Revitalizing Malawi’s Economy: Admarc’s 100 Day Milestone in Maize Price Stabilization
Key Business Points
- Maize prices in Malawi are falling due to targeted market interventions by Admarc Limited, providing relief to consumers and helping to contain inflation.
- Admarc Limited is diversifying its operations away from a near-exclusive focus on grain trading, with proposed ventures including fish farming and manufacturing of leather products.
- The success of Admarc’s diversification plans will depend on securing necessary funding and attracting competent personnel, with the company intending to engage government and private sector partnerships to mobilise resources.
As President Peter Mutharika marks his first 100 days in office, one of the earliest economic pressure points his administration faced was the soaring cost of maize, Malawi’s staple food. At the centre of the efforts to steady the market has been State produce trader Admarc Limited, which now insists its interventions have helped ease pressures and offered some relief to consumers. Maize prices, which were on the rise for the past years, are falling, with Admarc Limited chief executive officer Ben Botolo stating that the company’s targeted market interventions have contributed to the containment of inflation.
In its manifesto, the Democratic Progressive Party (DPP) pledged to reform Admarc into a "fully functional commercial entity with both local and international market linkages". Admarc Limited’s immediate response following the change of government was to assess national maize stocks and identify the drivers behind the sharp price hikes hitting markets nationwide. The company worked with the Ministry of Agriculture, Irrigation and Water Development to conclude that maize prices were "skyrocketing" and that urgent action was required to prevent the situation from spiralling out of control.
Admarc Limited has outlined a broad turnaround strategy to change its fortunes and reposition it as a commercially viable enterprise before 2030. Central to this vision is diversification away from a near-exclusive focus on grain trading, with proposed ventures including fish farming and the manufacturing of leather products such as bags, shoes, and belts using locally sourced animal skins, including crocodile skins. Dzira la chipulumuka (diversification) is a key concept in Chichewa business terminology, and Admarc Limited’s plans to diversify its operations are seen as a positive step towards becoming a more sustainable and profitable entity.
Lilongwe-based agricultural expert Alice Mukona described Admarc’s diversification plans as feasible, but warned that success will depend on seriousness, discipline, and the ability to attract competent personnel. She noted that the grain market today is not as it was in the 1990s, with many competing companies and individuals in the same space. Kugawa nzeru (sharing of ideas) and kuchita makola (doing business) are essential concepts in Malawi’s business community, and Admarc Limited’s plans to engage government and private sector partnerships to mobilise resources are seen as a positive step towards achieving its goals.
In November 2020, the Malawi Government signed a performance contract to recapitalise Admarc with K265 billion, but the capital injection has not yet been fulfilled. The company had also pledged to adhere strictly to all procurement guidelines under the Public Procurement and Disposal of Assets Act of 2017 and to operate free from ulamulilo wa kapolitika (political interference). However, Admarc failed to fulfil its pledges following revelations of a K330 million fraud and abuse masterminded by employees. The success of Admarc’s diversification plans will depend on securing necessary funding and attracting competent personnel, and the company’s ability to kuthandiza makola (do business) in a transparent and accountable manner will be crucial to its future success.
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