Transforming Malawi Inclusive of the Malawi Diaspora

Presented at: 2018 Malawi Diaspora Conference

29th September, 2018 Washington D.C, 29th 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 toprobably one the best tasting fishes in the world. Thelake, which is 385 miles long, and 52 miles wide, hasbeen overemphasized on capture fisheries which isquickly depleting the fishery resources in the Lake

Status

Government is seeking direct investors to engage in cagefish farming on Lake Malawi for the production of theChambo, Catfish and other local fishes. Investors willundertake 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 ADLProject 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

LIQUOR MANUFACTURINGProject Description

Ethanol Company Limited (EthCo) is Malawi’s sole producer of

Extra Neutral Alcohol (ENA). Currently produces up to 6.0 million

liters annually - about 40% of the available formal market demand

estimated at 15 million litres. After more than three decades of

producing alcohol, (EthCo) intends to diversify its product range

into liquor manufacturing as part of its growth strategy. The liquor

business is will largely involve flavoring and bottling of diluted

ENA to produce a range of alcoholic beverages.

Status

EthCo intends to implement the project through joint partnership

with a reputable player in the liquor business with the hope that

both parties can realize synergies in the partnership. The potential

partner in this venture should have considerable experience in the

liquor manufacturing portfolio.

INFRASTRUCTURE

Kanengo Northgate Industrial Park

Project Description

A local promoter has plans to build a shopping mall, hotel,warehouses, industrial buildings, a primary school, a nurseryschool, clinics and will make for the Police, postal andbanking services and a service station on approximately 500hectares of land that they own. The concept also includesresidential and commercial areas

Status:

The promoter owns about 500 hectares of land in prime area ofthe City and has undertaken a pre-feasibility study. Estimatedcost of project is US$600 million for which he seeksequity/financial partner

PPP PROJECTS

AGRICULTURE & AGRO-

PROCESSING

SHIRE VALLEY TRANSFORMATION PROJECT (SVIP)

Project Description

SVIP is a AfDB&WB funded irrigation impact

project that will covers a cropping area of 43,000

hectares in the final phase. However, the initial

phase will cover 21,000 hectares.

Status:

The project seeks an operator to manage the

water intake, supply, distribution and water fees

collection system.

KASINTHULA FISH INDUSTRIAL PARKProject Description

Kasinthula in Chikwawa at a distance of about 10km south of ChikwawaBoma at 60 meters above sea level and longitude at 340 05’E and latitude 160 00’S.

Kansinthula Fish farm lies on 275 hectares along the Shire River in Chikwawa.The Government desires to transform it into a fish production and processingindustrial park and will adopt a modular approach, meaning that it will besegmented into various sized lots e.g. 20 hectares being the largest, then 10hectares and the lowest 5 hectares so that various categories can be involved inthe fish production. These modules will span a total area of 250 hectares or so,and the remaining 25 hectares or will be for other value chain activities e.g.hatchery, feed-mill etc. The ponds, when developed, will be leased out toprivate sector for operations.

Status

A feasibility study is yet to be undertaken. Government seeks support on thisin order to determine the best development approach and the financial outlay,among others

INFRASTRUCTURE

MITC Office Complex

Project Description

The Malawi Investment and Trade Center intends to a

high rise building which will serve as its

headquarters but also be rented out

Status

Through the PPPC, the project seeks a partner to

design, finance, build and operate the office complex

PPPC Office Complex

Project Description

The Public Private Privatization Commission (PPPC)

intends to establish their Head Office Complex which

is also to serve as their headquarters. This building

will be in Blantyre

Status

The PPPC is seeking an investor to design, finance,

build and operate the office complex

MZUZU CITY SHOPPING MALL

Project Description

Mzuzu City intends to develop a shopping mall

through a PPP arrangement. Land is already

available

Status

An investor is being sought to design, finance, build

and operate the infrastructure

Blantyre City Recreational Parks

Project Description

Blantyre City intends to develop recreational parks in

the City. Locations are determined but no work done

beyond that

Status

The PPPC seeks investors to design, finance, build

and operate the recreation parks

Development of UN Complex

(Urgent)Project Description

The UN intends to consolidate all its agencies

operating in Malawi under one roof. Presently, a

feasibility study is underway on how this can be

achieved and is working through the PPPC to interest

possible investors

Status

EOIs are called for investors who can design, finance,

build and operate the facility

Blantyre Central Parkade

Project Description

The City of Blantyre is in dire need for innovative

parking facilities and decided to develop parking

facilities in the Central Business District

Status

Through the PPPC, the City Council seeks investors

to design, finance, build and operate the facility

Modern Bus Terminal

Project Description

The City of Blantyre desires to develop a modern bus

terminal in the City of Blantyre that will consolidate

all passenger transport

Status

Through the PPPC, the City seeks an investor who

can design, finance, build and operate the terminal

MZUZU UNIVERSITY CONFERENCE AND

BUSINESS CENTER Project Description

Mzuzu University seeks to construct a conference and business centre, complete with dining facilities, as a service and income generating venture that would serve the compass and the City of Mzuzu.

The business centre, as currently envisaged, will comprise the following facilities -

Conference room sitting 300 persons with two VIP lounges

Communication area providing for refreshments, an internet room and two offices, including a printing and photocopying services

4 meeting rooms/offices

6 shops/banks

Ablutions

VIP bar and Restaurant (50 persons seating capacity) with kitchen

VIP drop off and car park

Status

Est. Cost US$3 M. Looking for a partnership arrangement on e.g. B.O.T etc.

DEVELOPMENT OF SHOPPING MALL IN

ZOMBA Project Description

The project proposes the construction of a shopping Mall in

Zomba City comprising shopping and office complex,

restaurants, motor vehicle service centre, car park and other

auxiliary services. The Shopping Mall will be the first of its kind

in Zomba city.

Zomba City serves as a commercial centre for the eastern region

comprising five districts with a catchment population of about 4

million. The mall is expected to offer both local and international

products.

Status

2.5 hectares is already earmarked. The Council seeks investors

on Partnership or direct investment basis. No studies are done

TOURISM

Project Description

The project proposes development of a world-class

tourism destination based on fantasy and adventure.

Underpinned by a Cable Car facility, the project will

include luge & skyride, Segway

fun rides, health spa and wellness centre, living museum

story-telling, eco-lodge, eco-adventure activities and a

variety. The project will be on Mount Mulanje

Status

The project seeks a partner under a PPP arrangement. The

project is estimated at US$150 million though a detailed

feasibility study is yet to be undertaken

ENERGY

MPATAMANGA HYDRO-POWER

PROJECT

Project Description

The project promoter, Electricity Generation Company(EGENCO) is presently the only electricity generationcompany in Malawi, with an installed capacity 361 Mw. Itpreviously was called Electricity Supply Commission ofMalawi (ESCOM) until it was unbundled to form twoseparate companies; one that generates the power (EGENCO),and the other which is the single buyer and market operator(ESCOM). This particular project entails development of a308MW Hydropower Plant

Status

Project cost is around US$600 million. The project seeksequity/financial partnership under a PPP framework

UPCOMING PROJECT

FRAMEWORKS TO UNPACK

1. Transport Sector Master Plan

2. Tourism Sector Master Plan

3. Industrial Hemp

4. Medicinal Cannabis

5. Health Sector Investment Plan

6. Agriculture Sector Investment Plan

CONCLUSION It is no doubt that legal, Policy, Institutional and

administrative processes are being incrementally

consolidated to enable implementation

Largely, it is an on-going learning curve but we

see an implementation formula coming together

We have no doubt that in the next 3-5 years, the

country will start fast-tracking.

The timing is right.

THANK YOU