Overview on a Selected Investment and Trade Opportunities

1. Overview on a Selected Investment and Trade Opportunities United Kingdom - Malawi Investment Forum 20th March 2013 Clement Kumbemba,CEO Malawi Investment and Trade Centre (MITC) mitc@mitc.mw www.malawi-invest.net

2. Introducing Malawi “The warm heart of Africa!” Second most peaceful country in Africa: Global Peace Index 2009 Stable democratic government English-speaking and growing managerial work-force Key figures

3. Rationale for Malawi • Political Stability and Peace • Security of Life and Property • No History of Civil War and Peaceful and Democratic Government Changeovers. • Peaceful Co-Existence among Different People • Free Repatriation of Profits, Dividends and Loyalties • The Second Most Peaceful Country in Africa as Rated by Global Peace Index in 2009.

4. Private Public Partnership (PPP) in Malawi • The PPP Act Number 27 enacted in November 2011. • PPP Arrangements fully provided for in the PPP Act • Functions and Obligations of contracting parties fully provided for in the PPP Act • Security of investment, issues of dispute handling are adequately addressed in the PPP Act

5. Investment Projects Project Name : SUGAR CANE FACTORY IN SALIMA Project description: Development of Greenfield sugarcane production and processing facility of 6,000 hectares under irrigation farming. Project Promoter: Green Belt Initiative (GBI)/Malawi Government Investment requirements: US$70m (Made up US$42m for developing land, US$19m for machinery and US$9m for inputs, training and market development). Mode of Partnership: Public-Private Partnership

6. Project Name : SHAYONA CEMENT CORPORATION LIMITED Project description: Expansion and Modernization of the Cement Plant Product/Services: Cement Production under the "Akshar" brand name. Turnover: US$5m-US$20m Feb 2013 Investment requirements: US$51million of which US$27 million the financing gap. The Promoter will inject US$24million in the form of equity. Mode of Partnership: Debt financing/Loan

7. Project Name : AFRISEED LIMITED COMPANY Project description: Seed multiplication using social entrepreneurship model and working with rural women farmers. Product/Services: Legumes seed production, quality seed distribution, grading service and packaging, hiring out of farm equipment to farmers Turnover: US$5m-US$20m Investment requirements: US$20million Mode of Partnership: Equity and Donor financing.Donor funding under the women groups for training, sourcing of private sector extension services, mobilization of women groups and skill transfer to the women groups

8. Project Name : SUNBIRD TOURISM LIMITED Project description: Development of a 25 rooms eco lodge within Liwonde National Park on the Upper Shire River and development of another 25 rooms eco lodge within Majete Game Reserve. Product/Services: Hospitality with a chain of 6 hotels Turnover: US$14m(2012) Investment requirements: US$8million Mode of Partnership: Equity finance

9. Project Name : NASCOMEX LIMITED Project description: Groundnuts Oil Production Product/Services: Commodity trading and agro processing. Largest smallholder association in Malawi with a combined membership of over 100,000 smallholder farmers Turnover: US$5m-US$20m Feb 2013 Investment requirements: US$5million Mode of Partnership: Donor and Equity financing

10. Project Name : UNIVERSAL INDUSTRIES LIMITED Project description: Production of high quality cassava flour (HQCF), potato multiplication, production of soya textured products Product/Services: Quality Biscuits, Confectionery, Savoury Snacks, Beverages, Powdered Milk, Maize Products, High Quality Cassava flour (HQCF),Green Coffee, & Potatoes. Turnover: over US$30million Investment requirements: US$7million (US$5 for additional machinery and US$2 million for working capital) Mode of Partnership: Debt and Equity financing

11. Project Name : RAB PROCESSORS SOY BEANS PROJECT Project description: Production of Soya Textured Products . Product/Services: Agriculture Related Products Investment requirements: US$6million (Largely to acquire oil extraction and refinery machinery). Mode of Partnership: Debt and Equity financing

12. Project Name : MPATSA HOLDING LIMITED Project description: (a) Purchase of irrigation equipment for cash crop farming. (b) Establishment of a commercial Bank (c) NkhonjeniIntergrated Fish Farming Project Product/Services: Farming, real estate, hospitality, advertising, and distribution Turnover: US$1million- US$5 million Investment requirements: (a) Irrigation equipment -US$7million (b) Commercial Bank – US$5million (c) Intergrated Fish farming – US$750k - US$1m. Mode of Partnership: Debt and Equity financing

13. Investment Prospects

14. Investment Prospects

15. TOURISM INVESTMENT PROJECTS A selection of projects being promoted are as follows: • The development of eco tourism lodges in areas of outstanding natural beauty including forest areas, national parks and small islands on Lake Malawi. Beach front developments on Lake Malawi • The development of hotels and conference centres along the lakeshore and in urban centres • Boat cruises and water sports facilities on Lake Malawi and the Shire river. • Development of wildlife reserves including restocking, tourism infrastructure • Establishment of casino’s and entertainment centres in the main urban areas

16. CAPE MACLEAR INTERGRATED LAKESHORE RESORT PROJECT The Development of an Integrated Resort at Golden Sands, Cape Maclear in the lakeshore district of Mangochi Aim: Provide high quality resort within Lake Malawi National Park. This is a purpose-built infrastructure with 100 beds 5 Star Lodge, 150 (4 Star) bed hotel, conference facilities, sporting complex, Champion Golf Course, Quay, Museum, wildlife ranch and underwater aquarium.

17. DEVELOPMENT OF NATIONAL PARKS AND WILDLIFE RESERVE Kasungu National Park This is a priority project which involves the development of existing tourism facilities, restocking of wildlife, enhancement of law enforcement and fencing. Other Parks and Protected Areas earmarked for development include • Nyika National Park • Liwonde National Park • Vwaza Game Reserve • Dzalanyama Forest Lodge

18. ENERGY PROJECTS Project Description Potential capacity(MW) Project Cost Estimate(US$ Kholombidzo Hydro 365 US$410m Mpatamanga Hydro 310 US$310m Kapichira Phase II 64 US$60m Nkula A Hydro(upgrade) 26 US$25m Lower Fufu Hydro 170 US$140m

19. SHIRE VALLEY IRRIGATION SCHEME The Project seeks to develop 42320 hectares under PPP framework - To undertake feasibility studies - To construct irrigation canals - To build warehouses, cold rooms and provide utilities - To produce and process special crops - To establish agro-processing factories - To provide road network infrastructure

20. Trade Opportunities in Malawi Groundnuts Sugar Dhal Tobacco Tea Pulses (pigeon peas, soya beans, chick peas, kidney beans) Coffee, Maize Macadamia nuts Curios, Handcrafts Gemstones, Timber, Cut-Flowers Cotton, Textiles and Garments, Birds Eye Chilies

21. Market Arrangements • COMESA • SADC • EU’s Everything But Arms (EBA) Beneficiary • AGOA beneficiary • Beneficiary to the India, China, Canada, Japan Preferential Markets • Duty free, quota free and preferential bilateral trade arrangements with a number of countries, among them Zimbabwe and South Africa

22. Investment Protection • Constitution of Malawi guarantees protection of assets of foreign investors • Member of the Multilateral Investment Guarantee Agency (MIGA) • Signatory to the international centre for settlement of investment disputes • Member of the Africa Trade Insurance Agency of COMESA

23. Malawi is ready and open for business Contact us Malawi Investment and Trade Centre (MITC) P/ Bag 302 Capital City Lilongwe 3.MALAWI Tel: + 2651770800 Fax: +265 1771781 Email: mitc@mitc.mw www.malawi-invest.net