Tuesday 30 October 2012

Maam Joyce Banda, President of Malawi, has a Plan for her Country

Malawi is choosing a growth path that will see it overcoming the third world scourge of poverty that is so pervasive in Africa. Malawi is choosing sustainable economic freedom. Who is to say Malawi will not break Singapore's record of growing it's GDP per capita by 5 400% within a period of 40 years. Singapore grew its GDP per capita from US$400 in 1959 to US$22 000 in 1999. And it doesn't have any natural resources to speak of, just it's people and it's strategic location in that region.

Some snippets from Maam Joyce:

  1. We need to pursue an agenda of prosperity, to make things for sale to Malawians & others that will create more wealth. My comment: Fact is Malawi's current GDP per capita is US$300. This is slightly less than Singapore's US$400 GDP per capita at its independence in 1959. It's current GDP per capita is about US$30 000, an increase of 7 400% in ONLY 50 years.
  2. Malawi & other African countries face what has been called 'the challenge of our third liberation' which is described as the necessity of overthrowing the current dysfunctional economic systems which are responsible for the pervasive corruption and patronage we have.
  3. New economic systems need to be developed that encourage businesses to invest & that allow us to participate meaningfully in the global economy.
  4. Now for the first gem: We need to support educational systems that allow our citizens to take up skilled jobs and to build infrastructure that is supportive of growing economies.
  5. While a great must be accomplished, I am optimistic because we can today easily discern the lessons of other successful countries which were once as poor as us. We need to emulate the model in which countries from China to Costa Rica have developed, not through aid, but through entrepreneurship and investment.
  6. We live in an era when more people have left poverty than at any other time in human history. I intend for Malawi to join in this great march of progress. We are ashamedly intent on using private sector know how to turn Malawi from one of the six poorest nations in the world to one that we believe can be an example to others on how to turn around a difficult situation within a short time. My comment: This is very possible, as long you have the resolve.
  7. Another gem: We need to diversify our agriculture sector, ensure there is more value for the small farmer through direct contracting, kick-start our tourism sector & encourage more private sector investment in other areas, including mining.
  8. And yet another gem:  We need to reduce the cost of our landlockedness by improving competition around transport routes - this may be bad for us, what with all the truckers striking & negatively affecting the operation of commerce & industry in countries that use our transport routes. The problem is they may be forced to get alternative routes, for example through Maputo and Beira thus taking away jobs to those places.
  9. The Real Jammer: Our aim is that soon, instead of coming to the EU and other donors with cap in hand to look for aid, we will be on an investment road show.
  10. To cap it all, the diamond on the gem: More than anything, however, we should not lose sight of the overall aim to put more cash in the pocket of ordinary Malawians.

Go Maam Joyce Go, restore dignity to your people & show us the way. Siyabonga.



Tuesday 16 October 2012

R350 million available as SETA refunds

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R400 million venture fund for high impact SMEs

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