New investors to create over 2000 jobs in Malawi

The Malawi Investment Promotion Agency (MIPA) said this has been buoyed by the country's improved macro-economic conditions.

MIPA Senior Corporate Affairs Manager Aretha Kamwendo said the investments are expected to create 2352 jobs.

Out of the 28 companies, five each will come from Malawi's newly found diplomatic ally China and South Africa, while others will come from Zimbabwe, Tanzania, Canada and the United Kingdom. Six companies have emerged from within Malawi.

“Having more local investors is a clear indication that the macro-environment is good,” said Kamwendo. “Reduced costs of borrowing by commercial banks in recent days have aided more people to borrow and invest.”

She said it is clear that most of the new investment continues to be in general manufacturing.

“Of the 28 new companies that applied for an investment certificate to start their business, 14 are in manufacturing sector, four in tourism, seven in services and three in agriculture [and] agro processing,” said Kamwendo.

Malawi's commercial banks lending rate is at 19% from 27% at the start of 2007 after two cuts by the Reserve Bank of Malawi from 20 to 15% last year.

Investors have been complaining that Malawi does not have good incentives to attract them to invest.

This also came out at a government organised meeting for business captains where Industry and Trade Minister Henry Mussa assured them that government was doing everything possible to create a conducive environment for investors in Malawi.