Mutharika hold talks with 17 UK Investors: Commits to bring Foreign Direct Investment to Malawi

President Peter Mutharika on Tuesday held talks with a group of prospective British investors who are in the country on a five-day scheduled trade and investment mission.

Mutharika interact with investors after the meeting at State House

Mutharika interact with investors after the meeting at State House

Mutharika in group photograph with British investors

Mutharika in group photograph with British investors

During the meeting held at Kamuzu Palace in Lilongwe, the investors committed to bring foreign direct investment into Malawi especially in energy, engineering, irrigation, water development and infrastructure development.

These prospective investors are heads of companies which, according to Mutharika, have a strong reputation for quality, innovation and integrity in the United Kingdom which will help towards the social-economic growth of Malawi.

Mutharika said presently Malawi is a net importing and consuming country, but pointed out that his goal is to see the nation becoming a producing and exporting country “within a span of five years – a very ambitious goal indeed, but one that we believe is attainable”.

“Malawi offers, as you will notice and experience as you go around and meet various players in our economy, unlimited opportunities for investment both directly and under a Public-Private Partnership framework.

“In order to achieve this, we need industry to substitute imports and to export, and this is where you come in,” said Mutharika.

He said the country’s economy has experienced consistent growth over the last few years, with agriculture being an important contributor representing 32% of GDP in 2012.

According to the World Bank, Malawi’s GDP growth has grown steadily over the last two year, and is predicted to grow to 5.1% in 2016.

“In addition to increasing domestic demand for Malawi products, there is potential for Malawi to serve regional and global markets. Malawi has duty and quota free access to the EU under the Everything But Arms (EBA) framework, Enjoys tariff preference for exports to China, enjoys duty free access to India, and preferential trade benefits from the USA under AGOA.

“Recently, Malawi signed the Tripartite agreement which makes it party to a combined market of over 700 million people and that merges the SADC, COMESA regions with the EAST African Community (EAC).  Manufactured products within this region are traded duty free within this region,” explained Mutharika.

He further claimed that Malawi has since 2012 undertaken a number of regulatory and institutional reforms focusing on reducing the regulatory and institutional burden to doing business.

These include streamlining processes that make it faster, easier and cheaper to start a business.

He said government has also reduced the number of procedures and time it takes to construct, occupy and connect a structure to utilities in Malawi from 18 procedures and 200 days to 10 procedures and 56 days, respectively.

“Government has also reduced scrutiny fees from 0.8% of cost of the floor area to 0.4% since the fee is not directly related to provision of services.

“Furthermore, planning approvals have been reduced from 60 days to 30 days, while the consultation process has been reduced from 21 days to 14 days,” said Mutharika.

He further emphasized, “In order for us to become a producing and exporting country we require the necessary tools; that is, the requisite industry and infrastructure that will produce and support production for both import substitution and export activities, and this is why you, my dear friends, are a very important ally to Malawi”.

Mutharika therefore said his government is committed to improving efficiency and effectiveness in the way the public sector supports private investors, and one of these commitments is being  demonstrated through the One Stop Service Center which his administration established at the Malawi Investment and Trade Center late 2014.

“The purpose of the One Stop Service Center is to ensure that investor permits are granted at one place and in the shortest time possible so that establishment of your investment is not delayed.

“You are allowed to invest in any sector of the economy without discrimination, as long as it is in an investment area that is productive to the economy of Malawi.

“Furthermore, you are allowed to repatriate 100% of all your profits and dividends, and all your capital upon disinvestment. Our constitution protects foreign assets such that they can never be nationalized.  We also party to the Multilateral Investment Guarantee Agency (MIGA) convention and to the International Center for the Settlement of Disputes,” explained Mutharika.

Follow and Subscribe Nyasa TV :

Please share this Article if you like Email This Post Email This Post

More From the World

Sort by:   newest | oldest | most voted
Brazilian wax
Guest

Ino sinthawi yokamba za m’maloto. Just improve road infrastructure, electricity supply, water supply, stable currency . When this is done you will not need to talk to the investors. They will trek to Malawi on their own.

jimbo
Guest

Hd – No. 16: You need to be realistic and face facts. Quoting the Bible will not solve Malawi’s problems. Malawi is a very religious country with a proliferation of churches and sects, but is this helping its development? In spite of all the prayers being offered up to the Almighty, is He listening? There is no evidence that he is. The country is just going further behind. Too much reliance on prayer and religion is getting the country nowhere. What is needed is honesty, hard work and a realistic, down-to-earth approach to the countries problems and needs.

mulamu pelekani@gmail.com
Guest
Kandakwiza. U might be right partly. But investors need electricity in this modern time. How do they bring their own? How many times has ths president said he has talked with investors? He went to US a country he has stayed did he come with investors. These British came to see the situation in Malawi and see if they can invest. I can sure u after seeing they are not coming. Lets be realistic. Investors are interested to invest in a country which promise growth Malawi is not. Malawi has so many problems. Chines complain workers stealling and we call… Read more »
Sapitwa
Guest

Real Investment is in energy and water. The investors will break even so quickly.
Bring the clean energy e.g solar to assist Escom and make a fortune for yourselves.

Fashion police
Guest

Can somebody please tell the president and his team that they need to unbutton their suit jackets when they are sitting down. You do not sit down with a buttoned 2 button or 3 button suit jacket. Pleeeeeease can somebody tell them …..seriously! It’s a no no no

cypress
Guest

Malawi is a zoo. Everyone there is a monkey. Lets market ourselves as a zoo. Bog money involved. Call me.

Kadakwiza
Guest

Malawi need investors whether with or without electricity or water even poor roads.I salute our President and his government for this very important meeting he had with British investors. The first time British came to Malawi there no electricity. If they want to invest in Malawi they will bring their own electricity. Time has come for Malawi our beautiful country to start producing than consuming. But the main problem is nepotism which bring conflict in the country as a result it is not good for investors. We need a united Malawi nation. Peace and stability is what the investor need.

Dwambazi
Guest

Erratic electricity supply, unreliable water availability, lack of forex, lack of human capital, declining security, poor health services, poor infrastructure, high rending rates, crumbling economy ,tell me what is the incentive for a foreign investor to invest in Malawi and not our neighboring countries where thier economies are growing????

Daniel Phiri
Guest
Which companies do these people represent? Why are you hiding, if they are real investors? I suspect these are fellow crooks which mutharika wants to use to symphony tax payers money to secret bank accounts. The truth is no serious investor will put his or her money in a country that has daily black outs, high transport costs, very corrupt and inefficient government services (just look at roar traffic, customs etc). Which investor will go where criminals terrorise residents and the corrupt and poorly equipped policy do nothing? Which investor goes to a country which taxes internet services making ICT… Read more »
BigMan
Guest

Excellent work and effort by the Malawi government, keep it up!

wpDiscuz

More From Nyasatimes