Manufactures

 

 

 

 

The manufactures cluster is composed of four sub-clusters as follows:

1.  Beverages – beer, ales, juices and pulp, water.

2.  Agro-Processing – dairy, maize products, wheat products and others with private sector interest such as rice, horticulture, cassava products and toor dhal.

3.  Plastics and Packaging – all plastic and packaging products feasible in Malawi.

4.  Assembly – vehicle assembly, pre-fabrication and electrical assembly including wiring/cables.

 

Over the past quarter, the Technical Working Group (TWG) has focused on addressing Cabinet comments on the Special Economic Zones (SEZ) Paper, so that it can be re-submitted to the new Cabinet as soon as possible. The cluster has also initiated a Skills Scoping study on the supply and demand of technical and supervisory skills, which are critical for the growth and development of the Manufacturing, Oil Seeds and Sugarcane product sectors in Malawi. The TWG has also formed a Tax Task Force which is currently working on Terms of Reference for an Industrial Rebate Appeals Committee; and has embarked on a study of the Industrial Rebate Scheme.

 

The immediate short term bottlenecks and actions to be implemented in order to facilitate manufactures are:

 

} Resolve the unfair treatment of Malawian manufactured goods by Zimbabwe. Whereas efforts are underway to deal with this issue through COMESA, bilateral discussions between Malawi-Zimbabwe needs to be urgently initiated to resolve the current impasse.

 

} Develop a package of incentives for the manufacturing sector to make their products competitive in foreign markets. There is a proposal to undertake a Comprehensive Tax Review. As a first step, there is a mission from the Customs and Revenue Department of the UK Government to undertake a scoping mission on the length and depth of tax issues that need to be reviewed. The mission is expected from mid-October.

 

} Speed-up the establishment of the Special Economic Zones (SEZs/EPZs). Recognizing the importance of promoting Malawi's industrialization agenda through diversification and export development in the country, Ministry of Industry and Trade (MoIT) developed a Cabinet Paper on the establishment of Special Economic Zones (SEZs) in the country. When established and fully functional, the SEZs are expected to boost Malawi's economic growth, reduce poverty and create employment through the expansion of the manufacturing and processing sectors for export promotion.This requires 3 elements to be put in place —1) re-submission of the Cabinet Paper, 2) securing the relevant land, and 3) formulation of SEZ regulations.

 

 

Full Operationalization of the One-Stop-Investment-Shop at Malawi Investment and Trade Centre (MITC) with representation from all concerned agencies. Following a Government directive, phase one of the One Stop Investment Shop was initiated beginning from September 2014. The first phase includes Immigration, Malawi Revenue Authority, Registrar of Companies, and Ministry of Lands and Housing. Current efforts are focused on establishing the operations functions and accompanying systems. This work needs to be finalized in addition to raising awareness amongst potential investors