Malawi: Mace trade value grows to 31 million

27 June 2007, The Daily TImes
URL: http://www.dailytimes.bppmw.com/article.asp?ArticleID=5287

Lilongwe:  The objective of the Malawi Agriculture Commodity Exchange (Mace) of linking agro-sellers with buyers is paying off as the organisation has recorded an increase of 31 million in its trade value from 20,000 in 2004 when Mace was established.

This was disclosed Wednesday in Lilongwe by board chairperson for Initiative for Development and Equity in African Agriculture (Ideaa) Malawi and Mace George Kanyama Phiri in an interview during a daylong workshop for Mace stakeholders in Lilongwe.

Kanyama Phiri said this growth in trade value is an indication that Mace was on the right track in its efforts to improve lives of Malawian farmers. He also said this showed Mace was able to respond to environmental changes.

"You will find that from the time Mace was established in 2004, there has been growth in trade for farmers because now they know where to buy and sell their goods. Perishable goods are not getting bad anymore because of lack of markets.

"Demand for Mace services has increased and with all these changes we are able to respond depending on changes in the environment we are operating. This is an indication of progress," Kanyama Phiri said.

He further said Mace intends to franchise the 13 markets that it has across the country starting with those that have more potential to stand on their own because the system was cheaper and cost effective.

"Much as there has been progress, there are challenges and the main one being that some farmers do not understand the role of Mace, they think it is supposed to buy their goods. We should turn this challenge into success buy sensitising them on the actual roles of the organisation," Kanyama Phiri said.

Speaking at the workshop, Principal Secretary for Agriculture Patrick Kabambe said government's vision of transforming Malawi into a producing and exporting country could be realised if farmers have information on where to buy and sell goods and at what prices like Mace was doing.

Kabambe urged stakeholders to work together to assist in transforming smallholder farmers from subsistence farming to commercial farming, mainly by exposing them to new markets through initiatives like Mace.

"This is the only way we can help our farmers to grow and move out of the poverty trap. Government cannot act alone, all sectors of the economy must understand their responsibilities and work together," Kabambe said.

Mace has three main market information centres at Limbe, Lilongwe and Mzuzu and its other markets include Lobi in Dedza, Muloza in Mulanje, Jenda in Mzimba and Bolero in Rumphi.

Mace also aims at making markets work better for poor farmers and lowering the high risk and transactions cost that hinder market development in Malawi.