Transforming Malawi Inclusive of the Malawi DiasporaLake Malawi is a fresh water lake and that is...
Transcript of Transforming Malawi Inclusive of the Malawi DiasporaLake Malawi is a fresh water lake and that is...
Transforming Malawi Inclusive of the Malawi Diaspora
Presented at: 2018 Malawi Diaspora Conference
29th September, 2018 Washington D.C, 29th September, 2018
How Has the Business Environment
Been Enabled So Far?
Over 40 pieces of legislations passed or in pipleline
intended to streamline and enable the legal
environment in last 3 years
Private Sector/Development-Oriented Legislations,
Policies/Plans/Strategies:
National Investment Policy (Underway)
National Agriculture Policy
National Agriculture Investment Plan (NAIP)
National Export Strategy
MSME Policy
Industrialization Strategy
Industrial Policy
Trade Policy
Diaspora Policy
National Transport Master Plan
Tourism Master Plan (In process)
Buy Malawi Campaign
Special Economic Zones (In process)
Land Policy and Act
Electricity Act
E-Government
Among Others
Private Sector/Development-Orientated
Institutions/Institutional Capacity:
National Planning Commission
MITC
PPPC
Aviation Authority (Upcoming)
Transport institutions (Upcoming)
Sectors charged to originate projects which are
published and promoted by MITC/PPPC
Decentralization of Projects Implementation e.g.
working with ADL & other stakeholders to
conceptualize and later implement Airport City and
other projects
Administrative Processes:
Trade Facilitation
Trade and Investment Portals respectively, & National
Single Window (Import and export documents are now
accessed electronically through the Trade Portal (www.malawitradeportal.gov.mw)
Customs Modernization (ASYCUDA World) and
Integrated Risk Management system at the border
One-Stop-Border Post (Mwanza, Songwe,Chipata as
priority. Streamlining of Border Agencies From 17 To 5
On-line Immigration Permits
Land mapping
Trade Policy
Negotiating favourable bilateral, regional & multilateral
market access agreements (EAC, CFTA)
Access to Finance , Energy◦ Finance:
A secured lending regime is now enforced through the Personal
Property Securities Act
A National Registration and Identification System with National IDs
Establishment of Credit Reference Bureaus
Promotion of Warehouse Receipt System as a structured marketing
system for agricultural products
◦ Energy:
With the generous support of the American GoM, review of the
Legislation and unbundling of ESCOM a pre-requisite
Undertaking of various studies
Development of the IPP Framework and the IRP
Upgrading of the transmission grid is complete this September and
carrying capacity is now over 2,000 MW
IPP Applications are now being Processed.
Mbongozi Hydro PPA – 42 MW – Now signed
Over 100 MW Solar IPPs signed and under implementation
300 MW Kamwamba Coal-fired project management in place,
awaiting final approvals
A Gas powered facility under discussion
Mpatamanga Hydro (308 MW)
Feasibility studies for following either completed or nearing
completion:
Fufu Hydro: 261 MW – F.S in final Stages
Kholombidzo Hydro: 210 MW – US$407 M. F.S done
Chasombo Hydro: 50 MW – US$389 M. F.S. done
Chizuma Hydro: 50MW – US$157 M. F.S. done
Lower Songwe: 180MW shared with TZ. US$261 M
Coal Plant: 500 MW IPP. Discussions under way (National
Power Generation Coy)
◦ ICT/E-Government:
Connection of Malawi to undersea fiber optic
cable through Tanzania
Government working on the following areas:
◦ National Data Center
◦ Smart City System
◦ E-judiciary
◦ E-procurement
◦ E-health
◦ E-education
◦ E-parliament
Cyber Security
GIS System
◦ Industrial Rebate
Government is working on enhancing the
efficiency of the export rebates so that
refunds are timely
The Investment and Export Promotion Act 2012
gives priority to Investment and Export Promotion in
the following sectors:
1. Agriculture
2. Agro-Processing
3. Fisheries
4. Forestry
5. Manufacturing
6. Mining
7. Tourism
Such Other Productive Sectors as the Minister may Determine
MGDSIII PRIORITIZED SECTORS OF
PROMOTION
Agriculture, Water Development & Climate
Change
Education and Skills Development
Energy, Industry and Tourism Development
Transport and ICT Infrastructure
Health and Population
Two Approaches Adopted by GoM:
1. Public Private Partnership Approach (Conduit is PPPC)
Where GoM has an interest in – Mostly projects with a
social impact to the economy but which are also
economically viable for private sector participation.
2. Direct Investment (Conduit is MITC)
Most Activities that were on the negative list are
liberalized to allow for increased Direct Investment by
Private Sector.
PRIVATE PROJECTS
AGRICULTURE & AGRO-PROCESSING
Project Description
The project, already operational, is located on Nkholosa
Estate in Mangochi district. The project area covers 673
hectares of land and is located 3 kilometers from Lake
Malawi. The project entails commercial aquaculture,
mostly Chambo.
Status
The project seeks an equity partner to take up to 49%.
Est. Investment required is US$23,372,000
Project Description
Owned by an indigenous Malawian entrepreneur, the
company is yet operational but the promoter has done
substantial assessment studies to establish the potential of
manufacturing cloth. There are currently 11 ginning
companies in Malawi with a combined ginning capacity
of more than 150,000MT per annum, and only one spinner
of cloth in the country.
Status
A feasibility study report is available and total project cost
is US$17 million. Land available along Blantyre-
Lilongwe Road. Equity/Financial Partner being sought
Project Description
The current developers have invested over $800,000 to
date at Lumbadzi to manufacture fertilizer, and have
installed a production machinery and has run batches of
SCU and NPK fertilizer productions successfully. The
technology UGF possesses gives greater crop yield than
just taking plain Urea, and loosely blending it with
Sulphur (i.e. as it is done in many countries by other
fertilizer companies at present, including fertilizer
suppliers in Malawi).
Status
The company is looking for a 30% to 60% Equity
Shareholder
Project Description
Lake Malawi is a fresh water lake and that is home toprobably one the best tasting fishes in the world. Thelake, which is 385 miles long, and 52 miles wide, hasbeen overemphasized on capture fisheries which isquickly depleting the fishery resources in the Lake
Status
Government is seeking direct investors to engage in cagefish farming on Lake Malawi for the production of theChambo, Catfish and other local fishes. Investors willundertake own project feasibility studies
PRESS AGRICULTURE
Project Description
Press Agriculture is the largest single landowner with over
24,000 hectares of land to its name. The company intends to
up-scaling its operations to add value on its estates in areas
such cereals to produce various products.
Status
In order to achieve this, the project requires equity/financial
support in the region of US$50 million*3 projects (US$150
M). Definite studies are underway. The project seeks
equity/financial partners.
Horticulture Project at ADLProject Description
A proponent from the Netherlands expressed interest in a
horticulture project which was marketed through the
Projects Compendium. The project will cover 300 hectares
and will eventually produce flowers for the Netherlands
market. In the short-term, it may pilot on vegetables.
Status
Initial studies such as soil and climate suitability analyses
have been undertaken and Possible crop areas defined. The
project will cost a minimum of US$2 million and the project
is seeking investors of the diaspora. So far, local partners
include ADL and EDF
TOURISM
Project Description
The proposed investment entails the reconstruction of Sunbird
Livingstonia Beach hotel to a 4-5 star status with the following
main facilities:
• 150 bedrooms
• 300 seat conference Centre
• 9-hole golf course
• Water world
There is presently no lakeside resort with the envisaged facilities.
Status
The project requires an equity and/or financial partner. Feasibility
study is not done, but estimate is US$20 million
CAPE MACLEAR RESORT Project Description
Project consists of the following three projects:
1. Cape Maclear Resort
A touristic, leisure and residential project featuring 5 hotels, serviced residences, a
signature golf club and golf course, an aqua park, an aquarium, a cultural village and
a major events arena. The resort will be developed on over a 275 hectares plot by
Lake Malawi
2. Cape Maclear International Airport
An international airport and logistics center project proposed to be located on a
Government-owned 4 square kilometer site within 15 kilometers-40 kilometers of
the resort site. The airport will feature a 4 kilometer runway capable of landing
wide-bodies planes. In addition, the airport will feature a regional logistics and
processing free zone.
3. Cape Maclear Business Hub
A smart economic city anchored around the following proposed two key free zones:
• Regional business and trading free zone; and
• Regional banking and finance (regulated) free zone.
Status
Cost is US$2.6 billion. 60% equity secured and there is opportunity for remaining 40%
MANUFACTURING
LIQUOR MANUFACTURINGProject Description
Ethanol Company Limited (EthCo) is Malawi’s sole producer of
Extra Neutral Alcohol (ENA). Currently produces up to 6.0 million
liters annually - about 40% of the available formal market demand
estimated at 15 million litres. After more than three decades of
producing alcohol, (EthCo) intends to diversify its product range
into liquor manufacturing as part of its growth strategy. The liquor
business is will largely involve flavoring and bottling of diluted
ENA to produce a range of alcoholic beverages.
Status
EthCo intends to implement the project through joint partnership
with a reputable player in the liquor business with the hope that
both parties can realize synergies in the partnership. The potential
partner in this venture should have considerable experience in the
liquor manufacturing portfolio.
INFRASTRUCTURE
Kanengo Northgate Industrial Park
Project Description
A local promoter has plans to build a shopping mall, hotel,warehouses, industrial buildings, a primary school, a nurseryschool, clinics and will make for the Police, postal andbanking services and a service station on approximately 500hectares of land that they own. The concept also includesresidential and commercial areas
Status:
The promoter owns about 500 hectares of land in prime area ofthe City and has undertaken a pre-feasibility study. Estimatedcost of project is US$600 million for which he seeksequity/financial partner
PPP PROJECTS
AGRICULTURE & AGRO-
PROCESSING
SHIRE VALLEY TRANSFORMATION PROJECT (SVIP)
Project Description
SVIP is a AfDB&WB funded irrigation impact
project that will covers a cropping area of 43,000
hectares in the final phase. However, the initial
phase will cover 21,000 hectares.
Status:
The project seeks an operator to manage the
water intake, supply, distribution and water fees
collection system.
KASINTHULA FISH INDUSTRIAL PARKProject Description
Kasinthula in Chikwawa at a distance of about 10km south of ChikwawaBoma at 60 meters above sea level and longitude at 340 05’E and latitude 160 00’S.
Kansinthula Fish farm lies on 275 hectares along the Shire River in Chikwawa.The Government desires to transform it into a fish production and processingindustrial park and will adopt a modular approach, meaning that it will besegmented into various sized lots e.g. 20 hectares being the largest, then 10hectares and the lowest 5 hectares so that various categories can be involved inthe fish production. These modules will span a total area of 250 hectares or so,and the remaining 25 hectares or will be for other value chain activities e.g.hatchery, feed-mill etc. The ponds, when developed, will be leased out toprivate sector for operations.
Status
A feasibility study is yet to be undertaken. Government seeks support on thisin order to determine the best development approach and the financial outlay,among others
INFRASTRUCTURE
MITC Office Complex
Project Description
The Malawi Investment and Trade Center intends to a
high rise building which will serve as its
headquarters but also be rented out
Status
Through the PPPC, the project seeks a partner to
design, finance, build and operate the office complex
PPPC Office Complex
Project Description
The Public Private Privatization Commission (PPPC)
intends to establish their Head Office Complex which
is also to serve as their headquarters. This building
will be in Blantyre
Status
The PPPC is seeking an investor to design, finance,
build and operate the office complex
MZUZU CITY SHOPPING MALL
Project Description
Mzuzu City intends to develop a shopping mall
through a PPP arrangement. Land is already
available
Status
An investor is being sought to design, finance, build
and operate the infrastructure
Blantyre City Recreational Parks
Project Description
Blantyre City intends to develop recreational parks in
the City. Locations are determined but no work done
beyond that
Status
The PPPC seeks investors to design, finance, build
and operate the recreation parks
Development of UN Complex
(Urgent)Project Description
The UN intends to consolidate all its agencies
operating in Malawi under one roof. Presently, a
feasibility study is underway on how this can be
achieved and is working through the PPPC to interest
possible investors
Status
EOIs are called for investors who can design, finance,
build and operate the facility
Blantyre Central Parkade
Project Description
The City of Blantyre is in dire need for innovative
parking facilities and decided to develop parking
facilities in the Central Business District
Status
Through the PPPC, the City Council seeks investors
to design, finance, build and operate the facility
Modern Bus Terminal
Project Description
The City of Blantyre desires to develop a modern bus
terminal in the City of Blantyre that will consolidate
all passenger transport
Status
Through the PPPC, the City seeks an investor who
can design, finance, build and operate the terminal
MZUZU UNIVERSITY CONFERENCE AND
BUSINESS CENTER Project Description
Mzuzu University seeks to construct a conference and business centre, complete with dining facilities, as a service and income generating venture that would serve the compass and the City of Mzuzu.
The business centre, as currently envisaged, will comprise the following facilities -
Conference room sitting 300 persons with two VIP lounges
Communication area providing for refreshments, an internet room and two offices, including a printing and photocopying services
4 meeting rooms/offices
6 shops/banks
Ablutions
VIP bar and Restaurant (50 persons seating capacity) with kitchen
VIP drop off and car park
Status
Est. Cost US$3 M. Looking for a partnership arrangement on e.g. B.O.T etc.
DEVELOPMENT OF SHOPPING MALL IN
ZOMBA Project Description
The project proposes the construction of a shopping Mall in
Zomba City comprising shopping and office complex,
restaurants, motor vehicle service centre, car park and other
auxiliary services. The Shopping Mall will be the first of its kind
in Zomba city.
Zomba City serves as a commercial centre for the eastern region
comprising five districts with a catchment population of about 4
million. The mall is expected to offer both local and international
products.
Status
2.5 hectares is already earmarked. The Council seeks investors
on Partnership or direct investment basis. No studies are done
TOURISM
Project Description
The project proposes development of a world-class
tourism destination based on fantasy and adventure.
Underpinned by a Cable Car facility, the project will
include luge & skyride, Segway
fun rides, health spa and wellness centre, living museum
story-telling, eco-lodge, eco-adventure activities and a
variety. The project will be on Mount Mulanje
Status
The project seeks a partner under a PPP arrangement. The
project is estimated at US$150 million though a detailed
feasibility study is yet to be undertaken
ENERGY
MPATAMANGA HYDRO-POWER
PROJECT
Project Description
The project promoter, Electricity Generation Company(EGENCO) is presently the only electricity generationcompany in Malawi, with an installed capacity 361 Mw. Itpreviously was called Electricity Supply Commission ofMalawi (ESCOM) until it was unbundled to form twoseparate companies; one that generates the power (EGENCO),and the other which is the single buyer and market operator(ESCOM). This particular project entails development of a308MW Hydropower Plant
Status
Project cost is around US$600 million. The project seeksequity/financial partnership under a PPP framework
UPCOMING PROJECT
FRAMEWORKS TO UNPACK
1. Transport Sector Master Plan
2. Tourism Sector Master Plan
3. Industrial Hemp
4. Medicinal Cannabis
5. Health Sector Investment Plan
6. Agriculture Sector Investment Plan
CONCLUSION It is no doubt that legal, Policy, Institutional and
administrative processes are being incrementally
consolidated to enable implementation
Largely, it is an on-going learning curve but we
see an implementation formula coming together
We have no doubt that in the next 3-5 years, the
country will start fast-tracking.
The timing is right.
THANK YOU