As crude oil prices hit a record high, the Malawi government has launched a project to ensure that all vehicles in the country switch to the cheaper and greener alternative fuel - ethanol - in a few years.
Besides promoting the production of ethanol from sugar molasses, the 5-year US$1 million project, funded by the Malawi government, is investigating the possibility of converting conventional vehicles into dual-fuel vehicles, or flexible-fuel - 'flex-fuel' - vehicles (FFVs), which can run on a combination of fuels.
"The country's decision to use ethanol is in line with procedures aimed at emission reduction as demanded by the [UN Framework on Climate Change]," said Kendron Chisale, Malawi's deputy director of science and technology. "In the end, Malawi will benefit because we will be able to mitigate some of the climate change related natural catastrophes." The department hopes to have some adapted vehicles on the road within a year.
Freeman Kalirani, a researcher at the government-owned Lilongwe Technical College, led a team that modified a Mitsubishi Pajero to run on ethanol or petrol, or a combination of ethanol and petrol in a single tank.
He said the research team would continue comparing the engine performance of ethanol-powered and petrol-driven vehicles. "We will test and check on the long-term effects of ethanol on the fuel system of vehicles. We will also gather data on the performance of a flex vehicle and build capacity for Malawians to maintain ethanol-driven or flex vehicles."
The modified vehicle completed a test drive of over 2,100km at an average speed of 110km/hr on ethanol; consumption at 8km/litre was high because of the speed and age of the car; newer vehicles consume between 10km/litre and 15km/litre.
Import flex-fuel vehicles
According to Presscane Ltd, 1 of the 2 companies producing ethanol, Malawi has been using ethanol-blended fuel since the energy crisis in the early 1970s. Petroleum companies such as BP Malawi, TOTAL Malawi and Chevron Malawi blend 10 percent ethanol with 90 percent petrol.
A switch to ethanol would not only benefit the environment but also create employment opportunities in the country's sugarcane industry, and help Malawi save forex currently being spent on fuel imports
Between 1995 and 2000, Malawi imported around 80 to 90 million litres of petrol each year, with the cost rising from $13 million to $36.1 million over the same period. In the first half of the year, a barrel of bioethanol in Brazil, was half the price of a barrel of oil, according to the UN's Food and Agriculture Organisation. The current price of crude oil is about $90 per barrel.
Malawi's department of science and technology, in partnership with the privately owned Ethanol Company of Malawi (ETHCO), is also promoting the importing of Brazilian 'flex-fuel' vehicles that can run on ethanol. Matthews Chikaonda, chief executive officer of Press Corporation Limited, a local conglomerate that owns ETHCO, said the country produced enough molasses, a by-product of making sugar, to produce ethanol.
He said the country would save millions of dollars once all vehicles started using locally produced ethanol instead of imported petroleum. "A switch to ethanol would not only benefit the environment but also create employment opportunities in the country's sugarcane industry, and help Malawi save forex currently being spent on fuel imports."
More research before production
Chikaonda said the only two companies producing ethanol from sugar molasses in Malawi were ETHCO, which produces 7 million litres of ethanol a year at its plant in Dwangwa, a town in central Malawi, and Presscane, another Press Corporation investment, which delivers 10.8 million litres from its plant in southern Malawi.
Each of the factories has a design capacity of 16 million litres a year, but is operating below capacity because of the low availability of molasses. The department of science and technology said there was a possibility that the two factories could produce ethanol at full capacity because there was room for for expansion in existing sugarcane plantations.
ETHCO general manager Daniel Liwimbi said there was need for proper government planning to expand ethanol production capacity to cater for the whole country. "Government should plan to increase production if the whole project is to be a success. With increased production from sugarcane molasses, capacity could reach up to 30 million litres per [cane-growing] season."
Some consumers cautioned that further research was needed and government should tread carefully in its search for alternative cheaper fuels. "It is too early to start celebrating. Let us be honest with ourselves and answer questions such as, 'are we ready to meet the demand once we abandon imported fuels?' An honest answer would be 'no' at this point in time," said Marcel Phiri, a car owner in the commercial capital of Blantyre.
Mayeso Mzunga, who transports goods, said he welcomed the news but also stressed the need for more research. He suggested the concurrent promotion of imported petroleum and locally made ethanol until such time as the country was ready "to fully go ethanol".
Wednesday, 14 November 2007
INTERNET LAW - MALAWI INTERNET SERVICE PROVIDER LICENSING
At one time known as the British protectorate of Nyasaland, this landlocked southeastern African colony became the independent nation of Malawi in 1964. Being one of the world’s most undeveloped countries, with a per capita annual income of $600 for 13 million residents, the country is slowly starting to work its way out of poverty symbolized by the subsistence farming that has sustained the people for millennia. One pillar in reformation plans for Malawi is a legal reformation movement meant to establish an ironclad constitution and an education in the benefits of the rule of law in the populace.
To better understand the Malawi law for Internet Service Provider (ISP) licensing, these questions will be answered: What Law Covers Internet Service Provider Licensing in Malawi? What Law Covers the Requirements to Obtain a Malawi ISP License? What Requirements are Necessary for an ISP License? What Other Information Does the Application Require? What is the Fee for an Internet Operating License?
Problems in Malawi include widespread corruption, population growth, over-fatigue of agricultural lands, and the grim specter shadowing much of the rest of Africa, the spread of HIV/AIDS. Almost 90% of the Malawi populace is rural in a country about the size of Pennsylvania, USA, and for the agrarian economy tobacco farming plays an outsize role. The economy absorbs much sustenance from the IMF, the World Bank, and individual donor nations. Malawi was also approved for relief under the Heavily Indebted Poor Countries (HIPC) program in 2006.
While the Government is trying to evolve the economy in a cash-flow poor environment, and develop a market economy as it improves educational facilities, probably no stronger single economic growth factor could be implemented than a durable technical infrastructure to sustain a countrywide Internet. Currently ten Internet Service Providers (ISPs) are licensed in the country.
What Law Covers Internet Service Provider Licensing in Malawi?
The Malawi Communications Act No. 41 was passed in 1998, and generally covers the communications sector, and although it did not directly address the subject of the Internet, it does lay down general provisions covering the licensing of such. The Malawi Communications Regulatory Authority (MACRA) was created according to Section 3 of the Communications Act to provide regulation for the communications sector.
What Law Covers the Requirements to Obtain a Malawi ISP License?
Section 19 of the Communications Act is issued by the Malawi Communications Regulatory Authority (MACRA), and describes the procedure for registration for a Data and Internet Access General license. Sections 18, 36, 47 and 61 of the Communications Act all confer upon MACRA the mandate to issue licenses, and therefore any person may apply to MACRA for a communications sector license under the Act.
What Requirements are Necessary for an ISP License?
First, an “Invitation to Apply (ITA) for a license to provide Fixed Public Telecommunications Services in Malawi as a Second Network Operator (SNO)” must be filled out for MACRA.”
General Requirements:
The applicant must be a corporate entity duly incorporated under the laws of the Republic of Malawi.
A non refundable Application fee of MK 50,000.00 shall be paid by the Applicant at time of filing their Application with the Authority, the fee in the form of cash or Bank certified check.
Only “legal persons and /or consortia of legal persons” can submit an application and the certificate of incorporation and a certified copy of the consortium agreement must both be submitted, if applicable.
A licensee agrees to construct and keep in repair the “fixed public telecommunications network, capable of providing a telecommunications service,” if approved.
The applicants will establish a company incorporated under the laws of Malawi that shall independently own the license, if approved.
What Other Information Does the Application Require?
For any individual applicant, the paperwork should include a copy of your driver’s license; a copy of your passport, including visa page.
This application MUST also include this information:
1. For public entities and public corporations, this must be provided:
The group’s complete establishing document and the authority of the applicant vis-a-vis the group. Also, the group’s main objectives in filing an application must be provided.
2. For Companies this must be provided:
The applicant’s name, address, and registration number are required, and also names and addresses of the corporation’s directors, principal executives and shareholders. Also, the company’s main objectives and overall company profile.
3. For Individuals and Partnerships this must be provided:
The identification number, full names and permanent residential and business addresses of the individuals or partners must be submitted.
Business Design: Description of the service, coverage and business plan.
In terms of the business model and strategies for success, this information must be provided: A description of the proposed service; geographical area where the service is planned; If and how under-serviced areas will be aided by the proposed delivery; A projection of market size and target groups for the proposed service
Business Plan, Technical Information:
A nuts and bolts description of technical designs and parts of the proposed service, including: Configuration of the network; Description of interfaces; Equipment to be used by the applicant, as contrasted by the existent public infrastructure; A statement of compliance from a reputable Internet or technology analyst.
What is the Fee for an Internet Operating License?
According to Section 109, the Authority shall create these, ad hoc. The supplemental literature found on the MACRA site, in Q7, says, “the licences fee for Internet Service providers is $1,000 per annum plus 5% of net operating profit.” There is also an annual license renewal fee that will be set on or before the renewal date. The license fee shall be payable in USD or Malawi Kwacha Equivalent.
To better understand the Malawi law for Internet Service Provider (ISP) licensing, these questions will be answered: What Law Covers Internet Service Provider Licensing in Malawi? What Law Covers the Requirements to Obtain a Malawi ISP License? What Requirements are Necessary for an ISP License? What Other Information Does the Application Require? What is the Fee for an Internet Operating License?
Problems in Malawi include widespread corruption, population growth, over-fatigue of agricultural lands, and the grim specter shadowing much of the rest of Africa, the spread of HIV/AIDS. Almost 90% of the Malawi populace is rural in a country about the size of Pennsylvania, USA, and for the agrarian economy tobacco farming plays an outsize role. The economy absorbs much sustenance from the IMF, the World Bank, and individual donor nations. Malawi was also approved for relief under the Heavily Indebted Poor Countries (HIPC) program in 2006.
While the Government is trying to evolve the economy in a cash-flow poor environment, and develop a market economy as it improves educational facilities, probably no stronger single economic growth factor could be implemented than a durable technical infrastructure to sustain a countrywide Internet. Currently ten Internet Service Providers (ISPs) are licensed in the country.
What Law Covers Internet Service Provider Licensing in Malawi?
The Malawi Communications Act No. 41 was passed in 1998, and generally covers the communications sector, and although it did not directly address the subject of the Internet, it does lay down general provisions covering the licensing of such. The Malawi Communications Regulatory Authority (MACRA) was created according to Section 3 of the Communications Act to provide regulation for the communications sector.
What Law Covers the Requirements to Obtain a Malawi ISP License?
Section 19 of the Communications Act is issued by the Malawi Communications Regulatory Authority (MACRA), and describes the procedure for registration for a Data and Internet Access General license. Sections 18, 36, 47 and 61 of the Communications Act all confer upon MACRA the mandate to issue licenses, and therefore any person may apply to MACRA for a communications sector license under the Act.
What Requirements are Necessary for an ISP License?
First, an “Invitation to Apply (ITA) for a license to provide Fixed Public Telecommunications Services in Malawi as a Second Network Operator (SNO)” must be filled out for MACRA.”
General Requirements:
The applicant must be a corporate entity duly incorporated under the laws of the Republic of Malawi.
A non refundable Application fee of MK 50,000.00 shall be paid by the Applicant at time of filing their Application with the Authority, the fee in the form of cash or Bank certified check.
Only “legal persons and /or consortia of legal persons” can submit an application and the certificate of incorporation and a certified copy of the consortium agreement must both be submitted, if applicable.
A licensee agrees to construct and keep in repair the “fixed public telecommunications network, capable of providing a telecommunications service,” if approved.
The applicants will establish a company incorporated under the laws of Malawi that shall independently own the license, if approved.
What Other Information Does the Application Require?
For any individual applicant, the paperwork should include a copy of your driver’s license; a copy of your passport, including visa page.
This application MUST also include this information:
1. For public entities and public corporations, this must be provided:
The group’s complete establishing document and the authority of the applicant vis-a-vis the group. Also, the group’s main objectives in filing an application must be provided.
2. For Companies this must be provided:
The applicant’s name, address, and registration number are required, and also names and addresses of the corporation’s directors, principal executives and shareholders. Also, the company’s main objectives and overall company profile.
3. For Individuals and Partnerships this must be provided:
The identification number, full names and permanent residential and business addresses of the individuals or partners must be submitted.
Business Design: Description of the service, coverage and business plan.
In terms of the business model and strategies for success, this information must be provided: A description of the proposed service; geographical area where the service is planned; If and how under-serviced areas will be aided by the proposed delivery; A projection of market size and target groups for the proposed service
Business Plan, Technical Information:
A nuts and bolts description of technical designs and parts of the proposed service, including: Configuration of the network; Description of interfaces; Equipment to be used by the applicant, as contrasted by the existent public infrastructure; A statement of compliance from a reputable Internet or technology analyst.
What is the Fee for an Internet Operating License?
According to Section 109, the Authority shall create these, ad hoc. The supplemental literature found on the MACRA site, in Q7, says, “the licences fee for Internet Service providers is $1,000 per annum plus 5% of net operating profit.” There is also an annual license renewal fee that will be set on or before the renewal date. The license fee shall be payable in USD or Malawi Kwacha Equivalent.
Government pushes green vehicles
As crude oil prices hit a record high, the Malawi government has launched a project to ensure that all vehicles in the country switch to the cheaper and greener alternative fuel - ethanol - in a few years.
Besides promoting the production of ethanol from sugar molasses, the 5-year US$1 million project, funded by the Malawi government, is investigating the possibility of converting conventional vehicles into dual-fuel vehicles, or flexible-fuel - 'flex-fuel' - vehicles (FFVs), which can run on a combination of fuels.
"The country's decision to use ethanol is in line with procedures aimed at emission reduction as demanded by the [UN Framework on Climate Change]," said Kendron Chisale, Malawi's deputy director of science and technology. "In the end, Malawi will benefit because we will be able to mitigate some of the climate change related natural catastrophes." The department hopes to have some adapted vehicles on the road within a year.
Freeman Kalirani, a researcher at the government-owned Lilongwe Technical College, led a team that modified a Mitsubishi Pajero to run on ethanol or petrol, or a combination of ethanol and petrol in a single tank.
He said the research team would continue comparing the engine performance of ethanol-powered and petrol-driven vehicles. "We will test and check on the long-term effects of ethanol on the fuel system of vehicles. We will also gather data on the performance of a flex vehicle and build capacity for Malawians to maintain ethanol-driven or flex vehicles."
The modified vehicle completed a test drive of over 2,100km at an average speed of 110km/hr on ethanol; consumption at 8km/litre was high because of the speed and age of the car; newer vehicles consume between 10km/litre and 15km/litre.
Import flex-fuel vehicles
According to Presscane Ltd, 1 of the 2 companies producing ethanol, Malawi has been using ethanol-blended fuel since the energy crisis in the early 1970s. Petroleum companies such as BP Malawi, TOTAL Malawi and Chevron Malawi blend 10 percent ethanol with 90 percent petrol.
A switch to ethanol would not only benefit the environment but also create employment opportunities in the country's sugarcane industry, and help Malawi save forex currently being spent on fuel imports.
Between 1995 and 2000, Malawi imported around 80 to 90 million litres of petrol each year, with the cost rising from $13 million to $36.1 million over the same period. In the first half of the year, a barrel of bioethanol in Brazil, was half the price of a barrel of oil, according to the UN's Food and Agriculture Organisation. The current price of crude oil is about $90 per barrel.
Malawi's department of science and technology, in partnership with the privately owned Ethanol Company of Malawi (ETHCO), is also promoting the importing of Brazilian 'flex-fuel' vehicles that can run on ethanol. Matthews Chikaonda, chief executive officer of Press Corporation Limited, a local conglomerate that owns ETHCO, said the country produced enough molasses, a by-product of making sugar, to produce ethanol.
He said the country would save millions of dollars once all vehicles started using locally produced ethanol instead of imported petroleum. "A switch to ethanol would not only benefit the environment but also create employment opportunities in the country's sugarcane industry, and help Malawi save forex currently being spent on fuel imports."
More research before production
Chikaonda said the only two companies producing ethanol from sugar molasses in Malawi were ETHCO, which produces 7 million litres of ethanol a year at its plant in Dwangwa, a town in central Malawi, and Presscane, another Press Corporation investment, which delivers 10.8 million litres from its plant in southern Malawi.
Each of the factories has a design capacity of 16 million litres a year, but is operating below capacity because of the low availability of molasses. The department of science and technology said there was a possibility that the two factories could produce ethanol at full capacity because there was room for for expansion in existing sugarcane plantations.
ETHCO general manager Daniel Liwimbi said there was need for proper government planning to expand ethanol production capacity to cater for the whole country. "Government should plan to increase production if the whole project is to be a success. With increased production from sugarcane molasses, capacity could reach up to 30 million litres per [cane-growing] season."
Some consumers cautioned that further research was needed and government should tread carefully in its search for alternative cheaper fuels. "It is too early to start celebrating. Let us be honest with ourselves and answer questions such as, 'are we ready to meet the demand once we abandon imported fuels?' An honest answer would be 'no' at this point in time," said Marcel Phiri, a car owner in the commercial capital of Blantyre.
Mayeso Mzunga, who transports goods, said he welcomed the news but also stressed the need for more research. He suggested the concurrent promotion of imported petroleum and locally made ethanol until such time as the country was ready "to fully go ethanol
Illovo interim earnings sweet
Illovo Sugar reports diluted headline earnings per share of 80.9c for the six months ended September.
Illovo Sugar (ILV) reported diluted headline earnings per share, on a sugar season basis, of 80.9 cents for the six months ended September from 75.2 cents a year ago. HEPS were up 7% to 81.3 cents.
An interim dividend of 33 cents per share was declared, up 10% on a year ago.
On a sugar season basis, the group achieved headline earnings of 284 million rand, up 10% on a year ago.
Despite an increase in sugar production and improved domestic market sales and prices, group operating profit - at 523.7 million rand - was similar to that of last year, largely as a result of lower world and regional sugar prices.
Illovo MD Don MacLeod said: "We are announcing today a major new investment in Mali for the construction of a 200,000 ton sugar mill, ethanol plant and electricity co-generation facility.
"This exciting investment fits with our strategy of expanding the group’s production base in Africa and to be the leading, lowest-cost sugar producer on the continent.
"We are also pleased with the progress of our expansion in Zambia with the first phase of the commissioning due in April 2008."
The group said the contributions to operating profit were sugar production 62%, cane growing 28% and downstream 10%. By country, contributions were South Africa 21%, Malawi 40%, Zambia 17%, Swaziland 9%, Tanzania 10% and Mozambique 3%.
Illovo noted that the season-to-date has been affected by variable weather conditions. In South Africa and Swaziland, after a very dry winter, welcome rains were received in late spring.
In Malawi localised flooding at Nchalo early in the year negatively impacted on cane yields, and in Tanzania, abnormal heavy winter rain during August disrupted factory operations.
The rest of the group has experienced normal weather conditions which, with effective irrigation and long sunshine hours, have been conducive to good cane growth.
"In general, the sugar factories have performed satisfactorily. Assuming normal growing and operating conditions for the remainder of the season, group sugar production is expected to be around 1.875 million tons which is 150,000 tons above that of last year," it said.
The main increases in the production forecast have occurred in South Africa, Tanzania, Zambia and Mozambique.
Downstream operations have performed well and output is anticipated to be similar to that of last year. World prices of furfural and its derivative products have been strong, it said.
The world raw sugar price has been volatile, but recently has stabilised at around US10 cents/lb. Last year, the world price rose to almost US20 cents/lb and the South African sugar industry achieved an average realisation of US14.92 cents/lb in respect of world raw sugar sales, whereas in the current year, it is anticipated that the average price will only be slightly over US10 cents/lb.
The lower world price has also impacted negatively on regional sales.
Improved opportunities in the European Union (EU) continue to evolve as EU market access arrangements are modified in terms of ongoing trade negotiations.
From 2015 onwards, it is intended that duty free, quota free terms would apply to all ACP and LDC suppliers, subject to normal trade safeguards.
"These developments will ultimately benefit the group, as four of the countries in which it operates, Malawi, Zambia, Tanzania and Mozambique, are classified as LDCs, whilst Swaziland is a member of the ACP group," Illovo said.
The major expansion of the group’s production facilities in Zambia is well advanced and significant progress has been made in the areas of canal construction and new land development.
The factory upgrade is being phased over two years with the first phase due for commissioning in April 2008, in time to receive increased cane supplies from the first of the estate and grower cane expansions.
The second phase of factory expansion is due for completion in April 2009, after which the factory will have the capacity to produce 440,000 tons of sugar per annum, an increase of 200,000 tons per annum compared to current capacity.
Looking ahead, Illovo said results for the current year will be impacted by the level of the rand compared to other currencies, the world sugar price and final sugar production.
"Our sugar production is expected to be higher this year despite variable weather conditions across our operations. We anticipate a modest increase in our earnings for the year, considering the stronger rand and lower world sugar prices," MacLeod added.
Provided there is no major change to these factors, it is anticipated that, for the year ending 31 March 2008, modest growth in earnings in real terms will be achieved, the group said.
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