Malawi is losing economic opportunities due to delays in implementing industrial parks under the Special Economic Zones (SEZs), according to the Parliamentary Cluster Committee on Industry, Trade and Tourism, and Media and Communication.

During a joint tour of the Chigumula Industrial Park in Blantyre on Thursday, committee chairperson Paul Nkhoma expressed concern over the slow progress despite Parliament allocating funds for the projects. He noted that issues such as missing infrastructure components—like a sewer system at Chigumula—have stalled development.

The Chigumula Industrial Park, one of Malawi’s key industrialisation projects, was allocated K2 billion in the 2023/24 National Budget and K1.5 billion in the following fiscal year. However, data from the Malawi Investment and Trade Centre (MITC) shows that these funds were not disbursed as planned, leaving the project with a K4 billion deficit needed for wastewater management.

MITC board chairperson Goodwill Ng’oma revealed that four firms in agro-processing, fertiliser manufacturing, and packaging have expressed interest in the site, investing approximately $19.4 million (about K34 billion) across 14 hectares. However, an additional K5.4 billion is required to complete the project by June, covering road construction, a sewer system, and an administration complex. He cited fuel shortages and rising costs as key challenges affecting progress.

Minister of Trade and Industry Vitumbiko Mumba emphasized the need for prospective investors to provide proof of available funds or a credit line, along with a bankable business plan, before securing land in SEZs. This measure aims to prevent scenarios like that in Lilongwe, where 17 plots allocated to investors in 2012 remain undeveloped.

Mumba acknowledged that underfunding has significantly slowed project implementation, leading to increased costs. He stressed that, with adequate funding, the industrial parks could be completed within 12 months.

Malawi is currently developing SEZs to accelerate industrialisation and drive sustainable economic growth. The planned industrial parks were expected to generate approximately 240,000 jobs.

The four designated SEZs and industrial parks are:

• Dunduzu, Mzuzu – 72 hectares
• Area 55, Lilongwe – 417 hectares
• Matindi, Blantyre – 130 hectares
• Chigumula, Blantyre – 22.7 hectares

The success of these projects depends on timely funding and strategic investor engagement to ensure Malawi maximizes its industrial growth potential.