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Malawi |
YOUTH
The illegal money-changing business has become increasingly popular among
teenagers —
even more popular than the free primary school education
introduced
by the government in 1994
Many young boys aged between 10-19 years are so immersed in the business of money-changing, that they view education as a luxury they can do without. Instead, they spend the whole day buying and selling various currencies to people travelling by road between Malawi and South Africa.
Those entering Malawi from South Africa, Botswana or Zimbabwe exchange their foreign currency for the local Malawi Kwacha. Those leaving exchange their Kwachas for Rand (South Africa), Zimbabwean Dollars or Pulla (Botswana). This «trade» started in 1991 when the civil war ended in neighbouring Mozambique. The end of the war facilitated the re-opening of the Malawi-South Africa (via Mozambique) road which had hitherto been classified as a «danger zone».
Following the arrival of multi-party democracy, Malawi adopted a free-trade policy in 1994, and now many Malawians are venturing into business across the border. These days, buses, trucks and private cars ply between Malawi and South Africa daily.
In Malawi, exchanging foreign currency without a licence is illegal. The boys know this and whenever a vehicle arrives at the Mwanza border, every money-changer has to keep an eye open for two things: A prospective customer...and the police.
Timothy Siledi (17) has occupied a police cell on three occasions. He’s had to pay the equivalent of US $1,200 in court fines, and is chased or beaten by the police on a daily basis. He’s been in the money-changing business since 1994 and says he’s certainly not going to change his way of life. «Sure, it’s a risky business as both the police and the immigration officials are after us, but sometimes you’ve got to take risks if you’re to make any headway in life», says Siledi. But after six years in the business, one has yet to detect any sign of prosperity in Siledi.
A school for delinquents
These young money-changers lead a lifestyle which can get them into more serious difficulties. McNight Finyani is a policeman who has worked at the Mwanza border crossing since 1993. He says the money-changers make a lot of money on their «deals» which they spend on beer and women. Recently, five of them who had squandered all their «takings», attacked a colleague, robbed him and then killed him with hoe handles and knives. His body was found buried near a stream, and the five are now behind bars.
Finyani says its difficult to stop the boys getting involved in this illicit business, because of the rising demand for various currencies among travellers at the border. Truck drivers entering the country with cargo have to pay a government-charge which must be paid in US dollars. If the drivers can’t get US dollars in advance, they can always buy them from the boys.
One entrepreneur recently opened an officially-approved Exchange Bureau and immigration officials thought this would bring their problems with the boys to an end. Little did they know! The boys quickly reduced their exchange rates. They also made sure they met the travellers before they had a chance to notice the Bureau. As Finyani says: «They’ve remained in business at the expense of somebody who is paying tax to the government!»
The problem is haunting the Quality Education For All (QEFA) Committee which was established to ensure that every child and young person attends school. QEFA‘s chairman, Father Benito Masuwa, says: «You find that a boy who has never been to school is already handling the equivalent of some US $400 daily. We have a hard task to persuade the lad to give up everything and go to school».
Jacob Musita is an economist working at Chancellor College (University of Malawi). He says the government is losing out as it is getting nothing from the official business of Foreign Exchange. He states: «If the boys were deployed in other profitable ventures such as road construction projects, they would make an effective contribution to Malawi’s social-economic growth».
But what happens? Most of the boys involved in this trade become delinquents — in fact — the money-changing racket is a grooming ground for future criminals.
 | Kennie Cliff Ntonga, Malawi, August 2000 — © Reproduction authorised, with usual acknowledgment |
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