COMESA Ready To Prop Up Malawi Investment Opportunities

Mr. Sindiso Ngwenya Secretary General for Common Market for Eastern Africa (COMESA) has assured Malawi Government to carry out an initiative that attempts to prop up the Malawi Projects Compendium in order to attract more investment in the country.

Ngwenya was speaking in Lilongwe at the Malawi Investment Forum (MIF) where Investors drawn from 31 countries were exploring investment opportunities for Malawi. He said the regional grouping will popularize Malawi investment opportunities.

He assured president Mutharika that COMESA Investment Agency based in Cairo which "has had many successful efforts" in raising investments, will be receiving in electronic form of the compendium so that those projects that do not get partners during MIF conference are promoted.

"In the next six three month Your Excellency, I will be able to come to you and say this is what I have done." He challenged

"I will also be coming to Malawi by the end of this month (July) with a team to work on the special economic zones. Because one of the reasons why special economic zones do not work is because of the way we are promoting them." He said

He said the team will work with the government in order to structure special economic zones so that they deliver

"Because as I said; you have a surplus labor, disciple labor, raw materials in the agro-processing. Out of 1.2 billion exports of Malawi, 95% of those exports are agriculture products." He then said adding value to that with a total import bill in excess of 2 billion dollars, Malawi will be able to grow the economy and reduce the trade deficit which is the major challenge now.

Ngwenya maintained "Even my colleagues from IMF would agree that unless we have that structural transformation that diversification of economy based on identifying those specific value chains in which Malawi is competitive", then Malawi can begin create wealth creation.

COMESA Plead With Investment Banks to Support SME’s: OPIC, PTA Bank Express Readiness

Common Market for Eastern Africa (COMESA) has sent an appeal to investment banks to support the struggling African Small and Medium Enterprises (SMEs) with access to finance.

Mr. Sindiso Ngwenya Secretary General for COMESA noted that success of most projects for SMEs can be realised if SMEs gets guarantee funding from finance institutions.

When addressing the Malawi Investment Forum (MIF) held in the Capital city, Lilongwe, Ngwenya said though the region is fortunate in having financial institutions that are providing funding, SME business projects are failing to get financed in commercial banks. He said SME’s can’t access to money in the commercial banks without guarantees which is a major set back.

Ngwenya therefore asked Overseers Private Investment Corporation (OPIC) Vice President and Chief Executive Officer to consider extending their financing programmes on guarantee fund for SMEs 

While appealing for OPIC to consider put guarantee fund for SMEs and work together with the regional grouping Ngwenya said  highlighted that "without guarantee funding" some of the important projects like those that may begin in Malawi "will not be able to get financing.” 

Responding to the request James Polan, Overseers Private Investment Corporation (OPIC) Vice President, Small and Medium Enterprise Finance said “We are in fact working now in East Africa Loan Guarantee Fund for SMEs whereby we will be able to provide guarantees to Malawi and other banks so that they can extend credits to SMEs without personal guarantees required.”

The OPIC vice president expressed readiness to support the investors in Africa and urged them to research their investment choices with diligence, articulate then said OPIC will be ready to help financing them.

As well, the Eastern and Southern African Trade and Development Bank (PTA Bank) President and Chief Executive Officer for PTA Bank Mr. Admassu Tadesse when speaking at the MIF, pledged strong support available investment opportunities in Malawi. 

“We would like to strengthen our partnerships not just with investees here but also our co-financing partners such as African Development Bank and African Financing Corporation. We have strong indication and capability at PTA Bank. So we have very strong appetite still for Malawi, we are open for business we are practical and we try to pride our serves on being dynamic and faster than other most multilaterals. This can also be advantages for entrepreneurs who understand the value of time and efficiency.” 

However, both OPIC and the PTA Bank emphasized the need for conducive environment for doing business.

The OPIC vice president, Mr. Polan, emphasized by urging Malawi government that “It’s absolutely essential for government to ensure regulatory processes are streamlined” to fully attract investors and make them stay. He also recommended that there is need to open to new entrance and have a predictable and transparent tax regulatory investment regime which is written and understandable.

On other note, the PTA Bank President and CEO, Tadesse hailed government of Malawi for showing resilience bouncing back from impact of floods and food crisis and resolutely deal with macro-economic challenges and creating a more predictable and more enabling business environment.

“We have seen that inflationary pressures which were difficult are now moderating. And we have seen how Kwacha has stabilized. Indeed government is on the path of fiscal consolidation and this should put downward pressure on inflation and interest rate in the medium term.”

Africa’s Richest Man Fails to Attend MIF For Security Issuess

Aliko Dangote the Africa’s riches man has failed to show up at the Malawi Investment Forum (MIF) after enjoying the most publicity of his presence at the occasion.

It is feared that the Nigerian business man, Dangote has failed to show up for the forum due to security issues.

However the Malawi Investment Trade Centre (MITC) Chief Executive Officer Clement Kumbemba was not immediate for commenting on what happened.

Government might have been told or sensed of his absence at the event if remarks made by the Minister of Trade and Industry on Saturday evening at a press conference we are to go by. 

Hon Joseph Mwanamvekha said with doubt that Dangote will come. He stammer as he speak, “We are trying to contact him to…aaahh…but therrr… we don’t know when he is coming. Understand, for security reasons aaahh…, He could come between tonight and tomorrow morning. But in terms of accommodation it has been arranged. There were questions where am told he is doing Ramadan but the arrangements are being made to accommodate that. So, lets wait and see until may be tomorrow (Sunday) evening or even on the day, after all am told he can fly in, he has his own plane. May be they have their own arrangement”

Roger Martin; 2015 MIF event planner

When asked on Monday afternoon to confirm if Aliko Dangote will come after it was observed that he was not present during the opening session, the MIF event, Roger Martin Director for the Developing Markets Associates hired by MITC having successfully run similar event held two years ago in London also mentioned of security issues.

“He is not here and we are not quite sure why” he said, but “It is something to do with I believe security issues, he wanted to come but he is unable to, it is nothing to do with us here with Malawi or anything else because even as late as last night (Sunday) he was hoping he could come. So it’s just one of those things”

Mr. Martin further assumed that since Aliko Dangote a beacon for African entrepreneurs is an extraordinary busy man, it does mean his time is very limited and “it may well be busy schedules in the end, could not allow him to come”

“But I know that he wanted to” he added

However, speaking of the event, Roger said attendance has been extraordinary and positive given that it was a first time and it was organized at a “good quite speed” therefore having all expected delegates present both domestic and international communities that is also sending strong message that Malawi is open for business. He added that the event was extremely well done.

Malawi Opposition Leader Hails Mutharika For Inviting Investors Forum

Hon Dr. Lazarus Chakwera

As the Malawi Government decision to invite both global and local investors continue be well-liked among foreign dignitaries, from Malawi, Leader of Opposition in Parliament and President for the Malawi Congress Party (MCP) Dr. Lazarus Chakwera, describes Malawi Investment Forum (MIF) “a way to go.”

Though Chakwera noted with concern that such an idea “should have been ready yesterday”, but acclaimed the move saying that MIF is Malawi’s road to prosperity.

“This is way overdue.” He observed then said, “This is as it should be, because we cannot thrive as a nation if we do not really have big time investment and big time trading. Because we have added value to the production that we have in the country, so this is a way that things have to work”

The Malawi Opposition Leader emphasized that “This is what we must do in order to encourage that there be production and creation of wealth in order for the country to truly develop.”

Hon. Chakwera however, hints that “We just need to pull up our socks as a nation and do what is required” by pulling out resources together in terms of how Malawi can truly market herself “than just talk about it.” On this he reminded that Malawi need to trade carefully when wooing foreign investors taking into account that “we are living in the global village” where such investors “no matter how you can talk to them” they will read about Malawi and they will know what happens in this country and they will know about what other investors have experienced.

Hon Dr. Lazarus Chakawera

The MCP president attended the opening ceremony for the first ever Malawi Investment Forum which  the Malawi President, Professor Peter Mutharika officially opened on Monday 30th June 2015 at Peermont Hotel's Bingu International Conference Centre.

The conference has drawn companies from across the globe, with intent to invest in Malawi.

Government of Malawi is showcasing its opportunity areas in the seven sectors of Mining, Agriculture and Agro-processing, Energy, manufacturing, Infrastructure, Tourism and Financial Services.

SADC Encourages Women Empowerment at MIF

Women empowerment has been highlighted as one of the most important step that all prospective investors in Africa needs to undertake, says Southern Africa Development community (SADC) at the Malawi for Malawi Investment Forum (MIF).

The MIF that begins on 29t June and ends 30th June 2015 has drawn number of companies across the globe with interest to invest in Malawi in wide range of investment opportunities.

SADC Executive Secretary, H.E Stergomena Lawrence Tax while expressing optimism that the success of MIF will spread across the region, said private investors gathered in Malawi should not marginalise women as they set up investment projects in the country but must offer them opportunities by place them into various decision making positions because they are capable.

“They (women) can and I can assure you that they can deliver” she said “And am saying this from an experience point of view” added Stergomena who said she is one of the privileged women who is in higher position as first woman Executive Secretary for regional grouping SADC because back home government had offered her opportunity to work as civil servant for a long time in leadership positions.

“I’m saying it from experience. Please give women a chances and they can deliver. They are real talented” she assured

The SADC executive secretary hailed Malawi government for putting together investors from across the globe to explore investment opportunities that are available in the country and described the MIF ‘Milestone forum’ which will enable partnerships and economic development for Malawi and SADC region.

She noted that the forum comes at a right time as twenty six (26) countries from SADC, the Common Market for Eastern and Southern Africa (COMESA) and together with from Eastern African Community (EAC) have just signed Tripartite Free Trade Agreement (FTA). She said the  establishment  of  a  Tripartite    will bolster  intra-regional  trade  by  creating  a  wider  market  ,  increase  investment flows,  enhance  competitiveness  and    encourage  regional  infrastructure development as well as pioneer the integration of the African continent.

Malawi Promise Investors Security, Favorable Environment

The Malawi Government promise to do its "utmost to facilitate domestic and foreign investments" as the country hosts first ever 'Malawi Investment Forum' (MIF) in the capital city, Lilongwe.

The Malawi President Professor Arther Peter Mutharika has assured the interested investors gathered at Bingu International Conference Centre of their security for foreign direct investments including flexibility in repatriation of profits. 

He said Government of Malawi believes that the private sector is the driver of economic development for the country. 

"We believe that investment, both foreign and domestic, is the engine that will develop the economy of this country from a predominantly importing and consuming to a predominantly exporting and producing one. We believe that the private sector will bring the prosperity that our people earnestly deserve." He told the participants drawn from over 31 countries across the globe.

Malawi leader noted that the country has initiated and implemented various reforms that will make investor journey towards investment in Malawi easier 

Among number of developments that lay ground for foreign investments he mentioned Establishment of a One-Stop-Service-Centre at the Malawi Investment and Trade Centre (MITC) that will assist investors with the registration of their company, the identification of land, the processing of employment permits and other required licenses, and advise on available incentives.

He also mentioned that Malawi has liberalised the exchange rate and will uphold this policy which resulted the Malawi Kwacha being stable over the last year and the government expects that this trend will continue for the foreseeable future.

"Malawi has upgraded the electricity generation capacity and introduced demand side management measures. Malawi's electricity supply has become increasingly reliable as generation capacity exceeds demand during off-peak hours" he said

"Further, as part of the upgrading of the transportation corridors, a rail line from Tete to the deep sea port of Nacala has been constructed. The line will provide fast access to the Indian Ocean and cut transportation costs for the import and export of products" Said President Peter Mutharika who also indicated that Malawi is a signatory of the Tripartite Free Trade Agreement, the treaty which will boost regional trade and open up investment opportunities "that seemed impossible a couple of years ago"

President Mutharika also acknowledged existence of much more to be done to improve the competitiveness of Malawi as an investment destination.

He therefore said more reforms will be carried out in number of areas include: Reform of the legal and institutional framework for land administration; Construction of an electricity interconnector with Mozambique and upgrading of the national transmission network; Introduction of National Identification Cards for all citizens and operationalisation of Credit Reference Bureaus; Review of the Seed Act and policy, with the aim of facilitating the prompt introduction of high quality seed; and reform of the Public Sector, including government ministries as well as parastatals.

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.