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BRAZILIAN INVESTMENT IN MALAWI

BRAZILIAN INVESTMENT IN MALAWI. Embassy of the Republic of Malawi in Brazil. Professor Francis Moto Ambassador. Presentation Outline. Introduction Brief Malawi History Geographical Location, Economy and Demography . Establishment of Brazil Embassy in Malawi.

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BRAZILIAN INVESTMENT IN MALAWI

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  1. BRAZILIAN INVESTMENT IN MALAWI Embassy of the Republic of Malawi in Brazil Professor Francis Moto Ambassador

  2. Presentation Outline • Introduction • Brief Malawi History • Geographical Location, Economy and Demography. • Establishment of Brazil Embassy in Malawi. • Government to Government investment. • ABC’s activities • Private sector investment. • The Cotton Project in Shire Valley • Concluding remarks. Malawi Embassy Brazil

  3. Introduction Ministry of Foreign Affairs Beforegivingthisbriefpresentation, allow me tostatethatoneofthemany positive decisionthattheMalawigovernmenthasmadeduringthefiftyyearsof Independence wasto open anembassy in theFederativeRepublicofBrazilCelebrationMalawiwouldnothavemisled for a betterfiftyyearsanniversarypresentthanthewarmand cordial relationsthatexist

  4. Introduction (Cont’d) Malawi Embassy Brazil betweenthetwogovernmentsand its people. Additionally, theimpactthatthewarmand cordial relations, skillsandknowledgetransferandcapacitybuildingactivitiesthathavetakenplaceand continue to do so, havealready borne tangiblefruits. The most notable development that is in its final year is not only the construction of

  5. Introduction (Cont’t) Malawi Embassy Brazil a railway fromMoatize in Mozambiqueis Tete ProvincethroughtheRepublicofMalawibutalsotherehabilitationofanexisting railway linethathadbeen in a stateofdisrepairfor some time.

  6. Introduction (Cont’d) Ministry of Foreign Affairs The economicand social impactofthe railway Project beingimplementedbygiant Vale willdefinitely top thelistofthefiftyyearsof Independence annivesarypresentthe country and its peoplewillhavereceivedin thecelebrations.

  7. Malawi Political Map Ministry of Foreign Affairs

  8. Geographic Facts About Malawi • Malawi is a land locked country located in south-eastern Africa • Bordered by Tanzania to the north north-east, Zambia to the west, and Mozambique to the north-east, east south, and south west. • Lake Malawi, the third largest lake in Africa and one of the deepest in the world, accounts for 20% of the country's area. • The terrain of Malawi is breath-taking, it has plateaus, plains, hills and mountains with the Mulanjemassif rising to almost 10,000 meters. Ministry of Foreign Affairs

  9. Population Ministry of Foreign Affairs Population 16,777,547 (July 2013 est.); Age 15 - 64: 52.6% Business languages English, Chichewa

  10. Malawi Economy • Agriculture • Malawi relies on agriculture • Agriculture accounts for 45% of total exports; 32.4% of GDP and employs 80% of labour force The sector is generally vulnerable due to • High agricultural input prices • Droughts • But Government is implementing a subsidy programme for inputs; and is encouraging irrigation to mitigate against the problem of inadequate rainfall. Ministry of Foreign Affairs

  11. Malawi Economy (Cont´d) • Manufacturing • Relatively small and Accounts for 12% of GDP • Involves • Agro-processing of tobacco, tea & sugar • Cement production • Textiles etc Ministry of Foreign Affairs

  12. Structure of the Economy Ministry of Foreign Affairs

  13. Why Invest in Malawi? • Politically Stable • Malawians are peaceful and friendly people. • Malawi has no history of war. • Malawi has had 4 peaceful democratic elections in 1994,1999, 2009, 2004 and the fifth is planned for May, 2014. • Malawi is generally known as the Warm Heart of Africa. Malawi Embassy Brazil

  14. Establishment of Malawi Embassy in Brazil and Scope Malawi Embassy Brazil Established in Brasilia in June 2010 following a presidential visit the previous year. Brazil reciprocated and opened embassy in Lilongwe, Malawi in June 2013. To strengthen ties of friendship between the two countries. To foster the socioeconomic development of Malawi and Brazil To promote technical cooperation in the areas of priority as desired. There has been exchange of high level visits among authorities of Malawi and Brazil.

  15. Establishment of Malawi Embassy in Brazil (cont’d) Ministry of Foreign Affairs Notableones, visitofformerPresidentofBrazilInacioLula da Silva, June, 2013. High leveldiplomaticvisitbyministerNedilson Ricardo Jorge, December, 2013.

  16. Government to GovernmentInvestment Malawi Embassy Brazil 2011, the Government oftheFederativeRepublicofBrazil approved technical support Project for strengthening School Feeding Program in Malawi. June the same year, Brazilfurther approved technical support for the implementation of five projects in Malawi totaling US$286,400.

  17. GovernmenttoGovernmentInvestment (cont’d) Malawi Embassy Brazil ApprovalfolloweddiscussionswithMalawiauthoriritiesand a BrazilTechnicalmissionthatvisitedMalawifromthe 4th to 8th April, 2011. Brazilwasgoingtofacilitate training andcapacitybuilding.

  18. GovernmenttoGovernmentInvestment (cont’d) Malawi Embassy Brazil Braziltechnical experts weregoingtofacilitatetechnologytransfertotheirrespectiveMalawicounterparts in identified áreas. A studymissionfrom Embrapa visitedMalawi for theproposed Shire Valley Development Project in September, 2011.

  19. Brazil’s Investment in Malawi (cont’d) Malawi Embassy Brazil The Project willalsoaffordcottonfarmers more incomeandcreatejobs. The Project willbringforextoMalawithroughexportofcottonandcottonrelatedproducts

  20. GovernmenttoGovernmentInvestment (cont’d) Malawi Embassy Brazil A Malawi high-leveldelegationattended a Seminaron HIV/AIDS AssistanceandTreatment , 18-22 June 2012. 1st Training in South-South and Triangular Cooperation Workshop, March 2013, Brasilia. BrazilMissiontoMalawi for Cotton Project, 4th to 8th May, 2013.

  21. GovernmenttoGovernmentInvestment (cont’d) Malawi Embassy Brazil 2nd Training in Management of South-South and Triangular Cooperation, Brasilia, 25th-29th November, 2013. Participantsdiscussedbestpracticesandpreparedanactionplanonseveralthemesrelatedtotheircourse modules. SupportedbyBrazil,WFP experts participated in three regional workshops

  22. GovernmenttoGovernmentInvestment (cont’d) Malawi Embassy Brazil and a national workshop aimedtowardsSchool Health ndNutritionPolicyfromthe 11th ofSeptember, 2013. High – levelBraziliandiplomatMinisterNedilson Ricardo Jorge visitedMalawiduringthelastweekofDecember, 2013. Drafted MOU aimedatsupportingthe establishment ofeconomic, trade andinvestmentprojectsbetweenMalawi

  23. GovernmenttoGovernmentInvestment (cont’d) Malawi Embassy Brazil andMozambique in the áreas of mining, transport, logistics, energy, agricultureandforestry.

  24. Brazil’s Investment in Malawi Malawi Embassy Brazil Brazil Agency for International Development (ABC) Plansatanadvancedstage for theimplementationoftheMalawi-Brazil-MozambiqueCotton Project. Onceimplemented, theprojectwillyield high qualityanddiseaseresistantcottonverietiesin the Shire Valley área.

  25. Brazil’s Private Sector Investment in Malawi Malawi Embassy Brazil In July 2012, the Integrated Logistics Corridor (CLIN) Consortium, made up of Brazil’s gigantic multinational company VALE, signed a contract with the governments of Malawi and Mozambique for the construction and operation of a railway line in the two countries.

  26. Brazil’s Private Sector Investment in Malawi (cont’d) Malawi Embassy Brazil The railway line is part of a logistical structure of the Nacala Corridor, which starts in Moatize, in Tete Province, through Malawi covering 137 kilometers.

  27. Brazil’s Private Sector Investment in Malawi (cont’d) Malawi Embassy Brazil The project costing $1.1 billion was inaugurated on 6th December, 2013, in Mwanza-Neno, south of the country by Dr. Joyce Banda, President of the Republic of Malawi together with the Executive Director for Vale’s capital projects GalibChaim. Work on the project creates about 3,000 jobs for Malawians.

  28. Railway Line Inauguration Photo Vale Executive Director for Capital Projects shakes hands with President Dr. Joyce Banda at the project launch, 6th December, 2012. Ministry of Foreign Affairs

  29. Brazil’s Private Sector Investment in Malawi (cont’d) Malawi Embassy Brazil Once completed, the railway will help boost the Malawi economy as it will improve access to markets for exporters and importers and reduce transport costs by 40 percent according to the Malawi Ministry of Transport and Infrastructure. The railway line will be immensely useful for carrying cargo and passengers.

  30. Concluding Remarks Malawi Embassy Brazil As a wayofconclusionagainallow me torestatewhat I saidatthebegining. DiplomaticralationsbetweenMalawiandBrazil continue togrowfromstrengthtostrength as indicatedby high-levelvisitstoboth countries.

  31. Concluding Remarks (cont’d) Malawi Embassy Brazil The governmentofMalawiand its peoplewouldnothavewished for a betterfiftyyearsof Independence anniversarycelebrationspresentthanthewarmand cordial relationsthatexistbetweenthegovernmentandthepeopleofthetwogreat countries.

  32. Concluding Remarks (cont’d) Malawi Embassy Brazil Malawiappreciatesallthesupport it receivesfromBrazilwhichwill go a longway in theimprovementofthesocialeconomic status ofthe country andindeedthe general economy. The decisiontoestabish a residentmission in Brazilratherthanoperatebyremotecontrolfrom Washington hasalready borne tangibleresults.

  33. Concluding Remarks (cont’d) Malawi Embassy Brazil High-levelvisitshavebeenmadebygovernmentofficialsofboth countries. ActivitiescoordinatedbytheBrazilianAgency for Cooperation (ABC) hasintomissionsgoingtoMalawithathaveledtoskillsandknowledgetransferandtheworktowardsthe Shire Valley Cotton Project.

  34. Concluding Remarks (cont’d) Malawi Embassy Brazil The railway constructionandrehabilitationprojectundertakenby Vale willbeamongthe top ofthelist for thefiftyyears Independence anniveesarycelebrationspresents. The economicand social impactofthe railway willdrasticallyalterorchangethequalityoflifeofMalawiansthroughtheeradicationofpovertyandtheimprovement in the delivery andquality

  35. Concluding Remarks (cont’d) Malawi Embassy Brazil of social services in thehealth, transportandeducationsectors. The estimatedreduction for theimportationandexportationofgood as a resultof high quality railway withexceptionaloperationalefficiencycannotbeoveremphasised. Finally, it shoulbesaidthatthe railway throughMalawiwill serve as a magnet for

  36. Concluding Remarks (cont’d) Malawi Embassy Brazil furtherdevelopmentand business opportunities for Malawiandtheimmediatelandlockedneighbourstothewestandtotheregion as well. Topotentialinvestors, themessageis: thatMalawiis open for further business andthatyouwillbereceivedwith open arms in theWarm Heart ofAfrica.

  37. ZIKOMO Thank you Obrigado! Malawi Embassy Brazil

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