By Chikumbutso Mtumodzi, Dowa
So many people have been commenting variously as soon as the issue of the Malawi government signing a contact for the supply of AIP fertilizer with EAST BRIDGE was made known. But hold on a second people. This is a normal contract where 360 degrees due diligence was made with the conclusion that it will ultimately help Malawians.
Like any other holding company, EAST BRIDGE has many subsidiaries. For example, our good uncle Dr. Thom Mpinganjira of FDH Financial Holdings Company has FDH Bank PLC, and Ekhaya Farm Foods, just like Mulli Brothers, who are into produce, pharmaceutical as well as transportation. ETG in Africa supplies fertilisers but also does a lot on top of supplying fertilisers.
*EAST* *BRIDGE* is registered a company here in Malawi called East Bridge Commodities and Logistics. This is the company that will help the Malawi Government to deliver over 600,000 Metric tones of AIP fertilizers for the 2023/2024 agriculture growing season.
What this means is that the company that will supply a majority of AIP fertilizers in the coming growing season is pretty much a Malawian company.
East Bridge Commodities and Logistics has already started purchasing the fertilizers. Already 200, 30 tone trucks will arrive in the country by the end of this July 2023. This project alone will create more than 500 jobs for Malawians.
On top of this, the company is slated to make a huge investment in the agriculture sector, particularly in the establishment of mega farms. It will also be involved in the procurement of agriculture produce from farmers thereby helping to empower local farmers through bettter farmgate prices.
East Bridge Commodities and Logistics is also set to create a fertilizer manaufacturing company in Malawi by the end of 2025. Apart from creating employment, this fertilizer manufacturing plant will help to conserve forex as fertilizer will be manufactured locally.
Critical Facts about the deal
There is no upfront payment from the Malawi Government as such Malawians should not be worried that there will be any loss of taxpayer’s money as payment will only be effected later when the project is running
Payment will also be made through commodity exchange after a year and not through forex as has always been the case. This is a deliberate measure to help save the the country the scarce forex. East Bridge Commodities and Logistics is very comfortable with this arrangement.
It is also important to note that the necessary due diligence was done before signing of this agreement, and all processes were fulfilled as per procurement procedures.
A legal opinion was also sought as is required. On top of this, East Bridge Commodities and Logistics is not the only company that will supply AIP fertiliser this season.
There are about 15 companies that will be given contracts to supply of AIP fertilizer very soon. Most of the companies are also local companies that are owned by Malawians. This is in line with government’s agenda of empowering local Malawians towards the growth of the economy.
HOW MALAWIANS WILL BENEFIT FROM THE DEAL
This deal is not just a fertilizer deal, it is more of an investment project. Among other things, it will help this country in increased access to fertilizer, which will help more Malawians access the commodity in time, translating in greater yield and most likely greater incomes and better livelihood for Malawians.
The project will also help in creating more employment opportunities among the youths in the country. Ultimately, the deal will increase agriculture productivity as well as access to better markets by farmers in the country.
*DISCLAIMER*: The author is writing in his personal capacity
