For all Trade and Investment opportunities in Malawi please visit: www.mitc.mw
PRIORITY SECTORS FOR INVESTMENT
The Government of Malawi invites 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).
- 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.
- 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 the country, covering an area of 1million hectares of which 86,000 hectares have already been developed.
- Livestock Production
Investment in livestock production is encouraged.
- 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.
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.
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:
Malawi has a wealth of mineral resources, including the following:
MINERAL DEPOSITS AND ESTIMATED RESERVES
|DEPOSIT||LOCATION||RESERVE (Million Tonnes)||GRADE|
|Monazite/Strontianite||Balaka||11.0||8%Sr, and 2% REO|
|Corundum||Ntcheu||8.0||75.6gm per m3|
|Limestone||Ntcheu, Balaka||15; 10||48%CaO, 1.2% MgO; 46.1% CaO, 3.5% MgO|
|Salima, Mangochi, Zomba||700; 680; 15||5.6% HMS; 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|
|Pyrite||Dowa, Lilongwe||34; 10||8%S; 12%S|
|Glass Sands||Mchinji, Zomba and Mangochi||1.6;25||97%SiO2; 92.7%SiO@ and 0.62%|
|Dimension Stone||Chitipa, Mzimba, Mangochi, Mchinji||Large volumes||Black, Blue, Pink, Green granite|
|Gemstones||Mzimba, Nsanje, Chitipa,Chikwawa, Rumphi, Ntcheu||Large Volumes||Numerous pegmatites and volcanics|
|Gold||Neno, Nkhotakota, Mangochi, Ntcheu Blantyre, Chikwawa||Occurrence|
|Diamonds||Mangochi,Mwanza, Rumphi, Chikwawa||Occurrence|
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.
Physical Infrastructure Development Projects
Projects in infrastructure include:
- 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. 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.
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’.’
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;
- 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;
- 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 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, complemented by an airport about 50 Km away. An investor or a consortium of foreign investors are invited to invest in the project.