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HIV/ Aids Clouds the Optimism

Upbeat and optimistic is what transporterRafik Gaffar feels about the transport scene in Malawi - and he has every reason to feel so. There is, however, one stumbling block that stands in the way of the determination of transporters to grow the trucking industry in this landlocked country. It is HIV / Aids.

Gaffar, a director of R. Gaffar Transport Ltd, one of the largest hauliers in Malawi, tells FleetWatch that the local trucking industry has experienced good growth over the past two to three years and that things are really looking up for local operators. His company alone has doubled the size of its fleet over the past two years from 60 to 120 vehicles.

"About three to four years ago, Malawi was almost completely dependent on foreign hauliers. That has now changed," he says, citing the transport of fuel as one are where this is clearly evident.

"Being a landlocked country, Malawi has to import all its fuel and a few years ago foreign hauliers would bring it into the country. Now, however, Malawi transporters own around 150 fuel tankers and are doing the hauling themselves. This is advantageous to not only the hauliers but also to the country as Malawi is no longer losing foreign exchange to foreign hauliers which they pay in US Dollars he tells FleetWatch.

Certainly foreign hauliers are still running in and out of the country hauling other goods - mainly agricultural related - but the locals are now getting a bigger slice of the action. According to Gaffar, this arises from a protocol agreement signed between Malawi, Mozambique, Zimbabwe and Zambia to allow participation by all.

"If goods arrive in Mozambique bound for Malawi, the Mozambicans also want a slice of that business so it is divided under the terms of the protocol. The same applies for Zimbabwe. If there is say, 10 000 tons of fertiliser bound for Malawi the transport will be divided between Zimbabwean and Malawian hauliers under the protocol," says Gaffar.

In tune with needs

He is also highly complimentary towards the Malawian Government which he sees as being in tune with the needs of the transport industry and with the overall welfare of the people.

"Some two years ago, the Government used some of the aid money that came in to provide minibuses to transport people living in the remote area of Malawi. People suffered a lot by having to walk miles. Now they have transport to take them to the markets," he says.

Interesting is that the President of Malawi, Bakili Muluzi, was once closely associated with the transport industry having actually run a transport business during which time he served a spell as chairman of the Road Transport Association of Malawi. It's no wonder then that the Government is transport friendly.

Endorsing this optimistic view is Maz Vico, the Harare based MD of Blue Fin, a subsidiary of the Super Group. In all, Blue Fin has about 650 trucks covering longhaul routes including Malawi, Mozambique, Zambia, Zimbabwe, the DRC and South Africa.

"I agree that there has definitely been an upturn in volumes of transport operating in and out of Malawi, especially in the past eight to nine months," says Vico. "I think the country is starting to see some stabilisation after the change in Government and they have had a couple of good agricultural years too. Hopefully it will get better, but they have a long way to go!"

Slight hiccup

The supplier side shows a different picture - one that projects a slight hiccup in the general upbeat mood.

Benno Soeter is the MD of Lake International, the local distributor for Navistar. He also operates the Leyland/ DAF franchise in Malawi. "In such a small market, you must go multi-franchise," he tells FleetWatch, adding that total truck sales - new and used - run at around 350 units per year.

According to Soeter, the new truck sales market was vibrant until around June this year when the government introduced a 5% excise duty on new and used trucks.

"We are now seeing a string swing towards used trucks because new trucks are becoming too expensive. This is particularly noticeable in the truck tractor market segment. That's why the Navistar distributorship is important to us. We can import used trucks from America and there is a growing market for these." There is no law against importing used trucks in Malawi as there is in South Africa.

He says the trend is not only driven by the 5% excise duty but also by the fact that insurance on vehicles is extremely high. This is a consequence of Malawi's high accident rate which, at 228 deaths per 10 000 vehicles, ranks as one of the highest in the world. In comparison, the UK has the lowest number of road deaths at 1.4 per 100 000 vehicles.

The demand for new rigids is still there evidenced by the fact that Soeter has just received an order for 15 DAFs from Southern Bottlers, the local softdrink and brewery company.

A developement causing excitement in the country is the new Nacala Development Corridor designed to link land-locked Malawi and Zambia to the Mozambican port of Nacala. The corridor is a joint venture agreement between the governments of Malawi, Zambia and Mozambique.

The existing railway line is to be upgraded and once completed, experts say this will be the most economically viable route for imports and exports. Fuel, for example, could come in through Nacala by rail instead of by road from Beira and Dar-es-Salaam, as is presently the case. This means Malawi could well see the development of fuel depots in Lilongwe.

Although this corridor will take goods away from truckers, even they are upbeat about it. "Sure it will take goods away from us but it will save the country millions of kwachas. It is in the interests of the country and that is how we view it. We will just have to find alternative work - and we will find it. There are other opportunities," says Gaffar.

Stumbling Block

Although the overall picture for transport in Malawi is a rosy one, there is one big stumbling block - HIV / Aids.

"People are dying like chickens from Aids. Our drivers are being affected and we are now experiencing a driver shortage of skilled staff such as mechanics. Aids has - and will continue to have - a devastating effect on Malawi," says Gaffar.

Earlier this year Canada pledged a $13-million grant to help Malawi fight the spread of Aids. This was followed soon after by the USA pledging US$30-million to assist Malawi in its five-year Aids strategic plan.

It is a scary observation that wherever FleetWatch goes nowadays - whatever mood of optimism one finds out there - is blunted by the horror impact of HIV / Aids.