Investment Priority Sectors
AGRICULTURE AND AGRO-PROCESSING
In line with Malawi’s vision 2063, the government of Malawi has prioritized agriculture commercialization and productivity as one of the three pillars of moving the country from a low to middle income economy. Specific investment opportunities in the Agriculture sector include crop production. Irrigation farming, livestock production and agro-processing as well as investments in ornamental and deep fishing.
The energy sector is the backbone of the other industries for sustainable economic growth and infrastructure development. Huge private investment is required to meet increasing energy demand for both household and industry use that has risen due to a rising demand for energy which is growing due to increased economic activities in mining and tourism. Hydro electricity, fossil fuels and biomass are the most used energy sources in Malawi. The Government is therefore, inviting Independent Power Producers (IPP) to invest in power generation, transmission and distribution using solar, hydro power, wind and biofuels.
Malawi is a hub for agricultural produce that is sought globally as raw materials, however manufacturing accounts for about 12% of Malawi’s GDP as most of the produce like macadamia, teas, chilies, tobacco, pulses are exported in a raw or semi-processed state. In addressing this, Malawi Government is prioritizing manufacturing convert these agricultural products and others into high value finished products. Investors may venture into the manufacture of any of the products listed below.
Textile and Garment manufacturing
With market opportunities under AGOA and preferential agreements between Malawi and South Africa, and Malawi’s low labor costs investing in the garment/textile industry would be a smart choice for foreign investors.
Light goods manufacturing
Malawi imports most of its light goods equipment such as household electrical fittings (e.g., cables, plugs, switches) and engineering materials like steel-based products. Investors are therefore invited to invest in this sector to reduce current imports and save foreign exchange.
Malawi has a wealth of mineral resources, among others; limestone, rare earth, graphite, bauxite, titanium heavy, gemstones and the government expects an increase in the contribution of the mining sector to GDP by at least 10% annually. The government is inviting investments in mineral exploration as well as oil and gas exploration in Lake Malawi which currently has been demarcated into 6 exploration blocks. Furthermore, specific investment opportunities are in gold, uranium, platinum group of minerals (PGMs), base metals, nickel and copper, graphite, phosphates, dimension stone, heavy mineral sands and coal.
Malawi has a considerable number of unique and attractive areas with natural and pure beauty and features. Lake Malawi is the principal scenic attraction of the country covering 20% of the country’s surface area. It contains more species of fish than any other water body on earth. The large variety of fish is endemic to the lake. Malawi also has beautiful mountains and plateaus with exceptional scenery; fascinating wildlife and flora. There are game reserves which are a home to the ‘’Big Five’. Specific Investment Opportunities
Hotel, camps and lodges
Develop support infrastructure (Electricity, Water and Transport)
Water and lake sports
Cultural and traditional troupes (community-based tourism)
Wilderness safari, travel and tours
Game and forest lodges
Casinos and entertainment centre
The government is looking for investments on a PPP basis in infrastructure including road, rail and water transportation which will result in better networks in improving, facilitating and promoting trade and tourism. Projects include:
rehabilitation, upgrading and construction of new roads
rehabilitation and expansion of railway infrastructure and
upgrading and expansion of runways and terminal buildings
In addition Malawi aims at improving the usage and adoption of electronic and online services; availability of service, geographical coverage, the usage of modern broadcasting technology and reducing communication costs. The government is introducing Telecommunication and Information Technology (TIT) platform to integrate security, banking and insurance, taxation, education, health and business sectors.