New Sme Group Focuses on Expanding Exports

Small-to-medium enterprises in Malawi have formed a new group aimed at boosting exports, called SME-4X. SMEs account for a large part of the business community in Malawi, however, most only sell their products locally, at low prices, making it difficult for them to grow.

Most SMEs who spoke to HARAMBEE TODAY, cited lack of connections to international markets and insufficient capital to produce more as the main challenges to achieving export growth. They hope the new group will help bridge the gap.

Rehema Mkangama, owner of ReyStitches, a tailor shop which designs garments, including dresses, shirts, bags, and costumes, said Malawi has talented and hardworking people who produce exportable products but they can only sell their products locally at cheaper prices due to the lack of opportunity.

“We make quality products which would sale anywhere, but we are restricted to sale them to local people only because we don’t have any access to any international markets. In the end, we don’t make enough profits to grow our business,” Mkangama said.

She believes that if given the opportunity, they would make three times the profit they make in Malawi, thereby contributing more to the country’s economy.

Mkangama once had an opportunity to sell her garments to people in South Africa and Norway. Her products sold for three times the price she charges in Malawi. She hopes the new SME-4X group will help unlock market opportunities.

“We need such groupings if we are to grow big and make significant market expansions and sell our products outside Malawi,” Mkangama said.

picture: www.queenieaustralia.com/formal-dresses

Stanley Howse, chairman of Home Oils, manufacturers of Baobab coffee, powder, oil, and soap, and Moringa powder said it has been their long standing desire to have their products exported to other countries but they have never had opportunity to secure an export market.

“We produce very good and quality coffee, powder, and other food products...