Reasons for Starting A Business in Malawi
The business environment has been favorable for private businesses in recent years, with economic growth rates averaging 6.7% between 2011 and 2014. The economy is expected to grow by 7.1% in 2015, making it one of Africa’s fastest growing economies. Foreign direct investment grew at an average rate of 19% per year between 2005 and 2013. As of October 2014, there were nearly 70 registered foreign companies operating in Malawi; most are engaged in mining or manufacturing.
What are the Natural Resources In Malawi?
Bauxite, coal, tin, niobium, tantalum and timber are among Malawi’s key natural resources. The southern region also has large deposits of granite and marble. Alluvial gold is found along several rivers. There are some small salt deposits at Lake Nyasa. Diamonds have been discovered near Kasugai. Copper and nickel deposits have been located in Nkhotakota District. Several million tons of high-grade iron ore are located near Chitipa, which may be exploited when mining technology improves. Significant deposits of gypsum, limestone and silica sand exist in various parts of Malawi. In addition, there are known petroleum reserves off Lake Malawi that could prove valuable if exploration finds an economically viable method for extracting them. There are large undeveloped deposits of phosphates in Rumphi District. Additional deposits have been located on Zomba Plateau but they remain unexploited due to a lack of infrastructure. However, phosphate is obtained from seaweed collected on local beaches.
What are the Business Opportunities In Malawi
Many African countries who have achieved prosperity and could potentially offer a business opportunity as well. And one of these countries is known as Malawi. There are various industries that you can look into if you want to establish your own company
The International Finance Corporation of World Bank Group (IFC) estimates that 40 percent of people in Malawi survive on less than $1.25 per day, and only 9 percent of children under 5 are fully immunized. But its strategic location along Africa’s eastern coast, proximity to South Africa and Tanzania, and small population Malawi, a lots of business Opportunity country in south-eastern Africa, is blessed with vast natural resources and potential for economic growth. It has one of Africa’s largest forests, huge deposits of natural gas, coal, gold and other minerals that have attracted several investors from all over the world.
Business-Friendly Policies and Government Initiatives;
With its beautiful beaches, world-class resorts and some of Africa’s best scuba diving and snorkeling, it might come as no surprise that Malawi is fast becoming an attractive destination for businesses seeking a tropical paradise on which to set up shop. The country offers low taxes, an educated workforce (98% literacy rate) and business-friendly policies that have helped it attract international firms like Mars Incorporated. As a result, Malawi has one of Africa’s fastest growing economies with GDP growth projected at 7.5% over 2015-2017. The first step to starting your own business in Malawi is obtaining a Certificate of Registration from the Registrar General’s Office within 30 days of arrival or prior to commencement of business activities. To apply for registration, you will need to provide:
1) A completed application form with supporting documents;
2) A non-refundable fee of MK100,000 (US$900); and
3) A copy of your passport. Once registered, you will be issued a certificate that must be displayed at all times when conducting business operations.
The first step to starting your own business in Malawi is obtaining a Certificate of Registration from the Registrar General’s Office within 30 days of arrival or prior to commencement of business activities.
What Are The Steps For Starting A Business In Malawi?
The first step for starting a business in Malawi is registering your business. For businesses with one or more employees, register at The National Investment Bank of Malawi. Fill out an application and submit it along with $200 as registration fee. For businesses without employees, register at The Development Bank of Southern Africa. Deposit $250 and make three checks payable to different government agencies involved in processing your license. Send these documents through DHL or post them physically to reach them within two weeks. Next, apply for licenses from various government agencies including: Ministry of Labor, Department of Trade and Industry (DTI), Ministry of Finance, Ministry of Justice and Constitutional Affairs, Department of Immigration Services (DIS), Malawi Revenue Authority (MRA) and others. Also obtain permits required by law such as: Fire Safety Certificate, Electrical Permit, Construction Permit and Environmental Impact Assessment Approval. You will also need to file for an Employer’s Registration Number which you can get from DTI. This number will be used when you pay taxes every month. Get insurance coverage before opening your doors to customers; you will need business interruption insurance and liability insurance among other types of coverage depending on what kind of business you run.
Is Malawi good for business?
Malawi is one of Africa’s countries. It borders Zambia, Tanzania, and Mozambique. The country has an abundance of natural resources, but as of now, isn’t using them. Corruption and economic mismanagement have left Malawi in poverty. According to UNICEF, more than 30% of people in Malawi live below the national poverty line; more than half are under 18 years old. The country faces drought conditions every year that make food scarce. However, according to Forbes magazine, there are many opportunities for businesses in Malawi because of its high unemployment rate (which makes workers cheap) and low cost of living. So if you want to start a business there, you should take advantage of these opportunities before they disappear!
Market size of Malawi
Malawi is one of Africa’s smallest economies. The country experienced rapid economic growth between 1995 and 2007, but its performance has declined since then. Inflation remains a problem; it was 10% on average from 2008 to 2013. Since 2012, inflation has averaged about 7%. Malawi’s economy relies heavily on agriculture. The sector accounts for roughly 40% of GDP and employs 80% of people who work in the formal economy. Agriculture also provides employment for more than half of all rural residents. Major export crops include tobacco, tea, sugarcane, corn (maize), and cotton. Major import commodities include petroleum products, foodstuffs, machinery and equipment, chemicals, textiles and clothing. The United States is Malawi’s largest trading partner; other major trading partners are South Africa and Tanzania.