Africa-Press – Malawi. Malawi has a precious window of opportunity. With His Excellency Professor Arthur Peter Mutharika returning to the Presidency, the national conversation must pivot—decisively—towards jobs, exports and investment. Trade and investment are not one policy strand among many; they are the engine that will power fiscal stability, food security and inclusive growth.
The Economic Reality—And Why It Points to Trade & Investment
• Growth is too low to lift incomes. The World Bank now projects ~2.0% real GDP growth in 2025, implying another year of falling income per person unless we accelerate private-sector activity and exports.
• Inflation remains elevated. The Reserve Bank of Malawi expects average inflation of ~28.5% in 2025—better than 2024, but still a heavy drag on businesses and households. Tackling this requires supply-side fixes: more power, more fertiliser and fuel, more forex from exports.
• External financing is tighter. Malawi’s recent IMF programme ended early after limited disbursement, underlining the urgency of restoring confidence through credible reforms that crowd in private capital.
• The UK is a strategic partner—though under-utilised. Total UK–Malawi trade in the year to Q1-2025 was £76 million (UK exports £55m; UK imports £21m). That’s progress—but tiny relative to Malawi’s potential and the UK’s market scale.
• Power unlocks productivity. The World Bank’s $350m grant for the Mpatamanga Hydropower PPP (total cost >$1.5bn) is on course to roughly double Malawi’s hydropower capacity—exactly the kind of bankable project that lowers costs for industry and enables export growth.
In short: stabilise the macro, fix the basics (power, logistics, trade facilitation), and lean hard into export-led growth.
Five Immediate Priorities for the New Government
1. A “National Deal” for Exporters. Fast-track VAT refunds, streamline standards and customs processes, and guarantee priority access to forex for exporters and their suppliers. Pair this with an accelerated roll-out of e-customs and risk-based inspections at borders. (The objective: shorter clearance times, lower costs, more competitiveness.)
2. Bankable Projects, Not Wish-Lists. Set up a Presidential Projects Pipeline Unit to package PPPs to international standards (feasibility, ESIA, offtake, risk allocation), building on the Mpatamanga template for renewable energy, agro-processing parks, dry ports and cold-chain logistics.
3. Energy for Industry. Convert the power pipeline into an industrial policy: ring-fence capacity for priority zones (textiles/garments, food processing, fertiliser blending, building materials) and allow behind-the-meter renewables for large users to reduce grid pressure.
4. Trade Access, Used to the Full. Leverage the UK–ESA Economic Partnership Agreement for duty-free/quota-free access on most goods; align quality and certification systems so Malawian producers can actually ship to UK buyers at scale.
5. Diaspora Capital & Skills. Incentivise diaspora investment (matched-funds, tax allowances on productive assets, streamlined residency/banking) and create short, focused return-expert programmes to plug skills gaps in procurement, ports, industrial power, and export sales.
Where the UKMCC Can Help—Immediately
As the UK-Malawi Chamber of Commerce, we exist to convert intent into deals. In the next 12 months, UKMCC can deliver:
• Targeted Deal Missions (UK↔Malawi). Two-way missions focused on renewables & grid solutions, agri-processing, mining inputs, construction materials, BPO/call-centre services and tourism assets—with curated B2B meetings and site visits. We align itineraries with investor mandates so conversations are commercial from day one. (Benchmarked against the UK–Malawi trade base of £76m, we aim to catalyse a multiple of that in signed MOUs and term sheets.)
• UK Buyer Acquisition & Offtake Support. We broker meetings between UK retailers/wholesalers and Malawian suppliers of tea, groundnuts, macadamia, sugar by-products, horticulture and niche manufacturing—mapping required certifications (e.g., BRCGS, organic, Fairtrade) and helping producers meet them.
• PPP Readiness & Investor Packaging. Working with line ministries and advisors, we help turn priority infrastructure and industrial-park concepts into bankable dossiers (clear risk allocation, revenue model, diligence pack). This is the single biggest gap we observe between ideas and capital flows.
• Policy & Reform Roundtables (White Papers). Quarterly UKMCC roundtables—co-hosted with the Government of Malawi and UK partners—to unblock specific issues (forex convertibility for investors, customs bottlenecks, renewable energy wheeling frameworks, special economic zone incentives).
• Diaspora Investment Platform. A dedicated vehicle for the UK-Malawi diaspora to co-invest in vetted opportunities (solar mini-grids, pack-houses, digital services, SME export upgrades), paired with UK training on governance and financial reporting.
• Trade Intelligence & Market Access. Practical notes on the UK–ESA EPA, UK import regulations, sector opportunity briefs, and a live directory of UK buyers, EPCs, DFIs and equipment suppliers relevant to Malawi’s pipeline.
Sectors to Move First
• Agri-processing for export. Raise value retention by processing tea, groundnuts, pulses and horticulture domestically, with UK offtake agreements and cold-chain investments. (Export growth is essential to ease inflation by boosting forex supply.)
• Renewables and Grid Services. Build on Mpatamanga’s momentum with IPPs, storage, and industrial rooftop solar/wheeling—a direct path to lower costs and predictable power for factories.
• Tourism & Conservation. Package brownfield lodge upgrades and new concessions with blended finance; link to UK tour operators for shoulder-season demand.
• Digital/BPO. With a young population and English proficiency, Malawi can scale contact-centre and back-office services if power and connectivity are ring-fenced in zoned sites.
• Construction Materials & Housing Inputs. Lower import dependence by encouraging clinker substitutes, gypsum products, steel rebar and prefabrication—supporting a jobs-rich domestic supply chain.
The Pay-off
Done well, this agenda lowers inflationary pressure via higher domestic supply and stronger forex earnings; cuts the cost of doing business through reliable power; and expands decent jobs across agri-processing, construction, services and tourism. The UK already provides a clear, rules-based route to market under the ESA-UK EPA; the Chamber stands ready to broker the relationships and structure the deals that translate policy into pay-packets.
Malawi has the talent, the resilience and—now—the political reset. Let’s make trade and investment the organising principle of government, and turn this moment into measurable outcomes: more exports, more power, more jobs.
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Hannington Gondwe is the CEO of UK-Malawi Chamber of Commerce (UKMCC)
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