Transforming Malawi Inclusive of the Malawi Diaspora Presented at: - - PowerPoint PPT Presentation

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

• ther 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

• f more than 150,000MT per annum, and only one spinner
• f 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 to probably one the best tasting fishes in the world. The lake, which is 385 miles long, and 52 miles wide, has been overemphasized on capture fisheries which is quickly depleting the fishery resources in the Lake Status Government is seeking direct investors to engage in cage fish farming on Lake Malawi for the production of the Chambo, Catfish and other local fishes. Investors will undertake 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 ADL

Project 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 MANUFACTURING

Project 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 nursery school, clinics and will make for the Police, postal and banking services and a service station on approximately 500 hectares of land that they own. The concept also includes residential and commercial areas Status: The promoter owns about 500 hectares of land in prime area of the City and has undertaken a pre-feasibility study. Estimated cost of project is US$600 million for which he seeks equity/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 PARK

Project Description Kasinthula in Chikwawa at a distance of about 10km south of Chikwawa Boma 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 processing industrial park and will adopt a modular approach, meaning that it will be segmented into various sized lots e.g. 20 hectares being the largest, then 10 hectares and the lowest 5 hectares so that various categories can be involved in the 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 to private sector for operations. Status A feasibility study is yet to be undertaken. Government seeks support on this in 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

• perating 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
• ffices, 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

• ffice

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

• n 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

• nly electricity

generation company in Malawi, with an installed capacity 361 Mw. It previously was called Electricity Supply Commission of Malawi (ESCOM) until it was unbundled to form two separate 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 a 308MW Hydropower Plant Status Project cost is around US$600 million. The project seeks equity/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