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H.E. Mr. Leonard Mengezi, High Commissioner of the Republic of Malawi to the Republic of India

by Kanchi Batra - 20 June, 2023, 12:00 1033 Views 0 Comment

Diplomatist: Excellency, India will receive a high-level delegation from Malawi this month. What is the agenda for the visiting delegation?

H.E. Mr. Leonard Mengezi: Malawi Delegation expects to meet and interact with the business community and individuals who may be interested in trading as well as investing in Malawi especially in agro-processing, energy, mining, health, manufacturing, tourism as well as technology.

Diplomatist: What are the key industries for the Malawian economy?

H.E. Mr. Leonard Mengezi: Malawi’s economy is agro-based. As such the major industries are agriculture-related. Others include, mining, tourism, financial and professional services.

Diplomatist: The current dynamics of the Malawi-India relationship are very positive. Which are the areas where Malawi and India can mutually work in partnership?

H.E. Mr. Leonard Mengezi: We expect India and Malawi to continue working together in the areas of trade, capacity building, ICT and infrastructure development.

Diplomatist: Could you highlight the investment climate and opportunities in your country for foreign investors?

H.E. Mr. Leonard Mengezi: Private investment in Malawi is regulated by the Investment and Export Promotion Act 2012. The Act established the Malawi Investment and Trade Centre (MITC) which acts as a One-Stop Shop Investment and Trade Centre for all investors and exporters.

The Malawi Government through Taxation Act, VAT Act, and Customs and Excise Act offers a number of fiscal incentives including:

  • 100% Investment allowance on New and Unused Industrial Buildings, Plant and Machinery
  • 25 % Export Allowance on revenue for non-traditional exports
  • No Taxes on Gains from sales of Shares that are held for more than 1 year.
  • 40% Investment Allowances for used Buildings, Plant and Machinery
  • Transport tax allowance of 25% on international transport costs, excluding traditional exports
  • Allowance for manufacturing companies to deduct all operating expenses incurred up to 25 months prior to the start of operations
  • Exemption of Duty, Excise and VAT on raw materials used in manufacturing
  • Exemption of Duty, Excise and VAT on Industrial Machinery and Equipment
  • Carry forward of loss, up to six years, enabling companies to take advantage of allowances
  • Exemption of duty on direct importation of goods used in the tourism industry

In terms of repatriation, there are no restrictions on the remittance of foreign investment funds (including capital, profits, loan repayments and lease repayments) as long as the capital and loans that were obtained from foreign sources and registered with the Reserve Bank of Malawi.

Diplomatist: What steps have been taken to promote Malawi to the Indian public to familiarize them with the richness of its culture?

H.E. Mr. Leonard Mengezi:

  • The High Commission has submitted a number of articles in a number of magazines sharing the rich culture of different areas of Malawi such as The Diplomatist Magazine;
  • For a number of occasions, Malawi has been invited to participate in cultural festivals in India to showcase its culture and values;
  • A number of Indians have also been enticed and encouraged to visit Malawi and experience the warm heart of Africa;
  • The High Commission is in the process of posting an article on its website which will also be distributed to delegates during the coming 18th Conclave; and,
  • The Mission is also planning to have outreaches with cultural groups from India to visit and experience what Malawi is all about.

Diplomatist: How does the world see Malawi?

H.E. Mr. Leonard Mengezi: The world sees Malawi in its true colour as a peaceful nation, very rich in culture with very warm-hearted people but one thing for sure is that many people have not discovered how endowed with natural resources Malawi is. As a result, it is one of the countries that is still unexploited.

Kanchi Batra
Kanchi Batra is the Managing Editor of The Diplomatist.
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