Construction of three of the four designated industrial parks has not started as Malawi Government is yet to finalise partnership agreements and land compensation issues.
The three parks, Area 55 in Lilongwe with 417 hectares, Dundzuzu in Mzuzu with 72 hectares and Matindi in Blantyre with 130 hectares are expected to promote and facilitate trade and investment through creation of special economic zones (SEZs).
Combined with Chigumula in Blantyre with 22.7 hectares, the stalled parks were poised to create about 240 000 jobs in support of the Malawi 2063 development blueprint.
In an interview on Friday, Malawi Investment and Trade Centre (Mitc) acting director of trade promotion and facilitation Lovemore Ndege said Dunduzu and Matindi parks still await the finalisation of the compensation so that the land can be free and secured for investors to use.
He said the compensation issues are being handled by Office of the President and Cabinet (OPC) alongside the Ministry of Lands and Housing and Ministry of Industrialisation, Business, Trade and Tourism.
“The responsible government ministries and departments are working day and night to ensure that resources are found to compensate the people so that construction of the industrial parks can begin.
“Sequentially, we anticipate that once Chigumula is made ready, then our focus can probably move to Dunduzu to ensure that we also build roads, water, electricity and then to ensure that the construction of the industrial park commences,” he said.
For Area 55, he said all documents were completed and what is remaining are the final negotiations between Malawi government and its partner Arise Integrated on the shareholders’ agreement and other tax incentives that will be provided to the investor.
He said: “Government identified a partner. It is a Public Private Partnership project between ARISE Integrated Industrial Platforms [ARISE IIP] and Malawi government, represented by the Export Development Fund, so for this one, the negotiations are underway.”
Ndege said the only park that is advanced is Chigumula, where they have built tarmac roads about 1.5 kilometres (km) and set up water utilities and a power substation.
Currently, he revealed the road is at almost 86 percent completion, saying what they are remaining with is installation of final asphalt for about 1.2 km.
When contacted on Friday, OPC and Ministry of Lands and Housing and Ministry of Industrialisation, Business, Trade and Tourism spokespersons Focus Maganga, Fostina Mkandawire and Patrick Botha, respectively, asked for more time before commenting.
Commenting on the matter, Scotland-based Malawian economist Velli Nyirongo said the delays in developing the industrial parks are likely to slow down the implementation of Malawi 2063, which places industrialisation, private sector growth and job creation at the centre of the country’s long-term development strategy.
While the industrial parks were expected to attract both local and foreign investors by providing serviced land and a business-friendly environment, Nyirongo said the situation may also weaken confidence among investors and development partners.
“Every year that the parks stall means thousands of potential jobs are not created. The delays may affect Malawi’s export ambitions. Industrial parks are meant to support value addition, increase production and improve the country’s competitiveness.
“Although we have the legal framework for these investments, unresolved land compensation issues can create uncertainty and raise concerns about the country’s ability to implement major development projects on time,” he said.
Another economist Alick Nyasulu described industrial parks as mere cosmetic projects that have a limited effect on attainment of Malawi 2063 aspirations.
He said the priority for the country should have been on fixing critical infrastructure such as the M1 Road in order to make the industrial zones profitable.
“Power and water challenges are the order of the day in Mzuzu for example and such is the case countrywide. These are the basics that Malawi should focus on to make Malawi 2063 feasible instead of some symbolic industrial parks,” he said.
In 2024 former Mitc chief executive officer Paul Kwengwere said despite the law allowing them to start developing the park at Dunduzu was passed and gazetted in February 2024, work on the ground was yet to begin due to lack of resources.
He said they did not know when the project’s financing would be made despite that Mitc has been asking for a budgetary allocation for the park’s construction to start.
Kwengwere said further delays in the project could lead to upward adjustment of the initial budget for construction.
On December 6 2023, Parliament enacted the Special Economic Zones Act, establishing a framework for the development and regulation of special economic zones in Malawi.
On June 1 2024, former president Lazarus Chakwera launched the Area 55 project. ARISE IIP said in a statement in February 2024 that construction work was scheduled to begin in 2024 with the zone expected to become operational from 2026.
It said the project was set to create a minimum of 132 000 direct jobs and over 26 000 indirect jobs.
Mitc said in November 2025 that the Chigumula Industrial Park in Blantyre is expected to be completed in the third quarter of 2026.
