Parliamentary Cluster Committee on Industry Trade and Tourism and Media and Communication says Malawi is losing out due to delayed implementation of industrial parks under the special economic zones (SEZs).
Speaking during a joint tour of the Chigumula Industrial Park in Blantyre on Thursday by the committee and Minister of Trade and Industry Vitumbiko Mumba, cluster chairperson Paul Nkhoma, who is also Kasungu North-North East legislator, observed that the slow progress is despite Parliament allocating funds to the projects.
He said: “Despite allocating funds to SEZs, there has been nothing much on the ground in the past two years. One of the problems was in the scope of works which, like for Chigumula, they forgot to put in a sewer system.
“This is an important project for us and we are going to recommend additional funding.”
For instance, the Chigumula Industrial Park, one of country’s flagship industrialisation projects, was allocated K2 billion in the 2023/24 National Budget and in the subsequent fiscal year, it was allocated K1.5 billion.
But Malawi Investment and Trade Centre (Mitc) data shows that the funds were not disbursed as planned, leaving the project with a K4 billion deficit required for a wastewater management system.
Mitc board chairperson Goodwill Ng’oma said so far, four firms in agro-processing, fertiliser manufacturing and packaging have expressed interest in the site, taking up 14 hectares with $19.4 million (about K34 billion) investments.
He, however, said to complete the project in June, they need about K5.4 billion mainly for the completion of the road, sewer system and administration complex, observing that fuel scarcity and escalating prices had affected the project.
In his remarks, Mumba said to speed up progress of investments in the parks, prospective investors have to show proof of availability of funds or a line of credit with a bankable business plan to be accorded places in the SEZs.
He said this is to avoid reoccurrence of a scenario in Lilongwe where 17 plots were distributed to investors in 2012, but there has been no development on the land.
Mumba said contrary to government aspirations, progress of the projects have dragged due to underfunding, which will lead to escalation of the project cost.
“These works can be completed in 12 months subject to availability of funding,” he said.
Malawi is in the process of establishing SEZs to fast-track industrialisation, which could lead to sustainable economic growth and development.
The industrial parks and specialised production zones were poised to create about 240 000 jobs.
The four designated sites for the development of SEZs and industrial parks are at Dundzuzu in Mzuzu with 72 hectares, Area 55 in Lilongwe with 417 hectares, Matindi, Blantyre with 130 hectares and Chigumula in Blantyre with 22.7 hectares.
