MALAWI- CHINESE TIES ON A SOUND FOOTING ... AS A 23 MEMBER CHINESE BUSINESS DELEGATION VISITS MALAWI

Hot on the heels of establishing diplomatic relations with mainland China, a business delegation comprising of government officials and representatives of Chinese companies visited Malawi from 13 – 16 May this year to explore investment and trade opportunties. The delegation held a series of meetings with private sector companies as well as government officials. The Chinese delegation was led by the Deputy Minister of Commerce His Excellency Gao Hucheng.

Speaking at the opening ceremony of the Malawi-China business forum, government host, minister of Trade and Industry honourable Henry Mussa expressed his profound hope in the Malawi-China relations stating that ‘Malawi’s new association  with China would lead to increased investment and value addition which could help Malawi attain high economic growth rates. In his remarks His Excellency Hucheng reiterated on the need to strengthen economic ties between the two countries for their mutual benefit.

During the visit, three memoranda were signed by representatives of the two Governments. These include a memorandum on Trade and Investment, another one on the development of the cotton industry in Malawi and thirdly, a memorandum on tobacco. Furthermore, Malawi and China exchanged letters on training under which China will train up to 40 Malawians in economic management

A number of business deals were also initiated during the Malawi-China Trade and Investment forum. These include supply of capital equipment and fertilizer to Malawian firms .Twenty- two Malawian companies comprising of companies like Fargo Group of companies, KPMG, NASME, Wandi car hire and Safaris, ADL submitted their project proposals to the visitors. Notable Chinese companies that exchanged proposals with Malawian companies are Shangai Construction group, China Development Fund, Foshan Pharma and China Roads and Bridges.

MALAWI-CHINA AREAS OF COOPERATION: A SYNOPSIS

MOU on Industry, Trade and Investment

China will assist in developing the productive capacity of Malawi in cotton, tobacco, fertilizer production, hides and skins, mining and forestry. With specific reference to cotton, a Chinese company Qingdao Ruichang will establish a cotton company in Malawi and will implement a number of projects in the cotton industry such as

• Pre-finance cotton production by providing inputs to 40,000 farmers starting from the 2008/2009 growing season

• Establish cotton ginneries, a cotton breeding centre and build a textile plant. The combined investment portfolio for the cotton project is expected to cost the Chinese about USD 25,000,000.00

CHINESE INVESTMENT IN MALAWI

Chinese investors have invested in a number of sectors such as construction, hospitality industry (restaurants) services (photography and health facilities) manufacturing especially garments and agro-processing just to mention a few.. Chinese investment in Malawi is expected to increase following the diplomatic relations established in December 2007. The new relations should bring confidence among the business communities in the two countries.  Below is a table showing the level of MIPA – assisted Chinese investment since 2005

Source: MIPA

In pictures – Malawi-Chinese Trade and Investment Forum 13-16 May 2008, Lilongwe

A cross sesction of the visiting delegation listening to presentation

Bidding farewells after a successful business meeting: His Excellency Hucheng outside Ministry of Industry and Trade Offices