Presentation on theme: "Malawi Economic Outlook and Opportunities United Kingdom - Malawi Investment Forum 20 th March 2013 Clement Kumbemba,CEO Malawi Investment and Trade Centre."— Presentation transcript:
Malawi Economic Outlook and Opportunities United Kingdom - Malawi Investment Forum 20 th March 2013 Clement Kumbemba,CEO Malawi Investment and Trade Centre (MITC)
Introducing Malawi Population15.4mGDP$5.6bn Population growth rate 2.8%GNI per capita$360 Rural population80%Exchange rate $1 = MWK 383 (at ) Urban population20% The warm heart of Africa! Key figures Second most peaceful country in Africa: Global Peace Index 2009 Stable democratic government English-speaking and growing managerial work-force
Macro-Economic Performance GDP Growth expected to rebound to 5.5% in 2013 from 1.9% in 2012 due to re-establishments of external credit lines, improved availability of foreign currency and fuel and favourable weather conditions. Headline inflation accelerated to 35.1% in January, 2013 largely due to declining food stocks. Inflation figure in April, 2013 is projected to slow down to 32.1% and will decline further to 18.0% by Dec Interest Rates remain high at 25% Reserve Bank Base Rate. Commercial Bank lending and savings rates are averaging 36% and 10.5% respectively.
Cont. Macro-Economic Performance Exchange Rate of the local currency has continued to weaken against the major currencies after the devaluation and is currently averaging US$1 = MK390. It is expected to stabilize by June, 2013 due to receipts from tobacco and agricultural related exports. The Central Bank has revised upwards the export proceeds retention rate from 60 to 80 percent. Move will significantly encourage disclosure among exporters and will also boost exports.
Strategic Direction for Malawi A new coherent national framework for investment -Key development strategies (MGDSII, ERP, NES) aimed at encouraging private sector led economic growth -Provides a coherent policy for investment in priority sectors and export clusters -Aims to increase ease of doing business and transform Malawis economy into one of the fastest growing in Sub-Saharan Africa. Reforms in the critical areas for private sector development -Reforms in immigration specifically target ease of access of the country by foreigners Malawis Prospects are Bright
Fiscal Policy Measures Austerity measures to reduce unnecessary expenditure and focus on key result areas Removal of subsidies on petrol and utilities Review of tax incentives structure Recent reforms in tax administration
Economic Reforms Under Ministry of Industry and Trade Task Force to Improve the Ease of Doing Business in Malawi which has timelines and targets and is working with all stakeholders involved in business registration and facilitation Operationalization of the One Stop Investment and Export Centre. Government through the Investment and Export Promotion Act has empowered the Malawi Investment and Trade Centre (MITC) to be the focal point for investment and trade matters.
Other Key Investment Enablers Political Stability and Peace Security of Life and Property Guaranteed No history of Civil War and Peaceful and Democratic Government Changeovers Peaceful Co-Existence Free Repatriation of Profits, Dividends and Loyalties
o Beneficiary to the COMESA and SADC Trade Protocols o Beneficiary to the EUs Everything But Arms (EBA) o AGOA beneficiary o Beneficiary to the India, China, Canada, Japan Preferential Markets o Duty free, quota free and preferential bilateral trade arrangements with a number of countries, among them Zimbabwe and South Africa Preferential Market Arrangements
Security of Investment o Constitution of Malawi guarantees protection of foreign investors o Malawi is a member of the Multilateral Investment Guarantee Agency (MIGA) o Malawi is a signatory to the international centre for settlement of investment disputes o Member of the Africa Trade Insurance Agency of COMESA
Malawi is open for business! Contact us Malawi Investment and Trade Centre (MITC) P/ Bag 302 Capital City Lilongwe 3.MALAWI Tel: Fax: