crowded river deltas in southern Asia and Egypt, along with small island nations, that are most at risk.
"Like the sinking of the Titanic, catastrophes are not democratic," said Henry I. Miller, a fellow with the Hoover Institution at Stanford University. "A much higher fraction of passengers from the cheaper decks were lost. We'll see the same phenomenon with global warming."
Those in harm's way are beginning to speak out. "We have a message here to tell these countries: that you are causing aggression to us by causing global warming," President Yoweri Museveni of Uganda said at the African Union Summit in Addis Ababa, Ethiopia, in February. "Alaska will probably become good for agriculture, Siberia will probably become good for agriculture, but where does that leave Africa?"
Scientists say it has become increasingly clear that worldwide precipitation is shifting away from the equator and toward the poles. That will nourish crops in warming regions like Canada and Siberia while parching countries like Malawi in sub-Saharan Africa, which are already prone to drought.
While rich countries are hardly immune from drought and flooding, their wealth will largely insulate them from harm, at least for the next generation or two, many experts say.
Cities in Texas, California and Australia are already building or planning desalination plants, for example. And federal studies have shown that desalination can work far from the sea, purifying water from brackish aquifers deep in the ground in places like New Mexico.
"The inequity of this whole situation is really enormous if you look at who's responsible and who's suffering as a result," said Rajendra K. Pachauri, chairman of the U.N. climate panel. In its most recent report, in February, the panel said that decades of warming and rising seas were inevitable with the existing greenhouse-gas buildup, no matter what was done about cutting future greenhouse gas emissions.
Miller, of the Hoover Institution, said the world should focus less on trying to rapidly cut greenhouse gases and more on helping regions at risk become more resilient.
Many other experts insist this is not an either-or situation. They say cutting the vulnerability of poor regions needs much more attention, but add that unless emissions are curbed, there will be centuries of warming and rising seas that will threaten ecosystems, water supplies and resources from the poles to the equator, harming rich and poor.
Cynthia E. Rosenzweig, a National Aeronautics and Space Administration expert on climate and agriculture who is a lead author of the U.N. panel's forthcoming impacts report, said that while the richer northern nations may benefit temporarily, "as you march through the decades, at some point - and we don't know where these inflection points are - negative effects of climate change dominate everywhere."
There are some hints that wealthier countries are beginning to shift their focus toward fostering adaptation to warming outside their own borders. Relief organizations including Oxfam and the International Red Cross, foreseeing a world of worsening climate-driven disasters, are turning some of their attention toward projects like expanding mangrove forests as a buffer against storm surges, planting trees on slopes to prevent landslides, or building shelters on high ground.
Some officials from the United States, Britain and Japan say foreign-aid spending can be directed at easing the risks from climate change. The United States, for example, has promoted its 3-year-old Millennium Challenge Corp. as a source of financing for projects in poor countries that will foster resilience. It has just begun to consider environmental benefits of projects, officials say.
Industrialized countries bound by the Kyoto Protocol, the climate pact rejected by the Bush administration, project that hundreds of millions of dollars will soon flow via that treaty into a climate adaptation fund.
But for now, the actual spending on adaptation projects in the world's most vulnerable spots, totaling around $40 million a year, "borders on the derisory," said Kevin Watkins, the director of the U.N. Human Development Report Office, which tracks factors affecting the quality of life around the world.
The lack of climate aid persists even though nearly all the world's industrialized nations, including the United States under the first President Bush, pledged to help when they signed the first global warming treaty, the Framework Convention on Climate Change, in 1992. Under that treaty, industrialized countries promised to assist others "that are particularly vulnerable to the adverse effects of climate change in meeting costs of adaptation." It did not specify how much they would pay.
A $3 billion Global Environmental Facility fund maintained by contributions from developed countries has nearly $1 billion set aside for projects in poorer countries that limit emissions of greenhouse gases. But critics say those projects often do not have direct local benefits, and many are happening in the large fast-industrializing developing countries - not the poorest ones.
James L. Connaughton, President Bush's top adviser on environmental issues, defended the focus on broader development efforts. "If we can shape several billion dollars in already massive development funding toward adaptation, that's a lot more powerful than scrounging for a few million more for a fund that's labeled climate," he said.
Robert O. Mendelsohn, an economist at Yale focused on climate, said that in the face of warming, it might be necessary to abandon the longstanding notion that all places might someday feed themselves. Poor regions reliant on unpredictable rainfall, he said, should be encouraged to shift people out of farming and into urban areas and import their food from northern countries.
Michael H. Glantz, an expert on climate hazards at the National Center for Atmospheric Research, has called for wealthy countries to help establish a center for climate and water monitoring in Africa, run by Africans.
"The Third World has been on its own," he said, "and I think it pretty much will remain on its own."