Malawi—a predominantly importing nation— has in recent years witnessed a peak in construction activity.
Public infrastructure dominates.
A visit to the capital city, Lilongwe, now creates the impression of a construction site.
Two major road projects have taken shape: a 4.2-kilometre six-lane Kenyatta Road valued at K19 billion and a K9.8 billion dual carriageway Mzimba Street which has a 3.9 kilometre stretch.
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This notwithstanding, an upgrade of the M1 Road stretch between Cross Roads Hotel in Area 9 to Kanengo in Area 25, and other feeder roads into the city, turn Lilongwe into a busy space.
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Residential and business infrastructure construction works are also at a peak.
Simply put, the city is on an expansion drive in all directions.
A whole new residential area is shaping up on the Air Wing side, along the Chitedze-Mchinji Road, with the town also expanding substantially beyond Kaphiri towards 6 Miles; the entry point from the Southern Region.
The booming construction activity has in turn escalated demand for construction materials, much of which are imported from China, South Africa and neighbouring Zambia and Tanzania.
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Exacerbated by forex scarcity and volatility of the local unit, the Kwacha, the insatiable appetite for imports piles pressure on commodity prices, and eventually pushes up the average cost of building.
Industry regulator, the National Construction Industry Council (NCIC), feels the situation needs to be addressed decisively.
Through its Research and Training department, NCIC is to undertake a comparative data analysis on cost of building materials in Malawi, and its impact on the overall cost of construction.
NCIC Director of Research and Training Neema Kadaluka says the commission is also analysing the country’s potential towards import substitution to cut on imports bill.
“We have potential, as a country, to produce locally most of the materials that we need in the construction industry. We just need to work on scaling up production and putting in place policies that will ensure that those that are already in the industry should produce more to meet the demand,” she said.
She laments high amount of forex the country spends when importing construction and other materials, saying Malawi is, in turn, also exporting labour.
According to Kadaluka, the country should move towards increasing output to address some of the challenges the construction sector faces.
“If we start using locally-produced materials, we will contribute towards development of the country. We will also create jobs within the country if we are buying from within.
“Also, we will positively contribute to sustainability of the country’s construction industry. Shifting to using what is locally-made will help us use things that best suit our weather, climate and culture. We will make things that are tailored to our climate,” Kadauluka said.
At Kanengo in Lilongwe, a local firm Jand N Bilding Products is producing wall putty—a cement-based powder made of polymer and other minerals for smoothening walls.
The firm uses scientifically verified ground minirals, cement and chemicals in producing the commodity, according to one of its directors, Daniel Naula.
“This is economical. When you differentiate prices for lime and cement combined, compared to our ready-made lime putty, this one is cheaper because most of the materials we use are locally available.
“Secondly, the quality is better. The product is weather proof and can be used on the outer part of the building,” he said.
Currently, the firm is unable to meet the rising demand for the commodity with a production capacity of only about 1,000 bags per day.
But the firm is employing more than 100 people in the supply chain, with vast room for further growth, according to Naula.
“We are currently using smaller machines. If we are to have a bigger machine and increase production capacity, we may even start exporting because we already have customers in neighbouring countries including Zambia and Mozambique.
“This means the potential for exporting is big and if we are to reach that level, we should be able to bring forex into Malawi,” he says.
Some miles away in Likuni, a local firm, Bamboo Company under Mtalimanja Holdings, is production furniture using bamboo.
It calls on local farmers to enhance producing of the crop to satisfy the local and international markets.
The firm recently invested over K2 billion in boosting production of bamboo products following overwhelming response and enquiries from various European countries.
Its general manager, Thokozani Mathandalizwe, says there is vast room for growth.
“From bamboo, we produce a lot of produce including doors, tables and floor tiles. Market response is very positive as we have a lot of orders from the hospitality industry in the lakeshore district.
“Much of our production materials are using locally made commodities and we are saving forex while creating more job opportunities,” he said.
Malawi’s strides to shift towards export-oriented industrialisation seem to be yielding fruit, albeit minimal.
Malawi is pursuing various policies including the National Export Strategy (NES II) in its desperate attempt to narrow the ever yawning trade deficit and ensure an export-led economic growth.
To be implemented between 2021 and 2026, the second NES is crafted in a way to facilitate an increase of exports as a percentage of gross domestic product from 14.6 percent to at least 20 percent.
