Embassy of the Republic of Malawi in Brazil BRAZILIAN INVESTMENT IN MALAWI Professor Francis Moto Ambassador
Presentation Outline Introduction Brief Malawi History Geographical Location, Economy and Demography. Establishment of Brazil Embassy in Malawi. Government to Government investment. ABC s activities Private sector investment. The Cotton Project in Shire Valley Concluding remarks. 2
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 Ministry of Foreign Affairs 3
Introduction (Cont d) 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 4
Introduction (Cont t) 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. 5
Introduction (Cont d) 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. Ministry of Foreign Affairs 6
Malawi Political Map Ministry of Foreign Affairs 7
Geographic Facts About Malawi Malawi is a land locked country located in southeastern Africa Bordered by Tanzania to the north north-east, Zambia to the west, and Mozambique to the northeast, 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. Ministry of Foreign Affairs 8
Population Population 16,777,547 (July 2013 est.); Age 15-64: 52.6% Business languages English, Chichewa Ministry of Foreign Affairs 9
Agriculture Malawi Economy 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 1.High agricultural input prices 2.Droughts But Government is implementing a subsidy programme for inputs; and is encouraging irrigation to mitigate against the problem of inadequate rainfall. Ministry of Foreign Affairs 10
Malawi Economy (Cont d) Manufacturing Relatively small and Accounts for 12% of GDP Involves Agro-processing of tobacco, tea & sugar Cement production Textiles etc Ministry of Foreign Affairs 11
Structure of the Economy MANUFACTURING 14% MININNG&QUAR SERVICES 2% 10% AGRICULTURE 45% TRANS &COMM. 5% DISTRIBUTION 24% Ministry of Foreign Affairs 12
Politically Stable Why Invest in Malawi? 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. 13
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. 14
Establishment of Malawi Embassy in Brazil (cont d) 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. Ministry of Foreign Affairs 15
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 US$286,400. 16
Government to Government Investment (cont d) 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. 17
Government to Government Investment (cont d) 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. 18
Brazil s Investment in Malawi (cont d) 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 19
Government to Government Investment (cont d) 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. 20
Government to Government Investment (cont d) 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 21
Government to Government Investment (cont d) 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 22
Government to Government Investment (cont d) and Mozambique in the áreas of mining, transport, logistics, energy, agriculture and forestry. 23
Brazil s 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. 24
Brazil s Private Sector Investment in Malawi In July 2012, the Integrated Logistics Corridor (CLIN) Consortium, made up of Brazil s 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. 25
Brazil s Private Sector Investment in Malawi (cont d) 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. 26
Brazil s Private Sector Investment in Malawi (cont d) The project costing $1.1 billion was inaugurated on 6 th 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 Vale s capital projects Galib Chaim. Work on the project creates about 3,000 jobs for Malawians. 27
Railway Line Inauguration Photo Vale Executive Director for Capital Projects shakes hands with President Dr. Joyce Banda at the project launch, 6 th December, 2012. Ministry of Foreign Affairs 28
Brazil s Private Sector Investment in Malawi (cont d) 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. 29
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. 30
Concluding Remarks (cont d) 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. 31
Concluding Remarks (cont d) 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. 32
Concluding Remarks (cont d) 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. 33
Concluding Remarks (cont d) 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 Malawi the Embassy delivery Brazil and 34
Concluding Remarks (cont d) 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 35
Concluding Remarks (cont d) 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. 36
ZIKOMO Thank you Obrigado! 37