Vusumuzi Dube
Judith Phiri, Business Reporter
THE Director General of the National Planning Commission of Malawi, Dr Thomas Munthali has called on businesses on the continent to tap into its vast potentials for the development and economic growth of Africa.
Africa is the world’s second-largest and second-most populous continent, endowed with abundant natural resources. The continent has 40 percent of the world’s gold and up to 90 percent of its chromium and platinum.
The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa, while it holds 65 percent of the world’s arable land and ten percent of the planet’s internal renewable fresh water source.
Recently speaking on Invest in Malawi Roundtable at the 9th edition of the CEO Africa Annual Roundtable 2023 in Victoria Falls, Dr Munthali said coalition of like-minded CEOs was critical for the development of Africa.
“African renaissance begins with coalition of like-minded CEOs to tap into the continent’s vast potentials. Africa is home to a number of natural resources and there are over 1 100 different species of mammals in Africa and over 2 600 species of birds among other key things. The wealthy and self-reliant Africa we want is possible, but it will require investment partnerships,” he said.
He said as a country they were establishing the Malawi Development Corporation as part of de-risking and guaranteeing investments in their country.
Dr Munthali called on CEOs and various delegates at the conference to be part of the special purpose vehicles that will venture into strategic sectors of the economy.
“Get a head start on this exciting race for a stake in Malawi’s inevitable prosperity in win-win partnerships. There are a number of reasons why you can invest in Malawi, our stock market has the highest investment returns in Africa of 82 percent. There is enabling and constantly improving business environment including ease of goods or people movement as well as vast unexplored investment opportunities among others,” he added.
He said priority sectors for investment were agriculture or agro-processing with mega-farms, value addition, irrigation farming and agriculture financing.
Dr Munthali said other sectors were tourism and secondary cities as well as mining and extractives industry.
“The Government of Malawi has demonstrated its commitment to encourage private sector led growth through these priority sectors and its enabling sectors such as economic infrastructure, while it is also offering competitive incentives among other things.”
Malawi and Zimbabwe have had a close history for a long time the two countries share some common values, history and culture. In terms of trade, Zimbabwe exports to Malawi were US$6 million during 2022, according to the United Nations COMTRADE database on international trade.
Meanwhile, CEO Africa Roundtable board chairman, Mr Oswell Binha said with diverse resource endowments, Africa was a major geopolitical force.
“It’s one that has shaped our past, it’s shaping our present and it will shape our future. The continent’s economic growth has been averaging 3.8 percent for the past five years and is projected to improve, 4 percent, going into 2024 and 2025.”
He said the African Vision of becoming a US$10 trillion economy could only be made a reality through catalysing trade and investment in critical sectors, including health, infrastructure, energy, agribusiness, and digital.
Bongani Ndlovu