High Commission of India
Lilongwe
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DOING BUSINESS IN MALAWI
Doing business in Malawi has over the past few years become relatively easier, and the system is still improving itself through numerous process re-engineering and streamlining procedures that Government is continuously undertaking. Malawi is ranked 109 among the 190 economies in the ease of doing business, according to the latest World Bank annual rating.
The Malawi Invest investment and Trade Center (MITC) is mandated by Government to promote investment sector that will have a transformation impact on national production, value addition, export capacity, import-substitution and labor intensity. However, it is not mandated to promote trading activities such as shops which rather fall under the Business Licensing Act which is administered under the Ministry of Industry, Trade and Tourism. Nonetheless, if a trading activity provided significant justification because of its potential economic impact, such as mega-stores and malls MITC, gets involved.
REGISTRATION OF INVESTORS
The steps involved in investment process in Malawi include: (I) Obtain Certificate of Incorporation from the Registrar of Companies; (ii) Obtain Investment Certification from the Malawi Investment and Trade Center; (iii) Obtain Sector Permits and Licenses.
Minimum capital requirement for setting up business
According to the Malawi Business Licensing Act of 2012, foreigners are allowed to operate only in main cities and apply for permits with deposit of US$50,000 as initial capital.
Indian Investments
While official figures of Indian Investments are not available, it is estimated that over US$500 million has been invested in Malawi. As per an official document of Ministry of Finance released in April 2018, India’s private capital has a share of 19% and is the largest single contributor in the Malawi economy, with China being 12%, total Africa’s contribution being 21% and the rest of of the world being 48%. Indian investment is also the largest contributor to the creation of private sector jobs in Malawi.
There are about 8500 persons of Indian origin and 8500 Indian nationals currently residing in Malawi. The India community is primarily engaged in trade. There are about 100 Malawian Indian origin-owned companies registered in Malawi with the Malawi Investment and Trade Center (MITC) since its inception in 1993.
Indian businesses in Malawi
Most Indian businesses are engaged in Agro processing, Alcoholic beverages, Construction, Energy sector, Financial service & Insurance, Food processing, Health Sector in Diagnostic services, Information Technology & Software development, Logistics, Mining, Transport, Textile, Cosmetics & Pharmaceuticals, Fertilizers, manufacturing like Cement, Packaging, Plastics, Hotel & hospitality etc. The commercial and manufacturing activity is mainly concentrated in Blantyre in the southern region of Malawi.
Indian Companies Tata, Ashok Leyland, Bharti Airtel, Bajaj Auto, TVS, Atul Auto, Eicher, Mahindra are prominent through their authorised dealers. Kirloskar generators, Escorts, Godrej and SuKam are other Indian company products with a presence in Malawi.
India owned construction company Plem Construction, is actively contributing to the construction sector. Two Indian companies Larsen and Toubro and Kalpatatru Power Transmission Ltd presence in Malawi are noticeable. Both have carried out projects under the Millennium Challenge Fund with Larsen and Toubro constructing a 400 KV substations in Malawi for US$34.2 million. Kalpataru Power Transmission Ltd constructed the 132 Transmission Line, a 6KV transmission line 1.5KM single circuit self-supporting steel tower, the construction of the 66KV Lilongwe Ring – 32KM as well as the 132KV OHL transmission line, 30 Km single circuit self-supporting steel power at US$23 million. These projects were completed in the year 2017. L&T, India is involved in Malawi-Mozambique Power Interconnection Project and the Indian company will do the construction works of transmission lines and the extension of a substation.
Brief Statistics on the Macro – Economy
The bank policy rate as of December 31, 2024 stood at 26.0%, however, high domestic borrowing by the government continues to produce a crowding out effect and resulting in low private sector borrowing. Furthermore, the private sector continues to keep interest rates high as there is little translation form the reduction in the bank policy. The Malawi Kwacha is currently trading at US$1=MK 1,751
Chamber of Commerce in Malawi Malawi Confederation Chambers of Commerce and Industry (MCCCI) is a partnership of enterprises and associations representing all sectors of the economy of Malawi. The Chamber of Commerce has been in the forefront of Malawi’s private sector development efforts for over 100 years. Established in 1892, the first Chamber organization operated as a Chamber of Agriculture production and trade.
