Malawi govt offers incetive regime for investors, 10-year tax holiday, duty free – Minister Mussa
Investors coming to Malawi can find a favourable incentive regime that includes tax holiday for 10 years and extra breaks virtually allowing them to open factories without additional costs, Industry, Trade and Tourism Minister Henry Mussa.
Mussa was speaking in London during the Commonwealth Argosy Events where some investors committed to travel to Malawi within a year to explore opening of businesses, describing the tax regime as one of the most attractive.
The Minister who has had a marathon of meetings averaging seven a day with various stakeholders, told British investors at the prestigious Calvary and Guards Club that Malawi was open for investment with one stop centre, attractive incentive regime and a base for accessing preferential trade markets to Africa.
The theme for the evening forum was “Malawi: Gateway to African markets.”
“We have priority areas such as value addition to agriculture products, manufacturing, tourism and infrastructure development including ICT. These areas will allow you to claim tax holiday and duty free importation of materials.
“Further you can repatriate all your dividends. We have a generous incentive scheme for you to come and invest in Malawi,” said the Minister to an attentive crowd.
Mussa said the current administration is addressing skilled labour gap by other things providing training through community colleges which will complement the new industries whose primary market could be Comesa and Sadc countries.
In his presentation Chief Executive Officer for the Malawi Investment and Trade Centre Clement Kumbemba said it was possible that the combined total tax holidays and incentives could led to zero percent tax for setting up manufacturing plants.
Malawi High Commissioner to the UK Kenna Mphonda said the Mission was keen to follow up and provide all necessary support to UK investors wishing to travel to Malawi to explore investment opportunities.
One of the Investors a Mrs Meredith said she had family members who had visited Malawi and was convinced after hearing from the Minister that she intends to build a new hotel in Malawi.
The Minister also met officials from the UK Department of Trade and Foreign and Commonwealth Office.
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Would the tax heaven be offered to Locals who would wish to invest a similar huge sum of money?
10 years is not a short period. This must not be done. Who will be paying taxes for these 10 years, Malawians?
Makes absolutely no sense!, infact this is laughable or may be pathetic, we can not be more retarded than this
Bravo Henry Mussa
Mtengo wa Minga always does the great work for Malawi
I hope this rubbish is not true
Much as we need foreign investment inflows, we need to be realistic with the bait we are using to attract potential investors. Otherwise there will be no benefit to Malawi and Malawians if foreign investors are given such huge preferential treatment without paying any taxes.
Well, maybe removing 10% exice tax on telecommunications and exorbant customs on all kinds of ICT equipment imported would help the ICT sector to grow?
That’s a way to go Mr. Minister but do the same with us here as well we want to open factories and big businesses ……… that a very good idea I support it.
Yeah, right. Like a new hotel is what Malawi needs right now!
That is stretching the tax haven too far. You cannot lower the standards down to zero by allowing for duty-free importation, zero tax and also allowing the investors to repatriate all their income to their homes. Unless otherwise the benefits are fully explained but l think we want to create ‘an appearance of success’ rather than create success.
I dont know how foolish this country can be. If a foreign company comes to Malawi, what Malawi Govt. gain is tax at 35 percent for exploiting Malawian resources, and 10 years tax holiday that is an insult to the country and its people. wakeup.
Malawi will never learn..10 years tax holiday??? hahahahah thats ridiculous. didn’t we learn from Kayerekera. After laking us of all the resources , they will close their factories. I also wonder how we respect foreign investors but we punish our local investors with hefty taxes. this is not own. If we want to breed real development lets encourage our Malawi bread investors. if 100 Malawians put together 1 million kwacha each, that’s a 100 million. that’s worthy investing locally and give tax holidays to such. Lets get serious. this is our country. Lets not sell it
I know that the chance to investors will kill the innocent Malawians; they are going to raise payees, the little the salary we get the big the tax they deduct.
I understand that this will be implemented soon! – poor government admin