MITC serves to promote investment and trade–mostly focusing on exports and investment promotion in Malawi– and acts as a critical agent to the successful implementation of the National Export Strategy. The NES is a prioritized framework that fosters the generating of exports in Malawi in order to match the upward pressure on Malawi’s imports. The NES serves to catalyze a shift from relying on exporting raw commodities to exporting high value-added goods and services.
The project involved undertaking an Investment Mapping exercise aiming to profile broad sectors under the Manufacturers Clusters of the National Export Strategy (NES). It also includes developing brief marketing profiles that will be utilized by the Malawi Investment and Trade Centre (MITC) in its marketing endeavours for investment in Malawi.
There were two core objectives: (1) to develop a strategy to promote Malawi (paying particular attention to the manufacturing sector) as a viable investment destination, and (2) to develop marketing profiles for specific investment opportunities within the manufacturing sector. Under each objective the following activities and services took place.
Promoting the Country:
- Understand the motivations of investors already invested in Malawi and their perceptions of manufacturing sector growth constraints
- Understand the perceived risks and concerns of investors who may be interested in investing in the country
- Study the policy frameworks of regional countries that have achieved relatively high investment flows
- Document Malawi’s existing and proposed investment incentives and policy framework and benchmark these against the investor perceptions and other countries
- Conduct a situation analysis of the manufacturing sector from the perspective of an interested investor, in particular focusing on its commercial, legal and financial/economic characteristics
Marketing Specific Opportunities:
- Study regional investment flows into the manufacturing sector to determine targets of interest for investors
- Estimate areas of local demand for manufactured goods where import substitution could be achieved
- Estimate areas of regional and international demand where comparative advantage and export growth could be achieved
- Map the manufacturing sector and its value chains within Malawi to identify potential gaps and areas where growth could be achieved with investment
- Draw up a long list of potential investment opportunities and assess their relative bankability from the perspective of an investor, i.e. studying their commercial, legal and financial strengths
- Agree a final shortlist of bankable investment opportunities and develop brief marketing profiles for each of them