| Overview : In today’s competitive world, countries strive to boost their productive capacity in order to produce goods and services sufficient for both domestic and export markets. This characterised the so-called import substitution industrialization drive adopted by many African countries immediately after independence in the 1960s. However, since no nation can be completely self-sufficient and produce all the required goods and services, the transactions amongst countries through the import and export of goods and services becomes inevitable. To achieve and sustain sound macroeconomic fundamentals in an economy, which is characterised by a strong balance of payments, no country shall import goods and services more than its exports. In addition, the decline in export of goods and services and the growth in the import bill of a country also creates scarcity of foreign exchange to meet import obligations, which in turn generates scarcity of the most sought after commodities such as drugs and fuel. This is the case in Malawi as the country is struggling with a structural trade deficit. In 2010 Malawi imported US$2.3 billion worth of goods and services (43 per cent of GDP), and only exported US$1.2 billion (22 per cent of GDP). This reflects a major unsustainable structural trade deficit. Therefore, a National Export Strategy (NES) was prepared to develop Malawi’s capacity to produce and export on the scale required by Malawi’s import and consumption bill. Also, the manufacturing sector accounts only for 11% of GDP and is inward oriented as only 14% is exported. Notwithstanding, Malawians have developed a strong appetite for foreign made goods and services, preferring such goods over locally manufactured products. Malawians are in fact buying more imported goods and services than locally produced ones. This has negative repercussions over local producers and the economy at large. On the other hand it is questionable if Malawian producers can currently satisfy the demand of the population regarding the range of produced goods & services, as well as its quantity, quality and competitive prices. In order to reverse these harmful circumstances, the Government of Malawi, under the leadership of the Ministry of Industry and Trade, launched in 2010 the “Buy Malawi Campaign”, an initiative envisioned to sensitize and persuade Malawians to buy more of locally produced products over foreign ones. The Campaign was essentially meant to empower local Malawian companies and entrepreneurs and to stimulate more local production for the benefit of the end-consumer and the economy. The campaign was aimed to enrol as many local businesses as possible, provided they fulfil eligibility criteria pertaining to quality, socially and environmentally acceptable standards, and adherence to the laws and regulations of Malawi. This campaign will not only have effects in reducing the growing import bill of the country, but will also promote and empower the local industries. It is against this background that the Ministry of Industry and Trade is seeking the services of a consultant to carry out a strategic review of the Buy Malawi Campaign, that is elaborated in a Strategy, in a bid to improve its successful implementation and to duly sensitize Malawians, private persons and businesses alike, as well as government institutions, to preferentially buy locally produced goods and services. |
