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Liu Guoyu, Commercial Counselor of Chinese Embassy in Malawi
Add time:2018-10-11 16:40:31} author:admin
 

Know about Malawi

 

Malawi is located in the hinterland of Southeast Africa, with a total land area of 118,000 square kilometers and a long and narrow terrain. It borders Mozambique in the east and south, Zambia in the west and Tanzania in the north.Although landlocked, Malawi has a large lake as beautiful as the sea, which covers an area of 24,000 square kilometers, accounting for about one-fifth of the country's total area.

 

For most people, Malawi is an unknown and unfamiliar country. Some say that Malawi is a forgotten paradise. Others say that Malawi is a jewel at the southern end of the rift valley. However, as one of the world's least developed countries with a per capital GDP of only us $381, Malawi is still a poor agricultural country that depends on the weather, and its industry lags badly. Compared with other neighboring countries, the preferential policies to attract foreign capital are not enough. At present, its economic development lacks endogenous impetus and is basically dependent on foreign aid. As for the current economic situation in Malawi, it can be said that "agriculture is very preliminary, industry has not started, policy is not right and economy depends on aid".

 

If 54 countries in Africa happen to be a pack of CARDS, in terms of economic development, it's basically four or five; In terms of population size, it ranks 18th among African countries, which is above the average. It can be 8 or 9.But in terms of future growth potential, it could be 10 or 11 or bigger big names.Therefore, it can be said that Malawi is a hot land for investment to be developed, but also a low value for investment, with great potential for future development. With the in-depth implementation of China's "going global" and "One Belt And One Road" strategies, the cooperation between China and Malawi is highly complementary, and there is much to be done in terms of capacity cooperation between the two countries. We need to find out about Malawi, know about Malawi, and do business in Malawi.

 

Although, at present, Malawi still faces four deficiencies: first, the shortage of natural resources endowment, in addition to abundant water resources and fish, the lack of oil and gas resources and mineral resources; Second, the lack of connectivity with neighboring countries, including logistics, network and trade, remains to be developed. Third, lack of infrastructure, serious lack of electricity, water shortage of residents, less developed road traffic, railway abandoned;Fourth, the economic development policy is insufficient, especially the attraction policy lacks preferential degree, and is difficult to implement.

 

However, we should also be fully aware of Malawi's advantages and future development potential: first, good security and safe environment.The political situation of Malawi has remained stable for a long time. There has never been war or civil strife. A peaceful and stable social environment will attract many foreign investors to Malawi for business opportunities and investment. Secondly, Malawi has a large population, a young structure and low labor costs, which means Malawi's huge demographic dividend and huge potential for future development of the consumer market.Third, the reform and opening up of Malawi economy continued: the national development committee was established and a new "Malawi growth and development strategy" was formulated. Put forward the development initiative of "green agriculture belt" and formulate the development plan of agriculture and irrigation; "Invest in youth, manage the demographic dividend", develop and improve the development plan of youth, health, education and other fields; It proposes that Malawi should change from a country of import consumption to one of export manufacturing. We introduced such investment facilitation measures as the one-stop center. Fourth, there is great space for future development. Because of the small size of Malawi's economy, many areas are blank. With the gradual improvement of the investment environment of the Malawi government, it can be predicted that the value depression of Malawi will become a hot land for production capacity cooperation and investment.

 

Ii. Current situation of China-Malawi economic and trade cooperation

 

Since the establishment of diplomatic ties between China and Malawi at the end of 2007, bilateral economic and trade cooperation has developed steadily and healthily. In Malawi, Parliament Building, five-star hotel and international conference center, Korga highway, Malawi University of Science and Technology, Binggu International Stadium and the establishment of diplomatic ties between China and five projects represented by a large number of large projects supported by the China aid or provide financing, greatly improve the infrastructure of Malawi, a lot of projects has become a landmark in Malawi. The parliament building and Malawi University of Science and Technology are also printed on the banknotes of 200 Kwacha and 2000 Kwacha as background images.

 

Trade between China and Malawi is small, with annual trade of only about us $200 million. Exports of mechanical and electrical products, textiles and clothing to Malawi.

 

Although the overall scale of my business in such areas as trade and investment in Malawi is small, the cooperation between China and Malawi on production capacity has shown a growing momentum in recent years.

 

In June 2016, the Chinese Embassy in Malawi, horse industry, trade and tourism, and China's Anhui Province in Malawi's capital Lilongwe, jointly organized the first Production Cooperation and Investment Summit in Malawi, attracted hundreds of thousands of entrepreneurs and 300 Malawi local entrepreneurs to attend, the two sides reached a series of cooperation intention and agreement, inject new vitality to bilateral economic relations and trade development.

 

The smaller scale of the project is still in its infancy. Chinese contractors have struggled to land projects in recent years as the country's financial squeeze has led to fewer contracts and Indian and Portuguese contractors with long roots in the country are highly competitive.

 

III. China-Malawi cooperation in capacity building

 

China-Malawi cooperation on production capacity has ushered in an opportune time for both sides and people.In recent years, Malawi Government, especially President Mutharika, has attached great importance to developing bilateral relations. He has repeatedly proposed to further strengthen all-round cooperation with China and give full play to its important role in promoting economic and social development. With the successful convening of the summit on China-Africa cooperation at the end of 2016, China and Africa have established a comprehensive strategic partnership of cooperation. China-Malawi relations will embrace a new historic opportunity.

 

Welcome Chinese enterprises to invest in Malawi. Malawi is an untapped market with great potential. Early access to Malawi for a strategic market layout is a wise choice. As Malawi will gradually introduce pragmatic economic reform policies and measures, as well as stable political and social security, Malawi will gradually give play to its advantages. Our enterprise should seize the opportunity and seize the opportunity. I believe that the arrival of Chinese enterprises will inject new vitality into China-Malawi production capacity cooperation.

 

All in all, as China and Africa build a comprehensive strategic cooperative partnership, China-Malawi relations will embrace a new historic opportunity.In 2017 and the next few years, a number of new aid projects and economic cooperation and production capacity cooperation projects are gaining momentum. We believe that with the joint efforts of the two peoples, there is much to be achieved in China-Malawi cooperation in production capacity and the future of China-Malawi relations will be even brighter.

 

Liu Guoyu, Commercial Counselor of Chinese Embassy in Malawi


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