Malawi is today’s the preferred choice as a location for foreign direct investment. While small in physical size and land locked, Malawi enjoys close proximity and easier access to the nearby seaports of the world. Malawi also enjoys direct air links with major airports in southern Africa region which facilitate the movement of passengers as well as freight.
Malawi is rebuilding its image as an investment destination and rebranding itself as a business friendly country to attract foreign direct investment. Malawi’s economic infrastructure is continuously being improved in order to access, facilitate, and maintain investment.
For example, the government ensures availability of foreign exchange for business transactions and remittances. Commercial banks in the country are granted the authority to operate as foreign dealers.
In addition to this, investors have free access to foreign exchange, both for paying for imports and transferring financial payments abroad. This free access includes: no licensing requirements for importing foreign exchange; and full repatriation of profits, dividends, investment capital, and interest and principal payments for international loans.
Furthermore, local and foreign investors have unrestricted access to local financing facilities. Interest rates are market-based and there are no direct government controls on credit.
In terms of infrastructure for investment security, Malawi is a signatory of the International Convention for Settlement of Investment Disputes (ICSID); and Multilateral Investment Guarantee Agency (MIGA), a World Bank institution that operates as an insurance organization, which offers compensation to multilateral investment losses. Malawi also has bilateral investment protection and promotion agreements with a number of countries including Malaysia, Republic of China, and Mauritius. Malawi law also provides for security of foreign as well as domestic investment. There have been no wars in Malawi and crime rate is low compared to other countries in the region.
The investment climate and ease of doing business in Malawi has further been improved through the scaled up fight against corruption and the establishment of Indus trial Relations and Commercial Courts within Malawi’s legal system which is based on western countries’ legal systems.
With a population of 13.6 million, Malawi has an adequate labour supply throughout the country. The government does not interfere in employers’ choice of workforce. It recognizes that investments may require expertise not available in Malawi and accordingly, it makes available Temporary Employment Resident Permits for expatriate personnel.
Why to Invest in Malawi
10 REASONS TO INVEST IN MALAWI
- Streamlined Investment Procedures: One stop centre through www.mitc.com with an average of five day processing for all investment related procedures.
- Political Stability and Security: With no history of civil war, Malawi is Africa’s beacon of peace, a stable political climate for doing business.
- Liberalized economy & Political will: Market driven rates, exchange rates. Government co-investments in strategic areas to promote private sector growth.
- Competitive Labour Market: Large, highly educated, skilled, hard-working, honest and trainable English speaking labour.
- Preferential Market Access: Process in Malawi and sale through free trade areas and trade agreements covering Comesa, SADC, EU and USA markets through AGOA.
- Untapped wealth: Opportunities include agriculture, energy, mining, manufacturing, infrastructure, services, ICT and Tourism. Malawi has huge economic opportunities for investors.
- Investor Friendly Climate: A number of Investor tax incentives, Malawi is becoming a choice destination for many investors targeting Southern Africa region.
- Ease of Access: Malawi is located strategically for an investor targeting regional and international markets.
- Growing economy: The economy has grown since 2007 despite global economic challenges.
- Developing infrastructure: All key sectors of transport, property and ICT are developing.
Investment Related Information
There are multiple investment process involved in establishing a business in Malawi, for more details click the below button.
The Government, through the Malawi Institute for Strategies for Growth and Development (ECDM II), has identified progress in local and direct investment as a tool to achieve sustainable economic development…
There are number of commodities that can be exported from Malawi, such as Vegetable, Tobacco, Cotton, etc, for more details click below.