Malawi seals industrial park, mega farms deals
Malawi yesterday signed two agreements with the African Export-Import Bank (Afreximbank) for the promotion and development of export diversification projects in the country, including mega farms.
The agreements, signed yesterday during the opening of Afreximbank 30th Annual Meetings in Accra, Ghana, included the much-anticipated $950 million deal for the implementation of industrial parks in Lilongwe and Blantyre City.
The industrial parks and specialised production zones are poised to create about 240 000 jobs.
Minister of Finance and Economic Affairs Sosten Gwengwe and Minister of Trade and Industry Simplex Chithyola signed the memorandum of understanding (MoU) on behalf of government with President Lazarus Chakwera as a witness while Afreximbank president and board chairperson Benedict Oramah signed on behalf of the lending institution with its executive vice-president Kanayo Awani as a witness.
In an interview, Gwengwe told The Nation, the MoU for the two multi-million dollar deals has three components.
He said: “Apart from the industrial parks and special economic zones, the second deal involves funding for the provision of advisory services for the development of two mega farms and in it there is a third component which is establishment of export trading companies.
“So under export trading companies, beneficiaries of that are companies such as Admarc, who trade in commodities to specialise in exporting value-added products.”
Gwengwe said Afreximbank has committed to make Chakwera’s dream of mega farms a reality as they will now provide techinal support and financing.
“They are partnering the ministries of Agriculture and Finance and Economic Affairs to provide the financing needed to have this dream of mega farms to come alive,” he said.
Speaking during a High Level Heads of State panel discussion, the President echoed the minister’s sentiments, saying time has come for Africa to add value to what it produces.
He said: “Africa must add value to what Africa produces. We must strengthen the institution that we have. And let’s not look to other institutions as the best and when we downgraded the institution that we have.”
Chakwera further encouraged African States to break down trade barriers so that investments on the continent in trade sector bear fruit.
He, however, expressed concern on various policies that do not support innovation and affect trade, including barriers to movement of people.
In his opening speech, Oramah said the bank is currently backing the clearing and settlement of the payment system with about $3 billion.
The system which was launched mid last year in Ghana, allows African countries to settle trade deals in local currency. Oramah said every African currency will become convertible within Africa by the bank.
Afreximbank is an international multilateral lending institution set up by African governments under a Charter in 1993, now signed by 50 countries. The bank has robust credit rating that African financial institutions can leverage on and has the ears of 50 African Heads of State as controlling officers.
