There is no discrimination in terms of access to credit in Malawi. Borrowing and lending relationships rest in the hands of banks and their clients. A business can borrow in foreign currency upon arrangement with bank managers. Levels of interest rate vary from bank to bank. Currently the highest commercial lending rate is 27% but the client can discuss with banks on a suitable rate. Foreign investors have free access to foreign exchange both for paying for imports and transferring financial payments abroad. B. Transportation System. Despite being a land locked country, Malawi has a good road network and railway services, which connect Malawian importers and exporters to the important ports of Beira and Nacala in Mozambique. The port of Durban in South Africa via excellent road connections also services the country. The railway line from the port of Nacala in Mozambique is connected to the major industrial cities of Lilongwe and Blantyre among others. The country also has well serviced international airports in the major cities of Lilongwe and Blantyre, which connect exporters and importers to most of our major trading partners. Other important infrastructures available include; good electricity supply, good telecommunications network, mobile phone providers and reliable water supply system. C. Investment/ Business Security
In terms of physical property and property rights protection, 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. Malawian law also provides for security of foreign as well as domestic investment, which includes compensation to property damaged through civil strife and/or political unrest. In addition, Malawi has bilateral investment protection and promotion agreements with a number of countries including Malaysia, Republic of China, and Mauritius. In terms of economic security, Malawi is a liberalized economy where investors are free to venture into any form of business except those having a bearing on health and security. In its effort to deregulate the private sector, the Malawi Government has enacted measures including the elimination of price controls, the termination of import restrictions and the need for import licenses, the divestiture of state owned companies and steps to rectify the external transport situation. In addition, there is no industrial licensing except for those companies products deemed hazardous to health and security (e.g. firearms). A population of 12 million people offers steady domestic effective demand in addition to opportunities offered by bilateral, regional and multilateral trade agreements signed by the Malawi government (SADC, COMESA, AGOA, EBA etc). D. Import/Export Policy
There is no discrimination in terms of the rules and regulations governing imports and exports. Investors need to declare all imports and exports with the Malawi Revenue Authority (MRA) for taxation and statistical purposes. The investor can import everything except those goods posing health and security concern according to the rules of the land. 3. Key Areas of Possible Investment Malawi has several investment opportunities in areas such as mining, tourism, manufacturing, agro-processing including fruit juice processing, soya bean oil extraction, integrated cotton industry (spinning, weaving, ginning including cassava); phosphate fertilizer manufacturing; garment manufacturing, etc. Presented below is a summary of investment opportunities that have potential for development, specific local projects have also been included for possible joint venture partnerships and financing.
|