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The Road Transport Owners Association (RTOA) says it can thrive and improve Malawi’s transport sector despite the challenges it faces.
In an exclusive interview, RTOA Executive Director Chrissy Flao said most of the challenges the association faces have the potential to hinder its normal operations.
The association was established to raise standards among its members so they can conduct international business and to improve the ability of hauliers to manage their fleets.
However, she said that despite the challenges, the association will continue to move forward smoothly without affecting the delivery of its services.
She said one of the challenges faced by the association is the poor road network which makes it impossible for the association to function effectively.
“We cannot access some areas to go to the market because the road network is in quite bad condition. For example, when we distribute items for the World Food Programme or even the government, we cannot access some areas,” she said.
Flao said her association is keen to see good roads to the countryside, where most of the country’s agricultural activity takes place.
“If Malawi has good roads, I believe everyone will be happy to sell their produce at a good price in an easily accessible market. So in this case, good roads and good infrastructure can get us out of trouble every season,” she said.
She also said the recent devaluation of the Malawi Kwacha also posed a huge threat to the effectiveness of the association’s services as everything had become skyrocketing.
“Fuel prices and even spare parts prices have increased. It is very difficult for us as we cannot get better prices as even drivers are asking for higher wages,” she said.
Flaao said the currency depreciation made it difficult for the association to adjust the exchange rate to be in line with the country’s economic situation because it could not offer a better exchange rate for its services.
“We can’t balance it out because everything is up. It’s hard to equate anything with a depreciation,” she said.
She also found that foreign transporters have an upper hand in the transport sector as transport charges in the country are high due to operational costs.
“The fuel cost is as high as the bank interest rate, so in this situation, foreign transporters have an advantage,” he observed.
However, Flaao said despite these challenges, the association is making some progress to ensure it continues to remain operational and relevant in the country’s transport sector.
She said one of the association’s major achievements has been to equip Malawian transporters to compete internationally, while also providing them with skills in the use of tracking equipment, among other things, and improving their management structures and how best to run transport operations.
“Some companies have grown into large businesses. They no longer need to rely on us. They operate independently and are able to manage their fleets efficiently,” she said.
The association was established in the early 1990s and has a good working relationship with the Ministry of Transport, which is its parent department and helps promote the association’s goals and ambitions.
“We usually have roundtable discussions with the ministry whenever we encounter challenges that require their intervention,” she said.
The association’s main clients are governments, non-governmental organizations and the private sector, usually using the M1 and M5 highways as the most frequently used roads, including Beira, Nacala and the Northern Corridor.
Membership of the association is voluntary for Malawian transporters with trucks of 5 tonnes and above.
In 2023, the association transported 47,000 tons of fertilizer and 11,394,763 kg of tobacco through its members.
Meanwhile, Director of Policy and Planning at the Ministry of Public Works and Transport, John Phiri, said the ministry will review bilateral road agreements with partner countries.
“We will later start working with every country we deal with so that it will be 60% to 40% between Malawi and foreign transporters. We will also gradually shift cargo from fuel transport to rail transport,” Phiri said.
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