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.

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30 thoughts on “Mutharika hold talks with 17 UK Investors: Commits to bring Foreign Direct Investment to Malawi”

  1. Brazilian wax says:

    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.

  2. jimbo says:

    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.

  3. 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 them racists. Malawian workers are good in stealling from their bosses. We need mind set. Teach people how important to be honnest. And what is work. The poverty is created by how people think. God gave us all same opportunity but same dont use it. Malawians want to be rich quickly. For that they steal. These mind set should be taught in schools in order for the future generation to live in a good healthy land.

  4. Sapitwa says:

    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.

  5. Fashion police says:

    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

  6. cypress says:

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

  7. Kadakwiza says:

    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.

  8. Dwambazi says:

    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????

  9. Daniel Phiri says:

    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 a luxury? You can gloat all you want about one stop centre, but if you don’t fix the real challenges to business, you’ll keep getting Chinese hawkers and calling it foreign direct investment. Meanwhile countries like Zambia are attracting big investors. Very frustrating country!

  10. BigMan says:

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

  11. DADA says:

    ZA ZII, ATLEAST DEVELOP THE COUNTRY FIRST

  12. Phwado says:

    Hahahaha!They just came on holiday to watch how a one toothed dinosaur muzzles water when making a useless speech!kkkkkkkkk!Corrupt grandpa!

  13. sammy says:

    Usabe mthalika anthuwo akayamba kupanga invest ndalama zawo

  14. Hd says:

    Bravo mr president we need more ivestors here and am 100% supporting u and proud of u sitinabetse voti. And for you Jimbo and yorts u are mistaken what u are saying remember what elisha said about hunger in israel when people were mumuring, he said tomorow people will bought food at cheap price but some pple like u stand against him and the man of god said to him who doubt him he said, u will see it but you will not eat it, and it happen the same way what the man of god told him, may this happen to you bcoz u stand against developement of this nation which many pple are looking for. Without vision pple perish, may u perish

  15. makito says:

    You can invest in any sector. You can bring as many people as you like. Repatriate all the profits and dividends. I won’t say anything about skills and energy. What will be left for Malawi Mr. President?

  16. Concerned Citizen says:

    Keep it up APM. Malawi shud change. There’re ppl who can talk, let them talk. Don’t be frastrated by pessimistic ppl. We ask that some of those investors deal with electricty, mines, etc.

  17. Mphwache says:

    i always hear that Malawi is an agricultural country. in order to produce we need fertiliser, and every year we import 300,000 tons of the stuff when we can make it ourselves. Whats our problem,

  18. jimbo says:

    Regular electricity outages, water shortages, unreliable fuel supply, poor roads and communications – who would want to invest in Malawi? The country has been independent for 51 years and continues to be a net importer of goods; what makes APM think Malawi can become a net exporter in just 5 years? The man is a dreamer. It will never happen as long as he is President. These so-called investors are not charities; they expect to get a return on their investment. Where is the skilled workforce and the infrastructure to entice them to invest in Malawi? We look forward to the next chapter in this story to hear how many and who actually invested in the country.

  19. Yotz says:

    This country called Malawi has no serious leaders to plan for the country’s prosperity.If leaders were serious enough from Kamuzu Banda to Peter Mutharika,why is it that even after 50 years of independence,Malawi is not producing at least 2500megawatts of electricity, a minimum power output to sustain demand for power in big industries and mining? No big investors can be attracted to a country with intermittent blackouts and a mere 350megawatts of power produced.They will come and assess the country,but will be put by infrastructure mediocrity.

    Malawians were foolish to rush to chase the British while their country was the most backward.Looks like the country’s leaders have a common problem of non-progressive mentality.

  20. benjones says:

    they are not stupid looking at the situation of this country no chance don’t be fooled they can never invest unless is cash gate connected.

  21. The real ujeni says:

    Name the British companies, otherwise this is all fools day. At the end of the day they will invest in Tanzania, Zambia, Mozambique and Zimbabwe. They did not come directly just for Malawi, immediately they go to our neighbours, they will notice stack contrast right from the airport.

  22. Tingo says:

    Even Chakwera he is involved in cash gate, that is why Joyce Banda was looking for impending victory, remember Joyce also used to have secret meetings with Chakwera what was it, learn how to acknowledge what others are doing than to judge, DPP has better policies of developing Malawi even Britain spoke that Malawi lost direction after Bingu died

  23. Chakwela if he had taken this nation things were different. We could not go on singing who stole the money. I am hundrad % he could havd catch all. Why? He was not a part. But with APM, PP and UDF, they have blood and are afraid to be caught. That is why these investagations are not leading no where. Peter does not start investigatin DDP 92 billion. WHY? The man you call prof. Is a big fish who hide in his status. Why o you Malawians like old leaders. If a man like Peter leave his job and want to be a leader in African nation then he is a bad prof. Because Western prof. Are vey well paid and they die still working.

  24. To invest in a country needs discipline. Malawi has not. Blackouts is a major problem. How are investor going to wok? They are coming to mak profit no tgo wait untill ESCOM can bring electeicity. Abale it is easy to talk for APM to cool Malawians but they are not stupid. It hard enough for everyone to make a good business in Malawi. Corruption is huge. Slow invesgation of ACB. Is also costing the state. People are convicted by party not by what they did. Why wasting resources with investgating when we all know how people got rich. We know who have many mansions build by CashGate money. How can a poor Malawian with a salary of 150 000 have 3-5 big houses in areas like 10, 12, 43. Now they have in area 23, 25 New Shire. It is very easy to check it does not need investgating. Check how they built their houses with. If they have loans. If they dont they stole money where? Government. And also see if they are government employees.

  25. Chenji ku Msika says:

    Be careful Mr. Bikiloni. Some of these people you call investors are coming to Malawi just to laugh at you.

  26. .... says:

    Ndikuti munaonapo ma investors kuzayambitsa ma company mu dziko lopanda (1) magesti, (2) madzi, (3) chitetezo?
    This is bullshit, chabe chabe weni weni.
    Kwacha now at K595 to a dollar. Koma bubuyu ziiiiiiii
    Kufuna kupusisa amalawi ndi ma tourists abwera kuzaona nyama ku Liwonde national park. Ati investors, MY FOOT.

    Please do us a favour, RESIGN

  27. Mbiyazodooka says:

    British investors, please do something and show the way for other foreign investors. The poor status of your former colony is an embarrassment to you as well. It is as if you left without teaching us what to do and to do well.

  28. With these ESCOM blackouts, who would want to invest in Malawi? Kayelekera Uranium Mine ran of diesel engines because ESCOM failed to supply reliable electricity. In the end Paladin could not make profits and the mine was closed within 4 years after Bingu opened it in April 2009. Exporting uranium via Walvis Bay rather than Dar-es-salaam proved costly. This is a fucked up country and Kamuzu was not silly to concentrate on agriculture. The population growth rate is alarming. At 16 million, we are more than in Zimbabwe and Zambia and thus taking population density into consideration.

  29. Viyazi Tembo says:

    mxiiiiii

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