Thinking about Balaka

For some time now, Balaka has been on our minds. No town is slated for such a diverse range of investments as Balaka is in the near future. First and foremost there is US$220 million which is fast tracked by the French cement giant LaFrage so it can begin producing cement this year. . African Cotton Ginning and Textile Manufacturing Company plans to enhance the country’s integrated cotton industry through a US$12 million project that will employ 500 people. Another textile industry investment will come from the Chinese Textile Industry Company which plans to invest US$25 million and create expected to create 1,100 jobs and provide contract farming support to 100,000 cotton farmers in Balaka and parts of Ntcheu areas. And then there is Kangunkunde monazite mine, which is being held up by legal wrangling

Heavy Mineral Sands has earmarked US22 million for Malawi to employ 200 people. All in all we talking about 3000 new jobs. That is likely to change Balaka from what sometimes looks like a sleepy town that lost its direction into a vibrant crossroad town.

All these are private initiatives. What should government do? The recent response to private investment in Kayalekera does not speak well of governments prepapredness in dealing with large investments. The government failed to provide electricity to the mine, to complete road infrastructure in time, to provide rentable housing to the miners etc. In the case of Balaka the Basic infrastructure is there. Balaka is the meeting point of and near to all Malawi’s major transport means. And the first optic fibre ring linking Blantyre and Lilongwe will go via Balaka (and Zomba, Salima, Dedza ). In addition Balaka is connected to the national electricity grid. However, there is still a lot the government can do. Malawi Housing Corporation should consider providing additional housing. The Malawi government could encourage clusters around the textile industry by opening a textile school, encouraging small textile producers in textile manufacture etc attracting other textile related investors to Balaka. But this requires housing, schooling, adequate water and sanitary facilities etc.