brazilian investment in malawi

BRAZILIAN INVESTMENT IN MALAWI BRAZILIAN INVESTMENT IN MALAWI

Professor Francis Moto Professor Francis Moto

Ambassador Ambassador

Embassy of the Republic of Malawi in BrazilEmbassy of the Republic of Malawi in Brazil

Presentation Outline Presentation Outline

IntroductionIntroduction Brief Malawi HistoryBrief Malawi History Geographical Location, Geographical Location, Economy and Demography.Economy and Demography. Establishment of Brazil Embassy in Malawi.Establishment of Brazil Embassy in Malawi. Government to Government investment.Government to Government investment. ABC’s activitiesABC’s activities Private sector investment. Private sector investment. The Cotton Project in Shire ValleyThe Cotton Project in Shire Valley Concluding remarks.Concluding remarks.

2Malawi Embassy Brazil

IntroductionIntroduction

Before giving this brief presentation, Before giving this brief presentation, allow me to state that one of the many allow me to state that one of the many positive decision that the Malawi positive decision that the Malawi government has made during the fifty government has made during the fifty years of Independence was to open an years of Independence was to open an embassy in the Federative Republic of embassy in the Federative Republic of Brazil Celebration Malawi would not have Brazil Celebration Malawi would not have misled for a better fifty years misled for a better fifty years anniversary present than the warm and anniversary present than the warm and cordial relations that existcordial relations that exist

3Ministry of Foreign Affairs

Introduction (Cont’d)Introduction (Cont’d)

between the two governments and its between the two governments and its people.people. Additionally, the impact that the warm Additionally, the impact that the warm and cordial relations, skills and knowledge and cordial relations, skills and knowledge transfer and capacity building activities transfer and capacity building activities that have taken place and continue to do that have taken place and continue to do so, have already borne tangible fruits.so, have already borne tangible fruits.The most notable development that is in The most notable development that is in its final year is not only the construction of its final year is not only the construction of

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Malawi Embassy Brazil

Introduction (Cont’t)Introduction (Cont’t)

a railway from Moatize in Mozambique a railway from Moatize in Mozambique is Tete Province through the Republic is Tete Province through the Republic of Malawi but also the rehabilitation of of Malawi but also the rehabilitation of an existing railway line that had been an existing railway line that had been in a state of disrepair for some time.in a state of disrepair for some time.

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Introduction (Cont’d)Introduction (Cont’d)

The economic and social impact of The economic and social impact of the railway Project being the railway Project being implemented by giant Vale will implemented by giant Vale will definitely top the list of the fifty definitely top the list of the fifty years of Independence annivesary years of Independence annivesary present the country and its people present the country and its people will have received in the will have received in the celebrations.celebrations.


Malawi Political MapMalawi Political Map


Geographic Facts Geographic Facts About Malawi About Malawi

Malawi is a land locked country located in south-Malawi is a land locked country located in south-

eastern Africaeastern Africa Bordered by Tanzania to the north north-east, Bordered by Tanzania to the north north-east,

Zambia to the west, and Mozambique to the north-Zambia to the west, and Mozambique to the north-east, east south, and south west. east, east south, and south west.

Lake Malawi, the third largest lake in Africa and one Lake Malawi, the third largest lake in Africa and one of the deepest in the world, accounts for 20% of of the deepest in the world, accounts for 20% of the country's area. the country's area.

The terrain of Malawi is breath-taking, it has The terrain of Malawi is breath-taking, it has plateaus, plains, hills and mountains with the plateaus, plains, hills and mountains with the MulanjeMulanje massif rising to massif rising to almost 10,000 meters.almost 10,000 meters.

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Ministry of Foreign Affairs

PopulationPopulation

Population 16,777,547 (July 2013 est.); Age 15 - 64: 52.6%

Business languages English, Chichewa


Malawi EconomyMalawi Economy

AgricultureAgricultureMalawi relies on agricultureMalawi relies on agricultureAgriculture accounts for 45% of total exports; 32.4% Agriculture accounts for 45% of total exports; 32.4% of GDP and employs 80% of labour forceof GDP and employs 80% of labour force

The sector is generally vulnerable due toThe sector is generally vulnerable due to1.1.High agricultural input pricesHigh agricultural input prices2.2.Droughts Droughts

But Government is implementing a subsidy programme But Government is implementing a subsidy programme for inputs; and is encouraging irrigation to mitigate for inputs; and is encouraging irrigation to mitigate against the problem of inadequate rainfall.against the problem of inadequate rainfall. 10


Malawi Economy (Cont´d)Malawi Economy (Cont´d)

ManufacturingManufacturingRelatively small and Accounts for 12% of GDPRelatively small and Accounts for 12% of GDPInvolvesInvolvesAgro-processing of tobacco, tea & sugarAgro-processing of tobacco, tea & sugarCement productionCement productionTextiles etcTextiles etc

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Structure of the EconomyStructure of the Economy


AGRICULTURE45%

DISTRIBUTION24%

TRANS &COMM.5%

MANUFACTURING14%

SERVICES10%

MININNG&QUAR2%

Why Invest in Malawi? Why Invest in Malawi?

Politically StablePolitically Stable Malawians are peaceful and friendly people. Malawians are peaceful and friendly people. Malawi has no history of war.Malawi has no history of war.

Malawi has had 4 peaceful democratic elections in 1994,1999, Malawi has had 4 peaceful democratic elections in 1994,1999, 2009, 2004 and the fifth is planned for May, 2014.2009, 2004 and the fifth is planned for May, 2014.

Malawi is generally known as the Warm Heart of Africa.Malawi is generally known as the Warm Heart of Africa.


Establishment of Malawi Embassy in Establishment of Malawi Embassy in Brazil and ScopeBrazil and Scope

Established in Brasilia in June 2010 following a Established in Brasilia in June 2010 following a presidential visit the previous year. presidential visit the previous year.

Brazil reciprocated and opened embassy in Brazil reciprocated and opened embassy in Lilongwe, Malawi in June 2013.Lilongwe, Malawi in June 2013.

To strengthen ties of friendship between the two To strengthen ties of friendship between the two countries.countries.

To foster the socioeconomic development of Malawi To foster the socioeconomic development of Malawi and Braziland Brazil

To promote technical cooperation in the areas of To promote technical cooperation in the areas of priority as desired. priority as desired.

There has been exchange of high level visits among There has been exchange of high level visits among authorities of Malawi and Brazil.authorities of Malawi and Brazil.

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Establishment of Malawi Embassy in Establishment of Malawi Embassy in Brazil (cont’d)Brazil (cont’d)

Notable ones, visit of former Notable ones, visit of former President of Brazil Inacio Lula da President of Brazil Inacio Lula da Silva, June, 2013.Silva, June, 2013.

High level diplomatic visit by minister High level diplomatic visit by minister Nedilson Ricardo Jorge, December, Nedilson Ricardo Jorge, December, 2013.2013.


Government to Government Government to Government InvestmentInvestment

2011, the Government of the 2011, the Government of the Federative Republic of Brazil Federative Republic of Brazil approved technical support Project approved technical support Project for strengthening School Feeding for strengthening School Feeding Program in Malawi.Program in Malawi.

June the same year, Brazil further June the same year, Brazil further approved technical support for the approved technical support for the implementation of five projects in implementation of five projects in Malawi totaling US$286,400.Malawi totaling US$286,400.

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Government to Government Government to Government Investment (cont’d)Investment (cont’d)

Approval followed discussions with Approval followed discussions with Malawi authoririties and a Brazil Malawi authoririties and a Brazil Technical mission that visited Malawi Technical mission that visited Malawi from the 4th to 8th April, 2011.from the 4th to 8th April, 2011.

Brazil was going to facilitate training Brazil was going to facilitate training and capacity building.and capacity building.

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Brazil technical experts were going to Brazil technical experts were going to facilitate technology transfer to their facilitate technology transfer to their respective Malawi counterparts in respective Malawi counterparts in identified áreas.identified áreas.

A study mission from Embrapa A study mission from Embrapa visited Malawi for the proposed Shire visited Malawi for the proposed Shire Valley Development Project in Valley Development Project in September, 2011.September, 2011.

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Brazil’s Investment in Malawi (cont’d)Brazil’s Investment in Malawi (cont’d)

The Project will also afford cotton The Project will also afford cotton farmers more income and create farmers more income and create jobs.jobs.

The Project will bring forex to Malawi The Project will bring forex to Malawi through export of cotton and cotton through export of cotton and cotton related productsrelated products

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A Malawi high-level delegation A Malawi high-level delegation attended a Seminar on HIV/AIDS attended a Seminar on HIV/AIDS Assistance and Treatment , 18-22 Assistance and Treatment , 18-22 June 2012.June 2012.

1st Training in South-South and 1st Training in South-South and Triangular Cooperation Workshop, Triangular Cooperation Workshop, March 2013, Brasilia.March 2013, Brasilia.

Brazil Mission to Malawi for Cotton Brazil Mission to Malawi for Cotton Project, 4th to 8th May, 2013.Project, 4th to 8th May, 2013.

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Government to Government Government to Government Investment (cont’d) Investment (cont’d)

2nd Training in Management of South-2nd Training in Management of South-South and Triangular Cooperation, South and Triangular Cooperation, Brasilia, 25th-29th November, 2013. Brasilia, 25th-29th November, 2013. Participants discussed best practices and Participants discussed best practices and prepared an action plan on several prepared an action plan on several themes related to their course modules.themes related to their course modules.

Supported by Brazil,WFP experts Supported by Brazil,WFP experts participated in three regional workshops participated in three regional workshops

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and a national workshop aimed towards and a national workshop aimed towards School Health nd Nutrition Policy from School Health nd Nutrition Policy from the 11th of September, 2013.the 11th of September, 2013.High – level Brazilian diplomat Minister High – level Brazilian diplomat Minister Nedilson Ricardo Jorge visited Malawi Nedilson Ricardo Jorge visited Malawi during the last week of December, 2013.during the last week of December, 2013.Drafted MOU aimed at supporting the Drafted MOU aimed at supporting the establishment of economic, trade and establishment of economic, trade and investment projects between Malawi investment projects between Malawi

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and Mozambique in the áreas of and Mozambique in the áreas of mining, transport, logistics, energy, mining, transport, logistics, energy, agriculture and forestry.agriculture and forestry.

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Brazil’s Investment in MalawiBrazil’s Investment in Malawi

Brazil Agency for International Brazil Agency for International Development (ABC)Development (ABC)

Plans at an advanced stage for the Plans at an advanced stage for the implementation of the Malawi-Brazil-implementation of the Malawi-Brazil-Mozambique Cotton Project.Mozambique Cotton Project.

Once implemented, the project will Once implemented, the project will yield high quality and disease resistant yield high quality and disease resistant cotton verieties in the Shire Valley área.cotton verieties in the Shire Valley área.

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Brazil’s Private Sector Investment in Brazil’s Private Sector Investment in MalawiMalawi

In July 2012, the Integrated Logistics In July 2012, the Integrated Logistics Corridor (CLIN) Consortium, made up Corridor (CLIN) Consortium, made up of Brazil’s gigantic multinational of Brazil’s gigantic multinational company VALE, signed a contract company VALE, signed a contract with the governments of Malawi and with the governments of Malawi and Mozambique for the construction and Mozambique for the construction and operation of a railway line in the two operation of a railway line in the two countries. countries.


Brazil’s Private Sector Investment in Brazil’s Private Sector Investment in Malawi (cont’d)Malawi (cont’d)

The railway line is part of a logistical The railway line is part of a logistical structure of the Nacala Corridor, structure of the Nacala Corridor, which starts in Moatize, in Tete which starts in Moatize, in Tete Province, through Malawi covering Province, through Malawi covering 137 kilometers.137 kilometers.

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The project costing $1.1 billion was The project costing $1.1 billion was inaugurated on 6inaugurated on 6thth December, 2013, December, 2013, in Mwanza-Neno, south of the in Mwanza-Neno, south of the country by Dr. Joyce Banda, President country by Dr. Joyce Banda, President of the Republic of Malawi together of the Republic of Malawi together with the Executive Director for Vale’s with the Executive Director for Vale’s capital projects Galib Chaim.capital projects Galib Chaim.

Work on the project creates about Work on the project creates about 3,000 jobs for Malawians.3,000 jobs for Malawians.

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Railway Line Inauguration Photo Vale Executive Director for Capital Projects Railway Line Inauguration Photo Vale Executive Director for Capital Projects shakes hands with President Dr. Joyce Banda at the project launch, 6shakes hands with President Dr. Joyce Banda at the project launch, 6thth

December, 2012.December, 2012.



Once completed, the railway will help Once completed, the railway will help boost the Malawi economy as it will boost the Malawi economy as it will improve access to markets for exporters improve access to markets for exporters and importers and reduce transport and importers and reduce transport costs by 40 percent according to the costs by 40 percent according to the Malawi Ministry of Transport and Malawi Ministry of Transport and Infrastructure.Infrastructure.

The railway line will be immensely useful The railway line will be immensely useful for carrying cargo and passengers.for carrying cargo and passengers.

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Concluding RemarksConcluding Remarks

As a way of conclusion again allow As a way of conclusion again allow me to restate what I said at the me to restate what I said at the begining. begining.

Diplomatic ralations between Malawi Diplomatic ralations between Malawi and Brazil continue to grow from and Brazil continue to grow from strength to strength as indicated by strength to strength as indicated by high-level visits to both countries.high-level visits to both countries.

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Concluding Remarks (cont’d)Concluding Remarks (cont’d)

The government of Malawi and its The government of Malawi and its people would not have wished for a people would not have wished for a better fifty years of Independence better fifty years of Independence anniversary celebrations present anniversary celebrations present than the warm and cordial relations than the warm and cordial relations that exist between the government that exist between the government and the people of the two great and the people of the two great countries.countries.

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Malawi appreciates all the support it Malawi appreciates all the support it receives from Brazil which will go a receives from Brazil which will go a long way in the improvement of the long way in the improvement of the socialeconomic status of the country socialeconomic status of the country and indeed the general economy.and indeed the general economy.

The decision to estabish a resident The decision to estabish a resident mission in Brazil rather than operate mission in Brazil rather than operate by remote control from Washington by remote control from Washington has already borne tangible results.has already borne tangible results.

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High-level visits have been made by High-level visits have been made by government officials of both countries.government officials of both countries.

Activities coordinated by the Brazilian Activities coordinated by the Brazilian Agency for Cooperation (ABC) has into Agency for Cooperation (ABC) has into missions going to Malawi that have led missions going to Malawi that have led to skills and knowledge transfer and to skills and knowledge transfer and the work towards the Shire Valley the work towards the Shire Valley Cotton Project.Cotton Project.

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The railway construction and The railway construction and rehabilitation project undertaken by Vale rehabilitation project undertaken by Vale will be among the top of the list for the will be among the top of the list for the fifty years Independence anniveesary fifty years Independence anniveesary celebrations presents.celebrations presents.

The economic and social impact of the The economic and social impact of the railway will drastically alter or change the railway will drastically alter or change the quality of life of Malawians through the quality of life of Malawians through the eradication of poverty and the eradication of poverty and the improvement in the delivery and quality improvement in the delivery and quality

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of social services in the health, transport of social services in the health, transport and education sectors.and education sectors.The estimated reduction for the The estimated reduction for the importation and exportation of good as a importation and exportation of good as a result of high quality railway with result of high quality railway with exceptional operational efficiency cannot exceptional operational efficiency cannot be overemphasised.be overemphasised.Finally, it shoul be said that the railway Finally, it shoul be said that the railway through Malawi will serve as a magnet forthrough Malawi will serve as a magnet for

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further development and business further development and business opportunities for Malawi and the opportunities for Malawi and the immediate land locked neighbours to immediate land locked neighbours to the west and to the region as well.the west and to the region as well.To potential investors, the message is: To potential investors, the message is: that Malawi is open for further that Malawi is open for further business and that you will be received business and that you will be received with open arms in the Warm Heart of with open arms in the Warm Heart of Africa.Africa.

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ZIKOMOZIKOMO

Thank you Thank you

Obrigado!Obrigado!


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