Malawi is a free market economy. The economy is predominantly agricultural. In order to address the country's economic dependence on agriculture government has embarked on programs to promote industrialization by establishment of industrial estates and encouragement of foreign investment through easing of procedures for establishment of businesses by foreign nationals and provision of numerous incentives. To this end the government has established Malawi Investment Promotion Agency - MIPA - a One Stop Shop which assists foreign investors to set up businesses in Malawi.

Malawi Investment Promotion Agency (MIPA), created by Act of Parliament, is responsible for promoting investment in Malawi. MIPA assists foreigners who wish to set up business in the country.

Malawi offers both foreign and domestic investors excellent incentives and tax concessions to encourage investment. Malawi's low wage rates and central location within the Southern African Development Community (SADC) offer the enterprising investor great opportunity to set up operations from which to provide goods and services to the fast growing SADC region and beyond.

The Government of Malawi encourages local and foreign investment in any sector of the economy, with no restrictions on ownership. Investment opportunities exist in the many sectors including: textiles and garments, toiletries, food stuffs, footwear, tourism, infrastructure development, agro processing, high value agriculture farming, fish farming, mining, horticulture, electronics, pharmaceuticals etc. For detailed investment information visit: http://www.malawi-invest.net/.

 

Malawi – India Relations

Relations between India and Malawi have been cordial and friendly. There is similarity of views between the two countries on several international, bilateral and multilateral issues and the two countries cooperate with each other at international fora such as the UN, NAM, CHOGM and WTO.

High Level Visits: The first President of Malawi, Dr. H. Kamutzu Banda visited India in 1983 to attend the Commonwealth Heads of Government Meeting. He was deeply influenced by the rogress made by India and India’s potential as a possible source of technology and equipment for development of SMEs in Malawi. After this visit, there was increased interaction between the business communities of India and Malawi. Some Malawian ministers and other dignitaries have visited India in recent years to attend international conferences, trade fairs or on private visits.

From the Indian side, Smt. Indira Gandhi, Minister of Information and Broadcasting visited Malawi in 1964 to participate in Malawi’s independence celebrations. In 1979, Shri Samrendra Kundu, MOS for External Affairs paid a visit to Malawi.

Cooperation in Political Field: Despite closure of our diplomatic mission in 1993, there is considerable goodwill among the Malawian leaders for India. The Malawian government responded positively to India’s demarche on the Pakistani resolution on the Jammu & Kashmir issue in November 1994; EAM sent a letter of appreciation to his Malawian counterpart. Malawi showed understanding of India’s nuclear tests in 1998 and was one of the few countries that supported India’s position on this issue in the First Committee of the UN General Assembly in 1998.

Cooperation in Economic Field: India is providing assistance to Malawi under its ITEC programme. Malawi utilised the services of TCIL for execution of a contract in the telecom sector worth US$20 million in the year 2000. M/s Tata Zambia and small Indian companies are presently having offices in Malawi mainly for trade. India’s exports to Malawi in 2003-04 totalled US$37.45 million and included textile yarns, fabrics, made-ups, transport equipment, pharmaceuticals, machinery and instruments. The imports from Malawi in 2003-04 totalled US$4.98 and included mainly pulses and other commodities. Malawi is an agricultural economy.

Cooperation in the Cultural Field: There is no Cultural Exchange Programme between India and Malawi. Some Indian cultural troupes have visited Malawi in the past and the local people appreciated their performances.

Indian Community: There are about 5000 persons of Indian origin in Malawi. Most of them hold British or American nationality. The number of Indian nationals is about 750. Most members of Indian community are engaged in trade with few professionals. The members of the Indian community arrived in Malawi mainly from Gujarat in the 1920s and afterwards. They are mainly concentrated in important cities such as Blantyre, Zomba, Lilongwe and Mzuzu.

Malawi Country Data