Kingsley Jassi:
The European Union (EU), through Global Gateway initiative, will mobilise about $1.3 billion for Malawi during the period up to 2027 towards acceralating the green transition, sustainable growth and job creation.
The initial step towards the goal is the first ever EU-Malawi Investment Forum underway in Lilongwe, which is expected to display investment and trade opportunities between Malawi and EU member countries for exploitation.
President Lazarus Chakwera opened the two-day forum, challenging investors from Europe to take up numerous opportunities in Malawi, citing mining tourism and agriculture that remain under-exploited.
“The forum presents a unique opportunity for European nations to invest in Malawi’s key sectors—agriculture, tourism, and mining— while influencing the governance reforms implemented by my administration,” Chakwera said.
Minister of Industry and Trade Sosten Gwengwe said Malawi has packaged bankable priority projects in the priority sectors of agriculture, tourism and mining for the EU investors picking.
“There are already a lot of interests in projects like Mpatamanga Hydro Power Project where two European companies are involved in. We would want more interests because EU is not a new partner and we believe that there will be more collaboration in technology transfer but more importantly in financing,” Gwengwe said.
Deputy Director-General for International Partnerships at the European Commission, Myriam Ferran, reaffirmed the EU’s unwavering commitment to Malawi’s sustainable progress but said the first steps should be sustaining the programme with the International Monetary Fund to restore a stable macro-economic situation.
She further said public finance management and addressing energy challenges were critical to attracting EU investments in Malawi.
She, however, mentioned that there are several existing projects, with more in the pipeline, especially in clean energy, sustainable agriculture, roads, among other areas, that will make huge impact in the economy.
The forum is happening at a time Malawi is struggling with macro-economic imbalances emanating from structural issues that limit productivity, making Malawi increasingly vulnerable to shocks.
With weather-related shocks like floods and droughts, the economic situation has, in recent years, deteriorated.
At the event, Malawi and EU also signed three financing agreements worth close to Euro 50 million which will support initiatives in energy, public finance and economic management and agricultural commercialisation efforts.
About Euro 34 million will be for Agricultural Commercialisation (AGCOM 2) project, Euro 14 million for public finance and economic management and Euro 770 000 for enhanced energy transition in Malawi.
Through the Global Gateway, the EU intends to mobilise Euro 300 billion of which half is for the African countries as the bloc seeks to provide the support through various forms of support.
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