The National Association of Small and Medium Enterprises (Nasme) has bemoaned continued lack of information and financial support to allow small and medium enterprises (SME) to export horticulture products to countries with high demand.
This follows revelations that countries in the Arab region are looking for horticulture products, an opportunity that SMEs in neighbouring countries such as Zimbabwe, Zambia and Kenya are exploring.
For instance, information available on mordorintelligence.com indicates that the United Arab Emirates (UAE) agriculture market size is expected to grow from $3.17 billion in 2023 to $3.92 billion by 2028, at a compound annual growth rate of 4.34 percent during the forecast period.
In an interview on Wednesday, Nasme Chairperson William Mwale said the local SME sector requires financial support to aggregate products and export to such countries.
He picked on the Malawi Investment and Trade Centre (MITC), saying it is not doing enough to capacitate the local sector through information sharing and promotion of exports.
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“We have heard about opportunities in Dubai and the entire Arab region but information is scanty. We also do not have adequate finances to meet the entire export requirement but if we get support, we would be able to recover all the investment.
“Currently, we are losing out on export proceeds of over one million dollars every week in horticulture products. If supported, SMEs could bring in this much and contribute significantly to mobilising the much-needed foreign exchange,” Mwale said.
But in a separate interview, MITC Chief Executive Officer Paul Kwengwere said the SMEs sector’s challenges are historic.
“In some cases, they fail to meet the quality demands; sometimes it is the issue of consistency because the buyers want continued supply of the products. When it comes to information, we ask them to engage us and we provide all the information they may need.
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“Recently, we facilitated a deal for pineapple exports to Abu Dhabi from an SME in Mulanje. The importer wanted the fruits packed in certain cartons which would preserve the fruits. When we engaged the SME he said he had no money to buy such cartons and that is really not our mandate,” Kwengwere said.
He added that they have resorted to holding workshops to orient SMEs and other exporters on available opportunities where financial institutions are allowed to share information on loan portfolios that can aid exportation of products
