INVESTORS GUIDE TO

THE MALAWI FLAG

FOREWORD 1
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 Governments
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
T
2 MIPA INVESTOR'S GUIDE TO MALAWI
MALAWI IN BRIEF 3
MALAWI IN BRIEF
Geography
Surface area: 118,484 sq. km (about 20% water)
Time zone: GMT + 2
Demographics (2007)
Total population: 13.2 million
Main cities
Lilongwe: 744,000
Blantyre: 778,000
Mzuzu: 150,000
Zomba: 113,000
Population density: 111 per sq. km
Population growth: 1.9% per annum
Urban population: 13%
Life expectancy: 39.1 years
Literacy rate: 58%
Economy (2006)
Currency: Malawi Kwacha (MK)
Exchange rate: US$1 = MK140 (April 2007)
GDP: US$2.172 billion
GDP per capita: US$170
Real GDP growth: 7.9%
Annual inflation rate: 13.9%
Principal exports: Tobacco, tea, sugar,
cotton and apparel
Government
Political system: Multi-party democracy
Head of state: H.E. Dr. Bingu Wa Mutharika
Capital: Lilongwe
Official languages: English, Chichewa
Religions: Christianity (79.9%),
Islam (12.8%), others (7.3%)
Climatic conditions
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.
Fig 1. GDP Composition (2006)
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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.
4
ACKNOWLEDGEMENTS
MIPA INVESTOR'S GUIDE TO MALAWI
CONTENTS 5
CONTENTS
1.0 Introducing Malawi
1.1 Country and people
1.2 History and Government
1.3 Market size and access
1.4 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 Agriculture
3.2 Mining
3.3 Tourism
3.4 Manufacturing
3.5 Infrastructure
3.6 Forestry
3.7 Energy
3.8 Finance
3.9 Privatisation
4.0 The regulatory framework
4.1 Legal and judicial system
4.2 Institutional framework
4.3 Investment policy
4.4 Repatriation of foreign exchange
4.5 Investment protection and access to international arbitration
4.6 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
INTRODUCING
MALAWI
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 pro-
independence 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.
INTRODUCING MALAWI 7
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
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 duty-
and 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.
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.
8
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.
9
Table 1. Malawi's Trade with Major Trading Blocks 2001-2006
Trade Block
Average annual exports Average annual imports
US$ million Percent of total exports US$ million Percent of total imports
SADC 131.2 25.9 524.2 58.7
COMESA 86.0 17.0 130.4 14.7
EU* 207 43.7 76.8 16.2
USA 82.7 16.3 26.1 3.0
Source: COMTRADE 2007 and Annual Economic Report 2005, 2006, 2007
*Averages for 2001-2005
INTRODUCING MALAWI
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 6-
percent.
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 11
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
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
growing
Percent
marketing
Maize 97 18
Other cereals 24 26
Root crops 36 32
Pulses 68 37
Vegetables 15 38
Tobacco 15 100
Sugar 5 100
Cotton 3 100
Table 3. Proportion of Malawian Farmers Growing
and Marketing Major Crops
Source: World Bank
12 MIPA INVESTOR'S GUIDE TO MALAWI
2004 2005 2006 2007*
Nominal GDP (MK billion) 221.1 260.0 304.0 345.0
Real GDP growth rate (%) 5.1 2.3 7.9 6.0
Inflation (%) 11.9 15.5 13.9 9.0
Exchange rate (MK/US$) 109.0 118.0 134.0 145.0
Government revenue (MK billion) 44.6 57.3 121.6 134.7
Government expenditure (MK billion) 91.8 118.8 128.4 138.7
Exports (US$ million) 483.1 503.6 668.2 -
Imports ( US$ million) 932.2 1,183.7 1,210.2 -
Trade balance -449.1 -680.1 -542.0 -
Population (million) 11.9 12.3 12.7 13.2
Table 2. Selected Key Economic Indicators
*Projections
Source: Malawi Economic Reports (various)
Manufacturing on the other hand, is relatively
small and in 2006 accounted for only 11.8
percent of GDP. It mainly involves the agro-
processing 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 13
2.2 Trade
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.
2000 2001 2002 2003 2004 2005 2006
Tobacco 14,200.3 18,363.3 17,893.1 24,191.2 22,303.5 31,241.5 55,840
Tea 2,235.4 2,461.0 2,827.8 3,481.5 5,132.5 5,937.4 6,737
Sugar 2,339.2 3,975.7 2,684.2 10,571.4 7,881.4 5,408.5 6,391
Apparel 797.8 2,018.0 2,464.6 3,858.1 4,795.5 4,995.7 5,525
Cotton 438.5 316.6 260.8 483.9 2,224.3 1,847.1 2,054
Groundnuts 239.7 368.2 378.1 1,132.0 1,581.0 1,473.0 1,003
Pulses 134.3 211.3 218.8 494.1 608.3 - 785
Wood 34.3 57.0 62.7 178.6 219.3 380.5 973
Rubber 73.7 171.0 152.9 265.8 399.0 248.1 679
Coffee 316.4 451.5 175.6 245.1 217.5 - 381
Spices 85.6 78.3 224.0 141.2 170.7 169.0 610
Hides & Skins 21.1 33.9 32.1 31.5 44.0 67.5 113
Wooden furniture - - - - - 270.8 440
Table 4. Principal Exports, 2000-2005 (Millions of Kwacha)
Source: National Statistical Office
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 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
Source: Annual Economic Report Malawi
14 MIPA INVESTOR'S GUIDE TO MALAWI
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.
2.3 Investment
In order to create a sound business-enabling
environment, the Government is currently
finalizing the review of Malawis 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.
Source: MIPA Statistics
Figure 2. MIPA-Facilitated FDI Pledges
M
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Time (yrs)
* Data for 2007 is for the period January-March
200
150
100
50
0
1999 2000 2001 2002 2003 2004 2005 2006 2007*
THE OPERATING ENVIRONMENT 15
2.4 Infrastructure
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.
2.4.1 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
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 peri-
urban 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.
16 MIPA INVESTOR'S GUIDE TO MALAWI
2.4.2 Transport
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.
Road
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.
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.
Table: 6. Imports & Exports Moved by Border Post (Thousand tonnes)
2003 2004 2005
Export Import Total Export Import Total Export Import Total
Mchinji 58.2 68.0 126.2 70.6 60.5 131.0 65.1 67.1 132.2
Mwanza 358.7 268.1 626.8 341.0 326.5 667.5 325.8 335.4 661.2
Kaporo 64.0 34.4 98.4 55.3 50.7 106.0 56.2 56.2 105.5
Total 480.9 370.5 851.4 466.9 437.7 904.5 458.7 458.7 898.9
THE OPERATING ENVIRONMENT 17
Water
Lake transport is provided by the privately-
operated 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 Shire-
Zambezi 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.
Figure 3. Malawi Rail Map
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.
18 MIPA INVESTOR'S GUIDE TO MALAWI
2.5 Communications
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.
Postal services
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.
2.6 Labour
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, hard-
working, reliable, readily trainable and English-
speaking. 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.
Table: 7. Median Monthly Compensation 2006 (US dollars)
Source: World Bank Malawi Investment Climate Assessment
Zambia Tanzania S. Africa Malawi Kenya Uganda Madagascar
Managers 357.71 217.26 2,086.90 348.95 376.26 139.08 Export
Professionals 360.02 186.22 1670.90 257.12 138.35 78.34 65.1
Skilled 83.08 82.77 554.70 78.06 87.22 43.12 325.8
Unskilled 42.48 56.90 292.50 32.14 114.92 44.51 56.2
THE OPERATING ENVIRONMENT 19
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.
20 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 opening-
up 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 Reserve Bank of Malawi
Commercial Banks 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
Discount Houses
First Discount House Limited, Continental Discount House Limited
Stock Exchange Malawi Stock Exchange
Leasing Companies Leasing and Financing Company Limited
Investment Banks Indefund Limited
Savings Banks
Malawi Savings Bank
Microfinance
Institutions
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)
THE OPERATING ENVIRONMENT 21
2.9 Taxation
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 non-
resident 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.
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.
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.
22 MIPA INVESTOR'S GUIDE TO MALAWI
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.
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
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
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 23
INVESTMENT
OPPORTUNITIES
Introduction
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.
3.1 Agriculture
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
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 semi-
processed state, there are great
opportunities for investors to convert
these agricultural products into higher
value finished products. Opportunities
also exist for investment in other higher-
value 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.
INVESTMENT OPPORTUNITIES 25
3.1.1 Coffee
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.
3.1.2 Tea
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.
26 MIPA INVESTOR'S GUIDE TO MALAWI
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.
3.1.3 Tobacco
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
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.
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 semi-
processed, there is an opportunity to
convert tobacco into cigarettes.
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.
INVESTMENT OPPORTUNITIES 27
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.
3.1.5 Cotton
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
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
28 MIPA INVESTOR'S GUIDE TO MALAWI
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.
3.1.6 Pulses
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.
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,
INVESTMENT OPPORTUNITIES 29
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.
3.1.7 Cassava
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
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.
3.1.8 Chillies
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 re-
exported 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.
30 MIPA INVESTOR'S GUIDE TO MALAWI
Again, commercial paprika production and
contract farming with smallholder and estates
provide profitable channels to increase the
supply for processing and export.
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.
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
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.
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.
INVESTMENT OPPORTUNITIES 31
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)
Source: FAO database 2006
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Beef & Veal (,000) 22.6 12.1 14.3 14.6 16.0 16.0 16.0 16.0 15.7 16.0
Goat meat (,000) 4.5 5.6 5.8 5.1 6.1 6.0 6.0 6.0 6.6 6.6
Mutton & lamb 322 343 364 364 388 402 402 402 402 402
Cow milk (,000) 32.0 33.0 33.0 34.0 35.0 35.0 35.0 35.0 35.0 35.0
Table 9. Livestock Numbers in Malawi
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Cattle (,000) 700.1 598.2 715.4 711.7 763.7 749.0 750.0 750.0 765.0 750.0
Sheep (,000) 93.0 97.9 102.7 103.1 111.5 115.3 115.0 115.0 115.0 115.0
Goat (,000,000) 1.26 1.57 1.6 1.43 1.69 1.67 1.70 1.70 1.90 1.90
Source: FAO database 2006
32 MIPA INVESTOR'S GUIDE TO MALAWI
3.1.12 Fisheries
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 small-
scale. 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 small-
scale 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 small-
scale 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
3.2 Mining
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.
INVESTMENT OPPORTUNITIES 33
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 Malawis 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.
Source: Geological Surveys, Department Bulletins and Reports, and Private Company Mineral Exploration Reports
Deposit Location
Reserve
(Million Tonnes)
Grade
Bauxite Mulanje 28.8 43.9 % AL2O3
Uranium Karonga/Chitipa 12.5 0.15% Ur308
Monazite/Strontianite Balaka 11.0 8%Sr, and 2% REO
Corundum Ntcheu 8.0 75.6 gm per m3
Graphite Dowa 2.7 5.8% C
Limestone
Ntcheu 15 48% CaO, 1.2% MgO
Balaka 10 46.1% CaO, 3.5% MgO
Titanium Heavy
Mineral Sands
Salima 700.0 5.6% HMS
Mangochi 680.0 6.0% HMS
Zomba 15.0 6.0% HMS
Vermiculite Mwanza 2.5 4.9% (Med+Fine)
Coal
Nsanje 4.7 30% ash
Karonga 15.0 21.2% ash
Phosphate Phalombe 2.0 17% P2O5
Pyrite
Dowa 34.0 8% S
Lilongwe 10.0 12% S
Glass Sands
Mchinji 1.6 97% SiO2
Zomba, Mangochi 25.0 92.7% SiO2 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, Ntcheu,
Nkhotakota, Mangochi, Blantyre,
Chikwawa
Occurences
Diamonds
Mangochi, Mwanza, Rumphi,
Chikwawa
Occurences
Table 11. Mineral Deposits and Estimated Reserves 2006
Opportunities
Mineral extraction
34 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.
INVESTMENT OPPORTUNITIES 35
3.3 Tourism
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 (2003-
2008), 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 eco-
tourism. 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
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.
Table 12. International Visitors to Malawi, 2002-2005
*Estimate
Source: Department of Tourism, NSO and Department of Immigration
2003 2004 2005 2006*
Total number of international visitors 382,600 424,000 427,360 480,165
Percentage growth - 11 1 12
36 MIPA INVESTOR'S GUIDE TO MALAWI
3.4 Manufacturing
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 semi-
processed 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.
INVESTMENT OPPORTUNITIES 37
Chemicals manufacturing:
Mosquito coils
Pharmaceuticals: Malawi imports most
of its pharmaceutical products. There is
therefore an opportunity to produce both
generic drugs and cosmetics.
3.5 Infrastructure
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:
3.5.1 Airports
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 Shire-
Zambezi Waterway from the inland port of
Nsanje in southern Malawi to the Indian Ocean
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.
38 MIPA INVESTOR'S GUIDE TO MALAWI
3.6 Forestry
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 2001-
are 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 re-
treading, 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.
3.7 Energy
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
INVESTMENT OPPORTUNITIES 39
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 market-
ready 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) Project cost (million USD)
Lower Fufu 90-100 119
Khorombidzo high 479 330
Khorombidzo lower 479 312
Mpatamanga 300 335
40 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,
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.
Table 14. Coal deposits
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
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
countrys environment. There are 13 alternative
energy sources selected for promotion under
PAESP.
Table 15. Alternative Energy Sources
Source: Annual Economic Report 2007
Coal Field District Cal Value (Kcal/kg) Ash Content
Ngana Karonga 4,799 21%
N. Rukuru Rumphi 5,410 28%
Livingstonia Rumphi 7,226 14%
Lengwe Chikwawa 4,250 50%
Mwabvi Nsanje 5,030 40%
Energy Type Energy Source
Biomass-based fuels Biomass briquettes
Coal Coal (household) stoves
Gas-based fuels Liquefied petroleum gas
biogas (methane)
Ethanol-based fuels
Gel-fuel
Super Blu
Ethanol for cooking and heating
Petroleum-based fuels Parrafin stoves
Electric energy distribution
New connections
Ready boards
Generation Wind power generation
Solar Photo-voltaics
Solar thermal (water heating)
INVESTMENT OPPORTUNITIES 41
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 sugar-
producing 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 flex-
fuel 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.
42 MIPA INVESTOR'S GUIDE TO MALAWI
3.9 Privatisation
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
INVESTMENT OPPORTUNITIES 43
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.
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.
4.4 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 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.
4.6 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.
4.7 Land
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.
THE REGULATORY FRAMEWORK 45
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: mipa@mipamw.org mipabt@mipamw.org
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
(5) Approved (6) Denied
Open Bank
Account
Register with Malawi
Revenue Authority
Apply for other sector specific
permits, licenses & approvals
47 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.
48 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
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
Table 16. Prescribed projects requiring an Environmental Impact Assessment (EIA):
49 OVERVIEW OF THE INVESTMENT PROCESS
Appendix 1: Public Holidays, Business Hours and Visa Requirements
Public holidays
New Year's Day January 1
Chilembwe Day January 15
Martyrs' Day March 5
Good Friday Set each year
Easter Monday Set each year
Labour Day May 1
Freedom Day June 14
Republic Day July 6
Mother's Day October 8
Eid al Fitr (End of Ramadan) Set each year
Christmas Day December 25
Boxing Day 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.
50 MIPA INVESTOR'S GUIDE TO MALAWI
Appendix 2: Important Business Contacts
Deloitte and Touche
P.O. Box 30364
Lilongwe 3
Tel: (265) 01 773 069 / 773 699
Fax: (265) 01 772 276
E-mail: lldeloitte@deloitte.co.mw
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: kadale@africa-online.net
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: mwenelupembeandmhango@wbm.mw
Price Waterhouse Coopers
ADL House
P.O. Box 30379
Lilongwe
Tel: (265) 01 773 799 / 773 306
Fax: (265) 01 772 573
E-mail: wisdomchitedze@malawi.pwc.globe.com or
chimwechihana@malawi.pwc.globe.com
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: embassy.malawi@pi.be
Egypt
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: malawi@link.com.eg
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: malemb@telecom.net.et
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: malawi@mxl.ttcn.ne.jp
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: malawicons@mweb.co.za
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: mhc@mweb.co.na
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: malawi@ms45.hinet.net
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 : tourism@malawihighcomm.prestel.co.uk
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: malawi@un.it
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: malahigh@africaonline.co.zw
Accounting and consultancy firms
Diplomatic Missions Resident in Malawi
Malawi Diplomatic Missions Abroad
51 APPENDIX
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: minci@malawi.net
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: mcci@eomw.net
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: indebank@malawi.net
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: mepc@malawi.net
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
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: amimw@malawi.net
Central East African Railway Company
Post Office Box 5144,
Limbe
Tel: 265 1 840 844
Fax: 265 1 843 496
Email: cear@cearcdn.mw
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: combinecargomalawiblantyre@malawi.net
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: gdcmalawi@malawi.net
Glens Limited
P.O. Box 629,
Blantyre
Tel: (265) 01 671 888
E-mail: glens_tnt@malawi.net
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: transcom@transcommw.com
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: mccl@eomw.net
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: apexgroup@malawi.net
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: agaffar@malawi.net
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: srashid@malawi.net
Malawi Lake Services
Malawi Business Contacts Transport Services
52 MIPA INVESTOR'S GUIDE TO MALAWI
For the supply to residential premises
Fixed Charge 90.94
For each unit consumed up to 30 units 1.94
For each unit consumed in excess of 30 units and less than 750 units 2.85
and less than 750 units 2.85
For each unit consumed in excess of 750 units 4.05
The supply to non-residential premises
Fixed charge for single phase supply 298.19
Fixed charge for three phase supply 415.66
For each unit consumed 5.35
For three phases supply to a consumer
Fixed Charge 1100.50
For each unit consumed 2.98
On peak maximum demand charge, per kVA 701.07
Maximum demand (Off peak) tariff consumer's option
Fixed Charge 1100.50
For each unit consumed 2.99
Off peak maximum demand charge, per kWh 701.07
For the supply to a consumer with a chargeable maximum
of 40 kVA or more supplied at 11 kV or 33 kV
Fixed Charge 1061.11
For each unit consumed 2.39
On peak maximum demand charge per kVA 655.24
Maximum demand (Off Peak) tariff consumer's option
Fixed Charge 1061.11
For each unit consumed 2.39
Off Peak maximum demand charge per kVA 327.62
Lilongwe
Residential
First 10 cubic meters (per cubic meter) 28.60
Next 30 cubic meters 43.38
Thereafter 61.25
Minimum Charge 286.70
Institutional
Flat Rate 54.64
Minimum Charge 563.00
Commercial and Industry
First 100 cubic meters 61.25
Thereafter 76.78
Minimum Charge 603.75
Central Region Water Board
Flat Rate 19.80
Minimum Charge 200.00
Blantyre
For the first 10 cubic metres or part thereof 260.00
Between 10 cubic metres and 40 cubic metres 52.00
Exceeding 40 cubic metres 60.00
Public Land (charges per hectare in US dollars)
Development Ground Rent
Residential 6,165 1.68
Industrial 8,408 0.84
Institutional land 6,165 1.12
City Centre Land 28,052 28.05
Commercial Land 16,816 28.05
Local Centres 3,646 11.21
Monthly electricity rates (Malawi Kwacha)
Water tariff (Malawi Kwacha)
International Transportation Costs
Road tariff rates from Johannesburg to Blantyre/Limbe and Lilongwe
Blantyre (SA Rand) Lilongwe (SA Rand)
Full Loads ( Break-bulk 28 tons) per load 28,000 30,000
1 x 12m Container - Gross Mass 28 Tons - Net 24 Tons 28,000 30,000
1 X 6m Container (Up to 14 Tons Gross) 14,500 15,500
Part Loads per 1000kgs or 2CBM whichever yields greater 1,110 1,550
Minimum per Consignment 750 950
Local Collection within 30kms radius from our warehouse per 1000kgs or 2CBM - Minimum 1 Ton 265 265
Documentation per consignment 265 265
Transportation rates per container from point of origin to Blantyre/Limbe and Lilongwe via Beira and Nacala (US$)
CHINA North Dalien 3,630 6,945 3,705 7,098 3,780 7,095 3,855 7,398
Quindao 3,530 6,765 3,605 6,898 3,680 6,895 3,755 7,198
Xingang 3,555 6,895 3,630 7,048 3,705 7,045 3,780 7,348
CHINA CentralShanghai 3,430 6,645 3,505 6,798 3,580 6,795 3,655 7,098
CHINA South Guangzhou 3,390 6,545 3,455 7,168 3,465 6,695 3,908 7,468
Xiamen 3,430 6,745 3,505 6,895
DUBAI 2,734 5,283 2,930 5,708 2,809 5,433 3,080 6,008
HONGKONG 2,950 5,680 3,025 5,838 3,025 5,830 3,175 6,138
INDIA Mumbai 2,734 5,283 2,930 5,780 2,809 5,433 3,081 6,008
Calcutta 3,290 3,580
ITALY Laspezia 3,100 6,080 3,225 6,338 3,175 6,230 3,355 6,598
INDONESIA Jakarta 3,075 6,030 3,150 6,188 3,150 6,180 3,300 6,448
JAPAN 3,530 6,945 3,650 7,098 3,605 7,095 3,755 7,398
SOUTH KOREA Busan 3,100 5,980 3,175 6,138 3,175 6,130 3,325 6,398
MALAYSIA Penang 3,100 5,980 3,175 6,238 3,175 6,130 3,325 6,498
NWC (Antwerp/Hamburg/Rotterdam) 3,125 6,130 3,155 6,260 3,200 6,280 3,305 6,520
PAKISTAN Karachi 2,734 5,283 2,930 5,708 2,809 5,433 3,080 6,008
SINGAPORE 2,950 5,680 3,025 5,838 3,025 5,830 3,175 6,138
THAILAND Bangkok 3,100 5,980 3,175 6,238 3,175 6,130 3,325 6,498
TAIWAN Keelung 2,950 5,680 3,025 5,838 3,025 5,830 3,175 6,138
UK (Tilbury/Felixstowe) 3,125 6,130 3,155 6,280 3,200 6,280 3,305 6,520
ORIGIN
DESTINATION
Blantyre Lilongwe
Via Nacala Via Beira Via Nacala Via Beira
20 40 20 40 20 40 20 40
Business Operating Costs
53 INSERTS
Baobob
powder and
oil
processing

Lilongwe
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: info@treecropsmw.com
Cashew
plantation

Mangochi
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: lws@presscorp.com
Cassava
processing

Lilongwe
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: jan.vandenbroek@undp.org
Chilli
processing

Blantyre
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: lauriebapu@hotmail.com
Coffee exports

Mzuzu
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
Type of collaboration: Market access
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: jan.vandenbroek@undp.org
Confectionaries

Lilongwe
Project description: Expansion of product line into the
production of potato chips and bubble gum
Project type: Expansion of existing line of business
Type of collaboration: Loan
Total investment: US$150,000
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: mittal@malawi.net
Dairy

Lilongwe
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: macdonaldmwale@yahoo.com
Investment Projects
For the most current list of projects, please refer to MIPAs website: www.malawi-invest.net
Dairy

Mzuzu
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: northerndairies@sdnp.org.mw
Edible oils

Blantyre
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: linlyndoka@hotmail.com
Fish farming

Salima
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: carvalho@globemw.net
Fish
processing

Mangochi
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: jan.vandenbroek@undp.org
Fruit juice
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 Mboola, General Manager
Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065
Email: mikembewe05@yahoo.com
Fruit juice
concentrate

Mulanje
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: musarurwam@dairibordmalawi.com
Horticultural
products

Lilongwe
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: mohtnmcafe@yahoo.com
Agribusiness
54 MIPA INVESTOR'S GUIDE TO MALAWI
Piggery
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 Mboola, General Manager
Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065
Email: mikembewe05@yahoo.com
Poultry
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 Mboola, General Manager
Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065
Email: mikembewe05@yahoo.com
Tomato paste

Mulanje
Project description: Establishment of tomato paste
processing facility using locally-grown tomatoes
Project type: Diversification from current activity of
company proposing the project
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: musarurwam@dairibordmalawi.com
Construction
Building
materials

Mulanje
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 Mboola, General Manager
Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065
Email: mikembewe05@yahoo.com
Ethanol cook
stove
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: jan.vandenbroek@undp.org
Renewable
energy
production
(jatropha)

Lilongwe
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: tim.mahoney@africa-online.net
Energy
Medical center

Lilongwe
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: llwpc@malawi.net
Pharmaceuticals

Lilongwe
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: jwemba@sadm.mw; sales@sadm.mw
Health
Beverage
production

Lilongwe
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: bowlerbev@globemw.net
Beverage
production

Blantyre
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: tambala@africa-online.net
Mosquito net
manufacturing
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
Paper making
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
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: officeworld@malawi.net
Plastics
manufacturing

Blantyre
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: hjmafubza@malawi.net
Manufacturing
55 INSERTS
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: tambala@africa-online.net
Plastic foam
manufacturing
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 Mboola, General Manager
Tel: +265 (0)1 871 144; Cell: +265 (0)8 346 261/(9) 952 065
Email: mikembewe05@yahoo.com
Telecommunications
Celtel kiosks

Countrywide
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: jan.vandenbroek@undp.org
Tourism
Car Hire

Blantyre
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: sochetoursll@sochetoursmw.com
Eco-lodge

Dedza
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: tourism@malawi.net
Eco-Lodge

Kande Beach
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 eco-
tourist 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: tourism@malawi.net
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: tourism@malawi.net
Eco-Lodge

Mulanje
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: tourism@malawi.net
Eco-lodge
and golf
course

Mzuzu
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: tourism@malawi.net
Eco-lodge

Northern
region
Project description: Plan, design and construct lodges along
the beach at Ngara (15-room), Nthalo (20-room), Chifyo (20-
room), Kawaya (15-room), Sanga (20-room), Mwaya (20-
room), 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: tourism@malawi.net
Eco-Lodge

Nyika Plateau
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: tourism@malawi.net
Eco-Lodges

Likoma Island
Project description: Three bays in Ulisa, on the west of
Likoma islanda mixture of sandy bay and spectacular
granite rock outcropshave 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: tourism@malawi.net
Eco-Lodge

Thumbi East
Island
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: tourism@malawi.net
56 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: tourism@malawi.net
Game lodge

Vwaza Game
Reserve
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: tourism@malawi.net
Game lodge

Vwanza Game
Reserve
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: tourism@malawi.net
Hotel and
conference
center

Blantyre
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: officeworld@malawi.net
Hotel and
conference
centre

Lilongwe
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: marketing@alexanderhotels.net
Museum

Lilongwe
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: tourism@malawi.net
Transport
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: msimwaka@aplmalawi.com
Eco-lodge

Boadzulu
Island
Project description: Plan, design and construct a series of high-
quality, visually and environmentally compatible tourist eco-
lodges 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: tourism@malawi.net
Eco-lodge

Golden
Sands
Project description: Plan, design and construct a series of high
quality, visually and environmentally compatible tourist eco-
lodges 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: tourism@malawi.net
Game lodges

Nkhotakota
Game
Reserve
Project description: Plan, design and construct a series of high-
quality and environmentally compatible eco-lodges and
associated structures in Nkhotakota Game Reserve under
government concession.
Project type: Greenfield
Type of collaboration: Equity, debt
Total investment: US$2,000,000 (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: tourism@malawi.net
Game lodge

Nyika Plateau
Project description: Plan, design and construct a series of high
quality, visually and environmentally compatible tourist eco-
lodges 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: tourism@malawi.net
Tourism Projects under Government
Concession
57 INSERTS
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)
10 Great reasons to invest in
Malawi
Malawi Investment Promotion Agency - MIPA
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