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There is considerable scope for investment in the manufacture of accessories
such as zippers, buttons, and fastening which are currently imported. Some
of Malawi’s export markets allow firms to import duty or quota free if a
certain percentage of local content in the finished product is reached. Most
Malawian garments manufacturers have problems satisfying this requirement.
Investment in the apparel industry would enjoy a number of incentives
offered to bonded factories and export processing zones.
The Malawi garment industry is very young with about 8 garment companies
operating under the export processing zones status. More companies are
required to fully utilize the country’s resources and to more fully
capitalize on new trade opportunities arising from the African Growth
Opportunity Act (AGOA) initiative offered to Malawi by the United States
Government.
Malawi is an agro-based economy. The country uses a lot of imported
fertilizer because there is no fertilizer manufacturing plant. There is an
opportunity to start manufacturing phosphate fertilizer using Tundulu
phosphate rock situated at Nambazo in Phalombe District in the Southern part
of Malawi. The Project current requirements are to carry out a magnetic
survey, diamond drilling and metallurgical testing. This will define
exploitable reserves as well as commercial flow sheet for the treatment of
the ore.
Official statistics show that Malawi imports, on average, about 200,000 tons
of fertilizer per annum. Phosphate fertilizers constitute 20 percent (40,000
tons) of the total imports. Domestic fertilizer production in Malawi would
reduce the price of fertilizer and therefore encourage the distribution of
fertilizer to the more remote portions of the rural population.
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An investment opportunity exists to manufacture rubber-based products in
Malawi. Malawi has rubber trees for the production of latex rubber at the
rate of 1,300 tons per annum. Currently a company intends to increase its
production to 4,000 tons and is looking for a technical partner. 10% of the
total tonnage is used locally for tyre re-treading, paint and mattress
manufacturing. The rest is exported to Europe and North America. There is
therefore an opportunity to invest in rubber down stream industries for
products like shoes, bags, mats and motor vehicle products for local
consumption as well as for the regional markets. The regional market
comprises: Zimbabwe, Zambia, Mozambique, Tanzania, South Africa, Namibia,
Botswana and Angola. There are also opportunities to export to the DR Congo,
Kenya and Uganda. Factory space and labour at competitive rates are
available.
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