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Home Investing in Malawi Investor's guide Cost of Doing Business in Malawi
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Cost of doing business in Malawi
Electricity
Malawi generates electricity by hydro, thermal (largely diesel and gas based) and photo-voltaic (PV) systems. Hydropower is the largest source, accounting for 99 percent of all electricity generated. The Electricity Supply Corporation of Malawi (ESCOM) is the only and vertically integrated power utility, which generates, transmits, distributes, and retails electricity throughout the country. ESCOM total installed capacity is estimated at 304.8 megawatts, of which 19 megawatts is thermal.

Hydropower is the largest source, accounting for 99 percent of all electricity generated. The Electricity Supply Corporation of Malawi (ESCOM) is the only and vertically integrated power utility, which generates, transmits, distributes, and retails electricity throughout the country. ESCOM total installed capacity is estimated at 304.8 megawatts, of which 19 megawatts is thermal

With the projected peak demand of 324.8 megawatts, 478 megawatts and 757 megawatts for the year 2010, 2015 and 2020 respectively, ESCOM’s system capacity needs to be increased accordingly in order to meet the projected demand. The estimated overall potential for power generation in Malawi however, is over 900 megawatts of hydropower, with more than 2 million tones of confirmed coal reserves as well as uranium deposit.

Reforms are underway to liberalize the energy sector in Malawi. Access to electricity in Malawi is very low at seven percent of the total population. Electricity demands is highly skewed in favour of industrial and large commercial customers who consume approximately 60 percent of the total Domestic users account for around 25 percent, while the remaining 15 percent goes to small commercial consumers.

For more information on electricity services and tariffs please visit www.escom.mw

Water
Water facilities in the cities, towns and peri-urban areas of Malawi are provided by five parastatal Water Boards: Blantyre Water Board, Lilongwe Water Board, Central Region Water Board, Northern Region Water Board and Southern Region Water Board. The existing urban and rural water supply schemes and systems provide access to potable water facilities for up to 54 percent of the country’s population. To improve water supply services in the country, Government is reforming the sector and encouraging private sector participation.

For more information on water supply services and tariffs please visit www.lwb.mw

TELECOMMUNICATIONS

Malawi’s telecommunications sector consists of a single fixed line private operator, Malawi Telecommunications Limited that was privatised in 2006; two mobile operators, Airtel and Telekom Networks Malawi; and a number of Internet Service Providers (ISPs). Currently, the fixed telephone penetration rate is low, with a national average rate of 3 lines per 1000 people.

TELEPHONE SERVICE

Fixed Phone Network - Malawi Telecommunications Limited (MTL)

Malawi Telecommunications Limited is Malawi's leading telecommunications services provider, provides unbeatable telecommunications services and solutions in Malawi.

Malawi Telecommunications Limited is a telecommunications company limited by shares formed and registered in accordance with the provisions of the Companies Act 1984. The Government of Malawi has 99% share ownership and the office of the Chief Executive Officer holds 1% in trust. Malawi Telecommunications Limited is the sole fixed telecommunications services provider for Government, businesses, residential and public payphone customers
MTL offers a wide range of Information and Communications Technology (ICT) based products and services. It offers fixed wireline and fixed wireless voice and data products and services to business and residential customers.
For more information visit MTL's website http://www.mtl.mw where you can find services and tariffs.

Mobile Phone Network - Airtel Malawi
Airtel Malawi which was launched in October 1999 as Celtel and changed to Zain Malawi in 2008 has rebranded to Airtel Malawi. Airtel provides mobile communications services across 16 markets in Africa. Burkina Faso, Chad, Democratic Republic of Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Zambia, Uganda, Sierra Leone, Seychelles, Niger and Nigeria.

Airtel’s African operations are owned by Bharti Airtel Limited, a leading global telecommunications company with operations in 19 countries across Asia and Africa. The company offers mobile voice and data services, fixed line, high speed broadband, IPTV, DTH, turnkey telecom solutions for enterprises and national and international long distance services to carriers. Bharti Airtel has over 200 million customers (November 2010) across its operations, including 50 million in Africa.
Airtel is driven by the vision of making mobile communications affordable for all to give people the freedom to meet their daily challenges and to drive economic and social development. Airtel is making a positive impact in the communities in which it operates through extending its networks to rural areas and through its education initiatives.
For more information visit Airtel's website http://www.airtel.mw where you can find information about services and tariffs.

Telekom Networks Malawi Ltd
Established in 1995, TNM serves its valued customers by providing state of the art information and communication technology services through the provision of innovative solutions to customers' communication needs.

With the unleashing of new cutting edge Information and Communication Technology (ICT) industry, TNM's vision is to become a world class company for ICT products and services and stay ahead as the preferred choice of mobile communication in Malawi.
Click here to visit Telekom Networks Malawi Ltd website http://www.tnm.co.mw where you can find information about services and tariffs.

Public Lands for industry
Annual Ground / Land Rent Payable for Leases within the Major Cities of the Country

Description of Land Indicative Rates per Hectare per Annum
Residential Land
US$ 335
Industrial Rail Serviced Land
US$ 1,700
Industrial Land
US$ 2,000
Commercial City Centre Land
US$ 5,400
Commercial Land
US$ 4,000
Institutional
US$ 2,300


Transportation Costs
TRANSPORT TARIFF RATES

Johannesburg To Blantyre
Table 5: Indicative Costs

DESCRIPTION RATE – BT(South African Rand ) RATE –LLW(South African Rand
Full Loads ( Break-bulk 28 tons) per load
28,000.00
,000.00
1 x 12m Container – Gross Mass 28 Tons – Net 24 Tons
28,000.00
30,000.00
1 X 6m Container (Up to 14 Tons Gross)
14,500.00
15,500.00
Part Loads per 1000kgs or 2CBM whichever yields greater
1,110.00
1,550.00
Minimum per Consignment
750.00
950.00
Local Collection within 30kms radius from our warehouse per 1000kgs or 2CBM – Minimum 1 Ton
265.00
265.00
Documentation per consignment
265.00
265.00


Destination Blantyre and Lilongwe via NACALA
Table 6: Indicative freight costs for 20 footer and 40 footer containers from major seaports to delivered premises Blantyre/Limbe and Lilongwe via NACALA

BLANTYRE LILONGWE
Country of Origin City 20’ 40’ 20’ 40’
US$ US$ US$ US$
CHINA NORTH DALIEN
3630
6945
3780
7095
QUINDAO
3530
67645
3680
6895
XINGANG
3555
6895
3705
7045
CHINA CENTRAL SHANGHAI
6645
3580
6795
CHINA SOUTH GUANZHOU
3390
6545
3465
6695
XIAMEN
3430
6745
3505
6895
DUBAI
2734
5283
2809
5433
HONGKONG
2950
5680
3025
5830
INDIA MUMBAI
2734
5283
2809
5433
CULCUTTA
3290
3580
ITALY LASPEZIA
3100
6080
3145
6230
INDONESIA JAKARTA
3075
6030
3150
6180
JAPAN
3530
6945
3605
7095
SOUTH KOREA BUSAN
3100
5980
3175
6130
MALAYSIA PENANG
3100
5980
3175
6130
NWC (ANTWERP/HAMBURG/ROTTERDAM
3125
6130
3200
6280
PAKISTAN KARACHI
2734
5283
2809
5433
SINGAPORE
2950
5680
3025
5830
THAILAND BANGKOK
3100
5980
3175
6130
TAIWAN KEELUNG
2950
5680
3025
5830
UK TILBURY/FELIXSTOWE
3125
6130
3200
6280


Destination Blantyre and Lilongwe via BEIRA
Table 7: Indicative freight costs for 20 footer and 40 footer containers from major seaports to delivered premises Blantyre/Limbe and Lilongwe via BEIRA

BLANTYRE LILONGWE
Country of Origin City 20’ 40’ 20’ 40’
US$ US$ US$ US$
CHINA DALIEN
3705
7098
3855
7398
QUINDAO
3605
6898
3755
7198
XINGANG
3630
7048
3780
7348
CHINA CENTRAL SHANGHAI
3505
6798
3655
7098
CHINA SOUTH GUANZHOU
3455
7168
3805
7468
DUBAI
2930
5708
3080
6008
HONGKONG
3025
5838
3175
6138
INDIA MUMBAI
2930
5780
3081
6008
ITALY LASPEZIA
3225
6338
3355
6598
INDONESIA JAKARTA
3150
6188
3300
6448
JAPAN
3650
7098
3755
7398
SOUTH KOREA BUSAN
3175
6138
3325
6398
MALAYSIA PENANG
3175
6238
3325
6498
NWC (ANTWERP/HAMBURG/ROTTERDAM
3155
6260
3305
6520
PAKISTAN
2930
5708
3080
6008
SINGAPORE
3025
5838
3175
6138
THAILAND BANGKOK
3175
6238
3325
6498
TAIWAN KEELUNG
3025
5838
3175
6138
UK TILBURY/FELIXSTOWE
3155
6280
3305
6520


Note:
  • Road haulage to and from other destinations is advised on request.
  • Exclusions: Insurance, truck delay charges and any other unforeseen expenses.
  • Insurance is available on request.
  • Please note that transport is undertaken and conveyed at owner’s risk at all times.
  • Terms and payment: On presentation of invoice or as per agreement.
  • Transit time 5-7 days.
  • Rates quoted are subject to change with or without notice.