Total Pageviews

Thursday, 31 January 2008

Malawi: Caught between two economic blocs

Malawi finally has to face up to the dilemma of choosing between being a member of the Southern African Development Community (SADC) or to stick with the Common Market for Eastern and Southern Africa (COMESA) if it is to continue receiving funding from the European Union (EU).

Developing countries like Malawi have been promised assistance to adapt as they open their markets to the EU by agreeing to an economic partnership agreement (EPA) with the EU.

EPAs are a new set of ‘‘trade and development’’ deals aimed at removing barriers and creating a free trade area (FTA) between the EU and African, Caribbean and Pacific countries (ACP).

The European Development Fund (EDF) is the instrument with which the EU has promised to help EPA signatories.

International law expert George Naphambo told the media that Malawi is compelled to choose between belonging to either SADC or COMESA because aid from the EDF will be disbursed on the basis of membership to a regional economic community such as SADC or COMESA.

Naphambo said a country cannot receive EU funding from both bodies, which are two different regional economic communities, as this would mean the country has double access to funds compared to other states.

‘‘It is clear that if Malawi is to benefit from EU funding, it has to belong to one regional economic community — unless the EU comes up with a formula for funding countries which belong to more than one such community,’’ said Naphambo.

He said if this formula is not developed, there will be pressure on Malawi to leave either one of the bodies as soon as possible. ‘‘When push comes to shove, Malawi will have to make a decision because it cannot forego EU funding,’’ said Naphambo.

Economic analysts in Malawi are recommending that the small southern African country is better off staying on in COMESA instead of SADC since the rules of origin in COMESA offer better market access than those in SADC. Rules of origin refer to the country-based exclusion of certain inputs that go into exports.

SADC, on the other hand, is seen as outdoing COMESA as a major export destination, according to Andrew Kumbatira, executive director of the Malawi Economic Justice Network, the country’s primary influential non-governmental organisation that promotes economic and trade justice.

Kumbatira says no country should belong to two customs unions. ‘‘SADC will soon formalize its own regional customs union and the COMESA customs union is also set to come into effect by next year,’’ he says.

He recommends that Malawi should opt for COMESA since it offers a greater variety of economic dynamics than SADC.

COMESA is the largest economic bloc in Africa, comprising 20 countries with a population of about 385 million people, total gross domestic product of 165 billion dollars and overall exports of 25 billion dollars, according to a 2006 COMESA report.

SADC, on the other hand, is geared towards the political development of its members, according to influential human rights activist Mavuto Bamusi, who also thinks COMESA is the preferable bloc for Malawi to align itself with.

Bamusi says that, as Malawi is at the moment looking at trade as the best development pillar to put in place, COMESA would be its best bet.

‘‘Of course, the decision is not an easy one. Malawi has to be very strategic in making the decision since there are also political implications that will arise. In SADC, Malawi subscribes to a number of very important protocols on issues like anti-corruption and women’s participation — these issues cannot just be left hanging.

‘‘There has to be a strategy on how the country will still apply these commitments,’’ says Bamusi.

He says Malawi’s predicament on its dual membership with SADC and COMESA is a long-standing issue which should now be resolved quickly — but not because of the EPAs. ‘‘Malawi should make an independent decision on this and not do it just to make the EU happy.

‘‘The EU should not hold Malawi or any other country to ransom over the EPAs. The EDF should not be aligned to the EPAs — as civil society organisations we are against such an alignment,’’ says Bamusi.

Bamusi, who also opposes the EPAs, says the EU should be obliged to compensate countries that will be ‘‘harmed’’ by the EPAs. ‘‘We are saying that countries like Malawi have so much more to lose than gain in the EPAs. They should be compensated regardless of what customs union they belong to,’’ argues Bamusi.

Malawi should make its choice between COMESA and SADC now because it will be safer sticking to one bloc to avoid a situation where it could be ‘‘tossed from one bloc to another" based on regional integration.

Malawi’s trade minister Ken Lipenga is on record that the government is still consulting on the way forward on the COMESA-SADC predicament.

Malawi floods worsen


Rising floodwaters devastating the crops, livestock and infrastructure across half the country and menacing more than 73,000 Malawians are going to get worse, government officials said.

"It’s getting worse in Malawi because it is raining everyday," said Lilian Ng’oma, a senior official in the disaster management ministry. "We expect more rains and more flooding this year.

Three people have died so far in the floods, she added. "So far, a total of 12,199 households or about 73,000 people have been affected in different ways."

Ng’oma said the floods and storms that have pummelled half of the country’s 28 districts, have "damaged houses, livestock, crops and infrastructure such as roads and bridges."

Relief efforts were being hampered by the fact that some parts of the country, near the border with Mozambique, could now only be reached by boat.

"If the situation does not improve, we will approach the army to assist us in lifting relief assistance by helicopter to Makhanga," Ng’oma said.

Some 2,500 Mozambicans living along the flooded Shire river had also crossed into Malawi in boats, she added. "Water and crocodiles are everywhere and the easiest place to run to is Malawi," she said.

Malawi has spent 360,000 dollars on relief operations since last November, she said. The country’s meteorological services have warned that heavy rains may induce heavy flooding in flood-prone areas like the Lower Shire Valley.

On January 16, the International Red Cross launched an appeal for five million euros aid for the southern African to help mitigate the effects of the floods that have swept across the region.

Taifa Stars face Malawi

Instead of facing Rwanda, the Taifa Stars of Tanzania will play against Malawi in the international build up game scheduled for February 6 in Dar es Salaam.

The Ferwafa Chief Executive Officer, Jules Kalisa confirmed this development saying that TFF sent a late fax on Monday evening informing Ferwafa of a change in schedule.
“TFF has postponed our friendly game until March 26 meaning that Rwanda will not play against Taifa Stars on February 6 as it had been scheduled,” Kalisa said. Kalisa said that Amavubi Stars are likely to travel to Burundi for a friendly on February 6.

“Burundi seems is ready to host us (Rwanda) in Bujumbura,” Kalisa added. Meanwhile, a 22-man squad started residential training yesterday at Nyamirambo stadium ahead of the Burundi friendly.

However, no professional player has been summoned to join the squad.
Rwanda who are grouped with Morocco, Mauritania and Ethiopia begin their qualification campaign on May 31 against Mauritania before playing Ethiopia on June 7 and the Atlas Lions a week later.

On June 21, Rwanda will head to Rabat for a return leg against Morocco, on September 7; Rwanda will travel to Mauritania for the second leg before winding up the campaign with a home game against Ethiopia on October 12. Meanwhile, former Atraco striker Athumani Machupa has been recalled to the Taifa Stars team.

Tanzania will test themselves against Malawi, a team they lost to in the 2008 Nations Cup qualifier.

Malawi president expresses concern over Kenyan deaths

Malawi President Bingu Wa Mutharika said Wednesday that his country was very much concerned with the death of so many innocent people in Kenya\’s post election violence, which has seen the death of nearly 1,000 people since the opposition lost the 27 December polls.

Speaking at Kamuzu International Airport (KIA) in Lilongwe on his departure for Addis Ababa, Ethiopia, where he will attend a three-day 10th Ordinary Session of African Union Heads of State and Government, he said that an urgent solution needs to be put in place for peace to prevail in Kenya.

« We would like to see both the government and opposition leaders come to a compromise to end the situation, » he added.

The president said the situation in Kenya, once the beacon of stability on the continent, should be an example to African governments to learn that they need free and fair elections to maintain unity, peace and stability in their countries.

Mutharika added that although African Union envoys have been sent to Kenya, the summit will still engage the Kenyan issue on its agenda so that a possible solution can be found immediately.

Among other things, the summit will elect and appoint a new chairperson of the AU and other senior officers of the continental body.

Blackouts to continue in Malawi due to inadequate power supply

Malawi electricity supplier ESCOM’s Chief Executive Officer, Peterson Zembani, has warned consumers that the country would continue to experience power blackouts due to maintenance works which are being carried out at one of its hydroelectric plants in southern Malawi.

Speaking to APA during an interview Wednesday, he said the maintenance of Tedzani Hydro-Power Station has significantly reduced the sole hydro-electric power producer’s output from 300 megawatts to 245 megawatts.

« We are currently repairing the station so that power can be in its full capacity as soon as possible, » he said.

Zembani also said ESCOM has targeted April 2008 as the month consumers will be able to enjoy uninterrupted electricity supplies in the country.

Malawi has been experiencing blackouts since last year, a development which economic experts said has negatively affected production in the country.

Malawi's flood disaster set to get worse: govt official


Rising floodwaters devastating the crops, livestock and infrastructure across half the coutry and menacing more than 73,000 Malawians are going to get worse, government officials said Wednesday.

"It's getting worse in Malawi because it is raining everyday," said Lilian Ng'oma, a senior official in the disaster management ministry. "We expect more rains and more flooding this year.

Three people have died so far in the floods, she added.

"So far, a total of 12,199 households or about 73,000 people have been affected in different ways."

Ng'oma said the floods and storms that have pummelled half of the country's 28 districts, have "damaged houses, livestock, crops and infrastucture such as roads and bridges."

Relief efforts were being hampered by the fact that some parts of the country, near the border with Mozambique, could now only be reached by boat.

"If the situation does not improve, we will approach the army to assist us in lifting relief assistance by helicopter to Makhanga," Ng'oma said.

Some 2,500 Mozambicans living along the flooded Shire river had also crossed into Malawi in boats, she added.

"Water and crocodiles are everywhere and the easiest place to run to is Malawi," she said.

Malawi has spent 360,000 dollars on relief operations since last November, she said.

The country's meteorological services have warned that heavy rains may induce heavy flooding in flood-prone areas like the Lower Shire Valley.

On January 16, the International Red Cross launched an appeal for five million euros (7.2 million dollars) aid for the southern African to help mitigate the effects of the floods that have swept across the region.

War on Want supports G4S Malawi strike

G4S workers in Malawi are striking today in an attempt to obtain a living wage from the UK security company.

Last May, anti-poverty charity War on Want was part of an international delegation which found that G4S staff in Malawi were paid on average just £13 a month, which is a quarter of the living wage.

The delegation found that the inadequate pay means that G4S’s employees are so poor that daily meals often consist only of bread. It also found employees walk 90 minutes each day to and from work, and return to homes without electricity or running water and are unable to pay their children’s school or medical fees.

War on Want trade unions officer Jackie Simpkins, a member of the delegation, said: ‘G4S workers have the right to a living wage and decent conditions. We call on the company to do the right thing and heed this call from its Malawian staff.’

We’ve also asked G4S what it’s going to do about it, and to confirm what average wage it pays in Malawi.

We want to know how a UK based company can justify cutting corners when operating in areas of poverty - and therefore acerbating the issue.

G4S has acknowledged the ‘sensitive nature’ of our enquiry, and has assured we will receive a reply from G4S in Malawi. With an absent workforce there today, G4S should have plenty of time to ponder these questions, so we’ll let you know of any reply we may receive.

Everyday rain adds to Malawi's woes

Blantyre - Rising floodwaters devastating the crops, livestock and infrastructure across half the country and menacing more than 73 000 Malawians are going to get worse, government officials said on Wednesday.

"It's getting worse in Malawi because it is raining everyday," said Lilian Ng'oma, a senior official in the disaster management ministry.

"We expect more rains and more flooding in 2008.

Three people have died so far in the floods, she added.

"So far, a total of 12 199 households or about 73 000 people have been affected in different ways."

Ng'oma said the floods and storms that have pummelled half of the country's 28 districts, have "damaged houses, livestock, crops and infrastructure such as roads and bridges."

Malawi: 70,000 Malawians displaced as Mozambicans flee rising water, crocodiles

Over 70, 000 people have been displaced or have their crop fields destroyed as floods continue to wreck havoc in most parts of Malawi, a senior government official said Wednesday.

"The situation is getting worse in Malawi because the rains are still falling ev eryday, sometimes continuously for three days, and all the rivers are overflowin g thereby destroying crops and houses," Commissioner for Disaster Management Affa i rs, Lillian Ng'oma, told a press conference here.

Ng'oma said 14 of the country's 28 districts had been affected by the floods.

She said the situation was worse in the flood-prone southern Lower Shire Valle y where a number of villages had been washed away.

"People here have sought refuge in schools and churches and are in urgent need for food aid," she said.

"We are bracing up for a much worse situation; the peak of the rainy season is i n February and yet we are already receiving heavy rains," she said.

According to the Meteorological Department, most parts of Malawi are being pound ed by heavy rains, measuring between 60 and 100 millimetres.

So far, some 2, 798 hectares of different crop fields have been damaged.

Ng'oma said the Malawi situation was further worsened by the influx of Mozambica ns fleeing rising waters and marauding crocodiles.

"These Mozambicans are coming in dug-out canoes from the Mozambican side of the Shire River. Because there is water everywhere crocodiles are just swimming all o ver attacking people," she said.

So far 3, 000 Mozambican are camping in schools and churches alongside their Mal awian counterparts.

"We can't turn back the Mozambicans because this is an emergency," said Ng'oma.

She said although her department had been distributing relief items to the displ aced people, the situation was getting worse that her department could no longer cope.

"We are appealing for assistance from donor countries and agencies because we cannot cope with the situation," she said. "We are looking for food assistance, h ousehold items; we also need tents and roofing materials like tarpaulin and plas t ic sheeting."

So far at least four people have been confirmed dead since the beginning of the flood crisis.