Ministry of Tourism has come under fire after selecting well-established firms and non-Malawian owned companies for the K800 million African Development Bank (AfDB) tourism grant which was meant for small companies run by Malawian youths and women.
Last year, Ministry of Tourism announced that it would disburse US$800,000 (about K800 million) in grants to tourism Micro, Small and Medium Enterprises (MSMEs) under the Matching Grants Scheme of the Promoting Investments and Competitiveness in the Tourism Sector (PICTS) project funded by AfDB.
According to the ministry, the grant was targeting a minimum of 50 registered local tourism MSMEs with valid tourism licence and which operate in compliance with Malawian laws. The aim was to award at least 50 percent of the grants to youth, women and start-ups.
“The scheme is particularly targeting the youth and women with an objective of addressing some of the challenges that they face in accessing capital in order o improve their business,” the ministry said in its statement last year.
In a notice published in the local press and dated 12 May, 2022, Ministry of Tourism released a list of 18 successful bidders which have been selected to be awarded a total of K462 million in matching grants.
According to the ministry, it received 184 applications but chose 18 out of a target of 50 awardees.
“Most applications failed for being non-compliant with the requirement of the grant conditions,” said the Ministry.
The successful companies include a hotel set to receive K40 million, a tour operator which will be given K35 million and a motel which is set to be given K40 million. The highest grant of K44 million is set to be awarded to a company called Red Zebra.
Malawians have argued that some of the awardees are established companies and are not even owned by Malawians.
“Among them, some are non-Malawian owned established tour agency which is also one of the biggest foreign owned agencies in Malawi. Those benefitting are largely well established leaving out youth and women startups. Others are claiming officials conducting due diligence were asking for bribes from the poor tour operator,” the Economic Liberation Movement said in a statement.
A young Malawian who worked in the tourism sector also expressed concern over the profile of companies which have been given grants, saying Malawian youth were just used.
He said: “The list I am seeing there is shredding my heart into pieces.”
The Ministry of Tourism is yet to comment on the allegations of abuse and solicitation of bribes in the awarding of the matching grants.
