Transforming Malawi Inclusive of the Malawi Diaspora Presented at: 2018 Malawi Diaspora Conference Washington D.C, 29 th September, 2018 29 th September, 2018
How Has the Business Environment Been Enabled So Far? Over 40 pieces of legislations passed or in pipleline intended to streamline and enable the legal environment in last 3 years Private Sector/Development-Oriented Legislations, Policies/Plans/Strategies: National Investment Policy (Underway) National Agriculture Policy National Agriculture Investment Plan (NAIP) National Export Strategy MSME Policy Industrialization Strategy
Industrial Policy Trade Policy Diaspora Policy National Transport Master Plan Tourism Master Plan (In process) Buy Malawi Campaign Special Economic Zones (In process) Land Policy and Act Electricity Act E-Government Among Others
Private Sector/Development-Orientated Institutions/Institutional Capacity: National Planning Commission MITC PPPC Aviation Authority (Upcoming) Transport institutions (Upcoming) Sectors charged to originate projects which are published and promoted by MITC/PPPC Decentralization of Projects Implementation e.g. working with ADL & other stakeholders to conceptualize and later implement Airport City and other projects
Administrative Processes: Trade Facilitation Trade and Investment Portals respectively, & National Single Window (Import and export documents are now accessed electronically through the Trade Portal ( www.malawitradeportal.gov.mw) Customs Modernization (ASYCUDA World) and Integrated Risk Management system at the border One-Stop-Border Post (Mwanza, Songwe,Chipata as priority. Streamlining of Border Agencies From 17 To 5 On-line Immigration Permits Land mapping Trade Policy Negotiating favourable bilateral, regional & multilateral market access agreements (EAC, CFTA)
Access to Finance , Energy ◦ Finance: A secured lending regime is now enforced through the Personal Property Securities Act A National Registration and Identification System with National IDs Establishment of Credit Reference Bureaus Promotion of Warehouse Receipt System as a structured marketing system for agricultural products ◦ Energy: With the generous support of the American GoM, review of the Legislation and unbundling of ESCOM a pre-requisite Undertaking of various studies Development of the IPP Framework and the IRP Upgrading of the transmission grid is complete this September and carrying capacity is now over 2,000 MW IPP Applications are now being Processed.
Mbongozi Hydro PPA – 42 MW – Now signed Over 100 MW Solar IPPs signed and under implementation 300 MW Kamwamba Coal-fired project management in place, awaiting final approvals A Gas powered facility under discussion Mpatamanga Hydro (308 MW) Feasibility studies for following either completed or nearing completion: Fufu Hydro: 261 MW – F.S in final Stages Kholombidzo Hydro: 210 MW – US$407 M. F.S done Chasombo Hydro: 50 MW – US$389 M. F.S. done Chizuma Hydro: 50MW – US$157 M. F.S. done Lower Songwe: 180MW shared with TZ. US$261 M Coal Plant: 500 MW IPP. Discussions under way (National Power Generation Coy)
◦ ICT/E-Government: Connection of Malawi to undersea fiber optic cable through Tanzania Government working on the following areas: ◦ National Data Center ◦ Smart City System ◦ E-judiciary ◦ E-procurement ◦ E-health ◦ E-education ◦ E-parliament
Cyber Security GIS System ◦ Industrial Rebate Government is working on enhancing the efficiency of the export rebates so that refunds are timely
The Investment and Export Promotion Act 2012 gives priority to Investment and Export Promotion in the following sectors: 1. Agriculture 2. Agro-Processing 3. Fisheries 4. Forestry 5. Manufacturing 6. Mining 7. Tourism Such Other Productive Sectors as the Minister may Determine
MGDSIII PRIORITIZED SECTORS OF PROMOTION Agriculture, Water Development & Climate Change Education and Skills Development Energy, Industry and Tourism Development Transport and ICT Infrastructure Health and Population
Two Approaches Adopted by GoM: 1. Public Private Partnership Approach (Conduit is PPPC) Where GoM has an interest in – Mostly projects with a social impact to the economy but which are also economically viable for private sector participation. 2. Direct Investment (Conduit is MITC) Most Activities that were on the negative list are liberalized to allow for increased Direct Investment by Private Sector.
PRIVATE PROJECTS AGRICULTURE & AGRO-PROCESSING
Project Description The project, already operational, is located on Nkholosa Estate in Mangochi district. The project area covers 673 hectares of land and is located 3 kilometers from Lake Malawi. The project entails commercial aquaculture, mostly Chambo. Status The project seeks an equity partner to take up to 49%. Est. Investment required is US$23,372,000
Project Description Owned by an indigenous Malawian entrepreneur, the company is yet operational but the promoter has done substantial assessment studies to establish the potential of manufacturing cloth. There are currently 11 ginning companies in Malawi with a combined ginning capacity of more than 150,000MT per annum, and only one spinner of cloth in the country. Status A feasibility study report is available and total project cost is US$17 million. Land available along Blantyre- Lilongwe Road. Equity/Financial Partner being sought
Project Description The current developers have invested over $800,000 to date at Lumbadzi to manufacture fertilizer, and have installed a production machinery and has run batches of SCU and NPK fertilizer productions successfully. The technology UGF possesses gives greater crop yield than just taking plain Urea, and loosely blending it with Sulphur (i.e. as it is done in many countries by other fertilizer companies at present, including fertilizer suppliers in Malawi). Status The company is looking for a 30% to 60% Equity Shareholder
Project Description Lake Malawi is a fresh water lake and that is home to probably one the best tasting fishes in the world. The lake, which is 385 miles long, and 52 miles wide, has been overemphasized on capture fisheries which is quickly depleting the fishery resources in the Lake Status Government is seeking direct investors to engage in cage fish farming on Lake Malawi for the production of the Investors will Chambo, Catfish and other local fishes. undertake own project feasibility studies
PRESS AGRICULTURE Project Description Press Agriculture is the largest single landowner with over 24,000 hectares of land to its name. The company intends to up-scaling its operations to add value on its estates in areas such cereals to produce various products. Status In order to achieve this, the project requires equity/financial support in the region of US$50 million*3 projects (US$150 M). Definite studies are underway. The project seeks equity/financial partners.
Horticulture Project at ADL Project Description A proponent from the Netherlands expressed interest in a horticulture project which was marketed through the Projects Compendium. The project will cover 300 hectares and will eventually produce flowers for the Netherlands market. In the short-term, it may pilot on vegetables. Status Initial studies such as soil and climate suitability analyses have been undertaken and Possible crop areas defined. The project will cost a minimum of US$2 million and the project is seeking investors of the diaspora. So far, local partners include ADL and EDF
TOURISM
Project Description The proposed investment entails the reconstruction of Sunbird Livingstonia Beach hotel to a 4-5 star status with the following main facilities: • 150 bedrooms • 300 seat conference Centre • 9 -hole golf course • Water world There is presently no lakeside resort with the envisaged facilities. Status The project requires an equity and/or financial partner. Feasibility study is not done, but estimate is US$20 million
CAPE MACLEAR RESORT Project Description Project consists of the following three projects: 1. Cape Maclear Resort A touristic, leisure and residential project featuring 5 hotels, serviced residences, a signature golf club and golf course, an aqua park, an aquarium, a cultural village and a major events arena. The resort will be developed on over a 275 hectares plot by Lake Malawi 2. Cape Maclear International Airport An international airport and logistics center project proposed to be located on a Government-owned 4 square kilometer site within 15 kilometers-40 kilometers of the resort site. The airport will feature a 4 kilometer runway capable of landing wide-bodies planes. In addition, the airport will feature a regional logistics and processing free zone. 3. Cape Maclear Business Hub A smart economic city anchored around the following proposed two key free zones: • Regional business and trading free zone; and • Regional banking and finance (regulated) free zone. Status Cost is US$2.6 billion. 60% equity secured and there is opportunity for remaining 40%
MANUFACTURING
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