US ambassador to Malawi, David Young, has discouraged the tabling in Parliament of the draft Crops bill, saying it will discourage possible investment in the country.
The bill is set to be tabled in Parliament during this meeting.
Young made the call at a press briefing in Lilongwe on Thursday as he responded to Malawi’s achievement of a $174 million Extended Credit Facility (ECF) with the International Monetary Fund.
“In order to attract expanded private sector growth and, thus, more jobs, Malawi should enact policies that encourage increased investment and trade. Also, it is important that legislation works to encourage private sector-led growth and not deter it.
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“The draft Crops Bill in particular should be looked at carefully to make sure it enhances private sector investment and trade,” Young said.
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He said that fundamentally, the intent of any legislation must not be to control the private sector but to empower and encourage, adding that the fresh start of the ECF could be squandered.
He said the biggest problem with Malawi is that its economy is not growing, yet the population is growing to the extent that it is expected to double in 20 years.
“This will not work; it will keep people in poverty, and there has to be policies that will attract private investment,” he said.
According to Young, there are some laws that are pushing back possible investors. He cited the land and crop bills.
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“The country’s laws have to speak to extended credit facilities with the International Monetary Fund,” Young said.
Among others, According to him, the Special Crops Bill which seeks to replace the Crops Act of 2014 tends to regulate the production, manufacturing and marketing of crops in Malawi.
Among other things, the draft Crops Bill gives powers to the Minister of Agriculture to declare that if he is satisfied with the development of any crop, he shall declare that crop to be a special crop.
“Whenever a crop is declared to be a special crop under section, the Minister shall, by order published in the Gazette, establish an authority for promoting and fostering the development of a special crop in such areas as the Minister shall determine,” reads part of the bill.
The bill further says when a crop has been declared to be a special crop and an authority in respect of that special crop has been established in any area, no person shall grow, sell, barter, or buy that special crop in such area unless he is the holder of a valid licence authorising him so to do.
According to the proposed bill, the minister may, in his discretion and without assigning any reasons, refuse to issue a licence to any person or revoke or suspend any licence that has been issued.
Any decision of the minister to refuse, revoke, or suspend any licence shall be final and shall not be questioned in any court.
In August last year, the Macadamia Association of Malawi also criticised the bill.
It was no adequate consultation for the bill, was no founded on risk analysis and that it gives an overreaching mandate to the Ministry of Agriculture.
In his response yesterday, Minister of Agriculture Sam Kawale has said government is implementing policies that are good for both the producers and consumers and for the private sector as well as the local farmers.
“No policy will be developed to harm the other. However, if there is a particular policy that one feels is not ok, the ministry is always ready to listen and act on those issues of concern” Kawale said.
