Reported By Brenda Nkosi:
Minister of Trade, Vitumbiko Mumba has expressed anger at how companies owned by locals are deliberately pulled down by those meant to promote them.
Mumba showed his anger on Wednesday when he toured the only powdered milk making company in Mpemba, Blantyre, called Mach Milk Company, when the Managing Director told him how challenging the business environment was.
Among others, the company was forced to pay K500,000 to Sana at Ginnery Corner to have their milk sold at the shop, has been operating with a low capacity transformer as ESCOM was not interested in putting a high capacity transformer, and Malawi Revue Authority has not exempted them on tax as directed by the President.
Mumba said these are the companies that the system needed to support.
“If we have Malawi companies, we reduce imports. They are producing very high quality powdered milk, which is the only company in the country. Even their yoghurt is very nice yet shops are deliberately blocking them,” he said.
Mumba therefore went to Sana at Ginnery Corner in person and demanded they give Mach back its money.
“I demand a refund with interest and inflation consideration. Officers from Commission for Fair Trading and Competition (CFTC) will be here tomorrow to fine you for this discrimination and unfair treatment,” he said.
The Minister warned Sana against treating local companies unfairly, saying government will not tolerate such tendency.
He also directed his office to write ESCOM immediately over the transformer and MRA to comply with the President’s order on Small and Medium Enterprises’ tax reduction.
Managing Director for Mach Milk Company, Madalitso Phiri said he is happy that government is able to recognize that they are struggling to establish the business.
“The visit was fruitful as government has taken up our problems for us to thrive and grow. We operate in an abnormal business environment, that is why Malawians are failing to operate companies,” he said.
