BRAZILIAN INVESTMENT IN MALAWI

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BRAZILIAN INVESTMENT IN MALAWI
Embassy of the Republic of Malawi in Brazil

• Professor Francis Moto
• Ambassador

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Presentation Outline

• Introduction
• Brief Malawi History
• Geographical Location, Economy and Demography.
• Establishment of Brazil Embassy in Malawi.
• Government to Government investment.
• ABCs activities
• Private sector investment.
• The Cotton Project in Shire Valley
• Concluding remarks.

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Introduction

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

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Introduction (Contd)

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

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Introduction (Contt)

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

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Introduction (Contd)

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

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Malawi Political Map
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Geographic Facts About Malawi

• Malawi is a land locked country located in
  south-eastern Africa
• Bordered by Tanzania to the north north-east,
  Zambia to the west, and Mozambique to the
  north-east, east south, and south west.
• Lake Malawi, the third largest lake in Africa and
  one of the deepest in the world, accounts for 20
  of the country's area.
• The terrain of Malawi is breath-taking, it has
  plateaus, plains, hills and mountains with the
  Mulanje massif rising to almost 10,000 meters.

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Population

• Population 16,777,547 (July 2013 est.) Age 15 -
  64 52.6
• Business languages English, Chichewa

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Malawi Economy

• Agriculture
• Malawi relies on agriculture
• Agriculture accounts for 45 of total exports
  32.4 of GDP and employs 80 of labour force
• The sector is generally vulnerable due to
• High agricultural input prices
• Droughts
• But Government is implementing a subsidy
  programme for inputs and is encouraging
  irrigation to mitigate against the problem of
  inadequate rainfall.

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Malawi Economy (Contd)

• Manufacturing
• Relatively small and Accounts for 12 of GDP
• Involves
• Agro-processing of tobacco, tea sugar
• Cement production
• Textiles etc

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Structure of the Economy
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Why Invest in Malawi?

• Politically Stable
• Malawians are peaceful and friendly people.
• Malawi has no history of war.
• Malawi has had 4 peaceful democratic elections in
  1994,1999, 2009, 2004 and the fifth is planned
  for May, 2014.
• Malawi is generally known as the Warm Heart of
  Africa.

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Establishment of Malawi Embassy in Brazil and
Scope

• Established in Brasilia in June 2010 following a
  presidential visit the previous year.
• Brazil reciprocated and opened embassy in
  Lilongwe, Malawi in June 2013.
• To strengthen ties of friendship between the two
  countries.
• To foster the socioeconomic development of Malawi
  and Brazil
• To promote technical cooperation in the areas of
  priority as desired.
• There has been exchange of high level visits
  among authorities of Malawi and Brazil.

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Establishment of Malawi Embassy in Brazil (contd)

• Notable ones, visit of former President of Brazil
  Inacio Lula da Silva, June, 2013.
• High level diplomatic visit by minister Nedilson
  Ricardo Jorge, December, 2013.

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Government to Government Investment

• 2011, the Government of the Federative Republic
  of Brazil approved technical support Project for
  strengthening School Feeding Program in Malawi.
• June the same year, Brazil further approved
  technical support for the implementation of five
  projects in Malawi totaling US286,400.

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Government to Government Investment (contd)

• Approval followed discussions with Malawi
  authoririties and a Brazil Technical mission that
  visited Malawi from the 4th to 8th April, 2011.
• Brazil was going to facilitate training and
  capacity building.

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Government to Government Investment (contd)

• Brazil technical experts were going to facilitate
  technology transfer to their respective Malawi
  counterparts in identified áreas.
• A study mission from Embrapa visited Malawi for
  the proposed Shire Valley Development Project in
  September, 2011.

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Brazils Investment in Malawi (contd)

• The Project will also afford cotton farmers more
  income and create jobs.
• The Project will bring forex to Malawi through
  export of cotton and cotton related products

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Government to Government Investment (contd)

• A Malawi high-level delegation attended a Seminar
  on HIV/AIDS Assistance and Treatment , 18-22
  June 2012.
• 1st Training in South-South and Triangular
  Cooperation Workshop, March 2013, Brasilia.
• Brazil Mission to Malawi for Cotton Project, 4th
  to 8th May, 2013.

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Government to Government Investment (contd)

• 2nd Training in Management of South-South and
  Triangular Cooperation, Brasilia, 25th-29th
  November, 2013. Participants discussed best
  practices and prepared an action plan on several
  themes related to their course modules.
• Supported by Brazil,WFP experts participated in
  three regional workshops

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Government to Government Investment (contd)

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

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Government to Government Investment (contd)

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

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Brazils Investment in Malawi

• Brazil Agency for International Development (ABC)
• Plans at an advanced stage for the implementation
  of the Malawi-Brazil-Mozambique Cotton Project.
• Once implemented, the project will yield high
  quality and disease resistant cotton verieties in
  the Shire Valley área.

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Brazils Private Sector Investment in Malawi

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

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Brazils Private Sector Investment in Malawi
(contd)

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

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Brazils Private Sector Investment in Malawi
(contd)

• The project costing 1.1 billion was inaugurated
  on 6th December, 2013, in Mwanza-Neno, south of
  the country by Dr. Joyce Banda, President of the
  Republic of Malawi together with the Executive
  Director for Vales capital projects Galib
  Chaim.
• Work on the project creates about 3,000 jobs for
  Malawians.

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Railway Line Inauguration Photo Vale Executive
Director for Capital Projects shakes hands with
President Dr. Joyce Banda at the project launch,
6th December, 2012.
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Brazils Private Sector Investment in Malawi
(contd)

• Once completed, the railway will help boost the
  Malawi economy as it will improve access to
  markets for exporters and importers and reduce
  transport costs by 40 percent according to the
  Malawi Ministry of Transport and Infrastructure.
• The railway line will be immensely useful for
  carrying cargo and passengers.

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Concluding Remarks

• As a way of conclusion again allow me to restate
  what I said at the begining.
• Diplomatic ralations between Malawi and Brazil
  continue to grow from strength to strength as
  indicated by high-level visits to both countries.

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Concluding Remarks (contd)

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

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Concluding Remarks (contd)

• Malawi appreciates all the support it receives
  from Brazil which will go a long way in the
  improvement of the socialeconomic status of the
  country and indeed the general economy.
• The decision to estabish a resident mission in
  Brazil rather than operate by remote control from
  Washington has already borne tangible results.

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Concluding Remarks (contd)

• High-level visits have been made by government
  officials of both countries.
• Activities coordinated by the Brazilian Agency
  for Cooperation (ABC) has into missions going to
  Malawi that have led to skills and knowledge
  transfer and the work towards the Shire Valley
  Cotton Project.

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Concluding Remarks (contd)

• The railway construction and rehabilitation
  project undertaken by Vale will be among the top
  of the list for the fifty years Independence
  anniveesary celebrations presents.
• The economic and social impact of the railway
  will drastically alter or change the quality of
  life of Malawians through the eradication of
  poverty and the improvement in the delivery and
  quality

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Concluding Remarks (contd)

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

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Concluding Remarks (contd)

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

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ZIKOMO

• Thank you
• Obrigado!