By Mc Donald Chapalapata, a Contributor

Listed National Bank of Malawi (NBM) plc has contributed a total of K70 million towards the fight against the Covid-19 pandemic following the declaration of a state of disaster by President Lazarus Chakwera on 12th January 2021.

The Bank contributed K10 million through the Citizens Response to Covid-19 Initiative a few days ago and has further released K60 million worth of medical supplies to the Minister of Health Hon. Khumbize Kandodo-Chiponda.

Speaking in Blantyre at a symbolic presentation of the items, NBM plc Chief Executive Officer Mr. Macfussy Kawawa said the Bank has responded to the call by President Chakwera to unite in the fight against Covid-19.

“We have made this commitment for two reasons- first, we believe that at a time such as this, solidarity and collaboration are vital in ensuring that Malawi’s response to Covid-19 is successful. Second, not only have the operations of Bank been affected, our customers and suppliers and the communities within which we operate have also been negatively affected.”

“As the Bank of the Nation, we felt it necessary to contribute towards response efforts for the greater good and for a better business environment.  We take this as our contribution towards such an investment.  We recognize that our Bank has successfully grown because of the support rendered by people of Malawi. We are therefore duty bound to step in and contribute whatever we can in these times of crisis,” said Mr. Kawawa.

The NBM CEO added that Bank also supported the fight against Covid-19 during the ‘first wave’ of the pandemic in 2020 with the provision of medical equipment to Blantyre District Health Office and College of Medicine, masks for vulnerable pupils in Blantyre through the Blantyre City Council mask drive and implementation of customer awareness/safety measures within all its physical locations to the value of K49 million.

“As the Bank of the Nation, we are still here to help in whatever way we can so that we save lives of our customers, friends and families hence our commitment to continue supporting these efforts where necessary. We are all in this together until we defeat the pandemic. We have all the hope that this pandemic will be contained and we will go back to our normal lives again,” said Mr. Kawawa.

Receiving the donation, Minister of Health Hon. Khumbize Kandodo-Chiponda, who was accompanied by fellow cabinet colleague Minister of Information Gospel Kazako hailed NBM plc for its commitment to the nation, adding that it would help ease gaps in health care provision. She added that the items would be distributed to key need areas across the country following an assessment by the Covid-19 response team.

“We are very grateful to NBM plc for this contribution. As you aware, the strain on the health sector is unprecedented. Therefore, the situation calls for support from all sectors of the country in order to win this fight against the pandemic,” said Hon. Kandodo-Chiponda.

Since the first case of Corona virus was reported in Malawi in April 2020, more than 500 people have died from the disease. Addressing the Nation on Sunday, President Chakwera said in 310 days against the fight of the pandemic, a total of 17,963 coronavirus tests have been conducted in the past seven days, which is an average of 2566 tests per day, representing a 50% increase on the average number of daily tests the week before.

health care provision. She added that the items would be distributed to key need areas across the country following an assessment by the Covid-19 response team.

“We are very grateful to NBM plc for this contribution. As you aware, the strain on the health sector is unprecedented. Therefore, the situation calls for support from all sectors of the country in order to win this fight against the pandemic,” said Hon. Kandodo-Chiponda.

Since the first case of Corona virus was reported in Malawi in April 2020, more than 500 people have died from the disease. Addressing the Nation on Sunday, President Chakwera said in 310 days against the fight of the pandemic, a total of 17,963 coronavirus tests have been conducted in the past seven days, which is an average of 2566 tests per day, representing a 50% increase on the average number of daily tests the week before.

By Stephen Mmodzi and Chimpele Kelvin Tsamwa

It’s funny how we have shifted almost every aspect of our lives online: dating, shopping, news, attending weddings/ funerals, gossiping, you name. It won’t be too surprised if we shall be able to download food over the internet soon.

“Can I please have a double cheeseburger, one Kombeza yogurt, and a bottle of water?”

You confirm your order, pay, click download, and in a matter of seconds voila! Your taste buds are tingling.

It might sound far-fetched but imagine how shocked someone who died a few decades ago would be if they woke up to find that people can video call each other on mobile phones, 3D print guns in their garage, remote manage mining equipment, perform medical operations, and take part in virtual tourism. Or better yet, a robot can now write an entire article and make perfect sense. Mind-blowing huh?

Technological breakthroughs have also made doing business easier for both local and international markets. Digitalization has pushed down the cost of trading and connecting consumers and businesses across the globe thereby shortening global supply chain systems.

So, what is digital trade?

Digital trade is not a new phenomenon, we have been doing digital transactions for a while. There is no universal definition of digital trade but we like to simply define it as “the buying of goods and services over the internet, and the transfer of money and data to enable such transactions”.

It has more to do with just the buying and selling of goods/ services over the internet – it also encompasses cross-border data and information transmission.  So, before you dismiss it as something that doesn’t concern you – the fact that you use WhatsApp or, err Signal, download apps, stream church services, Netflix and chill – as it counts on user view per exposure that adds to trade figures, means you are part and parcel of this revolution.

When you flirt on Facebook with that woman in Brazil, download videos from YouTube, or follow your role model on LinkedIn, your information travels from servers located in one country to laptops or smartphones in another country. So even though money sometimes never changes hands in these transactions, you participate in trade by moving data across borders.

Global digital trade

According to the World Trade Organization (WTO) in 2016, the growth of digitized physical products has grown tremendously such that now digital trade far much outpaces sales in physical products. This has also been seen in how investment in intangible assets now outstrips by far figures to physical assets.

In 2019, the value of the digital economy was between 4.5-15% of the Global Economy according to the United Nations Conference on Trade and Development (UNCTAD). And this was pre-covid-19 pandemic levels – before lockdowns and other travel restrictions which completely changed the consumption, use plus experiences of the digital economy.

Let’s put it into perspective: Zoom’s (the videotelephony and online chat platform) valuation presently is much more than the world’s 5 biggest airlines combined! That is KLM Royal Dutch Airlines, Delta Airlines, International Airlines Group, Lufthansa, and American Airlines.

A name has been coined recently: FAANG, implying Facebook, Amazon, Apple, Netflix, and Google, who have become the most valuable brand names in the world. The same applies to the rise of blockchain products i.e. Cryptocurrencies like the famous bitcoin value. However, it’s impossible for someone to physically hold any of the above-mentioned products.

We have become dependent on these digital products so much that a mere blip of a second in service interruption causes losses in tens of millions of US dollars including loss of lives. Of these recent growths, it is very unlikely to find companies from developing countries, including Malawi.

Some countries already have realized the potential in this and the value of digital trade such that they have made relevant policies to benefit from the growth, i.e. in revenue collection, education, enabling clauses, etc. The perfect example is Estonia, a tiny European country that has an impressive digital economy.

Estonia embraced a digital economy such that 99% of all dealings with the government are digitally done, thereby improving efficiency, governance, transparency, innovation, improved markets, banking taxation, investment, etc. Most countries are now shifting or enabling environments towards digital and knowledge led economies to stay competitive and adapt to the new changing realities.

Why is digital trade important to Malawi?

Digital trade is an increasingly way for Malawi to trade with the rest of the world and opens up great opportunities for Malawian consumers and businesses. It gives Malawian businesses access to a global market and the chance to further grow our economy.

There are so many areas that do not need huge capital investments. Some, if not most, just require an internet-connected phone to start.

To attract more foreign direct investment (FDI), these days of more transparency companies would like to be seen investing in sustainable projects as these tend to have a high return on investment. As such data has become a very important component, which countries use to FDI, which if properly housed and harnessed can attract investment that can easily be scaled to other fields.

A UNCTAD assessment found that digital trade has the potential to move Malawi closer to achieving its development goals but the sector needs to be structured and organized. “Clear policy directions and higher visibility of the digital economy should be prioritized in the national development agenda,” the assessment says.

Barriers to digital trade

As with all forms of trade, digital trade has got its own set of challenges. The following are some of the most significant issues that local business face as far as digital trade is concerned:

·       Online payment issues

·       Lack of trust in online issues

·       Unreliable internet connections

·       Low technology adaptation by firms

·       High internet/ data costs

·       Low levels of internet penetration

·       Weak IT skills across the population

Where art thou, Malawi?

The UNCTAD assessment mentioned earlier also said that to accelerate progress, Malawi must beat other hurdles such as red tape, costly and time-consuming procedures that slow e-commerce uptake. More than 80% of surveyed businesses cited an unsupportive regulatory environment as a barrier to digital trade in the country.

Financial institutions in Malawi provide meager and relatively costly credit to Micro, Small, and Medium Enterprises (MSMEs), and the products and services they provide are not aligned to e-commerce business models, the assessment notes.

One of the first (major) steps to take would be by developing a stand-alone policy and strategy on the digital trade development agenda.

Those of you who have been working from home the past year are obviously aware of how important digital services are to productivity and the economy. For starters, you can work from home largely because of digital services, video conferencing with colleagues, buying of household items online; we have been given a glimpse of the future, one which students can virtually learn from home, doctors can remotely diagnose patients and engineers can design and share files to 3D print personal protective equipment. As time goes, the unavoidable switch toward digital services will be speeded.

As the Covid-19 pandemic continues to restrict the physical movement of goods and people, digital trade continues to play a critical role in keeping trade going – electronically. Digital trade is now more important than ever and as a country, we need to make sure we are not left behind.

About the authors:

Stephen Mmodzi is Lead Expert Coordinator for United Nations Least Developed Countries, Geneva and Europe Chapter, and co-founder of wergomarket.com and vendor247.shop

Chimpele Tsamwa is the Master of Lightbulb Moments at Green Thingz and author of African Dropshipper.

ReplyForwa

By Mc Donald Chapalapata, a Contributor

National Bank of Malawi (NBM) plc has rolled out an insurance premium financing facility where the bank will pay annual insurance premiums on behalf of its customers thereby freeing up their cash flow in the process.

Announcing the introduction of the facility in Blantyre, NBM plc Head of Retail Banking Division Oswin Kasunda said the Insurance Premium Finance (IPF) product allows the bank to pay insurance premiums to the insurance company on behalf of the customer and grants a loan to the customer which is repaid in monthly instalments.

“The facility enables our customers both retail and corporate clients to pay their insurance premiums in instalments rather than in one lump sum amount. This facility has a low interest rate and allows the customer to spread the cost of insurance over the term of the loan,” said Kasunda.

“Insurance Premium Finance also smoothens business cash flow by allowing payment of premiums in monthly affordable instalments.The security for the loan is the policy itself and its proceeds, no other security is required,” added Kasunda.

He explained that the first instalment is due at the inception of the policy and the product has a maximum tenor of 10 months and minimum of 8 months.

“This product covers premiums for commercial, auto, plant and machinery and other major insurance covers,” said Kasunda.

He said the facility offers a quality service and foster goodwill between the bank and insurance customers who have had challenges to pay insurance premiums upfront.

“We also feel that by offering this product in partnership with insurance brokers and insurance companies we will have established a long term mutual benefit relationship to all parties,” said Kasunda.

A prospective customer Phumisa Kaitane who is Head of Finance and Corporate Services at Nation Publications Limited (NPL) hailed NBM plc for coming up with the facility saying it has come at a right time when most companies and individuals are facing cash flow challenges due to the Covid-19 pandemic.

“As a customer, I manage multiple insurance policies for both corporate and employees and this involves a huge upfront cash outlay and this product will definitely eliminate this requirement and ease my cash flows for management of other operations.”

“Employees always seek relief from the company to have their insurance premiums defrayed over a period and with this product, I will have the leverage to bundle all the insurance needs of these employees into a single premium finance contract, allowing for a single payment plan that the company will administer on their behalf with the bank,” said Kaitane.

Giant sugar maker Illovo Sugar Malawi plc has concluded a three month K100 million promotion dubbed ‘Iponyeleni kwakuya ndi Illovo’ saying it has achieved its objectives of exciting and rewarding its customers and would be customers.

Speaking in Blantyre at the end of the promotion, Illovo Sugar Malawi plc Managing Director Lekani Katandula although the year 2020 was generally a difficult year for everyone with COVID-19 pandemic having such dire effects on many businesses and the nation as a whole; as business Illovo Malawi plc managed to achieve some positive outcomes through the promotion.

“Not only did we manage to excite and reward our customers, shoppers and consumers through the IPONYERENI KWAKUYA PROMOTION, we also managed to increase our provisional seasonal price for sugar cane per ton to our growers from MK225, 653 per ton to MK244, 245 per ton,” said Katandula.

He said through the K100 million worth promotion which was launched in October 2020, six customers are now new proud owners of six brand new Nissan NP 200 pick-ups and 202 customers have  won bicycles and an addition 336 customers were rewarded with bags of fertilizers.

“More than 8,000 shoppers have also walked away with different branded items like zitenje, t-shirts, shopping bags, caps, mugs amongst other items. I believe TAYIPONYERA KWAKUYA indeed!” said Katandula.

He hailed his commercial team for a job well done in driving the promotion and all other functions within the business that work tirelessly to ensure that the company has enough product throughout the year and in the right sizes across the country to meet their customer, shopper and consumer needs.

Katandula said they decided to come up with the promotion as one way of building value for their customers and consumers.

The promotion was categorized in four namely stockists, grocers and table tops, mystery shopper activation and supermarket promotion where customers, shoppers and consumers won various prizes.