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Manufacturing Sector Business Opportunities in Malawi

Manufacture of Textiles Accessories

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.

Garment Manufacturing

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.

Phosphate Fertilizer Manufacturing

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.

Joint Venture Opportunities

  • Rubber Products Manufacturing
    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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