Why Invest In Malawi?
Malawi is generally one of the most peaceful countries in Africa providing a good environment for business growth. It is a politically stable country with friendly and warm-hearted people. In addition, it has abundant natural resources such as, wildlife, minerals and water. It has a competitive labor market (skilled and semi-skilled). The country also provides attractive investment tax incentives. The country has a beautiful freshwater lake, scenic mountains, and rivers, making it attractive for both business and leisure. Malawi is a member of several multilateral organizations and a signatory to several trade agreements which include:
l The Common Market for Eastern and Southern Africa (COMESA) which has 20 member countries, a combined population of over 389 million, and annual exports which amounted to US$82 billion as of 2019. Products manufactured in Malawi qualify to be exported to member countries through the COMESA Free Trade Area agreement;
l Southern African Development Community (SADC) which has 16 member countries with a combined population of 276 million, a GDP of USD 687 billion as of 2019, and exports that amounted to US$29.8 billion as of 2019. Products manufactured in Malawi are exported to the SADC region through the intra-SADC Free Trade Area agreement (FTA);
l The New Partnership for Africa’s Development (NEPAD);
l The World Customs Organization;
l The Multilateral Investment Guarantee Agency (MIGA) which provides help for investors to protect their foreign direct investments against political and non-commercial risks in developing countries;
l International Centre for the Settlement of Investment Disputes;
l GSP Scheme of the EU`s Everything But Arms (EBA) initiative. Under this agreement, products produced in Malawi are exported to the European Union countries;
l Privileged to trade benefits from the African Growth and Opportunity Act (AGOA). Under this agreement, products produced in Malawi are exported to the United States of America;
l Signed trade multilateral agreements with the World Trade Organization (WTO), and the Cotonou agreement between EU and the African, Caribbean, and Pacific Group of States;
l Signed bilateral trade agreements with Mozambique, South Africa, Zimbabwe, China, Portugal and Japan;
l Signed a custom agreement with Botswana. Under this trade agreement, investors can export products produced in Malawi to Botswana at reduced tax rates or duty-free.
