Malawi is establishing Special Economic Zones (SEZs) to fast-track industrialization, leading to sustainable economic growth and development. This initiative is being championed by the Ministry of Industry and Trade (MoIT) through the Malawi Investment and Trade Centre (MITC). The government has identified four sites for the development of these SEZs and Industrial Parks.
The four designated sites for the development of SEZs and Industrial Parks are as follows: Mzuzu (Dunduzu – 72 hectares), Lilongwe (Area 55 – 417 hectares), and Blantyre (Matindi – 130 hectares). Additionally, Chigumula, located in Blantyre, spanning an area of 22.7 hectares, has been designated as an industrial park.
Matindi and Area 55 will be developed using a Public-Private Partnership (PPP) approach, while the development of Chigumula is being funded by the government. Currently, the legal framework necessary for establishing the SEZs is being developed, with the draft SEZ bill already completed
The four designated sites for the development of SEZs and Industrial Parks are as follows: Mzuzu (Dunduzu – 72 hectares), Lilongwe (Area 55 – 417 hectares), and Blantyre (Matindi – 130 hectares). Additionally, Chigumula, located in Blantyre, spanning an area of 22.7 hectares, has been designated as an industrial park.
Matindi and Area 55 will be developed using a Public-Private Partnership (PPP) approach, while the development of Chigumula is being funded by the government. Currently, the legal framework necessary for establishing the SEZs is being developed, with the draft SEZ bill already completed
Export Processing Zones
TThe Export Processing Zones (EPZs) regime was established to attract export-orented industries by offering them particularly favorable investment incentives compared to the rest of the manufacturing sector in the country. The Export Processing Zones Act came into force in 1995. All companies engaged exclusively in manufacturing for export may apply for EPZ status, as the government accords EPZ status only to firms (foreign or domestic) that produce exclusively for export.
In Malawi, there are no specific zones dedicated to export processing. Instead, firms are designated the status of EPZs and located in areas chosen for their convenience and preference by the investor. The Ministry of Industry and Trade administers the Export Processing Zones Regime in Malawi, assisted by the EPZ Monitoring and Evaluation Committee as stipulated in the Act.
An Export Enterprise Certificate is valid for five years and can be renewed for successive two-year periods. Companies have the choice to graduate from the scheme or remain under it. According to the law, all exporters must repatriate 100 percent of their export proceeds back to Malawi and register them with the Reserve Bank of Malawi within six months of export.
Traditional industries such as tobacco, tea, coffee, and cotton are excluded from the EPZ Regime. Currently, the firms operating under the EPZ status are categorized into three export product categories: (a) atural rubber and wood products, (b) macadamia and coffee, and (c) textiles.
TThe Export Processing Zones (EPZs) regime was established to attract export-orented industries by offering them particularly favorable investment incentives compared to the rest of the manufacturing sector in the country. The Export Processing Zones Act came into force in 1995. All companies engaged exclusively in manufacturing for export may apply for EPZ status, as the government accords EPZ status only to firms (foreign or domestic) that produce exclusively for export.
In Malawi, there are no specific zones dedicated to export processing. Instead, firms are designated the status of EPZs and located in areas chosen for their convenience and preference by the investor. The Ministry of Industry and Trade administers the Export Processing Zones Regime in Malawi, assisted by the EPZ Monitoring and Evaluation Committee as stipulated in the Act.
An Export Enterprise Certificate is valid for five years and can be renewed for successive two-year periods. Companies have the choice to graduate from the scheme or remain under it. According to the law, all exporters must repatriate 100 percent of their export proceeds back to Malawi and register them with the Reserve Bank of Malawi within six months of export.
Traditional industries such as tobacco, tea, coffee, and cotton are excluded from the EPZ Regime. Currently, the firms operating under the EPZ status are categorized into three export product categories: (a) atural rubber and wood products, (b) macadamia and coffee, and (c) textiles.