2009 AFRICA BUSINESS CONFERENCE TRADE AND INVESTMENT OPPORTUNITIES IN MALAWI PRESENTED BY

1. 2009 AFRICA BUSINESS CONFERENCE TRADE AND INVESTMENT OPPORTUNITIES IN MALAWI PRESENTED BY MR PATRICK MPHEPO (FIRST SECRETARY (INVESTMENT))

2. TRADE AND INVESTMENT OPPORTUNITIES IN MALAWI

3. COUNTRY INFORMATION • Location: South-eastern Africa bordered by Tanzania to the north and, north-east, Zambia to the west and Mozambique to the south-east, south west and south. • Land Area: 118,484 sq km 45,747 sq mi) (Size of the State of Pennsylvania) • Time Zone: GMT + 2 hours • Population: 13.6 million • Literacy Rate: (2007) 64%

4. COUNTRY INFORMATION • URBANIZATION : 19 % (2008) • OFFICIAL LANGUAGE : English • NATIONAL LANGUAGE : Chewa

5. NATURAL RESOURCES • Arable land, water, fish, wildlife, forestry • Minerals • Limestone, Uranium, Bauxite Coal,Phospahtes, Monazite, Strontianite, Vermiculite and other Gemstones

6. ECONOMY • Currency: Malawi Kwacha • Exchange Rate (March 2008):US$ 1.00 =MK140.00 • GDP US$ 2.43 billion (2007) US$ 2.63 billion (2008) • GDP Per Capita US$304 (2008) US$208 (2004)

7. ECONOMIC INDICATORS • GDP Annual Growth Rate (2008) : 8.7% (2007) : 8.1% • Price Inflation Rate (2008) : 8.2% (2007) : 7.9% • Interest Rates (2008) :15 % (2007) : 22.5% source – EP&D

8. ECONOMIC STRUCTUREGDP Share Per Sector

9. ECONOMIC STRUCTURE • Agriculture is the backbone of the economy generating about 80% of foreign exchange and 80% of employment • Focus on diversifying the sources of economic growth; manufacturing; mining, tourism etc

10. TRADE GOALS • Increasing production and trade of primary products with assured markets; • Increasing in production and trade higher value products e.g coffee, macadamia nuts; • Increasing production and trade of value additioned and processed e.g textiles and garments

11. TRADE • Major Exports: • Tobacco, tea, sugar, • Other Exports • Apparels, cotton, groundnuts, coffee, macadamianuts, timber, pulses, rice, groundnuts, maize etc • Major Imports • Electrical equipment and machinery, major petroleum products, fertilizer, motor vehicles, iron and steel, pharmaceuticals.

12. IMPORTS AND EXPORTS MAJOR IMPORT AND EXPORT SOURCES

13. TRADE OPPORTUNITES IN MALAWI • Increasing Trade in Traditional Export Products with Established Markets • Tobacco • Tea – Second largest producer in Africa after Kenya. • Sugar • Cotton, rice, ground nuts etc 2. Increasing Trade in AGOA Products • Textiles, garments and apparels • Increase exports of agricultural products; coffee, macadamia nuts, paprika etc

14. TRADE OPPORTUNITES IN MALAWI • Increasing Export Diversification to Higher Value Products • Arabica Coffee; Macadamia Nuts; Bird’s Eye Chilies and long Cayenne; Beans and pulses; Soya Beans; Paprika; Cut flowers; Maize, spices 4. Increasing Trade in Value Addition and Processed Products • Increasing Domestic and Regional Trade through Imports Substitution Goods • Chicken, eggs • Increasing Export on Non-Agriculture • Hand loomed and folkloric articles i.e. curios • Minerals, rubber, timber

15. Mzuzu Coffee Plantation at Misuku Hills Coffee Processing Coffee in the Field Mzuzu Coffee

16. INVESTMENT GOALS • Increase investment in production of exports; • Boost investment in export products - oriented sectors; • Boost investment in manufacturing industry to encourage value addition; • Boost investment in domestic and regional market products for imports substitution; • Encourage investment in infrastructure development

17. WHY INVEST IN MALAWI? • A Liberalized Economic and Political Commitment to Private Sector • Market determined interest rates; • Floating currency; • Foreign currency denominated accounts for regular exporters 60% retention; • Full repatriation of profits and dividends; • Competitive Investment Incentives

18. WHY INVEST IN MALAWI? • Politically Stable Country • A Multi – party fledgling democracy with three arms of Government • Malawians are peaceful and friendly people • No history of civil war • Has had four peaceful multi-party democratic elections in 1994, 1999, 2004 and 2009

19. WHY INVEST IN MALAWI? • Preferential access to world markets under COMESA, SADC, EU, AGOA; • Hard Working, trainable, reliable and English speaking labour force; • Serviced Industrial Estate & Export Processing Zones; • Functional and constantly developing infrastructure

20. INVESTMENT OPPORTUNITIES 1. Investment in Agriculture 1.1 Increasing Agro processing 1.1.1 Integrated Cotton Industry to take advantage of AGOA • Cotton commercial farming through contract farming –demand of 100,000 MT • Ginning, spinning, weaving • Textiles, and accessories • Cotton yarn manufacturing • Garment Manufacturing 1.1.2 Fruit Processing and Vegetables Canning • Establishing of fruit juice concentrate processing facility using local-grown fruits • Establishing of horticultural centers for processing, packaging and storage of organic vegetables

21. INVESTMENT OPPORTUNITIES 1.1.3 Increase production and processing of higher value export products • Coffee, Macadamia Nuts, Paprika, Soya beans, Sesame. etc 1.2 Increase production of traditional export products through commercial farming • Large estate farming through irrigation 1.3 Increase production of domestic and regional markets products for import substitution • Livestock and dairy • Poultry and piggery

22. INVESTMENT OPPORTUNITIES 2. Increase Investment to Utilized Natural Resources 2.1 Mining • Uranium • Limestone over 25 million tonnes • Monazite/strontianite 11 million tonnes • Graphite 2.8 million tonnes • Phosphate Carbonatite 2.0 million tonnes (8.8 million tonne residuals) • Bauxite: over 25.6 Million tonne reserves • Others: Vermiculite, Gypsum, Glass sands, iron sulphides, heavy mineral sands, ceramic clays.

23. INVESTMENT OPPORTUNITIES 2.2 Phosphate Fertilizer Demand, 200,000 metric tons per annum 2.3 Fish and Crocodile Farming • Setting up of large scale fish farms for commercial fishing e.gChambo (Tilapia fish) 2.4 Wood and Rubber Products • Rubber Trees • Forestry Plantations –Timber, concession management • Timber and rubber production industries

24. Malawi Cichlids Chikangawa Tree Plantation

25. INVESTMENT OPPORTUNITIES • Increase Infrastructure Development 3.1 Transport • Shire Zambezi Waterway Project –Open Malawi into Indian Ocean through Public Private Partnership (PPP) • Provision of river/sea bargers • Air and rail • Rehabilitation of Sena Railway link between Malawi and Mozambique 3.2Housing and Building Projects High demand for affordable housing, office blocks construction and shopping malls

26. INVESTMENT OPPORTUNITIES 3.3 Information and Communications Technology and Telecommunications • Broadband telecommunications infrastructure • Installation/expansion of optic cable with connectivity links to other countries • Information Technology Centres • Data processing hubs • Broadband Internet Services • WIFI and Intranet providers

27. INVESTMENT OPPORTUNITIES 3.4 Tourism Infrastructure Development • Wildlife Tourism • Concessions for Management of Wildlife National parks and investment in construction of Game Lodges. • Tourism Lake Malawi Shore Resorts (Third Largest Fresh Water Lake) • Cape McClear (Lake Malawi National Park – unique ornamental fish species. • Eco Tourism Products • Machewe Falls • Likhubula Mountain Resort (Mulanje Mountain, highest in South Central Africa at 3000 meters).

28. Kande Beach Malawi Cichlids Species

29. MALAWI INVESTMENT PROMOTION AGENCY (MIPA) • Parastatal organization created through an act of parliament to promote, attract, encourage, facilitate and support both local and foreign investment • Facilitates all aspects of investment process in Malawi • Operates as one stop investment Centre through an interministerial committee - the investment approval committee • 10 calendar days for applications processing

30. INVESTMENT PROTECTION • Protection of foreign investors’ assets guaranteed by constitution of Malawi • Member to Multilateral Investment Guarantee Agency (MIGA) • Signatory to the international centre for settlement of investment disputes

31. For Further Details Contact:- Embassy of the Republic of Malawi Location: 1029 Vermont Avenue, N.W Suite No. 1000, Washington DC 20005 Tel: 202 349 - 9567, 202 721 -0270 Email: malawidc@aol.com web: www.malawiembassy-dc.org