Sunday, March 27, 2011

Week in Malawi: Part Four

Wednesday, March 16

On our way to the distributor we’re meeting with today, I get a quick tour of Blantyre and am really impressed after being underwhelmed (and even disgusted in some cases) by Lilongwe. The town feels like a real city with a well laid out downtown and a sense of organization that didn’t exist in Lilongwe and I haven’t experienced in any of the other cities I’ve visited. The streets are hilly and green valleys and mountains surround the city, offering nice views on our short trip from the hotel to the distributor. This distributor is our largest customer and hasn’t replied to any of the 8 or so emails we’ve sent him over the last few months. I’m not sure what to expect.

The building looks more like an office than a store and there’s a receptionist sitting at a desk to our right. Her desk is computerless which I’ve seen a lot the past few weeks but still leaves me wondering what these people do all day besides sit and answer two or three phone calls. Like all the receptionists I’ve met, she whispers when she talks and barely makes eye contact. It annoys me, but being annoyed makes me feel bad and 100% American. We’re confident, loud and direct, and I want the same out of this poor girl that’s likely never spoken to a white American. After a couple of inaudible mumblings she leads us down a dirty tiled hallway and into the office of the man we’re meeting.

Nikhil is younger than I expected, probably in his late thirties, born in Malawi but of Indian descent. He studied in South Africa and Australia before returning to the company his father started thirty years ago in Blantyre. The company sells seeds, fertilizers, and farming equipment and since Nikhil started in 2004, they’ve been growing quickly. Next to the office we’re currently in they are building a large, formal showroom and a warehouse for their inventory, hoping the expansion will significantly improve their store foot traffic and sales. He has two phones on his desk and a cellphone next to his computer. While he’s explaining the new warehouse and how they’re growing, all three phones ring at least once. He picks each call up and speaks quickly in some mixture of English and Chichewa, and then returns to our conversation as if there was no interruption. He’s definitely a businessman.

After introductions but before we start our meeting he offers my boss and me coffee or tea. We both elect for coffee and Nikhil is happy to make it for us. He gets up from behind his desk and walks over to the file cabinet that is directly to our left and rusting at the corners. On top, a can of instant Nestle coffee sits with powdered milk, four mugs that may or may not be cleaned, and a box of tea bags. Before he goes for the mugs, he bends down to the ground where an electric kettle is sitting next to a dusty black shoe box with a white rubber rain shoe that sits on top. The right shoe is nowhere to be found so the left shoe just waits alone and the cobweb between the wall and shoe suggests it’s been waiting for some time. Nikhil leaves to fill the kettle and returns, placing it right back where he found it, on the ground. While he’s down there, he fumbles with three cell phone chargers that are plugged in before finding the kettle plug and plugging it into the wall. I find it really funny that he keeps the kettle on the ground, next to this suspicious shoe, but his whole office is kind of like this. In the right hand corner, between a bookcase and wall, is a pile of newspapers and thrown about receipts. The whole place looks like it was recently ransacked. The left hand corner features more newspapers and two empty boxes of Johnnie Walker Blue Label. The box says how many bottles it holds (or at one time held), and I do the math quickly in my head: 12 x 750ml bottles in each box, about $200 per bottle. The guy spent something around $4800 on scotch yet keeps his kettle on the floor next to a lone white rain shoe. Very suspicious, and based on what he starts explaining to us, I start thinking that maybe his office looks like it was ransacked because it actually was.

Over the instant coffee that tastes more like chemicals than real coffee, we’re talking about the order they’re planning on placing with us. More than 700 pumps that we’ll manufacture in China and ship to Lilongwe and will cost somewhere north of $150,000. In every meeting we’ve had, we’ve heard about Malawi’s “forex problem.” I don’t fully understand the entire problem but from what I can gather, the country doesn’t have enough American dollars within the economy. So, any business or payments that require American dollars is currently not easily happening. For example, we shipped 300 pumps to a distributor in Lilongwe in January and are still waiting for payment because the distributor’s bank won’t release the necessary American dollars to our bank account. Similarly, the order Nikhil wants to make will require payment in American dollars but his bank won’t make the payment because they don’t actually have the invoice amount in American dollars. His solution to this inconvenience is to assure us that he’ll have his “guy in Hong Kong” pay the invoice, but because he has to use him, Nikhil explains he’ll need 120 days after shipment to make the payment, not the standard 30 days. He’s quite comfortable talking numbers, costs, and payment terms. I get the sense that he’s making a lot of these deals, milking out every dollar and benefit he can with a pretty quick and smooth style. A "guy in Hong Kong" sounds like a guy who might loot an office if Nikhil milked out one too many dollars in a recent deal, and I start to wonder if that same guy in Hong Kong is currently wearing a white rain shoe while sipping on a glass of Blue Label scotch.

We finish up our meeting, not really agreeing to anything but with an understanding that an order will indeed be placed. He takes us out for lunch at a surprisingly good Italian restaurant which plays only Motown music (I proudly point this out to my companions) while we’re there. In every developing country I’ve visited, I’ve found at least two or three places that feel like they should be in the states. It might be a coffee shop that offers wireless internet and comfortable chairs or just a restaurant with really good food and first class service. I’ve seen these places come in many forms, but you know the moment you walk in if you’ve found one. It feels so satisfying and relaxing (and decadent and indulgent!) to step into a place like this and for a moment forget about the developing world chaos and absurdity that exists outside its doors. This restaurant is very clearly one of these places, Blantyre’s oasis. I have fettuccini with a mushroom and tomato sauce and happily oblige when Nikhil asks if someone will order a beer with him. The pasta tastes great after a two week diet heavy on fried chicken, French fries, and Coke, and the environment is just what the doctor ordered after yesterday’s long journey. On our way out, I feel reenergized and motivated. Nikhil feels like how I suspect he always feels - ready to make a deal. “David, do you need to exchange any American Dollars for Malawian Kwacha? I’ll give you a real good rate.” He slips me a business card before we depart.

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