Special Economic Zones toboost investment, MW2063
The Special Economic Zones (SEZs) Bill passed into law by Parliament last week will help to attract investment in critical sectors of the economy in line with Malawi 2023 (MW2063), the country’s long-term development plan, it has been learnt.
A statement accompanying the Act says that realising the aspirations outlined in MW2063 will be driven by a manufacturing industry that has strong forward and backward linkages with the sectors that will drive the industry.
Reads the statement in part: “A dynamic and vibrant private sector is, therefore, key to accelerated growth of the connected sectors for economic structural transformation of the country.”
The Malawi Government believes that SEZs, geographical areas that have economic laws and tax regimes that are more liberal than a country’s typical economic laws, are key to attracting investment to sectors that it cannot invest in.
Speaking in an interview, Malawi Investment and Trade Centre (Mitc) chief executive officer Paul Kwengwere, whose organisation is a key implementing partner in the establishment and management of SEZs, said the SEZs will spur development.
He said: “These Special Economic Zones are development tools with the goal to promote rapid economic growth by using tax and business incentives to attract investments and technology.
“The companies located in the zones will automatically enjoy all the benefits as stipulated in the SEZ Act.”
The Act empowers Mitc, which is expected to be granted new statutory powers, to request land from the Minister of Lands to be developed into SEZs.
The Act also prescribes that the land acquired can be used as agriculture and food zones, business parks, dry ports, export promotion zones, information and communication technology parks, science and technology parks, among others.
Reacting to the passing of the Bill, Malawi University of Science and Technology economist Bertha Bangara said creating industrial complexes that have a “strategic national economic advantage for targeted investments in the manufacturing and tradeable industries” has the potential to promote industrialisation, the second pillar of the Malawi 2063.
The SEZ Act is specifically designed to attract domestic and foreign direct investment into critical sectors of the economy.
