Investors brand Malawi a risk country, says Mlombwa

Indigenous Businessmen Association of Malawi officials say foireign investors are scared to put their US dollars in the country because of junk investment rating which puts Malawi as a risk country for investment.

Mlombwa: Malawi is being viewed as a risk country

Mlombwa: Malawi is being viewed as a risk country

Mike Mlombwa, chairman of the association said investors are scared because of the unpredictable shaky and dwindling economy, the unstability of the kwacha and the high inflation rate, among others.

“I attended the Japan/Africa summit in Kenya recently. Most investors said they cannot come to Malawi because the country is a risk country in investment. I urged and pleaded with them to come because their coming would improve the situation,” he said.

Malawi Investment and Trade Centre spokesperson Delby Chimbalu said the country has attracted 12 foreign investors who are bringing US$300m.

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10 thoughts on “Investors brand Malawi a risk country, says Mlombwa”

  1. Gogodasi says:

    Chimbalu, can you be transparently tell us which 12 investors you are talking about and from which countries? We don’t want to hear about Chinese investors who are coming here to rake our economy and whose investment drive is politically motivated. We need to hear about genuine investors that Malawi will benefit from, but benefiting one or two family members as is the case now. What you have said is a big lie and Mlombwa’s claim is right.

  2. Mbwiye says:

    Komanso magesi akutibwezelesa mbuyo

  3. joen says:

    SWOT analysis

  4. Mndambala Boy says:

    Kikkkkkk ZAMANYAZI!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  5. Clear Eyes says:

    Mike, you just might be part of the problem, with your constant calls for foreign shareholdings to be limited in Malawi. We are all for empowerment, but not as a gift or born right – it must be earned. You, however, are anti-foreign, even xenophobic. The potential investors you met probably researched you and realised the danger you (and people like you) pose to any investment they may have been considering in Malawi.

  6. The Analyst says:

    O………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….O
    Mlombwa is just being naive here . . .
    . . . How could he ask investors to come and improve the situtaion? And how? By losin their money? Haa! Indeed there is a tincture of madness in patriotism.
    . . . Show me these 12 investors coming to Malawi with the US$300mn, and I will show you people who are coming to help politicians loot this country.
    . . . I implore you to point at these 12 investors, and I will show you money “launderers”.
    …………………………………………………………………………….
    Truth is, no any sane or genuine investor (with clean money) would come to Malawi, vis-a’-vis neighbouring countries – Tanzania and Zambia. Nanga inu . . .
    . . . Who wants to invest in a country where they cant tell at what exchange rate they would expect to take back their money?
    . . . Who would go to a country where, if they want to beef up capital (by borrowing), they would pay at least 40 percent in interest?
    . . . Who would take their money into a country where they would expect an average return of 15 percent yet inflation is at least 20 percent?
    . . . Which sane investor would have confidence in an economy where Francis Kasaira (the accidental minister of foreign affairs) could carelessly declare that the Govt has no money (to bring back some misguided girls from Kuwait), implying cant manage to honour obligations e.g. debt.
    . . . What kind of investors could even think of going to a country where they would have to first bribe the president, minister of trade, etc to start up their investments.
    . . . I ask you again to show me these investors, and I can promise you either they dont exist or they are not genuine or they are simply insane.
    O………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………O

    1. Wa Nzeru Wa Ku Mmawa says:

      Thanks. You have said it all.

  7. Wa Nzeru Wa Ku Mmawa says:

    FDI is a tricky endeavor. Investors often look at what foreign countries have to offer in order to attract them. They often don’t look at opportunities but rather what threats and risks are there. Nobody is willing to venture into risky FDI. Large multinationals may sometimes take the risk since if their businesses fail in one country they can just close it and move to another country. Small MNEs however because of the level of their financial muscle usually do no risk it, they only invest where they are assured of maximizing profit.

    Malawi, despite all the opportunities it offers cannot attract these large MNEs since they require for example enough energy to operate their businesses. Therefore I am afraid Malawi is not yet there to attract these MNEs considering its available energy capacity. It may however attract MNEs whose business is in energy generation. For Malawi to move forward, first things must be done first namely; creating enough energy capacity to support any business. You do not invite MNEs to open up businesses that will run on generators spending huge amounts of fuel. A case in point being Kayelekera and Dwangwa factory.

    Malawi is politically stable and this is a big plus to attract investors. Investors can for-go the high inflation and other economic factors so long Malawi remains politically stable and improves its energy capacity.

    1. mbolo yanga says:

      They also look at opportunities you buffon. kkkk what kind of an economics commentator are you?

      1. Wa Nzeru Wa Ku Mmawa says:

        Your name says it all. A penis!. Every country has opportunities you buffoon/fool. We don’t say bufon you fool. Check your spelling. Why dwell on opportunities which every country offers?

Comments are closed.