2009 AFRICA BUSINESS CONFERENCE TRADE AND INVESTMENT OPPORTUNITIES IN MALAWI PRESENTED BY MR PATRICK MPHEPO (FIRST SECRETARY (INVESTMENT))
Jan 06, 2016
2009 AFRICA BUSINESS CONFERENCE
TRADE AND INVESTMENT OPPORTUNITIES IN MALAWI PRESENTED BY
MR PATRICK MPHEPO (FIRST SECRETARY (INVESTMENT))
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COUNTRY INFORMATIONLocation: South-eastern
Africa bordered by Tanzania to the north and, north-east, Zambia to the west and Mozambique to the south-east, south west and south.
Land Area: 118,484 sq km 45,747 sq mi) (Size of the State of Pennsylvania)
Time Zone: GMT + 2 hours Population: 13.6 millionLiteracy Rate: (2007) 64%
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COUNTRY INFORMATION
URBANIZATION : 19 % (2008)
OFFICIAL LANGUAGE : English
NATIONAL LANGUAGE : Chewa
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NATURAL RESOURCES
Arable land, water, fish, wildlife, forestry
MineralsLimestone, Uranium, Bauxite
Coal,Phospahtes, Monazite, Strontianite, Vermiculite and other Gemstones
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ECONOMY
Currency: Malawi Kwacha
Exchange Rate (March 2008):US$ 1.00 =MK140.00
GDP US$ 2.43 billion (2007) US$ 2.63 billion (2008)
GDP Per Capita US$304 (2008) US$208 (2004)
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ECONOMIC INDICATORS GDP Annual Growth Rate (2008) : 8.7%
(2007) : 8.1%
Price Inflation Rate (2008) : 8.2% (2007) :
7.9%
Interest Rates (2008) :15 % (2007) :
22.5%
source – EP&D
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ECONOMIC STRUCTUREGDP Share Per Sector
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ECONOMIC STRUCTURE
Agriculture is the backbone of the economy generating about 80% of foreign exchange and 80% of employment
Focus on diversifying the sources of economic growth; manufacturing; mining, tourism etc
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TRADE GOALSIncreasing production and trade of primary
products with assured markets;
Increasing in production and trade higher value products e.g coffee, macadamia nuts;
Increasing production and trade of value additioned and processed e.g textiles and garments
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TRADEMajor Exports:Tobacco, tea, sugar, Other ExportsApparels, cotton, groundnuts, coffee,
macadamianuts, timber, pulses, rice, groundnuts, maize etc
Major ImportsElectrical equipment and machinery,
major petroleum products, fertilizer, motor vehicles, iron and steel, pharmaceuticals.
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Year Imports (CIF) US$ Export (FOB) US$
2006 889.3 446.5
2007 1,272.0 704.6
2008 1,436.6 1,003.6
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IMPORTS AND EXPORTS
Import Partners Export Partners
South Africa
48.5 South Africa
18.0
Mozambique
16.9 UK 12.2
UK 7.9 Germany 7.6
Zambia 4.8 USA 7.0
Tanzania 4.6 Egypt 6.9
MAJOR IMPORT AND EXPORT SOURCES
TRADE OPPORTUNITES IN MALAWI
1. Increasing Trade in Traditional Export Products with Established Markets
Tobacco Tea – Second largest producer in Africa after
Kenya. Sugar Cotton, rice, ground nuts etc
2.2. Increasing Trade in AGOA ProductsIncreasing Trade in AGOA Products Textiles, garments and apparels Increase exports of agricultural products;
coffee, macadamia nuts, paprika etc
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TRADE OPPORTUNITES IN MALAWI3. Increasing Export Diversification to
Higher Value Products Arabica Coffee; Macadamia Nuts; Bird’s Eye
Chilies and long Cayenne; Beans and pulses; Soya Beans; Paprika; Cut flowers; Maize, spices
4. Increasing Trade in Value Addition and Processed Products
5. Increasing Domestic and Regional Trade through Imports Substitution Goods
Chicken, eggs
4. Increasing Export on Non-Agriculture Hand loomed and folkloric articles i.e. curios Minerals, rubber, timber 14
Mzuzu Coffee Plantation at Misuku Hills
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Coffee Processing
Coffee in the Field Mzuzu
Coffee
INVESTMENT GOALS Increase investment in production of
exports;
Boost investment in export products - oriented sectors;
Boost investment in manufacturing industry to encourage value addition;
Boost investment in domestic and regional market products for imports substitution;
Encourage investment in infrastructure development
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WHY INVEST IN MALAWI?A Liberalized Economic and Political
Commitment to Private Sector
Market determined interest rates;
Floating currency;
Foreign currency denominated accounts for regular exporters 60% retention;
Full repatriation of profits and dividends;
Competitive Investment Incentives
WHY INVEST IN MALAWI?Politically Stable Country
A Multi – party fledgling democracy with three arms of Government
Malawians are peaceful and friendly people
No history of civil war
Has had four peaceful multi-party democratic elections in 1994, 1999, 2004 and 2009
WHY INVEST IN MALAWI? Preferential access to world markets
under COMESA, SADC, EU, AGOA;
Hard Working, trainable, reliable and English speaking labour force;
Serviced Industrial Estate & Export Processing Zones;
Functional and constantly developing infrastructure
INVESTMENT OPPORTUNITIES1. Investment in Agriculture1.1 Increasing Agro processing1.1.1 Integrated Cotton Industry to take
advantage of AGOA Cotton commercial farming through contract
farming –demand of 100,000 MT Ginning, spinning, weaving Textiles, and accessories Cotton yarn manufacturing Garment Manufacturing
1.1.2 Fruit Processing and Vegetables Canning
Establishing of fruit juice concentrate processing facility using local-grown fruits
Establishing of horticultural centers for processing, packaging and storage of organic vegetables
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INVESTMENT OPPORTUNITIES1.1.3 Increase production and processing
of higher value export products Coffee, Macadamia Nuts, Paprika, Soya
beans, Sesame. etc 1.2 Increase production of traditional
export products through commercial farming
Large estate farming through irrigation
1.3 Increase production of domestic and regional markets products for import substitution
Livestock and dairy Poultry and piggery
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INVESTMENT OPPORTUNITIES2. Increase Investment to Utilized Natural
Resources2.1 Mining
◦ Uranium◦ Limestone over 25 million tonnes◦ Monazite/strontianite 11 million tonnes◦ Graphite 2.8 million tonnes ◦ Phosphate Carbonatite 2.0 million tonnes (8.8
million tonne residuals)◦ Bauxite: over 25.6 Million tonne reserves◦ Others: Vermiculite, Gypsum, Glass sands, iron
sulphides, heavy mineral sands, ceramic clays.
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INVESTMENT OPPORTUNITIES2.2 Phosphate Fertilizer Demand, 200,000 metric tons per annum
2.3 Fish and Crocodile FarmingSetting up of large scale fish farms for
commercial fishing e.g Chambo (Tilapia fish)
2.4 Wood and Rubber Products Rubber Trees Forestry Plantations –Timber, concession
management Timber and rubber production industries
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Chikangawa Tree Plantation
Malawi Cichlids
INVESTMENT OPPORTUNITIES3. Increase Infrastructure Development3.1 Transport
Shire Zambezi Waterway Project –Open Malawi into Indian Ocean through Public Private Partnership (PPP)
Provision of river/sea bargers
Air and rail Rehabilitation of Sena Railway link between
Malawi and Mozambique
3.2 Housing and Building Projects High demand for affordable housing,
office blocks construction and shopping malls 25
INVESTMENT OPPORTUNITIES3.3 Information and Communications
Technology and Telecommunications
Broadband telecommunications infrastructure Installation/expansion of optic cable with
connectivity links to other countries Information Technology Centres Data processing hubs Broadband Internet Services WIFI and Intranet providers
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INVESTMENT OPPORTUNITIES3.4 Tourism Infrastructure Development
Wildlife Tourism Concessions for Management of Wildlife National parks and
investment in construction of Game Lodges.
Tourism Lake Malawi Shore Resorts (Third Largest Fresh Water Lake) Cape McClear (Lake Malawi National Park – unique
ornamental fish species.
Eco Tourism Products Machewe Falls Likhubula Mountain Resort (Mulanje Mountain, highest in
South Central Africa at 3000 meters).
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Kande Beach Malawi Cichlids Species
MALAWI INVESTMENT PROMOTION AGENCY (MIPA)Parastatal organization created through an act of
parliament to promote, attract, encourage, facilitate and support both local and foreign investment
Facilitates all aspects of investment process in Malawi
Operates as one stop investment Centre through an interministerial committee - the investment approval committee
10 calendar days for applications processing
INVESTMENT PROTECTIONProtection of foreign investors’ assets
guaranteed by constitution of Malawi
Member to Multilateral Investment Guarantee Agency (MIGA)
Signatory to the international centre for settlement of investment disputes
For Further Details Contact:-Embassy of the Republic of MalawiLocation: 1029 Vermont Avenue, N.WSuite No. 1000, Washington DC 20005
Tel: 202 349 - 9567, 202 721 -0270 Email: [email protected] web: www.malawiembassy-dc.org