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INVESTMENT OPPORTUNITIES IN MALAWI

1 INTRODUCTION
Malawi is a politically stable country with friendly people, an entrenched
system of rule of law and an attractive investment climate. It is a liberalized
economy with preferential market access to regional and international
markets in the Common Market for Eastern and Southern Africa, the Southern
Africa Development Community, the European Union (under the Cotonou
Arrangement) and the United States of America (under the Africa Growth and
Opportunities Act). The Government of Malawi, therefore, invites both local
and foreign investment in any sector of the economy.

However, emphasis for investment is in five priority areas, namely,


agriculture, energy, mining, tourism and physical infrastructure, including
Information and Communication Technology (ICT).

2 PRIORITY AREAS FOR INVESTMENT

2.1 Agriculture, Natural Resources and Agro-processing

2.1.1 Agriculture
2.1.1.1 Crop Production
Investment in agriculture, including integrated irrigation farming, is
encouraged for farming crops such as rice, soybeans, pigeon peas, sunflower,
integrated cotton development and horticulture.
2.1.1.2 Irrigation Farming
Irrigation farming is encouraged in all parts of the country. One of the
priorities is an integrated irrigation project dubbed ‘’The Greenbelt Initiative’’.
The main components of the project are: infrastructure development and
rehabilitation of dams; environmental management; technology development
and dissemination; agro-processing and marketing development. The project
area is along the lakes and all perennial rivers from the North to the South of

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the country, covering an area of 1million hectares of which 86,000 hectares
have already been developed.

2.1.1.3 Livestock Production


Livestock production in the country is very low. Investment in livestock
production is, therefore, encouraged.

2.1.2 Natural Resources


Malawi is endowed with natural resources such as forestry and fisheries.
Investors are invited to invest in ornamental fishing, deep-fishing and fish
processing and wood processing.

2.1.3 Agro-processing
Malawi encourages adding value to its agricultural products. Investors are
encouraged to invest in cotton ginning and spinning including textile and
garment manufacturing, fruit processing, beef and dairy processing, leather
processing, oil seed production, production of sugar cane products, etc.

2.2 Mining
Malawi has historically not been known as a mining country. However, this
has begun to change with significant investment made in uranium sector in
2006 by Paladin Mining Company of Australia which started a new mining
operation in 2008. In 2013, Globe Metals and Mining is expected to start
mining niobium, uranium and tantalum at Kanyika in Mzimba District.

The success of these investments has heralded more prospecting licensing


and more concessions have been granted in this sector as other uranium
reserves have been identified for additional exploration by both Paladin and
other entrants in the Malawi mining sector.

Beyond uranium, Malawi also has a wealth of other identified mineral


resources, including the following:

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MINERAL DEPOSITS AND ESTIMATED RESERVES
Deposit Location Reserve Grade
(Million
Tonnes)
Bauxite Mulanje 28.8 43.9 %AL2O3

Uranium Koronga/Chitipa 12.5 0.15% Ur308

Monazite/Strontianite Balaka 11.0 8%Sr, and 2%


REO

Corundum Ntcheu 8.0 75.6gm per m3

Graphite Dowa 2.7 5.8%C

Limestone Ntcheu, Balaka 15; 10 48%CaO, 1.2%


MgO; 46.1%
CaO, 3.5% MgO
Titanium Heavy Salima, Mangochi, Zomba 700; 680; 15 5.6% HMS;
Mineral Sands 6.0% HMS;
6.0% HMS

Vermiculite Feremu Mwanza 2.5 4.9%


(Med+Fine)
Coal Nsanje, Karonga 4.7; 15 30% ash;
21.2% ash

Phosphate Tundulu Phalombe 2.017 17%P2O5

Pyrite Dowa, Lilongwe 34; 10 8%S; 12%S

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Glass Sands Mchinji, Zomba and 1.6;25 97%SiO2;
Mangochi 92.7%SiO@
and 0.62%
Dimension Stone Chitipa, Mzimba, Large Black, Blue,
Mangochi, Mchinji volumes Pink, Green
granite
Gemstones Mzimba, Nsanje, Large Numerous
Chitipa,Chikwawa, Volumes pegmatites and
Rumphi, Ntcheu volcanics

Gold Neno, Nkhotakota, Occurrence


Mangochi, Ntcheu
Blantyre, Chikwawa
Diamonds Mangochi,Mwanza, Occurrence
Rumphi, Chikwawa

Source: Geological Surveys Department Bulletins and Reports: Private


Companies Mineral Exploration Reports

Mineral Exploration
These deposits present prospective areas of investment in mineral exploration.

Oil and Gas


Oil and gas exploration is underway in Lake Malawi and other parts of the
country. A total of six blocks have been demarcated for exploration. Three blocks
have already been allocated to prospective investors for exploration. The
remaining three blocks are available to other prospective investors.
Other Opportunities in the Mining Sector
Opportunities are also available for upgrading current geophysical and geological
database, and provision of training in Geological and Mining studies.

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2.3 Energy
Malawi currently suffers from a big shortage of power generating capacity and
associated power outages. The current installed capacity stands at 283.8 MW
against a demand of 344MW. It is projected that electricity demand will be 598
MW in 2015, 874 MW in 2020 and 1,597 MW in 2030. Currently, Malawi’s
electricity is generated from hydro-power stations cascaded along the Shire
River.

The reinstatement of the Millennium Challenge Compact (MCC) Account to fund


rehabilitation of existing infrastructure is envisaged to improve electricity power
supply, thereby, increasing business productivity and reducing avoidable costs.

There are a number of investment opportunities in the energy sector. They


include investing in hydro power generation, wind, solar and biomas.

The demand for energy is expected to grow due to increased economic activities
in mining and tourism. Government is, therefore, inviting Independent Power
Producers (IPP) to invest in power generation, transmission and distribution
using solar, hydro power, wind and biofuels.

Some of the existing hydro-power electric projects include:

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2.4 Tourism
Malawi has a considerable number of unique and attractive areas with natural
and pristine beauty and features. Lake Malawi is the principal scenic
attraction of the country covering 20% of the country’s surface area. It
contains more species of fish than any other water body on earth. The large
variety of fish is actually endemic to the lake.

Malawi also has beautiful mountains and plateaus with exceptional scenery;
fascinating fauna and flora. There are game reserves which are a home to
the ‘’Big Five’.’ There are a number of significant sites relating to the work of
Dr. David Livingstone. There is a rich cultural diversity and people are
naturally warm and friendly.

Malawi calls for investments in:


the development of eco-tourism lodges in areas of
outstanding natural beauty including forest areas,
national parks and small islands in the lake;

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the development of hotels and conference centres;
boat cruises and water sport facilities on lake Malawi and
Shire River;
development of wild life reserves including restocking,
fencing, tourist infrastructure such as lodges and feeder
roads;
establishment of casinos and entertainment centres in
the main urban centres,
lakeshore resorts and other tourist sites;
Promotion of film and music industry;
beach front developments;
direct flights from Europe to Malawi. There is a strong
case for British Airways to resume flights from London to
Lilongwe. It has already resumed flights to Lusaka,
Zambia and Harare, Zimbabwe. Virgin Airlines could also
be requested to consider that route; and
Integrated Lakeshore Resort Project. One major
investment project is an integrated lakeshore resort in a
lake enclave surrounded by a range of hills which
stretches into the lake, providing a home to a large stock
of world-famous bright- coloured chichlids (ornamental
fish) making it the only freshwater and underwater
national park in the world which was designated as a
World Heritage Site by UNESCO in 1984. The area is
called Cape Maclear, named as such by Dr. David
Livingstone in 1859 and where the first Church of
Livingstonia mission was built. The area has a 4 Kilometre
golden sand beach frontage. The project concept
comprises a hotel, lodges, villas, a marina, sports facilities
including an 18-hole golf course, casinos, walking and
cycling trails and a game park on the foot of the hills,

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complemented by an airport about 50 Km away. An
investor or a consortium of foreign investors are invited
to invest in the project.

2.5 Physical Infrastructure Development, including Information


and Communication Technology

Physical Infrastructure Development Projects


Malawi is landlocked and has access to the sea through the Ports of Dar
eslaam in Tanzania, Nacala in Mozambique and Beira, via Sena Corridor in
Mozambique.

Malawi aims at being land- linked other than land -locked. To overcome
transport constraints, the government has prioritised the development of
road, rail, air and water infrastructure.

Road transport. there are investment opportunities on a


PPP basis in the rehabilitation, routine maintenance of paved
roads, and upgrading and construction of new roads.

Railway Transport. The Government is seeking investment


in the rehabilitation and expansion of railway infrastructure
particularly the Sena/Beira corridor.

Air Transport. Projects are available in the form of


upgrading of aviation infrastructure including expanding
runways and terminal buildings.

Water transport. The key medium-term outcome for water


transport is improving the inland shipping network that is
active in local international shipping, promoting trade and
tourism in a safe manner, while protecting the environment.

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Efforts are directed towards navigation to the Indian Ocean
through Shire River to the Port of Chinde in Mozambique
through the Zambezi River (i.e.the Shire-Zambezi Waterway
Project). The initial feasibility study was conducted by
COMESA with the support of the EU which revealed that the
river is navigable. Currently, the SADC Secretariat, with
financial support of the African Development Bank, is
undertaking an Environmental Impact Assessment.

Information and Communication Technology (ICT)

Malawi aims at improving the usage and adoption of electronic and online
services; availability of service, geographical coverage, the usage of
modern broadcasting technology and reducing communication costs.

The government is introducing Telecommunication and Information


Technology (TIT) platform to integrate security, banking and insurance,
taxation, education, health and business sectors.

There is, therefore, a great scope to invest in the Information and


Communication Technology sector.

3 CONCLUSION

There is a wide scope of investment opportunities in Malawi in the five priority


sectors. However, any investor is free to invest in any other sector.

Any enquiries in the United Kingdom should be directed to the Malawi High
Commission in Londonwhose contact details are provided below.

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MALAWI HIGH COMMISSION

36JOHN STREET

HOLBORN

LONDON WC1N 2AT

E-MAIL: malawihighcommission@btconnect.com

WEBSITE: www.malawihighcommission.co.uk

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