Tourism Month 2016: Malawians Urged To Eat, Wear, Buy Local Products

Malawians encouraged to dress these local brands

Ministry of Trade, Industry and Tourism has appealed to Malawians to observe the months of tourism which falls in September with eating local foods and buying of locally manufactured products.

Pres. Mutharika Impressed With Investment Interests From Chinese Investors

President Peter Mutharika says is pleased with the Chinese business investor’s interests in sectors of Industry, Agriculture and Education.

A group of Chinese business investors from Anhui Province are in the country to attend the first ever ‘Malawi-China Investment Forum’ this Tuesday, 21st June 2016 at Golden Peacock Hotel in the capital city, Lilongwe.

Speaking at Kamuzu Palace on Monday evening, during the audience with the representatives from the People’s Republic of China, President Mutharika said the Chinese Investors have made “Strategic choice of focus.”

“These three areas are strategic to Malawi’s economic paradigm shift” stressed President Mutharika

Malawi Parliament Adopts Hemp Cultivation Motion

How Malawi Economy Wins Through Industrial Hemp

Industrial Hemp Farm

In a historic way, the Malawi National Assembly on Thursday, 16^th June 2016, adopted a motion legalizing the cultivation of the Industrial Hemp for its economic and health benefits.

Ntchisi North Legislator, Boniface Kadzamira presented the motion which has been appearing in the Order Paper since in February this year but the motion failed to be debated.

Affordable Prices To Domestic Tourists Can Boost Malawi Tourism Sector

Billy Banda (Shot By EYE LEVEL ART_Francesco Jnr)

Malawi tourism sector players tipped to work out ways of attracting domestic tourism for the sector to register growth.

The Malawi tourism sector recently held Annual General Meeting where sector players noted that the sector is registering small number of local tourist’s as compared to international tourists. 

As the sector is thinking deep on ways to make the tourism sector more attractive to local tourists, one of the country's human rights activist, Billy Banda also Chairperson for Malawi Gaming Board and National Lotteries Board says introduction of ‘special affordable rates’ for the local visitors is a solution.

While sharing similar concern with the tourism sector players, however, Banda observed that the low number of visits to Hotels, resorts and tourists attraction places by locals is because charges are much higher as compared to the income levels of many Malawians who cannot afford to pay for services offered by hotels, holiday resorts and other service providers in the tourism sector.

“What the tourism is looking for and to make it more significant and more important we need to start with our selves.” He said “However one of the key challenge contributing to the lack of commitment by citizenry is because there is no policy that guarantee that a local citizen must be charged a low amount that someone can afford to bring a family to such kind of places.”

He suggested that Malawi Tourism Council need to come up with a policy that inspires local citizenry to participate and support the tourism industry and that one of the key component be that tour operators, travel agencies and other agencies should work out packages which Malawians could conveniently afford.

He emphasized that tourism sector is a key sector for Malawi economy and backbone of the international tourism. 

Billy Banda (Shot By EYE LEVEL ART_Francesco Jnr)

“We cannot say tourism is a failed industry, tourism is another big potential for the economy and if ordinary citizens were committed to support the industry and are given fair charges that can also be a better way. Once that is put in place Malawians will go out strongly and support the tourism sector.” Said Banda but stressed that efforts needs to be made to provide domestic visitors economy accommodation, meals and many other services

But Banda also asked Government to support tourism industry with incentives and reducing interest rates in commercial banks. On this, Banda noted that although access to loans is a challenge in the sector, cost of borrowing in most banks are much higher with short period of time to repay.

“Government is also a bigger player” he noted then urged it to look at the local operators needs and challenges saying “They must be given some incentives, even financing mechanisms they have to be given infrastructure banks, loans that are more manageable, loans that are not crippling the hotel sector.”

Issues Making Malawi Tourism Sector Too Expensive For Domestic Tourists 

The Malawi tourism sector is facing number of challenges that includes visa issues, lack of skilled workers even lack of tourism statistics which is affecting potential investors to advance with tourism business in the country.

However, key challenges making the prices for services beyond reach of the domestic traveler are particularly issues on lack of sector specific incentives for investors and lack of access to finance and cost of borrowing.

Florentine Kabefu

Florentine Kabefu, Chairperson for Malawi Tourism Council, says cost of operating businesses in Malawi is very expensive in tourism. 

Kabefu mentioned a lot of duties and taxes, and said “so that is a big challenge.”  

She pointed out that in order for them in the sector to make Malawi a place of excellent domestic tourism and where Malawians can go and have access to tourists products “we need to work on some of the costs that our tourism operators are facing in order for them to make them cheaper.”

During the recent Malawi Tourism Council Annual General Meeting, minister of Industry, Trade and Tourism, Joseph Mwanamvekha highlighted key steps that Government is undertaking to improve the tourism business environment to make it more competitive and attractive.

Mwanamvekha said his ministry together with the ministry of Finance and Economic Planning are working out on issues of incentives. 

“As such proposals for incentives for the tourism sector shall become part and parcel of a comprehensive tax review which government will undertake soon as part of the ongoing Public Sector Reforms,” assured Mwanamvekha adding that Government is also developing a Tourism Investment Master Plan to guide the development of the sector and it will included mapping and zoning of potential sites across the country and that the plan shall also include development of specific incentives to encourage participation in development on the identified sites

On access to finance, the Minister further promised that Government is undertaking a study on the availability of setting up a Development Bank but at the moment the only opportunities for SMEs are only MARDEF and the Export Development Fund.

“As for cost of borrowing is concerned, it is my belief that as the economic fundamentals or our economy stabilizes, interest rates shall also become more favourable.” Said Mwanamvekha who also hinted that he has asked tourism department to finalise the Tourism Policy before the end of 2nd quarter of the coming financial year

Ten European Investors Coming To Malawi Looking For Invesment Opportunities

Ten European companies visiting Malawi to explore investment opportunities available in the country

The Malawi Investment Trade Centre (MITC) says the team of Seventeen delegates is in a reciprocal mission to verify investment opportunities that were discussed with Malawi delegation in London between 21t and 23rd of July this year.

Minister of Industry and Trade, Joseph Mwanamveka who led Malawi delegation to UK and held bilateral investment meetings with 25 European investors, asked them to come to Malawi. The visit was a pre-conference exercise ahead of Global African Investment Summit to be held in London on 1st and 2nd December 2015 where Malawi President is expected to attend.

Kumbemba

Chief Executive Officer for MITC Clement Kumbemba said the 10 companies who were among the 25 companies are keen to explore and to see for themselves of the enormous opportunities that the country told them while in UK.

Kumbemba said some of the companies to form part of the delegation are interested in energy, infrastructure, tourism, financial sector among others

“There is a construction company called Dawnus, which is interested in Finance and construct infrastructure projects, to a valued of US$80 million. There is also Aggreko Company that specializes in the provision of off-grid interim supply of electricity from either gas or diesel

Mott Macdonald a global management, engineering and development consultancy company that adds value for private and public clients. It mostly undertakes feasibility studies for both public and private projects leading to bankable feasibility studies” said Kumbemba

He also mentioned of PW Mining International a British owned company which has a lot of business interests including civil works, mining, property development and airport handling and that there is a company called Well and Able company interested in residential and property management.

He indicated that the delegation visiting Malawi from 31st August to the 4th of September 2015 will meet President Peter Mutharika before meeting sectoral line ministries and other key stakeholders.

“They have to interact with sector specialists so that they can firm their positions before December Summit” said Kumbemba

Kumbemba added that the remaining 15 companies could have come but opted other time and that some would come individually this year possibly at the end of September and October.

The Malawi Investment Trade Centre (MITC) CEO also asked Malawians and local companies to effectively take advantage of the the prevailing economic downward spiral by increasing production, investments and exports.

He noted that the weakening Kwacha and many other current hurdles offer Malawians more opportunities and that if well utilized may result into growth of businesses and the whole economy  and possibly end some of the problems the country is facing.

Malawi Sign Numerous Deals During MIF… Full Report Ready By Friday- Mwanamvekha

The Malawi Government describes its first ever Malawi Investment Forum (MIF) a 'success' having signed so many deals with foreign investors.

Minister of Industry and Trade, Joseph Mwanamvekha whose ministry has been coordinating to host the forum has since described the forum as huge success and promised ready to release full detailed and comprehensive report on the deals made in the Forum by Friday this week.

"Deals have been done, some of them (Investors) have just indicated their interest" said Mwanamvekha before the Communiqué was read out.

Mwanamvekha who was accompanied by three other ministers at Bingu International Conference Centre to deliver the Communiqué said close to US$ 1.5 million deals have been realized. He also said other deals will be made in the near future and at the time of issuing the Communiqué more discussions with investors were taking place and that some more will be happening in week's time.

He said other projects that investors have expressed interest require feasibility studies.

The Trade Minister boasts "From our perspective and from comments received, this forum was success because we managed to market Malawi"

He said investors managed to identify the opportunities and most of them were interested in Energy and mining sector, Infrastructure and Agriculture sectors.

Minister of Transport and Public Works, Francis Kasaila said he was impressed with number of interested investors in the transport sector including; Japanese Investment Institution Hitoch Corporation which is interested in number of projects; Elactra from Uganda interested Airport City in Lumbadzi, rail rehabilitation, marine and power projects among other number of investments and the company has promised to be back for more discussions in two weeks time.

"But the most important thing in the infrastructure sector is that we have been able to expose our local investors to financing institutions and in this regard the meetings we had with Economic Bank of Africa is one of them which has given the opportunities to local investors that they can send proposals and get financing and they have made it clear that they are ready to finance projects that are past with feasibility studies and we have number of projects that have gone past that." Said Kasaila

Taking his turn, Minister of Agriculture, Irrigation and Water Development, Allan Chiyembekeza said there is a investor interested in production of ethanol as well as production of glucose and starch from maize and that they are looking for huge quantities for maize.

The minister said discussions are underway and that once the deal is on, Malawian farmer will benefit much as the company is looking for quantities in excess of 350 thousand metric tonnes per year used to produce ethanol.

He said another company is interested in producing fertilizer and that another company from Zimbabwe, is interested to invest in chicken farming especially dealing with youth.

Unfortunately he said there was no investor interested in irrigation agriculture, "With the climate change problems we are facing in this country, I think we will be moving towards the intensification of irrigation agriculture." he then invited those with resources and interest to come forth and invest in this area.

Minister of Natural Resources, Energy and Mining, Bright Msaka said in Energy sector numerous investors have expressed interest as well. He said "I can say here and without hesitation that if we were to consolidate anything that we have received we will be fully satisfied to our energy need"

He indicated that some investors have expressed interest in providing financing in energy sector while others are interested in providing technical services in the sector.

Msaka confidently said "We created enough curiosity" by people interested in mining industry to come and explore more

"For many years Malawi has not been known as the mining nation, but we are the mining nation in view of amount of deposits that we have." Said Msaka who further assured the gathering and asked to spread the word that "there is enough minerals in Malawi to last us many years to come"

Malawi Govt Urge Local Firms To Make Joint Ventures With Foreign Investors

The first ever ‘Malawi Investment Forum’ offers great opportunity to local companies, but they have to foster partnerships with foreign investors first.

Begining this Monday to Tuesday, Malawi is hosting investment forum where participants drawn from across the world with intent to invest in the country.

Over 230 local companies have confirmed their participation to the Forum as of Saturday, where among them includes 70 Small and Medium Enterprises (SMEs). The SMEs will attend the forum and have their products and services exhibited outside the Bingu Internatioal conference hall. Malawi had planned to invite 30 SMEs but has raised the number to 70.

"As Malawi, and as Ministry of Industry and Trade we are encouraging partnership between private sector" says Minister of Industry and Trade Hon. Joseph Mwanamvekha

"We would have wanted that investment in every investment coming in Malawi, also Malawians should participate. Companies from Malawi individuals from Malawi they need to participate because that is how we can develop” he emphasized

“But, if it is only foreign investors then when the profit is made most of it will go out. However, if Malawians participate it means part of it will remain in Malawi.” he said

Mwanamvekha then appealed "Partnerships or joint ventures are important. And I would kindly request Malawian companies to take advantage of this forum.”

"Partnerships are key because this country can only develop if Malawians own the companies, if they own the companies then it means the economic empowerment is taking place.” he said, "And there will be very little externalization of dividends to outside, that is why am encourage them to take advantage of the forum and meet other investors that are coming so that they form joint partnerships and joint ventures.”

The two day conference, is to show case seven opportunity areas in the seven sectors of Mining, Agriculture and Agro-processing, Energy, manufacturing, Infrastructure, Tourism and Financial Services. The country expects to generate prospective investment of up to US $16 billion which is K7.2 trillion.

All Set For 'Malawi Investment Forum' All Prospective Investments Leads To Be Followed

Malawi confirm readiness to host the first ever Malawi Investment Forum, all delegates confirm participation says the Minister of Industry and Trade.

Malawi is expected this Monday to host a two day Investors conference and government says confirmed participants are drawn from across the world, with interested to bring their investment to Malawi.