Every business decision must go through a process of research and analyze, especially if you want to tackle new market that you don’t have much knowledge about. There are many factors you must put into consideration before investing such as market size, economy, population, competition, future trends and infrastructure.
Malawi is a place with big business opportunities. It is very important to keep in mind that 90% of all products in grocery shops and shopping malls are imported, so Malawi does not have factories that produce products for a much cheaper price. In 2015 Malawi imported goods for over $388.4 million out of which over $40 million was for fuel and $24 million for fertilizers and the situation has not changed drastically since then.
So as you can see, the market has a lot of potential for growing businesses and businesses will reduce the trade between countries which is good for the economy. Betting on a business in Malawi is like betting on the Baltimore Ravens to get into the NFL playoffs. It’s a risky one, but it might give you some profit in the future if you believe on it.
In this article, we will go through some of the best business opportunities to start within Malawi.
1. Detergent and Soap
Malawi, imports almost all of the chemical products and the recent trade with other countries goes above $50 million per year. So, it is safe to say that the market has a lot of potential for a localfactory making detergent and soaps.
Even though some percentage of the population is still using handmade products for cleaning, the situation changes over time as the new generation comes.
Youcan easily penetrate Malawi’s market through retail stores and good distribution channel.
2. Candle Making
Since the electricity is not on the level it should be in Malawi, there is a high demand for Candles.
From urban homes to village living use candles in their homes as decoration or having the necessary light at night in Malawi. There are also a lot of hotels and spas that use a lot of candles so this is a big opportunity for a new business.
3. Tomatoes Processing
Agriculture in Malawi is one of the most developed sectors in the country. Tomatoes play big role in the food culture and it is the main product in every home. People are preparing soups, salads, stews and you can find tomatoes in every household.
Even though agriculture is big in Malawi and they produce tomatoes, there are not enough factories that process it into other tomato products. This is a very good business opportunity just because you can get the main product from local retailers for cheap price and process it into tomato puree or tomato juice that you can get to local retailers or export out of the country.
4. Textile and Underwear Production Company
The textile market is rising in Malawi, especially pants, boxer shorts, male or female underwear. If you are planning to start a textile company the best chance you’ll get if you produce underwear. It is a highly profitable market and there is huge demand for local production. The only barrier is the start-up investment which can be significant if you are planning to buy all the necessary machines.
5. Pasta and Noodles
The most amazing thing is that Malawi imports pasta products for over $300 million per year, and still does not have any local manufacturer. This is a market with great potential for becoming something big. Instant noodles are becoming popular with college students and Malawians are heavy Spaghetti eaters.
The best thing is that you can start small with low start-up investment and build your million dollar company.
As we mentioned before, a large number of imported products are Bio-fertilizers that becoming a trend in agriculture just because Malawians stopped using harmful chemical fertilizers. Typically bio-fertilizers are made from things people discard in trash such as fruit and vegetables, paper, dry leaves and etc.
It does not require large capital to start with and there is huge market potential.
These are some of the best business opportunities to invest in Malawi. It is important that you get to know the local culture before investing a large capital in any business just so you can get the best odds for succeeding and choose the winning products that people demand.Follow and Subscribe Nyasa TV :