Malawi is rebuilding its image as an investment destination and rebranding itself as a business friendly country to attract foreign direct investment. Malawi’s economic infrastructure is continuously being improved in order to access, facilitate, and maintain investment.
For example, the government ensures availability of foreign exchange for business transactions and remittances. Commercial banks in the country are granted the authority to operate as foreign dealers.
In addition to this, investors have free access to foreign exchange, both for paying for imports and transferring financial payments abroad. This free access includes: no licensing requirements for importing foreign exchange; and full repatriation of profits, dividends, investment capital, and interest and principal payments for international loans.
Furthermore, local and foreign investors have unrestricted access to local financing facilities. Interest rates are market-based and there are no direct government controls on credit.
In terms of infrastructure for investment security, Malawi is a signatory of the International Convention for Settlement of Investment Disputes (ICSID); and Multilateral Investment Guarantee Agency (MIGA), a World Bank institution that operates as an insurance organization, which offers compensation to multilateral investment losses. Malawi also has bilateral investment protection and promotion agreements with a number of countries including Malaysia, Republic of China, and Mauritius. Malawi law also provides for security of foreign as well as domestic investment. There have been no wars in Malawi and crime rate is low compared to other countries in the region.
The investment climate and ease of doing business in Malawi has further been improved through the scaled up fight against corruption and the establishment of Industrial Relations and Commercial Courts within Malawi’s legal system which is based on western countries’ legal systems.
With a population of 13.6 million, Malawi has an adequate labour supply throughout the country. The government does not interfere in employers’ choice of workforce. It recognizes that investments may require expertise not available in Malawi and accordingly, it makes available Temporary Employment Resident Permits for expatriate personnel.
Reasons that make Malawi a great investment destination:
- There is political stability and Malawi is a multi-party democracy
- Malawi is a liberalized economy and there is political commitment to private sector growth and development
- Geographically, Malawi is strategically located for access to regional markets
- Good and constantly developing infrastructure exists in Malawi
- There is a large English-speaking labour force at competitive costs in Malawi
- Malawi has preferential access to regional and world markets under COMESA, SADC, Cotonou (European Union) and AGOA (United States)
- We have some of the most competitive investment incentives in the region
- We have modern telecommunications
- There are daily flight connections to regional and international destinations. Please fly Air Malawi next time you fly to the Warm Heart of Africa
- We have a rich natural and mineral resource base (third largest freshwater lake in the world, fertile land, unexploited mineral deposits, geographic points of interest for tourism)
For more information on investment opportunities and incentives in Malawi please visit the following websites: