Hongtai Investment Group of China has unveiled plans to invest $20 million (about K34.6 billion) in Malawi’s lake transport sector by buying new cargo and passenger vessels as well as modernising Monkey Bay Shipyard.
The planned investment, to be implemented over one-and-a-half years, is covered by a memorandum of understanding (MoU) signed in Lilongwe yesterday between the Chinese investment group and the Ministry of Transport and Public Works.
Hongtai managing director Shan Jianping said the project goes beyond the acquisition of vessels, with Hongtai planning to upgrade ports, cargo-handling facilities, warehouses and logistics systems in a bid to improve the efficiency of water transport and strengthen links between lake, road and markets.
He said the company will work with Malawi Lake Services to modernise Monkey Bay Shipyard in Mangochi and support the development of modern cargo vessels.
“We also plan to modernise Chipoka [in Salima] and other key ports, including upgrading loading and unloading equipment to improve the handling of passengers and cargo ” said Shan.
The planned cargo and passenger vessels are expected to increase the capacity of Lake Malawi transport and improve the movement of goods for both domestic and export markets.
The project comes as government seeks to attract private investment into marine transport and improve the efficiency and competitiveness of services on Lake Malawi.
Ministry of Transport and Public Works Principal Secretary Bright Kumwembe welcomed the investment, saying government was committed to working with private investors to improve marine transport and reduce constraints to business.
He said government was deliberately opening the sector to more players, arguing that competition would help improve services on the lake.
Kumwembe said the Hongtai agreement was part of government’s broader effort to create a more competitive marine-transport market.
Malawi’s water transport sector is facing challenges, including aging vessels and infrastructure bottlenecks that particularly affect island communities in Likoma and Chizumulu who solely depend on water transport to link with the mainland.
