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Industrial park targets $600 million

The Magwero Industrial Park whose project was launched on Saturday in Lilongwe is projected to generate about $600 million (K1.1 trillion) in annual revenue from manufactured products.

That is more than what tobacco currently generates as the state of the art facility is expected to support 15 000 direct jobs.

Chakwera (2nd L)with Oramah (L) and Arise CEO, Gagan Gupta and the First Lady Monica Chakwera

This is according to the financial backer of the project, Afreximbank which partnered the well known industrial parks operator, Arise.

President Lazarus Chakwera launched the project whose construction is expected to start in a matter of weeks.

Afreximbank president Benedict Oramah further said the park, being developed under the Special Economic Zone legal framework, will attract $300 million in direct investments and a similar amount coming indirectly.

“The project will turn Malawi from an agrarian economy to one that manufactures and exports products and that will help to transform the economy,” Oramah said in an interview.

Magwero Industrial Park is expected to be the country’s manufacturing hub, producing agro- based products in light industries.

For the industrial park, raw materials could be one of the major bottlenecks but that will be a responsibility of Arise, a government partner in the project.

Through a special purpose vehicle, Arise and Export Development Fund established Magwero Industrial Park Limited. Arise is expected to provide logistical services to aggregate raw materials to supply to the manufacturers.

According to Arise, which has partnered Nico Holdings and the Reserve Bank of Malawi owned Export Development Fund, they are experts in that drawing from experiences in Benin, their first industrial park, Togo, Chad, Nigeria and other countries.

Arise will also ensure the park is connected to basic infrastructure such as roads, electricity, water and others to service the manufacturers which will also enjoy tax, exchange rate and trade restriction exemptions as provided in the Special Economic Zone law.

President Chakwera, speaking at the launch, said the project will bring back the manufacturing glory the country lost at the dawn of multiparty, saying politicians and business people brought down the industrial base by sharing State owned manufacturing companies.

“It is not me who makes prices rise as they are, a country with no manufacturing companies that buy raw materials from local farmers cannot deal with poverty,” he said.

The industrial park – whose first factories are expected to be ready in 12 months, according to Minister of Industry and Trade Sosten Gwengwe follows the Special Economic Zones Bill that Parliament passed to provide a legal framework.

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