Afrexim bank to fund two industrial parks
The Export Development Fund (EDF) says it is banking on the $900 million (about K932 billion) investment from Egypt-based African Export-Import Bank (Afreximbank) to develop two of the country’s four industrial parks to stimulate development.
The parks, specifically designed to accommodate plots for factory shells suitable for small, medium and even larger factories as special economic zones, are situated at Matindi in Blantyre and Area 55 in Lilongwe. They are projected to kick-start this year and to be completed by 2025.
In the current financial year, Minister of Finance and Economic Affairs Sosten Gwengwe has allocated K4 billion to compensate those who will be relocated.
Speaking in an interview on Wednesday during a tour of Matindi, EDF acting chief executive officer Frederick Chanza said, so far, they have finished project feasibility studies which affirmed viability of the project.
He said: “We will facilitate the development until we see that the industry is developed.
“Looking at the current status of exports, we are not happy. We need more industries to increase our exports and I think this is why we are working with government to make sure that these projects are up and running and that will help solve our forex position.”
On his part, Minister of Trade and Industry Simplex Chithyola Banda said works on the site will start this year.
He, however, said government is still looking for other potential investors for other sites at Chugumula in Blantyre and Dunduzu in Mzuzu.
Said Banda: “We are ready to get started. The seriousness committed by African Export-Import Bank and Arise Integrate Industrial Platform is something we need to look at with seriousness.
“From these parks, we will be producing value- added goods which will help generate forex.”
On her part, Afreximbank export development director Olirani Deherty said the bank is ready to finance other developments until the parks are ready.
She said: “We are also willing to support trade financing, debt financing, project financing and project preparation facility.”
Industrial parks have proved to be the key engines for economic growth in both developing and underdeveloped economies.
The Government of Malawi is currently developing industrial parks in the cities of Blantyre, Lilongwe and Mzuzu to drive industrialisation and stimulate economic growth in the country.
Apart from facilitating land for investment, industrial parks also promote economic activity in adjacent neighborhood by offering better employment opportunities.
The Malawi Government earmarked 624 hectares for the parks to develop the special economic zones which are expected to create 240 000 jobs.
Chigumula has 22 hectares which can take up to 61 medium-sized plots.
