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THE MALAWI FLAG
he purpose of this Guide is to highlight the investment policies, opportunities and incentives that Malawi offers to investor. These opportunities have been well researched and redesigned to the Government’s agenda of achieving high economic growth through rapid and broad private sector led development as stipulated in the Malawi Growth and Development Strategy. In support of the Private Sector Development, my Government will continue to maintain stable macroeconomic conditions and I would put all the efforts to make it easy for businesses to operate in our beloved country, Malawi. In this regard, Government is committed to creating an enabling environment for private sector development. To attract more investors, my Government has also undertaken a fundamental review of the taxation system as part of implementing the Malawi Growth and Development Strategy (MGDS). This review seeks to address the taxation issues that affect the growth of our private sector business, taking into account the views of private sector. This tax review will also seek to make Malawi competitive in attracting foreign investment. My Government is currently reviewing the National Investment Policy. The Policy is expected to address the inherent weaknesses in the current investment environment including the heavy geographic and sectoral concentration of private investment in the main urban areas. The Policy will also eliminate inconsistencies by harmonizing the provisions and strategies in various government policies pertaining to investment as well as facilitate improvements in the implementation structure. Malawi takes pride in its political stability since independence in 1964. The peaceful transition to multiparty politics in 1994 and the peaceful presidential and parliamentary elections held in 2004 has shown the highest level of maturity and political tolerance existing in the country and guaranteeing the foreign investors years of economic prosperity once they invest in Malawi. Malawi has preferential entry into regional and international markets through agreements under the World Trade Organisation (WTO), Southern African Development Community (SADC), COMESA, The European Union through the EU-African Caribbean and PAcific (ACP) agreement, the United States of America under the African Growth and Opportunity Act (AGOA). Malawi is now ready for investment and this is why I am confidently inviting investors to come and invest in our land full of opportunities. The economy is stable and recovering well. Malawians are very hospitable, hardworking and easy to train, and coupled with our abundant natural resources, you can easily make this country your second home. The “Warm Heart of Africa,” Malawi, awaits your arrival.
H.E. Dr. Bingu Wa Mutharika
President of the Republic of Malawi
MIPA INVESTOR'S GUIDE TO MALAWI
MALAWI IN BRIEF
Surface area: Time zone: 118,484 sq. km (about 20% water) GMT + 2
Total population: Main cities Lilongwe: Blantyre: Mzuzu: Zomba: Population density: Population growth: Urban population: Life expectancy: Literacy rate: 13.2 million 744,000 778,000 150,000 113,000 111 per sq. km 1.9% per annum 13% 39.1 years 58%
un Co mm ica tio n
Tra ns po
& ial nc s a Fin rvice e S
Currency: Exchange rate: GDP: GDP per capita: Real GDP growth: Annual inflation rate: Principal exports: Malawi Kwacha (MK) US$1 = MK140 (April 2007) US$2.172 billion US$170 7.9% 13.9% Tobacco, tea, sugar, cotton and apparel
Construction Electricity and Water
Political system: Head of state: Capital: Official languages: Religions: Multi-party democracy H.E. Dr. Bingu Wa Mutharika Lilongwe English, Chichewa Christianity (79.9%), Islam (12.8%), others (7.3%)
I u nd
Fig 1. GDP Composition (2006)
May to August Cool and dry. July is the coldest month, with temperatures ranging from 15.5 to 18° C in plateau areas and 20 to 24.5° C in the rift valley areas. There is little rain during this season; most rains fall in the high southeast-facing slopes. September to mid-November Hot and dry. Temperatures range from 22 to 25 and 27 to 30° C in the plateau areas and the rift valley respectively. Mid-November to April Hot and rainy. Ninety percent of the annual rainfall is received during this period. December and January are the wettest months. Total annual rainfall overages 760 to 1,015mm with some plateau areas recording over 1,525 mm.
MALAWI IN BRIEF
The Malawi Investment Promotion Agency (MIPA) would like to thank the United Nations Development Programme (UNDP) for providing financial and technical assistance in the production of this Guide under the “Growing Sustainable Business” programme. In addition, MIPA would like to thank the various ministries, donors, and private sector individuals who made valuable contributions to the creation of the Guide, and to BERL, ESCOM, Ministry of Agriculture, the Natural Resource College and Wilderness Safaris for providing pictures.
MIPA INVESTOR'S GUIDE TO MALAWI
1.0 Introducing Malawi
1.1 1.2 1.3 1.4 Country and people History and Government Market size and access Government priorities
2.0 The operating environment
2.1 Economic environment 2.2 Trade 2.3 Investment 2.4 Infrastructure 2.5 Communication 2.6 Labour 2.7 Health services 2.8 Financial sector 2.9 Taxation 2.10 Investment incentives
3.0 Investment opportunities
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 Agriculture Mining Tourism Manufacturing Infrastructure Forestry Energy Finance Privatisation The regulatory framework
4.1 4.2 4.3 4.4 4.5 4.6
Legal and judicial system Institutional framework Investment policy Repatriation of foreign exchange Investment protection and access to international arbitration Land
5.0 Overview of the investment process
5.1 Malawi Investment Promotion Agency (MIPA) 5.2 Investment procedures 5.3 Environmental Impact Assessment (EIA) requirements Appendix 1. Public holidays, business hours and visa requirements 2. Important business contacts Inserts 1. Business operating costs 2. Investment projects
1.1 Country and people
Malawi is located in south-eastern Africa. It is a long, narrow and landlocked country bordered by Tanzania to the north, Zambia to the west, and Mozambique to the east and south. Lake Malawi, the third largest lake in Africa and one of the deepest in the world, accounts for almost one-fifth of the country's area. The terrain of Malawi is breath-taking, comprised of plateaus, plains, hills and mountains. These include the Nyika and Viphya Plateaus and Misuku Hills to the north, and the Dedza and Kirk Range Mountains in the central region. In the south, the terrain is equally varied with escarpments, highlands and mountains and low marshy lands along the Shire River, Lake Malawi's outlet in the south. The Mulanje Mountain, home to the rare Mulanje Cedar, is the highest mountain in Central Africa, with the highest point, Sapitwa Peak, rising to 3,050 metres above sea level. Malawi is predominantly a rural country, with approximately 87 percent of its 13.2 million inhabitants residing in the countryside. Its three major population centres are Mzuzu in the north; Lilongwe, the administrative capital, in the centre; and Blantyre, the commercial "capital," in the south. There are eight major tribes in Malawi: the Chewa, Yao, Tumbuka, Lomwe, Sena, Tonga, Ngoni and Ngonde. Although these tribes speak their respective ethnic languages and dialects, Chichewa and English are the country's official languages. Asians and Europeans also constitute a sizeable number of Malawi's population. Christianity (79.9
percent) and Islam (12.8 percent) are the predominant religions.
1.2 History and Government
The early occupants of today's Malawi were the Tumbuka in the north, the Maravi (also known as Chewa or Nyanja) in the centre and south, and the Yao in the south. The Maravi people established a powerful kingdom which extended into areas of present-day Mozambique and Zambia. In the late nineteenth century, the British colonised this part of Africa, forming the British Central African Protectorate, which later became the Nyasaland Protectorate. The colonial economy was based on the production and export of a narrow-range of commodities- first coffee, and later cotton, tea and tobacco. In 1953, in an effort to boost economic development in the region, Nyasaland joined with Northern and Southern Rhodesia (today's Zambia and Zimbabwe) to form the Federation of Rhodesia and Nyasaland. Opposition to colonial rule strengthened throughout the 1950s and early 1960s, eventually giving way to an independent Malawi in 1964. Two years later Malawi adopted a republican constitution and became a one-party state with Dr. Hastings Kamuzu Banda, leader of the proindependence Nyasaland African Congress (later renamed the Malawi Congress Party), as President. Dr. Banda quickly consolidated power and in 1970 was declared "President for Life" of the Malawi Congress Party (MCP); one year later he became "President for Life" of Malawi.
indicated in Table 1, however exports under preferential treatment can still be expanded. Multilateral and regional trade agreements include: • Common Market for Eastern and Southern Africa (COMESA): COMESA has a potential market of 340 million people and a combined GDP of US$170 billion. Member states within the COMESA have continued to take steps to consolidate the Free Trade Area in preparation for the forthcoming transition of the COMESA Free Trade Area into a Customs Union due to come into force in December 2008. Southern African Development Community (SADC): The SADC region has a potential market of 199 million people and a combined GDP of US$176 billion. Under SADC, Malawi is committed to reducing tariffs on intra-SADC trade progressively. The implementation of the SADC Trade Protocol aims at creating a SADC Free Trade Area by 2008. African Growth Opportunities Act (AGOA): AGOA offers duty and quota-free access to the United States market of 298 million people for 1,800 products, in addition to the standard GSP programme. Cotonou Agreement/Everything But Arms (EBA): This initiative extends dutyand quota-free access to the European Union market for all imports from Least Developed Countries, except arms. Minor variations apply to bananas, sugar and rice. Full liberalization will take place for these commodities 2009.
The country's economy under Dr. Banda was characterised by high levels of Government ownership, influence and control of many industries and businesses in cooperation with a select and privileged group of private sector partners. The Government's development strategy placed heavy emphasis on export production and estate agriculture, which resulted in a significant increase in tobacco production and export and a six percent average annual growth rate in GDP in the 1960s and early 1970s. This growth however was narrowly based and was associated with a highly skewed distribution of income and wealth. A series of external shocks in the 1980s and early 1990s destabilised Malawi's economy, resulting in a slowing of growth and an annual decline in per capita income by some 10 percent. As the Malawian economy deteriorated, changes came to the political structure of the country. In 1993 a referendum was held in which Malawians were asked to vote for either a continuation of the one party state or a change to a multi-party democracy. Malawians overwhelmingly voted for a multi-party democracy and the first multi-party elections were held in 1994. Bakili Muluzi was elected State President, and his administration pushed forward accelerated economic liberalization and structural reform; Muluzi was re-elected in 1999. In 2004, Malawi saw its first transition between democratically-elected presidents when Dr. Bingu Wa Mutharika was elected into office. Dr. Mutharika's administration has made great strides in fighting corruption and stabilizing the country's economy.
1. 3 Market size and access
While Malawi's domestic market is small, the country is a party to a number of multilateral, regional and bilateral trade agreements, offering wider access and preferential treatment for Malawian products. These agreements are already being utilized, as
In addition, bilateral trade agreements exist with South Africa, Zimbabwe, and Mozambique, and a customs agreement is in place with Botswana. Further trade agreements are currently under consideration with Zambia and Tanzania. These, alongside other initiatives such as the Growth Triangle and the Spatial Development Initiative, offer considerable opportunities for increased trade and investment. The Growth Triangle and the Spatial Development Initiative are mechanisms for attracting export-driven investment into areas with under-utilised potential within Southern Africa.
MIPA INVESTOR'S GUIDE TO MALAWI
1.4 Government priorities
The Government of Malawi realises the important role that private investment, and more specifically Foreign Direct Investment (FDI), plays in the economic growth and development of the country. Over the past three years, President Dr. Mutharika's administration has taken a number of actions to improve private sector growth prospects. The 2006 Malawi Growth and Development Strategy (MGDS) emphasises the creation of a sound business-enabling environment for attracting both local and foreign investment. In addition, the MGDS specifies targeted priority areas for investment, which include agriculture, mining, tourism, manufacturing and infrastructure. The Government is currently in the process of reviewing the country's investment policy, investment incentives and the legal, institutional, and regulatory framework for investment in the country. Following these reforms, Malawi will be a more competitive, attractive and preferable investment destination for both the local and international investor.
Table 1. Malawi's Trade with Major Trading Blocks 2001-2006 Average annual exports Trade Block US$ million SADC COMESA EU* USA 131.2 86.0 207 82.7 Percent of total exports 25.9 17.0 43.7 16.3 US$ million 524.2 130.4 76.8 26.1 Percent of total imports 58.7 14.7 16.2 3.0 Average annual imports
Source: COMTRADE 2007 and Annual Economic Report 2005, 2006, 2007 *Averages for 2001-2005
THE OPERATING ENVIRONMENT
2.1 Economic environment
Malawi's economy has made important strides over the past three years largely due to the current administration's political commitment to exercise prudent economic management and resuscitate high rates of economic growth as a more sustainable means of reducing poverty. The administration's determination to eradicate corruption at all levels of the economy has brought a renewed confidence in the Government and its ability to create a sound business-enabling environment. Strong economic management and improved governance has yielded a number of notable outcomes. In September 2006 the IMF and World Bank cancelled 90 percent of Malawi's external debt of about US$2.97 billion after the country reached the Heavily Indebted Poor Countries (HIPC) completion point. This was followed by a further debt cancellation by the Paris Club in October 2006 and other bilateral debt cancellations, thus reducing Malawi's total foreign debt to less than US$480 million. Sound fiscal management has also lowered national inflation. The average annual inflation rate dropped to 13.9 percent in 2006 from 15.4 percent in 2005, and as of May 2007 inflation stands at 8.6 percent. It is expected that the economy will register single digit annual
inflation for 2007. Between 2000 and 2006, Malawi's Gross Domestic Product (GDP) grew at an average annual rate of about 3 percent. The macroeconomic performance during 2004/05 fiscal year was negatively impacted by drought, which hit the country in the first quarter of 2005. The economy rebounded in 2006, registering an 8.5 percent increase in real GDP, up from 2.1 percent growth in 2005. The growth rate for 2007 is estimated at 6percent. Malawi's economy is based largely on agriculture. The agriculture sector, which is composed of agriculture, forestry and aquaculture, accounts for more than 85 percent of its export revenues, 32 percent of its GDP, and employs over 80 percent of the population. Most of the agricultural produce comes from smallholder farmers. Maize still occupies as much as 75 percent of all crop and in the country, and in most areas is still synonymous with food security.
Recent years however, have been marked by efforts to diversify agriculture away from maize production to other crops. A number of products- cassava, sweet potato, potato, groundnut, paprika, macadamia and others-have enjoyed rapid growth, albeit from a low base.
THE OPERATING ENVIRONMENT
Table 2. Selected Key Economic Indicators 2004 Nominal GDP (MK billion) Real GDP growth rate (%) Inflation (%) Exchange rate (MK/US$) Government revenue (MK billion) Government expenditure (MK billion) Exports (US$ million) Imports ( US$ million) Trade balance Population (million)
*Projections Source: Malawi Economic Reports (various)
2005 260.0 2.3 15.5 118.0 57.3 118.8 503.6 1,183.7 -680.1 12.3
2006 304.0 7.9 13.9 134.0 121.6 128.4 668.2 1,210.2 -542.0 12.7
2007* 345.0 6.0 9.0 145.0 134.7 138.7 13.2
221.1 5.1 11.9 109.0 44.6 91.8 483.1 932.2 -449.1 11.9
The single most important factor determining volatility in GDP growth is the impact of erratic weather patterns on agriculture as 99 percent is rain-fed. The performance of the agricultural sector during the past decade has generally been weak, with an average growth rate of 3 percent. In 2005, the agricultural sector suffered from prolonged drought, registering an 8.5 percent drop in growth. Government responded to the crisis by initiating a Farm Input Subsidy Programme, which increased both the utilization of fertilizer and improved seed. As a result of this programme as well as improved climatic conditions, maize production
Table 3. Proportion of Malawian Farmers Growing and Marketing Major Crops Percent growing Maize Other cereals Root crops Pulses Vegetables Tobacco Sugar Cotton
Source: World Bank
increased by 25 percent from 2.6 million metric tonnes in 2005/06 to approximately 3.2 million metric tonnes in the 2006/07 growing season. The agriculture sector therefore recovered in 2006, growing by 11.9 percent. Based on these positive results, Government intends to continue implementing the Farm Input Subsidy Programme in the 2007/2008 growing season and the agriculture sector is expected to grow by 7.3 percent in 2007. As a long-term strategy with respect to erratic rainfall patterns experienced for much of the past decade, Government is promoting a steady shift from rain-fed agriculture to on-farm irrigation at both the smallholder and commercial levels.
Percent marketing 18 26 32 37 38 100 100 100
97 24 36 68 15 15 5 3
MIPA INVESTOR'S GUIDE TO MALAWI
Manufacturing on the other hand, is relatively small and in 2006 accounted for only 11.8 percent of GDP. It mainly involves the agroprocessing of tobacco, tea, and sugar, and is largely inward-oriented as only a small portion of manufactured products are exported. This sector grew by 5.8 percent in 2006 compared to 7.2 percent in 2005. The sector is expected to grow by 9.1 percent in 2007 on account that interest rates will reduce to growth stimulating levels. The service sector is the fastest growing sector in Malawi, with financial and professional services registering a 17.8 percent growth in 2006 up from 7.6 percent in 2005.
THE OPERATING ENVIRONMENT
Malawi's major exports include tobacco, tea, and sugar. In 2006 tobacco accounted for 68 percent of export earnings, tea 8 percent, and sugar 7.8 percent. In 2006, 50 percent of Malawi's total exports went to the United
States, South Africa, Egypt, Germany and Netherlands. The country is expecting mining to contribute substantially to the export bundle as a result of recent investment in uranium mining and in heavy mineral sands.
Table 4. Principal Exports, 2000-2005 (Millions of Kwacha) 2000 Tobacco Tea Sugar Apparel Cotton Groundnuts Pulses Wood Rubber Coffee Spices Hides & Skins Wooden furniture
Source: National Statistical Office
2001 18,363.3 2,461.0 3,975.7 2,018.0 316.6 368.2 211.3 57.0 171.0 451.5 78.3 33.9 -
2002 17,893.1 2,827.8 2,684.2 2,464.6 260.8 378.1 218.8 62.7 152.9 175.6 224.0 32.1 -
2003 24,191.2 3,481.5 10,571.4 3,858.1 483.9 1,132.0 494.1 178.6 265.8 245.1 141.2 31.5 -
2004 22,303.5 5,132.5 7,881.4 4,795.5 2,224.3 1,581.0 608.3 219.3 399.0 217.5 170.7 44.0 -
2005 31,241.5 5,937.4 5,408.5 4,995.7 1,847.1 1,473.0 380.5 248.1 169.0 67.5 270.8
2006 55,840 6,737 6,391 5,525 2,054 1,003 785 973 679 381 610 113 440
14,200.3 2,235.4 2,339.2 797.8 438.5 239.7 134.3 34.3 73.7 316.4 85.6 21.1 -
Malawi is heavily dependent on imports. In 2006, total exports were valued at US$668.2 million, while total imports were US$1,210.2 million, resulting in a trade deficit of US$542.0 million.
Malawi's principal imports include fertilizers, petroleum products, semi-manufactured goods, consumer goods, and transportation equipment. In 2006, almost 50 percent of total imports were derived from South Africa.
Table 5. Malawi's Major Import and Export Partners 2006 (as a percentage of total imports and exports) Import partners South Africa Mozambique UK Zambia Tanzania
Source: Annual Economic Report Malawi
Export partners 48.5 16.9 7.9 4.8 4.6 South Africa UK Germany USA Egypt 18.0 12.2 7.6 7.0 6.9
MIPA INVESTOR'S GUIDE TO MALAWI
In order to create a sound business-enabling environment, the Government is currently finalizing the review of Malawi’s Investment Policy. This initiative aims to update the policy in order to make it more relevant to the current economic development agenda. Between 1999 and 2007, the Malawi Investment Promotion Agency (MIPA) facilitated a total of US$439.34 million in FDI pledges, or approximately US$55 million in pledges per annum. In 2006, FDI pledges rose to US$185.28 million. The bulk of FDI pledges, approximately 73 percent, went to the mining sector, while manufacturing received 23 percent. As of 2006, Malawi has Investment Promotion and Protection Agreements (IPPAs) with the following countries: Zimbabwe, the Netherlands, Italy, the OPEC Fund for International Development, and Libya. Malawi has entered into Double Taxation Agreements (DTAs) with the following countries: Denmark, France, Kenya, the Netherlands, Norway, South Africa, Sweden, Switzerland, and the United Kingdom.
As part of a broader effort to enhance export capacity, the country is developing a National Export Strategy that highlights exports as a key development avenue and targets improved export volumes and value addition in six key sub-sectors: integrated cotton/textiles and garments, food and agro-processing, handicrafts, tourism, and mining.
1999 2000 2001 2002 2003 2004 2005 2006 2007*
* Data for 2007 is for the period January-March
Figure 2. MIPA-Facilitated FDI Pledges
Source: MIPA Statistics
THE OPERATING ENVIRONMENT
generation in Malawi however, is over 900 megawatts of hydropower, with more than 2 million tonnes of confirmed coal reserves as well as uranium deposits. Reforms are underway to liberalize the energy sector in Malawi. Access to electricity in Malawi is very low at seven percent of the total population. Electrical demand is highly skewed in favour of industrial and large commercial customers who consume approximately 60 percent of the total. Domestic users account for around 25 percent, while the remaining 15 percent goes to small commercial consumers. ESCOM is in the process of connecting the country's electricity grid to that of Mozambique's in order to include Malawi in the Southern African Power Pool. With this connection, Malawi will be able to import power from other countries in the region during periods of excess demand and also export power during periods of excess supply. In addition, a 15 megawatts turbine in Blantyre has been rehabilitated for standby and peaking purposes. Water Water facilities in the cities, towns and periurban areas of Malawi are provided by five parastatal water boards: Blantyre Water Board, Central Region Water Board, Lilongwe Water Board, Northern Region Water Board, and Southern Region Water Board. The existing urban and rural water supply schemes and systems provide access to potable water facilities for up to 54 percent of the country's population. To improve water supply services in the country, Government is reforming the sector and encouraging private sector participation.
The Government of Malawi places high priority on infrastructure development as the basis for economic transformation. Good infrastructure is key to facilitating investment and has significant implications on both the efficiency and operating cost of business. To this effect, recent years have been characterised by serious efforts to improve infrastructure and utilities.
Electricity Malawi generates electricity by hydro, thermal, (largely diesel and gas based) and photo-voltaic (PV) systems. Hydropower is the largest source, accounting for 99 percent of all electricity generated. The Electricity Supply Corporation of Malawi (ESCOM) is the only publicly-owned and vertically-integrated power utility, which generates, transmits, distributes, and retails electricity throughout the country. ESCOM's total installed capacity is estimated at 304.8 megawatts, of which 19 megawatts is thermal. With the projected peak demand of 324.8 megawatts, 478 megawatts and 757 megawatts for years 2010, 2015 and 2020 respectively, ESCOM's system capacity needs to be increased accordingly in order to meet the projected demand. The estimated overall potential for power
MIPA INVESTOR'S GUIDE TO MALAWI
Transport infrastructure plays a key role in facilitating economic activity in landlocked Malawi. Currently, transport costs constitute a very high component of the final cost of goods and services in Malawi. There is therefore a great need for improvement in the cost and efficiency of the transportation, logistics and distribution systems in order to ensure that the Malawian economy is competitive at the international level. Most products are both imported and exported via the following ports: Nacala and Beira in Mozambique, Durban in South Africa, and Dar es Salaam in Tanzania.
The National Roads Authority (NRA) has been implementing an ongoing road infrastructure development, rehabilitation and maintenance program targeting not only international routes but also the domestic network. Further reforms in the roads sector include the separation of the Road Fund from NRA in order for each of these institutions to concentrate on their core functions.
The bulk of Malawi's freight and passenger traffic is moved along the country's 16,450 kilometres of road, of which about 15 percent is paved. Table 6 below depicts the level of import and export traffic through various border posts.
Table: 6. Imports & Exports Moved by Border Post (Thousand tonnes) 2003 Export Mchinji Mwanza Kaporo Total 58.2 358.7 64.0 480.9 Import 68.0 268.1 34.4 370.5 Total 126.2 626.8 98.4 851.4 Export 70.6 341.0 55.3 466.9 2004 Import 60.5 326.5 50.7 437.7 Total 131.0 667.5 106.0 904.5 Export 65.1 325.8 56.2 458.7 2005 Import 67.1 335.4 56.2 458.7 Total 132.2 661.2 105.5 898.9
THE OPERATING ENVIRONMENT
Rail The Nacala Corridor is an important external transport route for Malawi's imports and exports. Since its reopening in 1992, after the end of the civil war in Mozambique, freight traffic on this route has resumed. There is however, still much potential capacity for increased traffic. A single private company, the Central East African Railways (CEAR), has operated the Nacala railway line in both Malawi and Mozambique since 1999. The Nacala railway line will soon be extended on the Zambian side to cater to international freight traffic from that country, thereby increasing traffic levels on this rail route. The transit time from Nacala in Mozambique to Blantyre in Malawi is 48 hours.
Figure 3. Malawi Rail Map
Water Lake transport is provided by the privatelyoperated Malawi Lake Services. The company operates both freight and passenger services covering all the main ports on Lake Malawi, including Chilumba, Likoma Island, Nkhata Bay, Chipoka, and Monkey Bay. Malawi Lake Services also covers Matengula and Cobue in Mozambique. Lake transport in Malawi has the potential to move up to 80,000 tonnes of dry cargo and about 15,000 tonnes of fuel cargo per annum. An important water transport project that is currently under preparation is the ShireZambezi Waterway Project. The project was endorsed by the New Partnership for African Development (NEPAD) in October 2005 and aims at reopening the Shire and Zambezi Rivers to navigation from the Malawi World Inland Port of Nsanje in southern Malawi to the port of Chinde on the Indian Ocean in Mozambique. When fully developed, this waterway will provide Malawi with direct access to the sea, facilitating not only Malawi's imports and exports but also those of neighbouring countries, at considerably reduced cost.
Air Two international airports service Malawi: Kamuzu International Airport (KIA) in Lilongwe and Chileka International Airport in Blantyre. Overall freight traffic is about 7,000 tonnes annually and KIA, the larger of the two airports, handles up to three times as much freight cargo as Chileka. Facilities at both airports are currently being upgraded to meet modern aviation demands. Air Malawi, the national carrier, is wholly owned by Government. The airline services both domestic and regional destinations in eastern and southern Africa, with connecting flights to Asia, Europe and the USA. Air Malawi flies domestically between all the major cities and tourist destinations. In addition, the airline frequents numerous regional destinations, including the major regional hubs of Johannesburg in South Africa and Nairobi in Kenya. Recently the airline has introduced new flights to London and Dubai in the United Arab Emirates. Other airlines servicing Malawi include Ethiopian Airlines, Air Zimbabwe, Kenya Airways, and South African Airways. Reforms are underway in the air transport sector's institutional, legal and regulatory framework in order to facilitate private participation.
MIPA INVESTOR'S GUIDE TO MALAWI
Information and Communication Technology Malawi's telecommunications sector consists of a single fixed line private operator, Malawi Telecommunications Limited that was privatised in 2006; two mobile operators Celtel and Telekom Networks Malawi; and a number of Internet Service Providers (ISPs). Currently, the fixed telephone penetration rate is low with a national average of 3 lines per 1,000 people. A second fixed line licence was issued in 2007 to Access Communications. The introduction of mobile telephone services however has led to an increase in telephone coverage such that currently 6 percent of the population has access to a fixed/mobile telephone connection. International direct dialling is available on 98 percent of the country's phones.
Labour costs for both skilled and unskilled labour in Malawi are among the lowest in the region. In fact, Malawi's monthly wage of US$32 for an unskilled worker matches the price of a similar skill-level worker in India and China. Malawi's labour force is disciplined, hardworking, reliable, readily trainable and Englishspeaking. Out of the population of about 13.2 million, 40 percent is economically active. Labour issues are handled through a tripartite arrangement comprised of the Employer's Consultative Association of Malawi, the Malawi Congress of Trade Unions and the Ministry of Labour.
Along with all the standard postal services, express mail is offered with a same day delivery option by the Malawi Postal Corporation. International courier services have their branches in Malawi including DHL Express, FedEx, TNT, Skynet Worldwide Express and locally the Pony Express.
Table: 7. Median Monthly Compensation 2006 (US dollars) Zambia Managers Professionals Skilled Unskilled 357.71 360.02 83.08 42.48 Tanzania 217.26 186.22 82.77 56.90 S. Africa 2,086.90 1670.90 554.70 292.50 Malawi 348.95 257.12 78.06 32.14 Kenya 376.26 138.35 87.22 114.92 Uganda 139.08 78.34 43.12 44.51 Madagascar Export 65.1 325.8 56.2
Source: World Bank Malawi Investment Climate Assessment
THE OPERATING ENVIRONMENT
Since 1994, the Government has guaranteed free primary education, while secondary education enrolment has increased in parallel. In addition, the capacity of tertiary education has expanded further with the recent opening of two private institutions- the University of Livingstonia and the Catholic University- adding to the University of Malawi and the University of Mzuzu. Seven public technical colleges operate in the country, offering skills and technical training to secondary school graduates. Furthermore, the Technical and Vocational Education Training Authority works with industries to provide them with relevant technical skills. Malawi however, has suffered from a "brain drain," particularly in the health sector, as a large number of skilled workers have migrated to the industrialised world in search of better work conditions and remuneration. Steps are being taken to redress this through increase in salaries and investing further in the College of Medicine. To this end, Government is committed to facilitating employment of skilled personnel by investors. Temporary Employment and Business Residence Permits for expatriate personnel are readily available for key positions
as well as for positions where there are skill shortages in the local economy. Malawi's labour laws conform to the conventions of the International Labour Organization and are administered under the Ministry of Labour.
2.7 Health services
The Government's policy goal for the health sector is to raise the health status of all Malawians through the development of a delivery system capable of promoting health, preventing, reducing and curing disease, and reducing the occurrence of premature death in the population. The country's public health system comprises both the Government and the Christian Health Association of Malawi (CHAM) facilities, providing health services to most of the general public. There are also international standard private hospitals and clinics with some offering specialised treatment and having links with other international health facilities in the southern Africa region. There are four central hospitals- Queen Elizabeth, Kamuzu, Mzuzu and Zomba- in the main urban centres, and district hospitals in all districts of the country.
MIPA INVESTOR'S GUIDE TO MALAWI
2.8 Financial Sector
Malawi's financial sector has undergone a significant reform programme aimed at building a more inclusive financial sector, liberalising and modernising the financial system and openingup the sector to new entrants. This has resulted in an increase in the number of commercial banks from two to nine, the number of microfinance institutions/lenders to fifteen, market-based interest rates, unrestricted access to financing facilities for both local and foreign investors and a managed floating exchange rate. Exporters are also allowed to operate foreign currency denominated accounts in authorised banks, though there is a 40 percent conversion requirement on receipt of proceeds. Liberalisation of the capital account is planned within the next three years.
These financial reforms have also led to the development of the capital market; and the establishment of two discount houses, a number of investment banks, and the Malawi Stock Exchange; and the introduction of the Reserve Bank of Malawi Bills. The development of a more conducive financial services market has been encouraged with the recent drafting of new legislation and accompanying regulations to encompass commercial banks, microfinance institutions, financial cooperatives, and insurance and pension companies.
Table 8. Financial Institutions in Malawi Central Bank Commercial Banks Reserve Bank of Malawi National Bank of Malawi Limited, Standard Bank of Malawi Limited, First Merchant Bank of Malawi Limited, Nedbank, Indebank Limited, Loita Investment Bank Limited, New Building Society Bank, Malawi Savings Bank, Opportunity International Bank of Malawi First Discount House Limited, Continental Discount House Limited Malawi Stock Exchange Leasing and Financing Company Limited Indefund Limited Malawi Savings Bank Malawi Rural Finance Company, FINCA Malawi, Pride Malawi, Small Enterprise Development Organisation of Malawi (SEDOM), Malawi Union of Savings & Credit Cooperatives (MUSCCO), Fund for the Self Employed (FITSE), Development of Malawi Entrepreneurs Trust (DEMAT), ECLOF Malawi, CUMO Limited, Micro Loan Foundation, Touching Lives Fund Limited, National Association of Business Women (NABW), The Hunger Project, B Blue, The Malawi Rural Development Fund (MARDEF)
Discount Houses Stock Exchange Leasing Companies Investment Banks Savings Banks Microfinance Institutions
THE OPERATING ENVIRONMENT
General Taxation Generally, all types of businesses and personal income in Malawi are taxable. The legal basis for taxation in Malawi is the Taxation Act of 1993. Government has been undertaking a comprehensive tax review in order to make Malawi's tax system more conducive to investment without compromising the Government's ability to generate revenue. Malawi has two tax legislations: • Income Tax - comprised of tax on profits, i.e. gains and rents; Pay As You Earn (PAYE) or payroll tax; fringe benefit taxes;and nonresident tax. • Customs and Excise Tax - comprised of import duty, value added tax, and excise tax. The following sources of income are taxable: • Gains and profits from trade and business • Gains and profit from employment • Dividends and interest • Rents and royalties • Pensions, annuities, or other periodic payments • Fringe benefits Loss carry forwards of up to seven years are allowed on unabsorbed losses.
Personal Income Tax The income of individuals derived from wages and salaries is taxed through PAYE, according to a graduated scale with rates from 0 to 30 percent. PAYE is deducted and remitted on a monthly basis by employees along with a tax return. Institutions in Malawi with employees earning emoluments of more than MK7,000 (US$50) per month register for a Pay Roll Tax Scheme with the Commissioner General. Income earned abroad by Malawian residents is not taxed in Malawi. Capital Gains Tax All capital gains are considered as either personal or business income that is taxed at the applicable personal or corporate rates. Withholding Tax All distributed dividends are subject to a 10 percent withholding tax. This tax is levied on payments to non-residents, including royalties, interest rents, and services. This is a final tax and the recipient of the dividend is not required to include the dividend received in his taxable income.
2.9.2 Indirect taxes
Indirect taxes in Malawi include value-added tax, import duty, and excise tax. Indirect taxes are levied on the consumption of certain goods and services. Value-Added Tax Consumers pay value-added tax. The tax is levied on goods and services at the rate of 17.5 percent in most cases, with some exempt and zero-rated items.
2.9.1 Direct taxes
Corporate/Company Tax This tax is imposed on income or gains derived from Malawi for both resident and non-resident companies. A resident company is a company registered and incorporated in Malawi. The corporate tax in Malawi is 30 percent and 35 percent for companies with headquarters outside of Malawi.
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Import and Excise Duties An import duty is levied on imported goods whether a final product, intermediate product or raw material. In Malawi the maximum import duty rate is 25 percent on final products, 0-10 percent on intermediate goods, and 0-5 percent on some raw materials. Excise taxes are those taxes imposed on the consumption of selected imported and manufactured goods classified to be either luxurious or of social cost to the nation such as beer, spirits, cigarettes and motor vehicles. The excise tax is neutral, levied on both imported and locally-produced goods.
country Duty-free importation of buses with a seating capacity of 45 persons (including the driver) and above Duty-free direct importation of building materials for factories and warehouses Duty-free direct importation of goods used in the tourism industry, which includes building materials, catering and related equipment, and water sport equipment free repatriation of dividends, profits, and royalties
2.10 Investment incentives
Tax incentives in Malawi are enshrined in the main tax legislations that include the Customs and Excise Act, the Income Tax Act and the Export Processing Zones (EPZ) Act. To encourage investment, the Government offers the following incentives: General incentives • 100 percent investment allowance on qualifying expenditure for new building and machinery • allowances of up to 40 percent for used buildings and machinery • 50 percent allowance for qualifying training costs • allowance for manufacturing companies to deduct all operating expenses incurred up to 25 months prior to the start of operations • zero duty on raw materials used in manufacturing • Loss carry forward of up to seven years, enabling companies to take advantage of allowances • additional 15 percent allowance for investment in designated areas of the
Incentives for establishing operations in an Export Processing Zone (EPZ) • zero corporate tax rate • no withholding tax on dividends • no duty on capital equipment and raw materials • no excise tax on the purchases of raw materials and packaging materials made in Malawi • no value added tax Incentives for manufacturing in bond • export allowance of 12 percent revenue for non-traditional exports • transport tax allowance equal to 25 percent of international transport costs, excluding traditional exports • no duties on imports of capital equipment used in the manufacture of exports • no surtaxes • no excise tax or duty on the purchase of raw materials and packaging materials • a timely refund of all duties (duty drawback) on imports of raw materials and packaging materials used in the production of exports. There are also additional incentives for the horticulture, mining and tourism.
THE OPERATING ENVIRONMENT
For the past three years, investment opportunities in Malawi have increased considerably following the Government's commitment to sound fiscal management, a curbing of corruption, and greater involvement of the private sector in the building of the national economy. The favourable environment has created several inroads for private investors. While investment opportunities exist in all sectors of the economy, Government has targeted certain sectors due to their potential to increase Malawi's export earnings and reduce poverty. These priority sectors offer the optimum returns to investors and include agriculture, mining, tourism, manufacturing and infrastructure.
currently developing an improved policy and legislative framework to facilitate contract farming, which in turn offers scope for increased turnover for processing operations. Increasingly, Government encourages public-private partnerships in extension, input supply and finance in support of such arrangements. As most of the traditional agricultural crops such as tobacco, tea, coffee and cotton are exported in a semiprocessed state, there are great opportunities for investors to convert these agricultural products into higher value finished products. Opportunities also exist for investment in other highervalue agricultural products such as chillies, macadamia nuts, cut flowers, and specific types of beans. In addition, Malawi has not fully exploited the production of agricultural crops under irrigation. Horticultural products such as vegetables, flowers, and fruits, as well as rice, can be grown using surface, gravity, pump, river diversion or sprinkler irrigation systems. Out of the 400,000 hectares of land suitable for irrigation, only 14,000 hectares of land is under smallholder farmer irrigation and 48,000 hectares are under estate irrigation. This gap in irrigation infrastructure can be addressed through investment.
Agriculture still remains the mainstay of Malawi's economy, accounting for about 32 percent of GDP. There are various opportunities for investment in agriculture, such as livestock production (for dairy, beef, poultry and pork), aquaculture, horticulture, agro-processing, cold chain development, wholesaling and brokerage services and packaging. Substantial hectares of affordable estate land are vacant and the development of commercial estate farming offers wide scope for long term investments by professional farmers. The Government is
Profile Coffee is one of Malawi's traditional exports. The cash crop is grown mainly in the upland areas of the north (Mzuzu) and south-east (Thyolo and Zomba) of the country, with very little production in the central region, where the mean altitude is too low except for some parts of Ntchisi, Dowa and Dedza Districts. Around 85 percent of Malawian coffee is produced on large estates in the south, while the remainder is produced in the north by smallholder farmers. While Malawi has both the climate and altitude to produce specialty Arabica coffee that attracts premium world market prices, most Malawian coffee (98 percent) is exported as green beans. Since the early 1990s, falling world market prices for coffee have led to an overall reduction in coffee production- from 7,720 tonnes in 2001 to a low of 1,590 tonnes in 2004. In recent years however, Malawian coffee producers have become increasingly aware of the high quality of their coffee bean and its potential to fetch higher prices in the "specialty" segment of the coffee industry. Since 2005, measures were taken by the Coffee Association of Malawi towards transforming the country into one of the world's premium specialty-coffee producing nations. Malawian specialty coffee has been showcased in international competitions, attracting the interest of international buyers. Production has since recovered to 2,173 tonnes in 2006 and is expected to increase steadily with improved quality and focus on the specialty markets. Opportunities • Markets: Malawi coffee producers are seeking international markets for their specialty coffees. • Coffee production and processing: Opportunities exist in expanded production and processing (roasting) of coffee.
Profile Malawi is the second largest producer of tea in Africa after Kenya, accounting for around four percent of annual world exports (about 40,000 tonnes). Traditionally, tea has been the second most important export earner for Malawi after tobacco and has been increasing as a proportion of export sales over the last three years. Malawi has suitable ecologies for tea cultivation; areas under tea production include Thyolo, Mulanje and Nkhata Bay districts. The estate sector accounts for approximately 80 percent of land under tea cultivation and 90 percent of tea production. In addition to the estates, there are about 7,000 smallholder farmers engaged in tea production. Tea is sold on the market through two methods-the Limbe Auction, which is the only tea auction in Malawi, and through direct and forward contract sales to buyers. Malawi tea is exported in semi-processed form to European, Asian and American markets. Opportunities • New clonal varieties: Investment is encouraged in high-yielding 'new' clonal varieties, which are of even higher quality and more productive than the bulk of the clonal teas being grown presently. A shift to a greater proportion of clonal teas will increase the average price received for Malawi tea. • Irrigation: Investment in irrigation infrastructure will generate significant increases in yields. The infrastructure can be installed quickly and the resulting yield improvements are gained almost immediately. There are secondary benefits, in that the irrigation can improve production in the trough months (June to November) when rain is absent, therefore utilizing existing factory capacity more fully.
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markets and export it after processing. Some of them have established in-country processing facilities which are made available to other companies, and most have technical and market expertise for tobacco exporting. Under Government regulations, any company is eligible to purchase tobacco leaf on the auction floor. • Tea processing: Investment is needed in refurbishing existing tea processing facilities and the construction of new facilities. Contract management of smallholder tea processing offers an additional opportunity; the Smallholder Tea Authority has its own factory. Green tea: Opportunities also exist in the production and processing of green tea for East Asian markets and other specialty teas, such as Hibiscus. Opportunities: • Markets: As eight international companies account for over 90 percent of leaf purchases at Malawi's auctions, Government is encouraging more buyers to buy and semi-process. • Processing: As tobacco is exported semiprocessed, there is an opportunity to convert tobacco into cigarettes.
Profile Tobacco is Malawi's largest industry, accounting for approximately 70 percent of its export earnings, 13 percent of GDP, and 23 percent of its total tax base. Strong Government support for the industry, including subsidies and tax breaks, has led to tobacco's domination of Malawi's export market. Burley is the most important tobacco, but there is also Northern Dark Fired and flue-cured tobacco which are exported semi-processed. The liberalisation of the industry in the early-mid 1990s resulted in the entry of smallholder farmers in tobacco production who currently account for approximately 70 percent of tobacco production. As around 375,000 smallholder farmers depend on tobacco for cash income, the crops' success has a major impact on rural livelihoods. In 2006/2007 115,765,000 kg. of tobacco was produced, a 4.8 percent decrease from last season's crop of 121,570,000 kg. This decrease is mainly attributed to the lower prices offered on the auction floors in 2005/2006. Tobacco leaf is sold in the auction markets located in Lilongwe, Limbe and Mzuzu. Eight major tobacco-exporting companies are active in Malawi, most of them being agents or divisions of multi-national companies based in the United States and Europe. These exporting companies buy tobacco leaf from the auction
3.1.4 Macadamia nuts
Profile Macadamia is an expanding cash crop in Malawi. The nuts have a variety of uses, they can be consumed raw, roasted, or further processed into additives for confectionery products. In addition, macadamia nut oil can be extracted for use in cooking oil and cosmetics. In Malawi the total area under macadamia nut cultivation is 2,200 hectares. Macadamia nuts are produced by both smallholder farmers and large estates. Three world class nut processing factories are currently operating as a result of recent investment. The cost of production per hectare in Malawi is very low. Macadamia products are exported in raw form to both Asian and European markets. In addition, Malawi is the largest exporter of macadamia nuts to the United States under AGOA.
Opportunities • Development of commercial macadamia estates: Due to increasing demand for the product, more investment is being sought to boost the production of macadamia nuts. • Post-harvest and processing facilities: Investment is encouraged in post-harvest and processing facilities, in particular for the smallholder farmers.
Development Association (CDA). As a result, cotton production increased from approximately 16,000 tonnes in 2003, to 46,000 tonnes in 2006; the expected yield for 2007 is 50-55,000 tonnes. Cotton is separated into lint (38 percent) and cottonseed (60 percent), the latter is used for pressing into oil for consumers and seedcake for animal feed. There are three ginning companies operating in Malawi with a total processing capacity of 70,000 metric tonnes. Almost all the lint produced in Malawi is being exported at present (98 percent) with only one spinning operation capable of processing it. Almost all cloth and accessories (zippers, buttons, etc.) are being imported into Malawi. The Government therefore encourages upstream investment in the cotton industry and intends to establish a Cotton Council, which will be charged with the responsibility of overseeing the development of the cotton chain industry in Malawi. Opportunities Profit in cotton production is very much dependent on the inter-linkages in the cotton and garment value chain. The Government encourages investment in: • Textiles: Spinning, weaving, knitting, and printing plants • Garments: Export of garments under AGOA
Profile Cotton has been identified as one of the country's strategic crops. Promotion of the crop is envisaged to create jobs in Malawi through the revamping of the cotton, textiles and garment chain. The AGOA initiative, offering duty and quota-free access to the U.S. market, provides an opportunity for Malawi to develop its textile, clothing and garment accessories industry. Most cotton in Malawi is cultivated by smallholder farmers in the Lower Shire Valley districts of Chikwawa and Nsanje, in the southern regions upland areas and around the lakeshore which is hot and experiences relatively low rainfall. It is estimated that cotton production supports 120,000 farming households and is currently grown on 60,688 hectares of land. While cotton production saw a decline since the mid-1980s due to a relatively low rate of returns, in 2002-2003 the industry was revived through the activities of the Cotton
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Cottonseed oil and seedcake processing plants: Many by-products result from cotton processing, which can be further processed. Seed cotton converts into about 40 percent lint and 60 percent cotton seed in weight. Cotton seed can be crushed to make edible cotton oil and seedcake for livestock feed. There is a strong local demand for both these products. Ginneries: In recent years cotton production has seen significant increase and the current ginneries are operating at almost full capacity. There will therefore be scope the establishment of additional ginneries. Biodiesel: Currently in Malawi there is facility for the production of biodiesel from cotton seed oil. Accessories: Malawi imports almost all of accessories (zippers, buttons, etc.). As the cotton and garment value-chain strengthens, there will be scope for the domestic production of garment accessories.
• • • •
Soya oil production by-product used in animal feed manufacturing. Soya as an input into commercial fish farming. Soya milk Cosmetics
Opportunities exist for the establishment of soya bean processing plants in Malawi. The locations which currently produce the largest quantities of soya beans per annum are Kasungu (17,000 tonnes), Ntchisi (17,000 tonnes) and Mzimba (18,000 tonnes) in Malawi's central and northern regions. Contract farming arrangements with smallholder and estate farmers offer a quick route to expanding these volumes. Sugar beans Opportunities exist in the production of sugar beans in Malawi. There is ongoing research on sugar bean production as part of the National Bean Improvement programme to enable the production of specific varieties suitable for the export market. This includes the development and release of suitable sugar bean varieties such as Sugar 131 (or "Kholophete"). Sugar beans are a staple crop in the region, particularly South Africa. There is growing potential in the market for beans in the region owing to population growth and differences in growing seasons; South Africa consumes an average of 40,000 tonnes per year and imports a substantial proportion of this from the region, giving good export opportunities for Malawi. Groundnuts (peanuts) Investment is encouraged in groundnut production and processing into such foods as peanut butter and Ready to Use Foods for supplemental nutritional feeding programmes. Groundnuts have long been an important part of smallholder production in Malawi. Recently,
Profile In 2006/2007 Malawi produced about 411,752 metric tonnes of pulses, representing a 19.7 percent increase from the 343,898 metric tonnes recorded the previous season. There are several varieties produced in commercial volumes, including several types of beans, pigeon peas, cowpeas, field peas, grams, white haricot beans, soya beans and chickpeas. Pulses are produced for both local and international consumption. Currently, there are more than 14 companies in Malawi that purchase pulses and have the capacity to process, package, locally distribute and export pulses. Beans are exported to South Africa and Europe, while processed dhal is exported to Europe, India and the Far East. Opportunities Soya beans Soya bean processing is a fast growing business. This high-protein crop can be processed into a number of products: • Breakfast cereal and therapeutic foods for infants and HIV/AIDS patients. • Soya-based products are also used by meat, bakery and animal feed manufacturers to increase the nutritional value as well as the shelf life of products.
several private companies have entered into the groundnut market and have formed a Legume Association, backing efforts to revive seed multiplication and delivery systems, and increase awareness of farmers regarding quality specifications. This is supported by international research-extension support for farm level quality assurance. Groundnut production increased from 71,000 tonnes in 1996 to 2,611,486 metric tonnes in 2005/2006. It is expected that this season 3,218,850 metric tonnes to groundnuts will be produced, an increase of 25 percent over last season's crop. The central and southern areas of Malawi-Kasungu, Lilongwe, Machinga and Blantyre-account for over 75 percent of the total area planted. Integrated value chain development could re-establish Malawi's former prominent reputation as a supplier of high quality confectionary nuts for the international market. Opportunities exist in: • Wholesaling, grading, and quality testing for export markets. • Peanut butter production for local and regional markets. • Oil extraction for domestic and international markets. • Production of groundnuts as an ingredient in cage bird and other pet diets for export • Use in supplemental feeding products targeting HIV/AIDS patients and malnourished children.
without added fertilizer or amendments, and requires little labor effort. The production of cassava in Malawi is expected to grow by 11.8 percent to 3,202,398 metric tonnes in 2006, from last season's production of 2,863,212 metric tonnes. While currently 21 percent of smallholder farmers grow cassava as food or a cash crop, the biggest problem facing these farmers is that next to the local food market there is no other outlet available for them to sell their crop. With donor assistance, a cassava starch processing facility in Nkhotakota was established in 2006 while a smaller processing facility is operating in Lilongwe. Cassava, once transformed into starch, has many other industrial applications (e.g. glues, papermaking, snacks, sweeteners, pharmaceuticals fuels and biodegradable plastics). Through its wide-range of applications the world wide market of starch is growing and even Malawi with its limited production industry, is currently importing US$3 million worth of starch annually for its paper and packaging industry. Opportunities Cassava processing facility: There is great scope in Malawi for the processing of cassava into starch for industrial use. In addition, cassava starch can be further processing into ethanol.
Profile Cassava, as an alternative to maize, has received much attention from both the Government and Donors as the crop is drought resistant, can thrive in low fertility or acidic soils
Profile Malawi is one of the leading suppliers of chillies to the Western European market as well as other countries. Opportunities • Chillie processing: Chillies as the main ingredient in chilli sauces for export • Paprika: Malawi is expected to produce approximately 5,000 tonnes of paprika in 2007. This is still far below export potential. Most of Malawi's paprika is exported to South Africa for further processing into powder and oleoresin, which is then reexported to Europe and other markets. Apart from South Africa, Malawi paprika is in high demand in Zimbabwe and Zambia, as well as Spain. Opportunities therefore exist in paprika processing within Malawi for later export.
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Again, commercial paprika production and contract farming with smallholder and estates provide profitable channels to increase the supply for processing and export.
nectar processing. The bulk of fruit juices retailed in Malawi however, are actually made from imported fruit juice concentrate primarily from South Africa or are imported finished product.
3.1.9 Cut flower production
Profile Malawi's climate, altitude, high light intensity, and regular day length is favourable for the production of cut flowers. As flowers do not grow well during Europe's winter months, Malawi has an advantage over European cut flower producers during this period. Already some cut flower companies are operating and successfully exporting to Europe. Opportunities Additional investment in this sector will create economies of scale and hence make Malawi's cut flower industry more competitive on the international market. Labour is readily available for cut flower production within Lilongwe and the surrounding districts where cut flowers can be directly exported by air to Europe. Opportunities • Fruit juice concentrate processing plant: An investment opportunity exists to set up a fruit juice concentrate processing plant. • Fruit processing: Jams, dried fruit, canned fruit • Partnerships with international fair trade businesses specialising in smallholder grown tropical fruit products.
3.1.11 Livestock Beef and dairy
Profile The livestock industry in Malawi is not fully developed. The livestock population in 2005 included over 750 thousand cattle, over 1.9 million goats and 115 thousand sheep. The cattle population has stagnated over the past decade while that of the small ruminants, particularly goats has grown considerably. National dairy production supplies only about half of national demand, and there is significant unused capacity in the processing industry (most processing plants run at 25 percent capacity). In 2004, US$5.8 million dollars worth of dairy products were imported into Malawi, about 60 percent of which was milk powder.
3.1.10 Fruit processing plant
Profile While Malawi's climate is favourable for the production of a wide-range of fruit, including pineapples, tangerines, mangoes, bananas, and avocados, currently, as there is limited fruit concentrate processing in the country, large volumes of these crops are left to waste during their harvest seasons due to lack of intake and processing capacity. Meanwhile, over the last few years, several small-scale Malawian companies have ventured into fruit juice/fruit
Table 9. Livestock Numbers in Malawi 1996 Cattle (,000) Sheep (,000) Goat (,000,000) 700.1 93.0 1.26 1997 598.2 97.9 1.57 1998 715.4 102.7 1.6 1999 711.7 103.1 1.43 2000 763.7 111.5 1.69 2001 749.0 115.3 1.67 2002 750.0 115.0 1.70 2003 750.0 115.0 1.70 2004 765.0 115.0 1.90 2005 750.0 115.0 1.90
Source: FAO database 2006
Meat production is also very low, with current production levels translating into per capita meat consumption of 1.3 kg per annum. This highlights the vast potential in developing this industry. Opportunities • Cattle breeding (both dairy and beef) for supplying producers with breeding stock • Commercial beef and milk production. Malawi needs experienced commercial farmers to underpin the expansion of this industry. • Contract farming arrangements between processors and smaller scale producers. • Feed growing and feed production. • Manufacturing: Cooling tanks and collection equipment (e.g. milk, churns). • Service provisions: Artificial insemination, operation of dipping tanks, veterinary supplies and services. • Abattoirs and meat processing plants. • Transportation of raw milk to processing plants. • Cold chain development. • Milk and meat promotion, marketing and retailing.
Poultry Profile Poultry is the most widely kept class of livestock in Malawi in both rural and peri-urban areas. The majority of poultry kept are chickens followed by doves, ducks, and guinea fowls. The trends in small and medium scale poultry production have been unsteady due to an unreliable supply of feed, an inadequate supply of day-old chicks, and the prevalence of diseases. Malawi currently has a poultry population of about 8.6 million free-range chickens, 1.6 million broiler chickens and about 0.2 million layers kept under intensive production. Realizing the importance of poultry production, the Government has embarked on a number of poultry improvement programmes geared at improving productivity of subsistence and smallholder commercial poultry production. Opportunities • Commercial bird rearing: Day-old chick production (broilers and layers); table egg. • Commercial poultry feed production • Abattoirs and bird processing • Promotion, marketing and retailing of poultry production.
Table 10. Meat and Milk Production in Malawi, (Tonnes) 1996 Beef & Veal (,000) Goat meat (,000) Mutton & lamb Cow milk (,000) 22.6 4.5 322 32.0 1997 12.1 5.6 343 33.0 1998 14.3 5.8 364 33.0 1999 14.6 5.1 364 34.0 2000 16.0 6.1 388 35.0 2001 16.0 6.0 402 35.0 2002 16.0 6.0 402 35.0 2003 16.0 6.0 402 35.0 2004 15.7 6.6 402 35.0 2005 16.0 6.6 402 35.0
Source: FAO database 2006
MIPA INVESTOR'S GUIDE TO MALAWI
Profile The abundant fresh waters of Africa's third largest lake, Lake Malawi, is home to over 800 endemic fish species including the Malawi Chambo. Most fishing on Lake Malawi and the other smaller lakes, such as Lake Malombe and Chiuta as well as the Shire River, is on a smallscale. Due to a steady decline in fish catches and per capita fish supply in Malawi, the Government is promoting investment in commercial fish farming both for the domestic and international market through the 2006 Presidential Initiative on Aquaculture Development (PIAD). Currently there exist approximately 4,600 smallscale fish farmers in Malawi, owning over 9,500 fish ponds scattered throughout the country, while Maldeco Aquaculture Limited, a subsidiary of Press Corporation, has recently ventured into commercial cage fish farming along the southern shores of Lake Malawi. The combined production of both large and smallscale fish farmers is around 565 tonnes per year, which is not enough to satisfy local- let alone regional- demand for Malawi Chambo.
Opportunities • Commercial fish farming: Government encourages further engagement in commercial fish farming, using the latest fishing technologies, for both the domestic and foreign market. • Fish feed production • Fingerlings harvesting and distribution • Fish processing facilities • Transport • Cold storage facilities
Profile Malawi is naturally endowed with vast mineral resources. As a result of large capital injections, the country's mining sector grew by an astonishing 51.1 percent in 2005. The sector registered negative growth in 2006 (-22 percent) due to a lack of new capital which was expected to be injected into the sector. However, in 2007 the sector is expected to grow by 2.7 percent. While both local and international companies are actively engaged in the exploration and mining of various minerals, there is still great scope for expansion. In 2006 mining activities accounted for approximately 1 percent of GDP, however with recent investment in uranium and heavy mineral sands extraction, the Government expects mining to contribute about 5 percent of GDP in 2008.
Opportunities • Mineral extraction
Table 11. Mineral Deposits and Estimated Reserves 2006
Deposit Bauxite Uranium Monazite/Strontianite Corundum Graphite Limestone Mulanje Karonga/Chitipa Balaka Ntcheu Dowa Ntcheu Balaka Salima Titanium Heavy Mineral Sands Vermiculite Coal Phosphate Pyrite Glass Sands Dimension Stone Mangochi Zomba Mwanza Nsanje Karonga Phalombe Dowa Lilongwe Mchinji Zomba, Mangochi Chitipa, Mzimba, Mangochi, Mchinji Mzimba, Nsanje, Chitipa, Chikwawa, Rumphi, Ntcheu Neno, Ntcheu, Nkhotakota, Mangochi, Blantyre, Chikwawa Mangochi, Mwanza, Rumphi, Chikwawa Location Reserve (Million Tonnes) 28.8 12.5 11.0 8.0 2.7 15 10 700.0 680.0 15.0 2.5 4.7 15.0 2.0 34.0 10.0 1.6 25.0 Large volumes Grade 43.9 % AL2O3 0.15% Ur308 8%Sr, and 2% REO 75.6 gm per m3 5.8% C 48% CaO, 1.2% MgO 46.1% CaO, 3.5% MgO 5.6% HMS 6.0% HMS 6.0% HMS 4.9% (Med+Fine) 30% ash 21.2% ash 17% P2O5 8% S 12% S 97% SiO2 92.7% SiO2 and 0.62% Black, blue, pink, green granite Numerous pegmatites and volcanics
Source: Geological Surveys, Department Bulletins and Reports, and Private Company Mineral Exploration Reports
Mineral Processing Phosphate fertilizer manufacturing: As an offshoot of mining, there is an opportunity to start the manufacturing of phosphate fertilizer using Tundulu phosphate rock situated at Nambazo in Phalombe District in the southern part of Malawi. Official statistics show that Malawi imports on average about 200,000 tonnes of fertilizer per annum. Phosphate fertilizers constitute 20 percent (40,000 tons) of Malawi’s total imports. Domestic fertilizer production in Malawi would reduce the price of fertilizer
and therefore encourage the distribution of fertilizer to the more remote portions of the rural population. Limestone: Processed limestone could be utilized in a number of applications including the production of lime, cement, and water treatments. Glass production and recycling: Glass sands are suitable for the manufacture of brown (amber) quality glass containers. Soaps and detergents: The glass sands can be used for the production of sodium silicate for use in the soap and detergent industry.
MIPA INVESTOR'S GUIDE TO MALAWI
Industrial ceramics and paints: Other than roofing materials, Malawi does not have any local production in ceramics and paints for the building industry - such as cisterns, toilets, basins etc. The raw materials required for production are available in Malawi - clay, feldspar, quartz, limestone and heavy mineral sands. Production of jewels and jewellery: Malawi has an abundance of gemstones such as agate, amethyst, aquamarine, garret, rubies and sapphires; occurrences of gold and kimberlitic rocks which are generally host to diamonds have also been located. There is an opportunity to convert these stones into polished jewels and jewellery.
Profile Malawi has great potential to improve and develop its tourist industry. Tourism in Malawi has experienced steady growth in recent years. The number of visitors increased from 173,000 in 1995 to approximately 480,165 in 2006. The Government is actively encouraging the growth and development of the tourism sector under the Strategic Tourism Development Plan (20032008), which is currently under revision. The plan places emphasis on the development of ecotourism, the construction of international conference facilities, as well as the development of tourism around the country's numerous hot springs. Opportunities • Development of tourism along Lake Malawi: Construction of lodges, transport facilities (including cruise ships along the Lake), and recreational activities. • Ecotourism: The potential for growth in tourism is enormous, particularly in ecotourism. Prospective investors may invest in some of Malawi's unique areas of natural beauty around Lake Malawi, Mulanje Mountain, Nyika Plateau and protected areas such as national parks, wildlife reserves, nature sanctuaries. Pre-feasibility studies have already been carried-out on various ecotourism developments in potential tourism-designated areas. • Cultural tourism: Malawi has a rich cultural heritage. Opportunities exist in the
Table 12. International Visitors to Malawi, 2002-2005
development of cultural tourism, including a showcasing of Malawi's arts and crafts, traditional dances, local village culture, and historical sites such as missionary graves and slave trade villages. Hot springs: There are numerous virgin hot springs in Malawi which offer tremendous potential for tourism development. Hot springs are found in the following areas: Nkhota Kota, Liwonde and along the northern Lakeshore. Accommodations: Opportunities exist in the construction and management of hotels, lodges and camps. International conference facilities: The Government is actively promoting the construction of international conference facilities in Lilongwe, Blantyre and along the lakeshore. Recreation facilities: Opportunities exist the development cinemas, casinos, water sports, horseback riding, nature walks, among other activities.
2003 Total number of international visitors Percentage growth 382,600 -
2004 424,000 11
2005 427,360 1
2006* 480,165 12
*Estimate Source: Department of Tourism, NSO and Department of Immigration
MIPA INVESTOR'S GUIDE TO MALAWI
Profile Manufacturing accounts for about 12 percent of Malawi's GDP. The sector registered a 5.8 percent growth in 2006 and is expected to grow by 9.1 percent in 2007. As most of the traditional agricultural crops such as tobacco, tea and cotton are exported in a semiprocessed state, there are great opportunities for investors to convert these agricultural products into high-value finished products. Opportunities in agro-processing are outlined in the Agriculture section 3.1 of this Guide. Additional opportunities in light and medium manufacturing are listed below: Opportunities • Spinning and weaving: An opportunity exists to invest in a sisal sack manufacturing facility with a capacity to produce 6 million sacks per annum. Malawi has a tremendous demand for sacks, all of which are currently imported. Malawi is capable of growing 6,000 tonnes of sisal per year. • Leather processing and footwear production: Malawi boasts good quality hides and skins which can be tanned into leather and used for the production of various leather products such as footwear. Malawi's footwear market is estimated at 20 to 30 million pairs of shoes per year (two per person). • Food and Beverages: Mineral water bottling: Malawi is a country blessed with many unpolluted water resources. The unique geological formation in some areas of Malawi makes them ideal for mineral water bottling. Favorable areas for bottling include the following districts: Ntcheu, Thyolo and Mulanje.
Paper and paper products, printing and publishing: Due to vast tree plantations (see Forestry 3.6), opportunities exist for book printing, paper and pulp manufacturing as well as paper recycling. Electrical machinery, apparatus, appliances and supplies: Opportunities exist for the production of generators, transformers, meters, switch gears, test equipment, lighters, as well as for computer assembly. Injection moulding/plastics: Most plastics in Malawi are imported, therefore an opportunity exist in the production of plastic products. Due to a growth in the beverage industry, there is great opportunity to produce plastic drink bottles. Other potential areas for investment include the manufacture of toothbrushes, house wares, furniture, shoes, as well as materials for the construction industry. Fabricated metal products, machinery and equipment: • Machinery manufacturing: Office and industrial machinery, equipment and apparatus; pipes, tubes and structure metal products; farm equipment and agricultural hand tools. • Vehicle manufacturing and assembly: Motor vehicles, motor cycles, automotive components, bicycles and tricycles. • Recycling of scrap metal: Malawi imposed a ban on the export of scrap metal to enable domestic producers to source the raw materials without difficulties. There is therefore potential for the development of a foundry industry in Malawi.
Chemicals manufacturing: • Mosquito coils • Pharmaceuticals: Malawi imports most of its pharmaceutical products. There is therefore an opportunity to produce both generic drugs and cosmetics.
The Government is seeking investment partners in a number of projects under various private sector participation options such as Build Operate and Transfer (BOT) and Build Operate and Own (BOO) concessions. These projects include:
Port of Chinde in Mozambique, a distance of approximately 238 km. This will enable barges and medium sea-going vessels to ply between Chinde and Nsanje, thereby providing direct waterway access to the Indian Ocean. In addition, the project will provide Malawi with a multi-modal transport linkage through the rehabilitation of the rail line from Nsanje through Blantyre to Chipata in Zambia and through Dona Ana to Sena in Mozambique. When this project is completed, Malawi will cease to be "landlocked" within the conventional definition and transportation costs will also decrease. The project is estimated to cost US$3.925 billion over a five-year period. There are numerous investment opportunities under this project; a pre-feasibility study funded by the European Union has been completed and it was determined that the navigation of the waterway is feasible. Additionally, a Memorandum of Understanding (MOU) between Mozambique, Zambia and Malawi was signed in April 2007 and plans are underway to undertake an Environmental Impact Assessment (EIA) and Hydrographical Studies. 3.5.3 Urban housing There is heavy demand for urban housing in all the major towns in Malawi. In spite of the rapid increase in new house construction, the escalating house rental prices and long waiting lists for affordable public housing are manifestations of this high demand. The Malawi Housing Corporation has over 60,000 potential tenants on its waiting list. There is great opportunity for investment in the construction of low, medium and high-density houses in Blantyre, Lilongwe, Mzuzu and Zomba.
Kamuzu International Airport (Lilongwe) Planned activities for Kamuzu International Airport in Lilongwe at an estimated cost of US$8 million include the rehabilitation of runways, taxiways and part of the apron. The rehabilitation and replacement of the telecommunications equipment also needs investment. Chileka Airport (Blantyre) The rehabilitation of Chileka Airport in Blantyre is estimated at US$1 billion. This will include the construction of a new terminal building, and the rehabilitation and widening of the runway. New Mangochi (Namiyasi) Airport Plans have been finalized for the construction of the new Namiyasi Airport at Mangochi to support the tourism industry at the southern end of Lake Malawi. An investor is invited to take up this opportunity.
3.5.2 Shire-Zambezi Waterway Project
The project aims at reopening the ShireZambezi Waterway from the inland port of Nsanje in southern Malawi to the Indian Ocean
MIPA INVESTOR'S GUIDE TO MALAWI
Profile There are 69 forest reserves in Malawi comprising 30 percent of the forest cover. Most of these reserves were created for watershed protection, hence their location in the mountains and escarpments. The National Forestry Policy (1996) and the Forestry Act (1997)- guided by the Malawi National Forestry Programme launched by Government in 2001are key instruments driving the development and management of forests and forest-derived products in the country. These provisions seek to improve rural livelihoods, which depend on forest products for their economic development, by allowing the participation of the private sector and civil society in the sector. Malawi has large plantations of pinus patula which the Government offers as a concession for investment. The main plantation is located in northern Malawi, approximately 300 km from Lilongwe. Concessions and logging agreements have been issued to some private companies for about 20,000 out of around 53,000 hectares of commercial forest in Malawi. The commercial potential of Malawi's large forest plantations such as Viphya Plateau (Lusangazi, Chikangawa), Nyika Plateau, Dedza, Mulanje mountains and Zomba Plateau has therefore not been fully exploited. Opportunities • Tree seedling production: The production of tree seedlings has become a vibrant economic activity. Tree seedlings are raised by both small and large-scale entrepreneurs. Government is currently the largest buyer and is subsidizing communities engaged in tree planting programmes during the National Forestry season which is an annual event. • Wood processing: The Department of Forestry offers concessions for 25-30,000 woodlots. Malawi timber is in high demand
in South Africa, Mozambique, Europe and Asia where it has established markets. In Malawi, timber is extensively used in the construction industry, which is currently experiencing a boom. Between 2002 and 2006, the Malawi construction industry grew at an average annual rate of 13 percent. Furniture manufacturing: Furniture manufacturing is a growing industry in Malawi, particularly in urban areas where there is population growth as people migrate from rural areas. More investment is required in furniture manufacturing order in to make this manufacturing sub-sector competitive in the international market. Rubber processing: Malawi has rubber trees for the production of latex rubber at the rate of 1,300 tonnes per annum. Ten percent of the total tonnage is used locally for tyre retreading, paint and mattress manufacturing. The remainder is exported to Europe, North America and regional markets. There is therefore an opportunity to invest in rubber down stream industries for the production of shoes, bags, mats and motor vehicle products for local consumption as well as for the regional markets.
Profile The energy sector is a crucial industry that supports other industries. A vast amount of private investment is required to meet increasing energy demand for both household and industrial use. Current estimates indicate that firewood and charcoal satisfies 93 percent of all household energy demand in Malawi, while one percent of the total population uses electricity for cooking and lighting. The use of firewood and charcoal has led to serious deforestation at an unsustainable rate. As recent projections indicate, household consumption of 7.5 million tonnes per annum
of firewood and charcoal exceeds sustainable supply by 3.7 million tonnes and has reduced the areas of protected forest cover from 47 percent to 21 percent within the last two and a half decades. For this reason, the Government is promoting the utilization of various marketready viable alternative sources of energy. Opportunities The energy sector in Malawi consists of four main sub-sectors:
• Hydropower Malawi is seeking investment in electric power generation. Listed below in Table 13 are some of the energy opportunities that could be explored.
Pumped water storage power generation: The potential for a pump storage power generation scheme from Lake Malawi and some of the rivers such as Bua and South Rukuru has been investigated. From a business and engineering perspective, Lake Malawi can be viewed as the suitable site for pumped water storage electricity generation. This is because next to the Lake is situated on one of the highest plateaus (Nyika Plateau) in the Southern Africa. Interconnection of power systems between Malawi and neighbouring countries.
Table 13. Hydroelectric Power Generation Projects Capacity (mega-watts) Lower Fufu Khorombidzo high Khorombidzo lower Mpatamanga 90-100 479 479 300 Project cost (million USD) 119 330 312 335
MIPA INVESTOR'S GUIDE TO MALAWI
Coal There are about 22 million tonnes of coal reserves and about one billion tonnes of probable coal reserves. Coal is used for industrial boilers in the Central and Southern Regions and is imported from Tanzania to supplement local production which is inadequate. • Coal mining: Out of five major coal fields available in the country, only two fields, Table 14. Coal deposits
Coal Field Ngana N. Rukuru Livingstonia Lengwe Mwabvi District Karonga Rumphi Rumphi Chikwawa Nsanje
Livingstonia and Mwabvi are being mined, however not at full capacity. Therefore there is great potential for increased coal mining in the country. The five major coal fields and their characteristics are listed in Table 14. Coal processing for household use: This would also necessitate investment in the development of appropriate stoves. Thermal power generation.
Cal Value (Kcal/kg) 4,799 5,410 7,226 4,250 5,030
Ash Content 21% 28% 14% 50% 40%
Petroleum Malawi relies entirely on the importation of refined petroleum products such as petrol, paraffin and diesel via the neighboring countries of Mozambique and Tanzania. These imports are bought into the country by road and rail, adding to the landed cost of petroleum products. Therefore, the Government is seeking investment in the construction of an oil pipeline from the Port of Beira to the Malawi World inland port of Nsanje, as well as the construction of a strategic fuel storage facility in the country. The Government has recently
Table 15. Alternative Energy Sources Energy Type Biomass-based fuels Coal Gas-based fuels Ethanol-based fuels
commissioned a feasibility study for the construction of the oil pipeline. Alternative energy sources In 2006 the Department of Energy Affairs launched a flagship the Promotion of Alternative Energy Sources Project (PAESP) aimed at increasing the country's reliance on non-traditional fuels for cooking (wood and charcoal) and heating, thereby improving the country’s environment. There are 13 alternative energy sources selected for promotion under PAESP.
Energy Source Biomass briquettes Coal (household) stoves Liquefied petroleum gas biogas (methane) Gel-fuel Super Blu Ethanol for cooking and heating Parrafin stoves New connections Ready boards Wind power generation Photo-voltaics Solar thermal (water heating)
Petroleum-based fuels Electric energy distribution Generation Solar
Source: Annual Economic Report 2007
Solar Utilization of solar power is gaining prominence as a way of transforming Malawi's rural economy. However, the industry is beset by lack of local capacity in manufacturing and distribution of solar power equipment. This has translated into high up-front costs for end-users. Investment opportunities exist, particularly for international suppliers, to partner with local supplier and/or installer companies in the manufacturing and distribution of solar power equipment. Ethanol Malawi has two ethanol-producing plants, which are adjacent to its two major sugarproducing factories at Dwangwa in Nkhotakota and at Ncalo in Chikwawa. The current production capacity of ethanol in the country is at 11.8 million litres per year, comprising 1.0 million litres per year from Ethanol Company (Ethco) and 19.8 million litres per year from Press Cane. However, each of them has a potential capacity of 16-18 million litres per year. There is great room for expanding the hectarage under sugarcane cultivation, thereby increasing the capacity of the ethanol production facilities. Government, in collaboration with the Lilongwe technical College, is researching the possibility of adopting flexfuel vehicles which can run on 100 percent ethanol or ethanol mixed with a small amount of petrol. In addition, ethanol fuel can be used at the household level with the development of appropriate ethanol stove technologies. Malawi has been producing ethanol since 1982 when Ethco's dwangwa plant went into operation. Jatropha There is great interest in a low input, low labour cash crop from smallholder farmers and those with marginal land. The production of crude Jatropha oil into fuel is a relatively simple process with some of the processing materials locally available. Jatropha curcas grows in many areas of Malawi and has traditionally been used for fencing. Over the last two years, a total of 1.6 million trees have been planted. There is great scope for expansion of Jatropha curcas planting, oil extraction and the development of stoves.
3.8 Financial Sector
For an overview of the Financial Sector please refer to Section 2.8. Opportunities There are at present great opportunities for new financial institutions or incumbents to expand geographically, to service new sectors and start-ups, and to offer new services and gain market share in Malawi. • Regional coverage: Urban coverage of both commercial banks and Microfinance Institutions (MFIs) is homogeneous among the northern, central and southern regions; however, branches or agencies are located exclusively in major cities, and outreach is still very limited in rural areas. • Sector coverage: 100 percent of commercial banks and 90 percent of MFIs support the agriculture/agribusiness sector. Transport and Services are other sectors highly supported by financial institutions. Nevertheless, there are key sectors underserved with high potential of growth, such as education, health care, mining and real estate. • Product gaps: Full gaps for companies include leasing product and services, production and price insurances and warehousing credit. For households full gaps include cash for life-cycle needs and assets. Partial gaps for companies include overdraft facilities or lines of credit, credit for investment/startup financing. For households partial gaps include savings products, consumption credit, and money transfer services. Another significant gap in Malawi is Value Chain Finance. Financial institutions can find in Value Chain Finance innovative ways to mitigate risk and structure new products, such as warehouse receipts systems and factoring. • Startups Support: Almost thirty-three percent of commercial banks and forty percent of MFIs do not support startups; most financial institutions offer only a very limited range of products to new companies. This can undermine the development of entrepreneurship in Malawi, as well as the creation of new business in the country.
MIPA INVESTOR'S GUIDE TO MALAWI
Profile The Government's Privatisation Programme accords the business community an opportunity to invest in the country. This is done through the purchase of shares, management contracts, concessions or the outright acquisition of a whole company. The Privatisation Programme was initiated to accelerate economic growth and increase per capita income through the transfer of public enterprises into private ownership or management. In cases where privatisation has been successful, it has brought greater efficiency and productivity, resulting in accelerated economic growth.
In March 1996, the Public Enterprises (Privatisation) Act was passed by Parliament thereby establishing a corporate body charged with the divestiture of government public enterprises. The body is known as the Privatisation Commission. Opportunities For opportunities in future enterprises lined-up for privatisation and procedures, please refer to the Privatisation Commission's website: www.privatisationmalawi.org
THE REGULATORY FRAMEWORK
4.1 Legal and judicial system
Malawi's legal system is founded on English Common Law. The Constitution of the Republic of Malawi (1995) enshrines the basic freedom to invest, freedom to own property, and guarantees fair compensation in the event of expropriation. The court system is categorised into the Magistrate's Court, the High Court, and the Supreme Court of Appeal. Currently the establishment of commercial courts is underway in order to accelerate business related litigations.
the geographic spread of private investment throughout the country and into a broad range of economic sectors, but will also stimulate the production of manufactured goods for export. Formulation of a new investment policy and a review of the investment legislation and institutional structure will create a coherent framework for facilitating private investment.
4.5 Repatriation of foreign exchange
Foreign exchange operations in Malawi are governed by the Exchange Control Act (Chapter 45.01). Investors are permitted full remittance of dividends, investment capital on repatriation, interest and principal payments for approved international loans, and approved fees for management, licenses, royalties and similar obligations. The Anti Money Laundering Act was passed in August 2006 to enhance the soundness and stability of the financial system and financial institutions in the country.
4.2 Freedom to invest
The Government welcomes private investment and does not impose restrictions on ownership and the location of investment. Foreign Direct Investment is permitted in all sectors of the economy except for those sectors or activities that may pose danger to health, the environment and the security of the nation. Of emphasis is the freedom of entry and exit in terms of investment in the country.
4.3 Institutional framework
The Malawi Investment Promotion Agency (MIPA) was set up under the Investment Promotion Act No. 28 of 1991. The Agency is the Government arm entrusted with the mandate of attracting, facilitating and supporting foreign and domestic private investment in Malawi. The Agency also advocates for policy reforms and public-private sector dialogue in order to create a conducive investment climate. Furthermore, work is underway to merge the investment and export promotion functions of Government under a new institution to be called the Malawi Investment and Trade Centre (MITC). Under the Investment Approval Committee (IAC), whose Secretariat is the Malawi Investment Promotion Agency, investors receive one-stop assistance in the investment process. The IAC is a body comprised of all Government Departments and Ministries directly involved in the investment process and meets n a monthly basis. Within the framework of the committee, MIPA processes and facilitates the necessary requirements for investors to establish themselves in Malawi; this includes Investment Certificates, Temporary Employment Permits and Business Residence Permits.
4.6 Investment protection and access to international arbitration
The Government recognises the investment risks taken by investors and hence attaches great importance to the security of private investment. The availability of, and more importantly, the enforcement of regulations to safeguard the interests of private investors and their investments are key to ensuring adequate investment protection. The Malawi Constitution provides assurance to investors that their assets are protected. Private investors also have the liberty to take their cases to internationally accepted forums for mediation, including the International Centre for the Settlement of Investment Disputes (ICSID). Malawi is a signatory to the convention establishing the Multilateral Investment Guarantee Agency (MIGA), which provides for the protection of foreign investment and the settlement of investment disputes.
Government accords high priority to facilitating easy access to land for investment purposes. The ownership and usage of land in Malawi is governed by the Land Policy (2002) and Land Act. Land is classified into three categories: customary, public and private land. Private investors can obtain leasehold or freehold title to land for both commercial and industrial use. Foreign private investors however can only hold land under the leasehold title typically for 50 years.
4.4 Investment policy
Malawi is undertaking a revision of its investment policy and legislation in order to make them up to date and relevant to the modern investor's requirements. The new policy will facilitate not only
THE REGULATORY FRAMEWORK
OVERVIEW OF THE INVESTMENT PROCESS
5.1 Malawi Investment Promotion Agency (MIPA)
The Malawi Investment Promotion Agency (MIPA) serves the following functions: • • • Developing a favourable investment image of Malawi regionally and internationally; Undertaking investment promotion missions; Recommending to the Government changes in the policy, legislation and administrative framework relevant to the investment climate; Providing courtesy services to visiting investors; Supplying information about Malawi; Identifying joint venture partners when requested; Working with local and international financial institutions for the benefit of investors;
Encouraging existing investors to expand or start new investments; Consulting with private sector organizations so that better informed recommendations concerning the investment climate can be made.
MIPA also operates as a "one stop investment centre," facilitating all aspects of the investment process, including liaising with Government for all investment-related approvals. Many investment application documents are available in hard copy at MIPA or on the MIPA website. Malawi Investment Promotion Agency
Address: Lilongwe Office Blantyre Office Private Bag 302, Private Bag 131, Lilongwe 3 Blantyre Tel: (265) 0 1 770 800 (265) 0 1 821 222 Fax: (265) 0 1 771 781 (265) 0 1 822 180 Email: firstname.lastname@example.org email@example.com Website: www.malawi-invest.net
• • • •
5.2 Investment procedures
(1) Minimum investment capital US$50,000.00
(2) Incorporate company
(3) Apply for Investment Certificate
(4) Investment Approval Committee: Submit applications to MIPA
Revise business proposal and submit appeal
Open Bank Account
Register with Malawi Revenue Authority
Apply for other sector specific permits, licenses & approvals
OVERVIEW OF THE INVESTMENT PROCESS
1. Minimum investment capital US$50,000 Prospective investors are required to invest a minimum capital of US$50,000 to be eligible to apply for Investment Certificates, immigration permits, land and sector-specific approvals, permits and licences with MIPA. 2. Incorporate company Prospective investors are required to incorporate a company in Malawi with the Registrar of Companies before proceeding further with any investment-related activities. The Registrar issues a Certificate of Incorporation once a company is registered. 3. Apply for Investment Certificate All prospective investors investing a minimum capital of US$50,000 are required to obtain an Investment Certificate from MIPA. MIPA charges a non-refundable processing fee of US$200 and an issuance fee of US$800 for the Certificate. At this stage one could also apply for Business Residence Permits and Temporary Employment Permits, land, and sector-specific approvals, licences and permits. 3.1 Applying for Business Residence Permits and Temporary Employment Permits • New applications for a Business Residence Permit must include completed immigration application forms, a full business proposal, two passport size photos, and a police clearance report from the last country of residence. • New applications for a Temporary Employment Permit must include completed immigration application forms, two copies of the applicant's curriculum vitae, two passport size photos, certified copies of academic certificates and the organization chart of the company. • MIPA will process the application(s) and present it/them to the Investment Approval Committee. • Upon approval of the Business Residence Permit and/or the Temporary Employment Permit, the investor is required to pay a processing fee of MK3,500 for each permit and an issuance fee of MK50,000 and MK60,000 for the Business Residence Permit and Temporary Employment Permit respectively.
After payment, the General Manager/Chief Executive of MIPA will immediately obtain the Temporary Employment Permit and/or the Business Residence Permit from the Chief Immigration Officer. 3.2 Applying for land • An investor must submit an application to MIPA for the allocation of land for an investment. The application must be accompanied by a full business proposal. • MIPA will process the application and present it to the Investment Approval Committee. • Upon allocation of land, the General Manager/Chief Executive of MIPA will work with the Ministry responsible for land forissuance of a Title Deed. • All the payments made by an investor for the issuance of land must be paid to the Ministry responsible for land through MIPA. 4. Investment Approval Committee MIPA operates as a one-stop investment centre. As such, all applications for Investment Certificates, Business Residence Permits and Temporary Employment Permits, investment incentives, land and other sector-specific permits, approvals and licenses should be submitted to MIPA for their processing and presentation to the Investment Approval Committee for consideration. The Committee is mandated to approve or deny applications and also to process and make recommendations for land and other sector-specific permits, approvals and licenses. MIPA, as the Secretariat of the Committee, conveys decisions of the Committee to applicants. 5. Approved When applications are approved, the investor can proceed with opening a business account with a Malawian commercial bank, and registering the business with the Malawi Revenue Authority. 6. Denied If an application is denied, investors may submit an appeal upon revising their business proposal.
MIPA INVESTOR'S GUIDE TO MALAWI
5.3 Environmental Impact Assessment Requirements
Some investment projects require an Environmental Impact Assessment (EIA), depending on the magnitude and location of the proposed investment in Malawi. EIAs are determined and administered by the Department of Environmental Affairs. EIAs are undertaken for those proposed activities that are likely to have a significant impact on the environment. A project requiring an EIA cannot be licensed and implemented until a satisfactory EIA has been completed.
In addition, an EIA may be required for projects near to or of potential risk to: unique historical, cultural, scientific or geographical significance or world heritage sites; national parks, game reserves and protected areas; wetlands and major sources of drinking water. For further information on EIAs, comprehensive guidelines, and a list of environmental consultants please contact: Environmental Affairs Department Address: Private Bag 394, Lilongwe 3, Malawi Phone: +265 (0) 1 771 111/502 Fax: +265 (0) 1 773 397
Table 16. Prescribed projects requiring an Environmental Impact Assessment (EIA): Agriculture/aquaculture projects Food and beverage production Water resource development Infrastructure projects Land development, housing and human settlement Remedial food and erosion zones Tourism development projects Waste management projects Energy generation, transmission and storage Industrial projects (e.g. pulp and paper mills, soap detergent plants, fertilizer manufacturing and textiles) Mining and quarrying
OVERVIEW OF THE INVESTMENT PROCESS
Appendix 1: Public Holidays, Business Hours and Visa Requirements
Public holidays New Year's Day Chilembwe Day Martyrs' Day Good Friday Easter Monday Labour Day Freedom Day Republic Day Mother's Day Eid al Fitr (End of Ramadan) Christmas Day Boxing Day January 1 January 15 March 5 Set each year Set each year May 1 June 14 July 6 October 8 Set each year December 25 December 26
Business hours Normal business operating hours are 7:30 a.m. to 12 noon, and 1 p.m. to 5 p.m. Monday through Friday. Most offices close for lunch. Banks open at 8 a.m. and close at 3-3.30 p.m. with no lunch break. Entry requirements There are no inoculation requirements for entry into Malawi, but visas are required by all entering the country except nationals of: Belgium, the United Kingdom, Denmark, Italy, Finland, France, Germany, Holland, Iceland, Japan, Norway, Portugal, Spain, San Marino, Sweden, Liechtenstein and the USA. Passport/visa note: All visitors must have a return or onward ticket and all documents necessary for return or onward journey for the duration of the stay in Malawi. Extensions on visas are possible. Please note that passport and visa requirements are liable to change. Travellers are therefore advised to check their entry requirements prior embarking on their journey.
MIPA INVESTOR'S GUIDE TO MALAWI
Appendix 2: Important Business Contacts
Accounting and consultancy firms Deloitte and Touche P.O. Box 30364 Lilongwe 3 Tel: (265) 01 773 069 / 773 699 Fax: (265) 01 772 276 E-mail: firstname.lastname@example.org Graham Carr and Company Chief Lilupula Building P.O. Box 898 Lilongwe Tel: (265) 01 751 844 / 756 573 Fax: (265) 01 757 004 E-mail: Lilongwe@grahamcarrmw.com Kadale Consultants Ltd. 11 Jacaranda Avenue, Mandala, P.O. Box 2019, Blantyre Tel: (265) 01 872 933 / 875520 Fax: (265) 01 873 022 E-mail: email@example.com KPMG Peat Marwick P.O. Box 508 Blantyre Tel: (265) 01 620 391 / 620 269 Fax: (265) 01 641 789 Mwenelupembe & Mhango St. Martins House P.O. Box 30808 Lilongwe Tel: (265) 01 772 456 / 771 525 / 771 325 Fax: (265) 01 771 831 E-mail: firstname.lastname@example.org Price Waterhouse Coopers ADL House P.O. Box 30379 Lilongwe Tel: (265) 01 773 799 / 773 306 Fax: (265) 01 772 573 E-mail: email@example.com or firstname.lastname@example.org Diplomatic Missions Resident in Malawi Britain The British High Commission Area 40, Plot 3 P.O. Box 30042, Lilongwe 3 Tel: (265) 01 772 400 / 772 550 Fax: (265) 01 772 657 / 772 400 China The Embassy of the Republic of China Area 40, Plot No. 9 P.O. Box 30221, Lilongwe 3 Tel: (265) 01 773 611 Fax: (265) 01 774 812 Egypt The Embassy of the Arab Republic of Egypt Area 10/247, Tsoka Road P.O. Box 30451, Lilongwe 3 Tel: (265) 01 794 657 Fax: (265) 01 794 660 Germany The Embassy of Germany Area 40 Convention Drive P.O. Box 30046, Lilongwe 3 Tel: (265) 01 772 555 Fax: (265) 01 770 250 Canadian Embassy Call Foreign Affairs Libya The Libyan People's Bureau P.O. Box 1788, Lilongwe 3 Tel: (265) 01 774 735 Fax: (265) 01 774 739 Mozambique The High Commission of the Republic of Mozambique P.O. Box 30579, Lilongwe 3 Tel: (265) 01 774 100 / 696 Fax: (265) 01 771 342 Norway The Royal Norwegian Embassy Private Bag 323, Lilongwe 3 Tel: (265) 01 771 212 Fax: (265) 01 772 845 South Africa The High Commission of the Republic of South Africa P.O. Box 30043, Lilongwe 3 Tel: (265) 01 773 722 / 773 036 Fax: (265) 01 772 571 United States of America The Embassy of the United States of America Area 40. Plot No. 24 P.O. Box 30016, Lilongwe 3 Tel: (265) 01 773 166 / 342 / 458 Fax: (265) 01 770 471 Zambia The High Commission of the Republic of Zambia Area 40/2, City Centre P.O. Box 30138, Lilongwe 3 Tel: (265) 01 772 100 Fax: (265) 01 774 349 / 772 114 Zimbabwe Zimbabwean Embassy Area 13/22, City Centre P.O. Box 30187, Lilongwe 3 Tel: (265) 01 774 988 / 997 / 413 Fax: (265) 01 772 413 Belgium Malawi Embassy - Brussels 15, Rue de la Loi 1040, Brussels Tel: 32.22 / 310 980 Fax: 32.22 / 311 066 E-mail: email@example.com Egypt Malawi Diplomatic Missions Abroad Embassy of the Republic of Malawi - Cairo 3 El Ismailia Street (off Michael Bakhoum Street Dokki P.O. Box 118 GIZA, CAIRO Tel/Fax: 202 7480929 / 3353948 E-mail: firstname.lastname@example.org Ethiopia Malawi High Commission - Addis Ababa P.O. Box 2317 Addis Ababa Tel: 260.1 711 280 Fax: 260.1 712 945 / 715 911 E-mail: email@example.com Federal Republic of Germany Malawi Embassy - Berlin Westfalische Strobe 86 10 709 Tel: 4930 8431 540 Fax: 4930 8431 5430 E-mail: Malawiberlin@aol.com Japan Malawi Embassy - Tokyo Takanawa-Kaisei Building TFI, 4 - 1 Takanawa 3 - Chame, Tokyo 108 Tel: 81.3 449 3010 Fax: 81.3 449 3220 E-mail: firstname.lastname@example.org United Nations Malawi Permanent Mission of the Republic of Malawi to the United Nations - New York 600 Third Avenue, 30th Floor New York, NY 10016 Tel: 1.212 / 949 0180 Fax: 1.212 / 599 5021 E-mail: email@example.com United States Malawi Embassy - Washington 2408, Massachusetts Avenue, N.W. Washington, DC, 20008 Tel: 1.202 / 797 1007 Fax: 1.202 / 265 0976 Zambia Malawi High Commission - Lusaka Woodgate House 5th Floor Cairo Road Tel: 260.1 / 228 297 / 264 355 / 265 768 / 265 769 Fax: 260.1 / 223 353 / 265 765 Zimbabwe Malawi High Commission - Harare 9/11 Duthie Road, Alexandra Park P.O. Box 321 Tel: 263 4 798 584 / 798 587 Fax: 263 4 799 006 E-mail: firstname.lastname@example.org Johannesburg Malawi Consulate General P.O. Box 3881, Rivonia 2128 Johannesburg South Africa Tel: 27.011 234 85771 / 234 85778 Fax: 27.011 803 4919/27.011 807 7790 E-mail: email@example.com Mozambique Malawi High Commission - Maputo Avenida Kenneth Kaunda C.P. 4148 Tel: 7.258 492 676 / 490 224 Fax: 7.258 490 224 Namibia Malawi High Commission - Windhoek 56, Bismarck Street Private Bag 13 254 Windhoek 9000 Tel: 61.221 391/ 221 1392 / 221 1393 Fax: 61 227 056 E-mail: firstname.lastname@example.org South Africa Malawi High Commission - Pretoria 770, Government Avenue P.O. Box 11172 Hatfield Pretoria 0028 Tel: 27.12 341 0146 Fax: 27.12 342 0147 Taiwan (R.O.C) Embassy of the Republic of Malawi - Taipei 2F, No. 9-1, Lane 62, Tienmu West Road Shih Lin Tel: 886 -2 - 2876 - 2284/94 Fax: 886-2-2876-3545 E-mail: email@example.com Tanzania Malawi High Commission - Dar-Es-Salaam 38 Ali Hassan Mwinyi Road P.O. Box 7616 Tel: 255. 22 266 6248 / 266 6284 Fax: 255. 22 266 8161 United Kingdom Malawi High Commission - London 33, Grosvenor Street Tel: 44.171 / 491 4172 Fax: 44.171 / 491 9916 E-mail : firstname.lastname@example.org
Malawi Business Contacts Ministry of Trade and Private Sector Development P.O. Box 30366, Lilongwe 3 Tel: (265) 01 770 244; (265) 01 770 614 Fax: (265) 01 770 680 E-mail: email@example.com Malawi Confederation of Chambers of Commerce and Industry (MCCCI) P.O. Box 258 Blantyre Tel: (265) 01 671 988 Fax: (265) 01 671 147 E-mail: firstname.lastname@example.org Reserve Bank of Malawi P.O. Box 30063 Capital City Lilongwe 3 Tel: (265) 01 770 600 Fax: (265) 01 772 752 / 774 289 Investment and Development Bank of Malawi (Indebank) P.O. Box 358 Blantyre Tel: (265) 01 620 055 Fax: (265) 01 623 353 E-mail: email@example.com National Bank of Malawi P.O Box 945 Blantyre Tel: 265 01 820622/823135 Fax: 265 01 820606 National Association of Business Women (NABW) Private Bag 56 Blantyre Tel: (265) 01 674 671 Fax: (265) 01 674 805 Development of Malawi Enterprise Trust P.O. Box 1540 Blantyre Tel: (265) 01 612 466 Fax: (265) 01 636 302 Malawi Export Promotion Council (MEPC) P.O. Box 1299 Blantyre Tel: (265) 01 620 499 Fax: (265) 01 635 429 E-mail: firstname.lastname@example.org Malawi Industrial Research and Technological Development Centre (MIRTDC) P.O. Box 357 Blantyre Tel: (265) 01 623 805 Fax: (265) 01 623 831 Malawi Bureau of Standards (MBS) P.O. Box 946 Blantyre Tel: (265) 01 670 488 Fax: (265) 01 670 756 Malawi Entrepreneurship Development Institute (MEDI) Private Bag 2 Mponela Tel: (265) 01 286 244 Fax: (265) 01 286 412 Small Enterprise Development of Malawi (SEDOM) P.O. Box 525 Blantyre Tel: (265) 01 622 555
Transport Services Air Malawi Cargo Chileka Airport P.O. Box 84 Blantyre Tel: (265) 1 820 811 / 892 322 / 892 714 Fax: (265) 1 892 325 E-mail: Airmalawihq@eo.wn.apc.org AMI Malawi Limited Maunde Road, Off Makata Road, Blantyre P.O. Box 838, Blantyre, Tel: (265) 01 871 555 Fax: (265) 01 870 240 E-mail: email@example.com Central East African Railway Company Post Office Box 5144, Limbe Tel: 265 1 840 844 Fax: 265 1 843 496 Email: firstname.lastname@example.org Combine Cargo (Malawi) Limited Chitawira, Off Kenyatta Drive Private Bag 384 Blantyre Tel: (265) 01 676 357 / 673 566 Fax: (265) 01 676 209 E-mail: email@example.com Manica Malawi (Pty) Limited Blantyre Tel: (265) 1 876 566 Fax: (265) 1 871 297 Website: www.manica-africa.com Fracht F.W.O. Limited P.O. Box 30283 Chichiri Blantyre 3 Tel: (265) 01 620 602 / 633 770 Tel: (265) 01 765 887 / 765 484 Fax: (265) 01 765 825 Road Transport Operators Association P.O. Box 30740, Chiciri Blantyre 3 Tel: 265 01 670422/670427 Fax: 265 01 660117 Freight Handlers Limited P.O. Box 30170 Chichiri Blantyre 3 Tel: (265) 01 671 275 / 671 689 Fax: (265) 01 671 438 GDC Hauliers Limited Private Bag 323 Blantyre Tel: (265) 01 694 371 / 399 / 378 Fax: (265) 01 694 416 E-mai: firstname.lastname@example.org Glens Limited P.O. Box 629, Blantyre Tel: (265) 01 671 888 E-mail: email@example.com Freedom Freight Services (Pvt) Limited P.O. Box 1602 Lilongwe Tel: (265) 01 765 178 / 765 367 Cell: (265) 08 831 367 Fax: (265) 01 765 178 MAERSK Malawi Limited P.O. Box 40426 Kanengo Lilongwe 4 Tel: (265) 1 713 000 Fax: (265) 1 713 005 Transcom (Malawi) Limited P.O. Box 40550 Kanengo Lilongwe 4 Tel: (265) 1 710 201 / 417/ 298 Fax: (265) 1 710 254 / 710 454 E-mail: firstname.lastname@example.org Website: www.transcomsa.co.za Malawi Cargo Centre Limited P.O. Box 30642 Lilongwe Tel: (265) 01 756 112 / 252 / 254 Fax: (265) 01 753 627 E-mail: email@example.com
Malawi Lake Services
Mediterranean Shipping Co. (Malawi) Limited P.O. Box 40059 Kanengo Lilongwe 4 Tel: (265) 01 765 608/765 942 Fax: (265) 01 765 647 Freight Handlers Limited P.O. Box 30170 Chichiri Blantyre 3 Tel: (265) 1 871 275 / 871 689 Fax: (265) 1 871 438 Unitrans Limited P.O. Box 30820 Blantyre Tel: (265) 01 630 626 Fax: (265) 01 632 740 Progressive Transport Contractors Limited P.O. Box 5567 Limbe Tel: (265) 01 645 173 / 651 279 / 644 383 / 650 775 Fax: (265) 01 641 304 E-mail: firstname.lastname@example.org R. Gaffar Transport Limited P.O. Box 331 Lilongwe Tel: (265) 01 765 522 / 765 502 Fax: (265) 01 743 143 / 765 158 E-mail: email@example.com Walkers Investments Limited P.O. Box 30352 Lilongwe 3 Tel: (265) 01 720 817 Siku Transport Limited P.O. Box 51111 Limbe Tel: (265) 01 642 567 / 645 417 / 640 128 /178 Fax: (265) 01 644 202 E-mail: firstname.lastname@example.org
MIPA INVESTOR'S GUIDE TO MALAWI
Business Operating Costs
Public Land (charges per hectare in US dollars) Water tariff (Malawi Kwacha)
Lilongwe Residential First 10 cubic meters (per cubic meter) Next 30 cubic meters Thereafter Minimum Charge Institutional Flat Rate Minimum Charge Commercial and Industry First 100 cubic meters Thereafter Minimum Charge 90.94 1.94 2.85 2.85 4.05
Development Residential Industrial Institutional land City Centre Land Commercial Land Local Centres 6,165 8,408 6,165 28,052 16,816 3,646
Ground Rent 1.68 0.84 1.12 28.05 28.05 11.21
28.60 43.38 61.25 286.70
Monthly electricity rates (Malawi Kwacha)
For the supply to residential premises Fixed Charge For each unit consumed up to 30 units For each unit consumed in excess of 30 units and less than 750 units and less than 750 units For each unit consumed in excess of 750 units The supply to non-residential premises Fixed charge for single phase supply Fixed charge for three phase supply For each unit consumed For three phases supply to a consumer Fixed Charge For each unit consumed On peak maximum demand charge, per kVA Maximum demand (Off peak) tariff consumer's option Fixed Charge For each unit consumed Off peak maximum demand charge, per kWh For the supply to a consumer with a chargeable maximum of 40 kVA or more supplied at 11 kV or 33 kV Fixed Charge For each unit consumed On peak maximum demand charge per kVA Maximum demand (Off Peak) tariff consumer's option Fixed Charge For each unit consumed Off Peak maximum demand charge per kVA
61.25 76.78 603.75
Central Region Water Board Flat Rate Minimum Charge
298.19 415.66 5.35
Blantyre For the first 10 cubic metres or part thereof Between 10 cubic metres and 40 cubic metres Exceeding 40 cubic metres
260.00 52.00 60.00
1100.50 2.98 701.07
1100.50 2.99 701.07
1061.11 2.39 655.24
1061.11 2.39 327.62
International Transportation Costs
Road tariff rates from Johannesburg to Blantyre/Limbe and Lilongwe Full Loads ( Break-bulk 28 tons) per load 1 x 12m Container - Gross Mass 28 Tons - Net 24 Tons 1 X 6m Container (Up to 14 Tons Gross) Part Loads per 1000kgs or 2CBM whichever yields greater Minimum per Consignment Local Collection within 30kms radius from our warehouse per 1000kgs or 2CBM - Minimum 1 Ton Documentation per consignment Blantyre (SA Rand) 28,000 28,000 14,500 1,110 750 265 265 Lilongwe (SA Rand) 30,000 30,000 15,500 1,550 950 265 265
Transportation rates per container from point of origin to Blantyre/Limbe and Lilongwe via Beira and Nacala (US$) DESTINATION Blantyre ORIGIN 20’ CHINA North Dalien Quindao Xingang CentralShanghai Guangzhou Xiamen 3,630 3,530 3,555 3,430 3,390 3,430 2,734 2,950 2,734 3,290 3,100 3,075 3,530 3,100 3,100 3,125 2,734 2,950 3,100 2,950 3,125 Via Nacala 40’ 6,945 6,765 6,895 6,645 6,545 6,745 5,283 5,680 5,283 3,580 6,080 6,030 6,945 5,980 5,980 6,130 5,283 5,680 5,980 5,680 6,130 20’ 3,705 3,605 3,630 3,505 3,455 2,930 3,025 2,930 3,225 3,150 3,650 3,175 3,175 3,155 2,930 3,025 3,175 3,025 3,155 Via Beira 40’ 7,098 6,898 7,048 6,798 7,168 5,708 5,838 5,780 6,338 6,188 7,098 6,138 6,238 6,260 5,708 5,838 6,238 5,838 6,280 20’ 3,780 3,680 3,705 3,580 3,465 3,505 2,809 3,025 2,809 3,175 3,150 3,605 3,175 3,175 3,200 2,809 3,025 3,175 3,025 3,200 Via Nacala 40’ 7,095 6,895 7,045 6,795 6,695 6,895 5,433 5,830 5,433 6,230 6,180 7,095 6,130 6,130 6,280 5,433 5,830 6,130 5,830 6,280 20’ 3,855 3,755 3,780 3,655 3,908 3,080 3,175 3,081 3,355 3,300 3,755 3,325 3,325 3,305 3,080 3,175 3,325 3,175 3,305 Lilongwe Via Beira 40’ 7,398 7,198 7,348 7,098 7,468 6,008 6,138 6,008 6,598 6,448 7,398 6,398 6,498 6,520 6,008 6,138 6,498 6,138 6,520
CHINA CHINA South DUBAI HONGKONG INDIA
ITALY INDONESIA JAPAN SOUTH KOREA Busan MALAYSIA Penang NWC (Antwerp/Hamburg/Rotterdam) PAKISTAN Karachi SINGAPORE THAILAND Bangkok TAIWAN Keelung UK (Tilbury/Felixstowe)
Mumbai Calcutta Laspezia Jakarta
For the most current list of projects, please refer to MIPA’s website: www.malawi-invest.net
Project description: Set-up of a modern ‘products from the wild’ processing facility with the main focus on Baobob oil and powder. The facility has to meet HACCP and EUROGAP standards. Project type: Greenfield Type of collaboration: Equity finance Total investment: US$1.2 million Promoter: TREE CROPS LIMITED (www.treecropsmw.com) Contact details: Sander Donker, Managing Director Tel: +265 (0)1 761 073; Cell: +265 (0)9 822 250 Email: email@example.com Project description: Mature cashew nut trees covering over 600 hectares of land. Company would like to lease the plantation. Project type: Lease Type of collaboration: Lease of plantation Promoter: MALDECO FISHERIES (www.presscorp.com) Contact details: Lincoln W. Singini, General Manager Tel: +265 (0)1 580 340; Cell: +265 (0)8 202 478 Email: firstname.lastname@example.org Project description: The Warm Heart Food Company would like to construct a cassava processing factory, warehouse and offices. Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan, joint venture Total investment: US$10 million Promoter: UNDP GROWING SUSTAINABLE BUSINESS PROJECT (www.undp.org/partners/business/gsb) Contact details: Jan Willem van den Broek, GSB Broker Tel: +265 (0)1 770 808; Cell: (0)9 203 276 Email: email@example.com Project description: Chilli processing into three types of chilli products Project type: Greenfield Type of collaboration: Loan, equipment purchase Total investment: US$307,264 Promoter: MOTO PRODUCTS LIMITED Contact details: Lauretta Sybil Bapu, Managing Director Cell: +265 (0)9 745 881 Email: firstname.lastname@example.org Fish processing — Mangochi Fish farming — Salima Edible oils — Blantyre Dairy — Mzuzu
Baobob powder and oil processing — Lilongwe
Project description: Modernization of existing plant facilities for the processing of milk, cream, gui, yogurt and ice cream Project type: Modernization of existing plant facilities Type of collaboration: Loan, equipment purchase, joint venture Total investment: US$550,000 Promoter: NORTHERN DAIRIES Contact details: Prof. E. Chibambo Tel: +265 (0)1 334 291; Cell: +265 (0)8 832 995/(0)9 962 616 Email: email@example.com Project description: Extraction of edible oils from oil seeds (cotton seed, groundnuts, and sunflower) and the production of seedcake for the livestock industry. Project type: Modernization of existing plant facilities Type of collaboration: Loan, technical assistance Total investment: US$390,000 Promoter: MBANDO ENTERPRISES Contact details: Isaac Ndoka, Managing Director Tel: +265 (0)1 655 925; Cell: +265 (0)8 313630 Email: firstname.lastname@example.org Project description: Expansion of fish pond farming activities to supply feed for crocodile farm Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan Promoter: NYIKA CROCODILE FARMS LIMITED Contact details: Reg Carvalho Tel: +265 (0)1 754 982; Cell: +265 (0)8 821 568 Email: email@example.com Project description: Maldeco Fisheries, a subsidiary of Press Corp. (www.presscorp.com), would like to set-up of modern fish processing facility, meeting ISO and EUROGAP standards. Project type: Greenfield Type of collaboration: 50/50 Joint venture Total investment: US$5.5 million Promoter: UNDP GROWING SUSTAINABLE BUSINESS PROJECT (www.undp.org/partners/business/gsb) Contact details: Jan Willem van den Broek, GSB Broker Tel: +265 (0)1 770 808; Cell: (0)9 203 276 Email: firstname.lastname@example.org Project description: Establishment of factory for the production of ready-to-drink pure fruit juice beverages and fruit juice concentrate. Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan Total investment: US$675,000 Promoter: TRUST GROUP COMPANIES Contact details: MPK M’boola, General Manager Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065 Email: email@example.com Project description: Establishment of fruit juice concentrate processing facility using locally-grown fruits. Project type: Diversification from current activity of company proposing the project Promoter: DAIRIBOARD MALAWI/MULANJE PEAK (www.dairibord.com/dairibordmalawi) Contact details: Ruth M. Musarurwa, Managing Director, Dairibord Tel: +265 (0)1 874 735; Cell: +265 (0)8 208 775 Email: firstname.lastname@example.org Project description: Establishment of horticultural satellite buying centres in rural areas; processing, packaging and storage of horticultural produce; distribution of horticultural products to local and regional markets. Project type: Greenfield Type of collaboration: Loan, equity Total investment: US$1 million Promoter: COMMODITY DEVELOPMENT AND MARKETING LIMITED Contact details: Victor Z. A. Mpaluko, Secretary of Board of Directors Tel: +265 (0)1 776 471; Cell: +265 (0)9 944 776/(0)8 844 776 Email: email@example.com
Cashew plantation — Mangochi
Cassava processing — Lilongwe
Chilli processing — Blantyre
Project description: The Mzuzu Coffee Planters Cooperative Union (www.mzuzucoffee.com) is seeking new international markets for its “Mzuzu Specialty Coffee.” Project type: Expansion of existing line of business Coffee exports Type of collaboration: Market access — Mzuzu Promoter: UNDP GROWING SUSTAINABLE BUSINESS PROJECT (www.undp.org/partners/business/gsb) Contact details: Jan Willem van den Broek, GSB Broker Tel: +265 (0)1 770 808; Cell: (0)9 203 276 Email: firstname.lastname@example.org Project description: Expansion of product line into the production of potato chips and bubble gum Project type: Expansion of existing line of business Confectionaries Type of collaboration: Loan — Total investment: US$150,000 Lilongwe Promoter: BAKELINES LIMITED Contact details: Vijay B. Mittal, Managing Director Tel: +265 (0)1 710 332/710 407; Cell: +265 (0)8 822 624 Email: email@example.com Project description: Establishment of a dairy farm for the production high milk-yielding cows, milk, beef, hay and other products. Project type: Greenfield Type of collaboration: Loan, equipment purchase, technical assistance Total investment: US$30,000 Promoter: MTHIRAKUWIRI DAIRY FARM Contact details: MacDonald Mafuta Mwale, Director Tel: +265 (0)1 794 602; Cell: +265 (0)9 282 377 Email: firstname.lastname@example.org
Fruit juice concentrate — Mulanje
Dairy — Lilongwe
Horticultural products — Lilongwe
MIPA INVESTOR'S GUIDE TO MALAWI
Project description: Establishment of a piggery to supply local market with pork products. Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan Total investment: US$155,000 Promoter: TRUST GROUP COMPANIES Contact details: MPK M’boola, General Manager Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065 Email: email@example.com Project description: Commercial bird rearing (broiler and layers) and table egg production. Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan Total investment: US$210,000 Promoter: TRUST GROUP COMPANIES Contact details: MPK M’boola, General Manager Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065 Email: firstname.lastname@example.org Project description: Establishment of tomato paste processing facility using locally-grown tomatoes Project type: Diversification from current activity of company proposing the project
Project description: Establishment of a full fledged private medical facility, called Bethsaida Medical Center, that will serve the medical needs of Malawi through the provision of safe, efficient and effective full medical care. Project type: Greenfield Type of collaboration: Loan Total investment: US$3 million Promoter: LILONGWE PRIVATE CLINIC Contact details: P.W. Chirwa, Consultant Surgical Specialist Tel: +265 (0)1 774 972 Email: email@example.com Project description: Establishment of a WHO accredited pharmaceutical drug manufacturing facility. Project type: Modernization and expansion of existing line of business Type of collaboration: Loan Total investment: US$4 million Promoter: SADM PHARMACEUTICALS LIMITED Contact details: Justice Wemba, Director of Finance Tel: +265 (0)1 711 893 Email: firstname.lastname@example.org; email@example.com
Medical center — Lilongwe
Pharmaceuticals — Lilongwe
Tomato paste — Mulanje
Promoter: DAIRIBOARD MALAWI (www.dairibord.com/dairibordmalawi) Contact details: Ruth Muchaneta Musarurwa, Managing Director Tel: +265 (0)1 874 735; Cell: +265 (0)8 208 775 Email: firstname.lastname@example.org
Project description: Production of flavoured mineral water, fruit juices, fortified soft drinks. Project type: Expansion of existing line of business Type of collaboration: Loan, equipment purchase, technical expertise Total investment: US$250,000 Promoter: BOWLER BEVERAGE COMPANY LIMITED Contact details: Andrew Bowler, General Manager Tel: +265 (0)1 710 657; Cell: +265 (0)9 842 053 Email: email@example.com Project description: Establishment of modern beverage plant for the production of CALYPSO non-alcoholic drinks. Project type: Modernization Type of collaboration: Loan Total investment: US$150,000 Promoter: TAMBALA FOOD PRODUCTS Contact details: Ellection Mlaviwa Tel: +265 (0)1 871 135; Cell: +265 (0)8 823 579/(0)9 823 579 Email: firstname.lastname@example.org Project description: Establishment of manufacturing operation for mosquito nets. Project type: Greenfield Type of collaboration: Loan, equity, grant Total investment: US$1,141,177 Promoter: RAFRED INDUSTRIES LIMITED Contact details: Rafik Sattar Cell: +265 (0)9 255 983 Project description: Construction of a paper conversion plant and stationary warehouse in Lilongwe. Project type: Expansion of existing line of business Type of collaboration: Loan Paper making Promoter: OFFICE WORLD Contact details: Shaukat Ali Tayub, Managing Director Tel: +265 (0)1 821 589/(0)1 821 049; Cell: +265 (0)8 823 636/(0)9 823 636 Email: email@example.com Project description: Manufacturing of water bottles, plastic bags and laboratory parts. Project type: Expansion of existing line of business Promoter: ASPIRANTS PLASTICS CONVERTERS LIMITED Contact details: Henry Mafubza Tel:+265 (0)1 871 300/092; Cell: +265 (0)8 950 302 Email: firstname.lastname@example.org
Project description: Establishment of a factory to supply materials (whole blocks, interlocking blocks, cement bricks and roof tiles) to the construction industry Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan Total investment: US$215,000 Promoter: TRUST GROUP COMPANIES Contact details: MPK M’boola, General Manager Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065 Email: email@example.com
Beverage production — Lilongwe
Building materials — Mulanje
Beverage production — Blantyre
Project description: Bluwave Limited would like to establish an ethanol cook stove assembly plant and a bottle manufacturing and recycling plant. Project type: Greenfield Type of collaboration: Loan Total investment: US$1,265,000 Promoter: UNDP GROWING SUSTAINABLE BUSINESS PROJECT (www.undp.org/partners/business/gsb) Contact details: Jan Willem van den Broek, GSB Broker Tel: +265 (0)1 770 808; Cell: (0)9 203 276 Email: firstname.lastname@example.org Project description: Planting of Bio diesel feedstock and production of bio diesel. Project type: Expansion of existing line of business Type of collaboration: Loan, joint venture Total investment: US$12,425,000 Needed contribution: US$4,550,000 Promoter: BIO ENERGY RESOURCES LIMITED (BERL) Contact details: Tim Mahoney, Forestry Manager Tel: +276 (0)1 920 302; Cell: +265 (0)8 834 292 Email: email@example.com Mosquito net manufacturing
Ethanol cook stove production — Blantyre
Renewable energy production (jatropha) — Lilongwe
Plastics manufacturing — Blantyre
Plastic bottle manufacturing — Blantyre
Project description: Establishment of plastic bottle manufacturing plant. Project type: Modernization Type of collaboration: Equipment purchase, loan Total investment: US$130,000 Promoter: TAMBALA FOOD PRODUCTS Contact details: Ellection Mlaviwa Tel: +265 (0)1 871 135; Cell: +265 (0)8 823 579/(0)9 823 579 Email: firstname.lastname@example.org Project description: Establishment of factory for the production of flexible plastic foam for the production of mattresses, pillows, etc. Project type: Diversification from current activity of company proposing the project Type of collaboration: Loan Total investment: US$424,750 Promoter: TRUST GROUP COMPANIES Contact details: MPK M’boola, General Manager Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065 Email: email@example.com
Eco-lodge — Lilongwe
Project description: Plan, design and construct a 20-room rain lodge in the Dzalanyama rain forest. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$550,000 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org Project description: Establishment of a luxury eco-lodge consisting of 20 individual lodges with a commanding view of Likhubula Falls, the Miombo Woodland and Mt. Mulanje. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$1.649 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: Plan, design and construct a 15-room eco-lodge near a dam in the forest reserve. In addition, construct a 9-hole golf course. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$1.075 million (including golf course) Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org Project description: Plan, design and construct lodges along the beach at Ngara (15-room), Nthalo (20-room), Chifyo (20room), Kawaya (15-room), Sanga (20-room), Mwaya (20room), and Luze (15-room) in the northern region. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$850,000 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: Establishment of an eco-cultural lodge consisting of 15 rooms with a commanding view of Manchewe Falls in Nyika Plateau. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$886,000 Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org Project description: Three bays in Ulisa, on the west of Likoma island—a mixture of sandy bay and spectacular granite rock outcrops—have been identified for the development of three 28-bedroom eco-lodges. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$373,000 per 28-bedroom eco-lodge Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: Plan, design and construct a series of high-quality and environmentally compatible eco-lodges to cater for 30 guests. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$1,067,000 (Est.) Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org
Plastic foam manufacturing
Eco-Lodge — Mulanje
Project description: Celtel would like to bring telecommunication and financial services to rural areas using their GPRS technology platform. Project type: Expansion of existing line of business Type of collaboration: Service providers that want to offer value-added services using Celtel's GPRS technology platform are invited to come forward. Promoter: UNDP GROWING SUSTAINABLE BUSINESS PROJECT (www.undp.org/partners/business/gsb) Contact details: Jan Willem van den Broek, GSB Broker Tel: +265 (0)1 770 808; Cell: (0)9 203 276 Email: email@example.com
Eco-lodge and golf course — Mzuzu
Celtel kiosks — Countrywide
Eco-lodge — Northern region
Project description: Purchase of 18 additional vehicles to compliment a current fleet of 20 saloon vehicles. Project type: Expansion of existing line of business Type of collaboration: Loan, equity Total investment: US$1,094,211 Promoter: SOCHE TOURS AND TRAVEL LIMITED (www.sochetours.mw) Contact details: Harry Mtuwa, Managing Director Tel: +265 (0)1 820 777; Cell: +265 (0)8 960 122 Email: firstname.lastname@example.org Project description: Plan, design and construct a 20-room rain forest lodge in Dedza Mountain. Project type: Greenfield Type of collaboration: Loan, equity Total investment: US$555,456 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: A location has been identified some 1.4 km. to the south of the main entrance from the village to Kande Beach for the construction of a 30-room ecotourist development. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$3,055,000 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org
Car Hire — Blantyre
Eco-Lodge — Nyika Plateau
Eco-lodge — Dedza
Eco-Lodges — Likoma Island
Eco-Lodge — Kande Beach
Eco-Lodge — Thumbi East Island
MIPA INVESTOR'S GUIDE TO MALAWI
Forest lodge — Zomba
Project description: Plan, design and construct a 15-room forest lodge with catering facilities. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$687,000 (Est.) Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: Plan, design and construct a game lodge with 15 rooms in the Vwanza Game Reserve. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$785,000 Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org Project description: Plan, design and construct a game lodge with 20 tented rooms in the Vwanza Game Reserve. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$150,000 Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: Construction of a first class hotel and conference facilities in Blantyre. Project type: Greenfield Type of collaboration: Loan Promoter: OFFICE WORLD Contact details: Shaukat Ali Tayub, Managing Director Tel: +265 (0)1 821 589/(0)1 821 049; Cell: +265 (0)8 823 636/(0)9 823 636 Email: firstname.lastname@example.org Project description: Construction of a five-star 143-room hotel and international state-of-the-art conference centre seating 1,000 individuals in Lilongwe. Project type: Expansion of existing line of business Type of collaboration: Loan (40%), equity (60%) of project costs Total investment: US$5,089,401 Promoter: ALEXANDER HOTELS LIMITED (www.alexanderhotels.net/index.htm) Contact details: Alissa Alexander Ashani, Managing Director Tel: +265 (0)1 840 055; Cell: +265 (0)8 995 106 Email: email@example.com Project description: Plan, design and construct a museum in Lilongwe for cultural artefacts and archival materials. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$1,000,000 (Est.) Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org
Sale and service of motor vehicles — Blantyre & Lilongwe Project description: Construction of motor vehicle showrooms, offices, workshops and a spare parts warehouse in both Blantyre and Lilongwe. Project type: Expansion of existing line of business Type of collaboration: Loan Promoter: AUTOMOTIVE PRODUCTS Contact details: Maclean Simwaka, Managing Director Tel: +265 (0)1 871 855; Cell: +265 (0)8 838 113 Email: email@example.com
Game lodge — Vwaza Game Reserve
Tourism Projects under Government Concession
Project description: Plan, design and construct a series of highquality, visually and environmentally compatible tourist ecolodges and associated structures on the exclusive Boadzulu Island under government concession to cater for 25 guests. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$457,000 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org Project description: Plan, design and construct a series of high quality, visually and environmentally compatible tourist ecolodges and associated structures on the slopes of Golden Sands under government concession to cater for 60 guests. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$3 million Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com Project description: Plan, design and construct a series of highquality and environmentally compatible eco-lodges and associated structures in Nkhotakota Game Reserve under government concession. Game lodges Project type: Greenfield — Type of collaboration: Equity, debt Nkhotakota Total investment: US$2,000,000 (Est.) Game Reserve Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: firstname.lastname@example.org Project description: Plan, design and construct a series of high quality, visually and environmentally compatible tourist ecolodges and associated structures on Nyika National Park under government concession. Project type: Greenfield Type of collaboration: Equity, debt Total investment: US$2,650,000 Promoter: MINISTRY OF TOURISM, WILDLIFE AND CULTURE, DEPT. OF TOURISM Contact details: Isaac K. Msiska Jr., Director of Tourism Tel: +265 (0)1 775 499 Email: email@example.com
Game lodge — Vwanza Game Reserve
Eco-lodge — Boadzulu Island
Hotel and conference center — Blantyre
Eco-lodge — Golden Sands
Hotel and conference centre — Lilongwe
Museum — Lilongwe
Game lodge — Nyika Plateau
10 Great reasons to invest in Malawi
design TATCAM MEDIA
• • • • • •
Political stability A liberalized economy and political commitment to private sector growth and development Strategic geographical location for access to regional markets Good and constantly developing infrastructure Competitive labour costs; English-speaking labour force Preferential access to regional and world markets under COMESA, SADC, Cotonou (European Union) and AGOA (United States) Competitive investment incentives Modern telecommunications Daily flight connections to regional and international destinations A rich natural and mineral resource base (large lake, fertile land, unexploited mineral deposits, geographic points of interest for tourism)
• • • •
Malawi Investment Promotion Agency - MIPA
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