Mitc advances on special economic zones development
Malawi Investment Trade Centre (Mitc) says plans to establish special economic zones (SEZ) are progressing with compensation issues almost done in selected sites and funds allocated for the project this financial year.
SEZs—designated areas within a country with special economic regulations—once completed could help foreign direct investors to set up companies with minimal challenges, according to the Mitc.
In a written response to an e-mailed questionnaire, Mitc public relations manager Deliby Chimbalu said the funds are being used to pay compensation and undertake compensation assessments for sites where this was not done.
She said: “We are finalising designs for the Chigumula site which is almost ready. For Chigumula, the planned designs are road design, master plan and factory shell design.”
According to Chimbalu, procurement of the services started in the last financial year and it is in the final stages where water reticulation for the site is nearing completion.
Chimbalu was, however, quick to say that SEZ projects by their nature require huge financial outlay to implement; hence the project may take time.
In the 2021/22 fiscal plan, Treasury allocated K2 billion for the development of SEZs.
The zones will be established at Matindi and Chigumula in Blantyre, Area 55 in Lilongwe, and Katoto in Mzuzu.
Minister of Finance Felix Mlusu said in a statement that the Special Economic Zones Bill to facilitate smooth implementation has been developed and is with the Ministry of Justice.
If well-implemented, SEZs attract investors, empower businesses, create jobs and spur economic development.
Chamber fort Small and Medium Enterprises Association executive secretary James Chiutsi is on record as saying SEZ is an opportunity for the country’s businesses to grow as this would increase their exports.
He said expectations are high that Mitc, along with associated government departments, will replicate the same in all areas nationwide to spur economic activity.
“This initiative reminds us to pull up our socks to boost exports. This will certainly help the SME sector to grow,” said Chiutsi.
He said the association believes that symbiotic relationships and linkages will develop the country’s small businesses.
Elsewhere in the world, China, Zambia, Botswana and Rwanda have working SEZ, which have simplified the entry of investors.
SEZs are aimed at increasing trade, investment, job creation and effective administration and within the zones, financial policies are introduced regarding investing, taxation, trading, quotas, customs and labour regulations.
So far, Mitc intends to develop several areas into SEZs and these includethe agro-processing special economic zone (AP-SEZ), proposed along Zalewa, an industrial park at Chigumula, Blantyre, where 27.3 hectares were set aside for the purpose, an industrial park in Lilongwe and another one at Chintheche in Nkhata Bay.