UNCLAS SECTION 01 OF 08 LILONGWE 000499

SIPDIS

DEPT FOR EB/IFD/OIA
DEPT PLEASE PASS TO USTR

E.O. 12958: N/A
TAGS: EINV EFIN ELAB ETRD KTDB PGOV MI
SUBJECT: INVESTMENT CLIMATE STATEMENT - MALAWI

REF: 03 STATE 128494


1. The following is the June 2004 update of Malawi's
Investment Climate Statement.

Openness to Foreign Investment
--------------

2. The Government encourages both domestic and foreign
investment in most sectors of the economy, without
restrictions on ownership, size of investment, source of
funds, and destination of final product. The
Competition And Fair Trading Act -- passed by Parliament
in November 1998 but made operational in April 2000 --
aims to regulate and monitor monopolies and the
concentration of economic power, protect consumer
welfare, and strengthen the efficient production and
distribution of goods and services. The Act calls for
the formation of a commission that will approve only
those acquisitions, mergers or takeovers that increase
employment and net exports, and lower prices for
consumers. During the first half of 2000 the U.S.-based
FCA Investment Company, together with the two local
companies, acquired about 63% shares in the National
Insurance Company of Malawi (NICO) through a cash
takeover. As of June 2004, however, the Ministry of
Commerce had reported no progress in institutionalizing
a secretariat to oversee implementation of the
Competition and Fair Trading Act.


3. There is no government screening of foreign
investment in Malawi. Apart from the privatization
program, the Government's overall economic and
industrial policy does not have discriminatory effects
on foreign investors. Since industrial licensing in
Malawi applies to both domestic and foreign investment,
and is only restricted to a short list of products, it
does not impede investment, limit competition, protect
domestic interests, or discriminate against foreign
investors at any stage of investment. Restrictions are
based on environmental, health, and national security
concerns. Affected items are firearms; ammunition,
chemical and biological weapons; explosives; and
manufacturing involving hazardous waste
treatment/disposal or radioactive material. All
regulations affecting trade

(foreign exchange, taxes,
etc.) apply equally to domestic and foreign investors.


4. As of June 2004, Malawi had privatized 61 units of
approximately 110 state-owned enterprises targeted for
privatization, generating about MK 1.0 billion (about
USD 9.2 million). All investors, irrespective of ethnic
group or source of capital (foreign or local) may
participate in the privatization program. However, the
Malawi Stock Exchange regulations limit participation of
an individual foreign portfolio investor to a maximum of
10% of any class or category of security under the
program; and limit maximum total foreign investment in
any portfolio to 49%. The Privatization Act also
prohibits members of the Cabinet, or employees of the
Privatization Commission or its consultants, to
participate in any divestiture except where an offer is
made to the general public. Malawian nationals are
offered preferential treatment, including discounted
share prices and subsidized credit. Since July 2000,
the maximum subsidized credit amount has been increased
from 20,000 Malawi Kwacha (MK) (about 184 USD) to MK
50,000 (about 459 USD) and the minimum income threshold
of MK 10,000 per month (about 92 USD) was removed.
Subsidized credit carries a precondition that the shares
or assets be retained for at least two years.

Conversion and Transfer Policies
--------------

5. There are no restrictions on remittance of foreign
investment funds (including capital, profits, loan
repayments and lease repayments) as long as the capital
and loans were obtained from foreign sources and
registered with the Reserve Bank of Malawi (RBM). The
terms and conditions of international loans, management
contracts, licensing and royalty arrangements, and
similar transfers require initial RBM approval. The RBM
grants approval according to prevailing international
standards; subsequent remittances do not require further
approval. All commercial banks are authorized by the
RBM to approve remittances, and approvals are fairly
automatic as long as the applicant's accounts have been
audited and sufficient foreign exchange is available.
Businesspeople report no major problems with foreign
currency remittances. Traditionally, foreign exchange
availability follows the agricultural cycle in Malawi.
It is plentiful from April through September (when
tobacco sales generate foreign exchange inflows), and
scarce from October through March. During periods of
scarcity, investors may not have immediate access to
foreign exchange. As of January 2004, official foreign
reserves equaled approximately 1.6 months of import
cover.

Expropriation and Compensation
--------------

6. Malawi's constitution prohibits deprivation of an
individual's property without due compensation. There
are effective laws that protect both local and foreign
investment. The likelihood of expropriatory actions has
been extremely remote since the repeal of the forfeiture
act in 1992. Although public tenders for the sale of
shares of state-owned enterprises often encourage local
participation, foreign investors tend to dominate the
share-holding of large MSE-listed companies requiring
significant technical and financial resources.


7. The Land Reform Commission -- which the Government
established in 1996 to review land tenure and establish
a new land reform program -- presented its final report
to the President in November 1999. In January 2002, the
Ministry of Lands published a new land policy. Draft
legislation is being prepared, possibly for
consideration by Parliament in 2004. The draft law will
likely incorporate many recommendations of the
Commission's report, including the abolition of freehold
tenure (owners holding permanent title) and the
conversion of all freehold titles to leasehold (owners
holding land on lease for a maximum period of 99 years.)
As of July 2000, the Malawi Government stopped issuing
freehold land.


8. At present, the Government may employ land
acquisition procedures set forth in the Land Acquisition
Act of 1971. According to this Act, the government must
justify its acquisition as being in the public interest
and must pay fair market value for the land. Fair
market value is assessed by summing the amount the owner
originally paid for the land, the value of any permanent
improvements that increase the productive capacity,
utility or amenity of the land, and any appreciation of
the land value. If the private landowner objects to the
level of compensation, he may obtain an independent
assessment of the land value. According to the Act,
however, such cases may not be challenged in court; the
Ministry of Lands, Housing, Physical Planning, and
Surveys remains the final judge. Most land in Malawi is
leasehold.

Dispute Settlement
--------------

9. Malawi has an independent but overburdened
judiciary, which derives its procedures from English
Common Law. There has been little government
interference in the court system, although there have on
occasion been allegations of government involvement --
largely through public comments made by politicians on
certain cases. There are also frequent allegations of
bribery in civil and criminal cases. Administration of
the courts is weak, and due process can be very slow.
Serious shortcomings in the judicial system include poor
record keeping, a lack of attorneys and trained
personnel, heavy caseloads, and insufficient financial
resources.


10. The court system in Malawi accepts and enforces
foreign court judgments that are registered in
accordance with established legal procedure. There are,
however, reciprocal agreements among Commonwealth
countries to enforce judgments without this registration
obligation. There is no such agreement between Malawi
and the United States.


11. Malawi has legislation that offers adequate
protection for property and contractual rights. Malawi
has written commercial laws, which codify Common Law.
The Sale-Of-Goods Act, the Hire-Purchase Act, and the
Competition and Fair Trading Act cover commercial
practices. The first two Acts have been consistently
applied, and there is a track record of cases involving
commercial law. There is also a written and
consistently applied Bankruptcy Law based on Common Law.
Under Bankruptcy Law, secured creditors -- rank-ordered
based upon investment registration dates -- have first
priority in recovering money. Monetary judgments are
usually made in the investor's currency. However, the
immediate availability of foreign exchange is dependent
upon supply, which varies on a seasonal basis.


12. Malawi is a member of the International Center for
Settlement of Investment Disputes (ICSID), and accepts
binding international arbitration of investment disputes
between foreign investors and the state if specified in
a written contract. There have been no investment
disputes involving U.S. Companies since 1996.

Performance Requirements/Incentives
--------------

13. Malawi is not in compliance with WTO Trade Related
Investment Measures (TRIM) notification requirements.
However, Malawi does not set performance requirements
for establishing, maintaining or expanding an
investment. Nor does it place requirements on
ownership, source of financing, or geographic location.
The Government accords EPZ status only to firms (foreign
or domestic) that produce exclusively for export.


14. Malawi offers the following incentives, which apply
equally to domestic and foreign investors:

-- a corporate tax rate of 35%;

-- the following tax allowances: 40% for new buildings
and machinery; up to 20% for used buildings and
machinery; 100% deduction for manufacturing company
operating expenses in 2 years prior to start of
business; and no withholding tax on dividends;

-- no import duty on raw materials for manufacturing
industry (N.B. This policy is being implemented at the
discretion of the Customs and Excise Department.
Several manufacturers have recently complained of delays
and denial of this incentive.);

-- no import duty on computer equipment and accessories;

-- tax holidays or reduced corporate tax for some new
investments; and;

-- a maximum import tariff rate of 25%.


15. Malawi offers the following special incentives for
exporters:

-- for exporters in EPZs: no corporate tax, value added
tax, or withholding tax on dividends; no import duty on
capital equipment and raw materials; and; no excise
taxes on local purchases of raw materials and packaging.

-- for industries manufacturing in bond: an
allowance of 12% of export revenues for products other
than Tobacco, tea, sugar and coffee; transport allowance
of 25% of all international transport costs; no import
duties on capital equipment; no import duties or
surtaxes on raw materials; and no excise tax on local
purchases of raw materials and packaging material.


16. The incentives in paragraphs 68 and 69 are applied
consistently. Foreign investors are generally accorded
national treatment. U.S. and other foreign firms are
able to participate in government/donor-financed and/or
subsidized-research and development programs. The
following information is required to register and
incorporate a company: name of the company, authorized
share capital, registered office, location of books of
accounts, address of the company secretary, and names of
directors and shareholders.


17. Visas do not inhibit investors, but the need for
employment permits sometimes can. Expatriate employees
(of both domestic and foreign businesses) who reside and
work in Malawi must obtain temporary employment permits
(TEPs).


18. The government issued a revised "Policy Statement
and New Guidelines for The Issuance and Renewal of
[Expatriate] Employment Permits" (one document) in
November 1998. The new guidelines state that investors
may employ expatriate personnel in areas where there is
a shortage of "suitable and qualified" Malawians. They
underscored the government's desire to make TEPs readily
available to expatriates, and mandated that processing
times for TEP applications shall not exceed 40 working
days. The 1998 policy provides for two types of TEPs:

-- those for "key posts" (defined as positions of
"strategic importance" in business operations) which are
granted for the life-span of the organization; and;

-- those for "time posts" (defined as positions with
contracts of three-year duration or less) which are
granted for three-year periods and renewable once.


19. The government issues Business Residence Permits
(BRPs) to foreign nationals who own/operate businesses
in Malawi. BRPs are issued for five-year periods and
are renewable. Permanent Residence Permits (PRPs) are
issued to foreign spouses who reside permanently in
Malawi, and to owners/operators of businesses who reside
in Malawi for periods in excess of ten years. PRP
holders cannot work as employees. Malawi's immigration
laws governing BRPs and PRPs have been revised. There
are three categories of residence permits based on
amount of investment, status of applicant (investor,
retiree, student, spouse of a Malawi citizen) and period
of business assignment. The maximum number of resident
permits per organization is five, with the actual number
allowed dependent on the amount of investment.

Right to Private Ownership and Establishment
--------------

20. The government encourages both domestic and foreign
investors to establish and own business enterprises in
most sectors of the economy. All investors have the
right to establish, acquire, and dispose of interests in
business enterprises. Public enterprises compete
equally with private entities with respect to access to
markets, credit and other business operations.

Protection of Property Rights
--------------

21. Both foreign and domestic investors have access to
Malawi's legal system, which functions fairly well,
albeit slowly. Malawi has laws that govern the
acquisition, disposition, recording and protection of
all property rights (land, buildings, etc.) as well as
intellectual property rights (copyrights, patents and
trademarks, etc.). The government has signed and
adheres to bilateral and multilateral investment
guarantee treaties and key agreements on intellectual
property rights. Malawi is a member of the convention
establishing the multilateral investment guarantee
agency, the World Intellectual Property Organization
(WIPO), the Berne Convention, and the Universal
Copyright Convention.


22. The Copyright Society of Malawi (COSOMA),
established in 1992, administers the 1989 Copyright Act
which protects copyrights and "neighboring" rights in
Malawi. The Registrar General administers the Patent
and Trademarks Act which protects industrial
intellectual property rights in Malawi. A public
registry of patents and patent licenses is kept.
Patents must be registered through an agent. Trademarks
are registered publicly following advertisement and a
period of no objection. WTO rules allow Malawi (as a
less developed country) to delay full implementation of
the Trade-Related Aspects of Intellectual Property
Rights (TRIPs) agreement until 2016. The Ministry of
Commerce and Industry (MCI) -- coordinator of WTO issues
in Malawi -- has limited capacity to effectively track
WTO developments. The MCI is working with COSOMA and the
Registrar General to align relevant domestic legislation
with the WTO TRIPs agreement with technical assistance
from the Africa Regional Intellectual Property
Organization (ARIPO).

Transparency of the Regulatory System
--------------

23. Malawi's industrial and trade reform program --
including rationalization of the tax system,
liberalization of the foreign exchange regime, and
elimination of trade and industrial licenses on several
items and businesses -- has produced written guidelines
intended to increase government use of transparent and
effective policies to foster competition. No tax,
labor, environment, health and safety or other laws
distort or impede investment. However, procedural
delays, red tape, and corrupt practices continue to
impede the business and investment approval process.
These include decision making, which is often neither
transparent nor based purely on merit, and required
land-access approvals. While market prices for goods
are generally not controlled, prices of certain other
goods -- sugar (not well enforced), maize, petroleum
products, and state-provided utilities -- are regulated.


24. There have been positive steps towards increasing
regulatory transparency and improving the foreign
investment environment. These developments include:
establishment of the National Electricity Council in
October 1998; the establishment of the Malawi
Communication Regulatory Authority (MACRA) in May 1999;
the licensing and operation of a second cellular phone
service provider in 1999; and the splitting of the
former Malawi Posts and Telecommunication Corporation
(MPTC) into the Malawi Posts Corporation (MPC) and
Malawi Telecommunications Limited (MTL) as separate
entities in May 2000. The state-owned Petroleum Control
Commission (PCC) relinquished its monopoly on petroleum
imports in May 2000, allowing the private sector to
import 80% of Malawi's fuel. PCC now has a largely
regulatory function within the petroleum sector.

Efficient Capital Markets and Portfolio Investment
-------------- --------------

25. The Reserve Bank of Malawi has pursued a tight
monetary policy since 2001. In December 2000, growth in
money supply (m2) was 42.4%. In contrast, m2 growth was
21.2% in 2001, 25.2% 2002, and 29.3% in 2003.


26. With the tighter monetary policy, headline
inflation has dropped from 33.7% in January 2001 to 9%
in May 2003. It has since crept up again, and is now
slightly above 10%. Reserve Bank discount rates remain
high at 35.0%, however, as excessive government spending
has continued to put inflationary pressure on the
economy. As of May 2004, the kwacha was trading at
approximately 109 to the dollar.


27. The private sector in Malawi has a variety of
credit instruments. Credit is generally allocated on
market terms. Foreign investors may utilize domestic
credit, but proceeds from investments made using local
resources are not remittable.


28. Malawi has a sound banking sector, overseen and
well regulated by the Reserve Bank of Malawi -- its
central bank. There are six full-service commercial
banks: First Merchant Bank Limited; Finance Bank of
Malawi; Indefinance; National Bank of Malawi (NBM);
Stanbic Bank (SB) and Loita Investment Bank. Other
financial institutions are: Investment and Development
Bank of Malawi (INDEBANK); Investment and Development
Fund of Malawi (INDEFUND); the Malawi Development
Corporation (MDC); Finance Corporation of Malawi
(Fincom); Leasing and Finance Company of Malawi (LFC);
Malawi Savings Bank (MSB); the New Building Society
(NBS); the Malawi Rural Finance Company (MRFC),
Continental Discount House, and First Discount House.


29. NBM and SB, which operate on a commercial, for-
profit basis, have dominated Malawi's commercial banking
sector for the past 30 years. As of December 2003,
these banks controlled over 80% of the market. Market
shares for the remaining banks were as follows: FMB,
6.4%; FBM, 3.8%; and Indefinance, 2.2%.


30. The structure of the Malawi banking sector changed
significantly in 2001 with the privatization of the
Stanbic Bank (SB). Standard Bank of South Africa
completed its purchase of 60% of SB in December 2001 as
part of the privatization program. The conglomerate
Press Corporation Limited (PCL), in which the government
holds a 49% stake, sold out of SB but increased its
holdings in rival National Bank of Malawi (NBM). PCL
now owns 50.1% of NBM.


31. The Companies Act, the Capital Market Development
Act (1990), and the Capital Market Development
Regulations (1992) provide the legislative and
regulatory framework for the encouragement and
facilitation of portfolio investment in Malawi. The
attendant legal, regulatory and accounting systems are
transparent and consistent with international norms.
These acts govern the Malawi Stock Exchange (MSE).


32. Stockbrokers Malawi Limited (SML) is the major
registered stockbroker in Malawi. SML ran the MSE under
a three-year contract with the RBM until April 1, 2000
when the two split to assume separate roles of a broker
and regulator, respectively. Two new brokerage firms,
Continental Discount House and First Discount House,
began operations in 2001 and 2002, respectively. The
MSE remains regulated by the Stock Exchange Commission.


33. SML runs a secondary market in government
securities, and both local and foreign investors have
equal access to the purchase of these securities. The
following eight companies are listed on the MSE: NICO,
Blantyre Hotels Limited (BHL), Sugar Corporation of
Malawi (SUCOMA), Commercial Bank of Malawi (CBM),
Packaging Industries of Malawi (PIM), Press Corporation
Limited (PCL), Old Mutual and National Bank of Malawi
(NBM). As of October 2003, 5.771 billion shares were in
issue on the MSE, and the market capitalization was MK
418.352 billion (USD 3.8 billion). Other potential
companies for listing on the SME include Bata Shoe
Company, Leopard Match Company Limited, Malawi Insurance
Brokers Limited, Manica Freight Services Limited and
Bain Hogg Insurance Limited. Malawi and other SADC
markets are taking steps to harmonize listing
requirements through the SADC stock exchange co-
operation initiative.


34. The MSE's development is still in its nascent
stage, and hostile takeovers have not yet occurred.
Apart from the restrictions under the privatization
program, the U.S. Embassy in Malawi is not aware of any
specific measures taken by private firms to restrict
foreign investment or participation. Foreign investors
tend to be the dominant shareholders in large MSE-listed
companies requiring significant technical and financial
resources. The Competition and Fair Trading Act will
not cover the day-to-day trading on the MSE, but will
regulate mergers, acquisitions, and takeovers that are
of national interest.

Political Violence
--------------

35. Malawi has been largely free of political violence
since gaining independence in 1964. Apart from the
disarming of the paramilitary group, the Malawi Young
Pioneers, incidents of violence associated with Malawi's
1994 transition to democracy were few. Sporadic
incidents of violence occurred at political rallies in
late 1998. The 1999 presidential and parliamentary
election campaigns were largely free of political
violence, but there were limited incidents of post-
election violence (primarily small-scale property
damage) in June 1999 and in by-elections in Blantyre in
June 2001. Sporadic violence in the run-up to the 2004
elections, and in the days immediately following the
elections, also occurred.


36. Incidents of labor unrest occasionally occur, but
these are usually tame affairs. Armed robberies
(including carjackings) have increased in recent years.
There are, however, no nascent insurrections,
belligerent neighbors, or other politically motivated
activities of major concern to investors.

Corruption
--------------

37. There are serious incidences/allegations of
corruption, particularly in the area of customs and
excise tax and government procurement. The Corrupt
Practices Act provides the legal framework for combating
corruption in Malawi.


38. The Anti-Corruption Bureau (ACB) is legally
mandated to investigate corruption in Malawi. Opened in
1997 and fully staffed in 1998, the ACB has thus far
brought forward one high-level case involving a former
Minister of Transport and Public Works (acquitted).
Three other former cabinet ministers were acquitted on
corruption charges which seem to have been politically
motivated. High-profile investigations led to the
arrest of nine customs officials -- including the vice
president of the Malawi Congress of Trade Unions (MCTU)
-- in December 1999, and prompted the President to
rescind a pre-shipment inspection contract in February

2000. Given the difficulty the ACB has had in getting
high-level cases prosecuted, Malawi's Law Commission
recommended in 2002 that the ACB be authorized to
prosecute cases directly, rather than through the
politically appointed Director of Public Prosecutions
(DPP). Legislation to that effect was drafted in 2003,
but was not passed due to opposition among cabinet
members. A revision to the Corrupt Practices Act,
which mandated the DPP to report to Parliament on any
cases it does not prosecute, was passed in 2004 instead.


39. Malawi subscribes to the provisions of the OECD
Convention on Combating Bribery, but is not a signatory
of the Convention. Malawi's Penal Code prohibits
bribery. Giving or receiving a bribe -- whether to or
from a Malawian or foreign official -- is a crime under
section 90 of Malawi's penal code. Accordingly, bribes
are not tax deductible.
Bilateral Investment Agreements
--------------

40. Malawi's policy is to negotiate bilateral
investment treaties with countries whose nationals opt
to invest in Malawi. The United States-Malawi Double
Taxation Agreement from the colonial period was canceled
by the United States in 1983. To date, there is neither
a bilateral investment nor a taxation treaty. There
have been no taxation issues of concern to U.S.
investors since 1996.


41. Malawi acceded to the Multilateral Investment
Guarantee Agency (MIGA) in 1985/86. Since MIGA provides
mechanisms for the settlement of investment disputes,
Malawi has not renewed several investment treaties that
lapsed after 1986. However, the United Kingdom, the
Netherlands, Denmark, South Africa, Norway, Sweden and
Switzerland still maintain Double Taxation Treaties with
Malawi.

OPIC and Other Insurance Programs
--------------

42. Malawi has had an OPIC investment guarantee
agreement since 1967. In August 1999 the U.S. Export-
Import Bank included Malawi under its new Africa Short-
term Export Credit Insurance Program. The estimated
annual U.S. Dollar value of local currency likely to be
used by the U.S. Mission is about USD 3.0 million.
Malawi operates a managed-float exchange rate system in
which the RBM buys or sells foreign exchange whenever
foreign exchange reserves deviate significantly from
targets jointly agreed upon with the IMF.


43. Foreign exchange availability in Malawi follows the
agricultural cycle and tends to be plentiful from April
through September when tobacco sales generate foreign
exchange inflows. The agricultural cycle, regional
political and economic troubles (in, for example,
Zimbabwe), and large influxes of foreign exchange from
donor countries can all influence the Dollar/Kwacha
exchange rate, which has been somewhat volatile over the
past two years. As of May 2004, the Kwacha was trading
at around 109 to the dollar.

Labor
--------------

44. The Government of Malawi estimates that more than
half of the population is of working age. Unskilled
labor is plentiful. Skilled labor is scarce.
Occupational categories with skills shortages include
accountants and related personnel; economists;
engineers; primary and secondary school teachers;
lawyers; and medical and health personnel. The
University of Malawi provides bachelors and masters
degrees in economics, engineering, medicine, education,
agriculture and administration. The Malawi College of
Accountancy teaches accounting. Chancellor College
operates the country's law school. In early 1999, the
government established the Technical, Entrepreneurial
and Vocational Education and Training (TEVET) program to
address technical skills shortages in industry.


45. The Labor Relations Act (LRA) governs labor-
relations management in Malawi. It was signed into law
in June 1996, and entered into force on December 1,

1997. The Act allows strikes and lockouts for
registered workers and employers after dispute
settlement procedures in collective agreements and
conciliation have failed. As democracy and trade union
rights have existed only since 1994, industrial
relations are still evolving. Employers, labor unions,
and government lack sufficient knowledge of their
legitimate roles in labor relations/disputes.


46. Workers have the legal right to form and join trade
unions. As of December 2003, 26 unions were registered.
Union membership is low, however, given the small
percentage of the work force in the formal sector (about
12%), the lack of awareness of worker rights and
benefits, and a resistance on the part of many employees
to join unions. Only 13% of people employed in the
formal sector belong to unions. Unions may form or join
federations, and have the right to affiliate with and
participate in the affairs of international workers'
organizations. While the government is a signatory to
the ILO Convention protecting worker rights, mechanisms
for enforcing the provisions of the convention are weak.
There are serious manpower shortages at the Ministry of
Labor, resulting in almost no labor-standards
inspections.

Foreign Trade Zones/Free Ports
--------------

47. Legislation for the establishment of export
processing zones (EPZs) came into force in December

1995. All companies engaged exclusively in manufacture
for export may apply for EPZ status. As of June 2004,
Malawi had approved 21 firms for EPZ status, of which 17
were operational and four had closed operations. A
manufacturing under bond (MUB) scheme offers slightly
less attractive incentives to companies that export
some, but not all, of their manufactures. (See
paragraph 69.)

Foreign Direct Investment Statistics
--------------

48. The RBM maintains records on the value and
composition of foreign direct investment in Malawi. The
U.S. Dollar value (in current dollars) of total annual
FDI for the 1994 to 2002 time period follows:

Year Value (USD) Sector(s) (Country of Origin)
1994 426,000 Agriculture (United Kingdom)

1995 4,354,041 Banking (Zambia), Agriculture
(Switzerland), Property (Malta),
Other (UK, Republic of South Africa
- RSA), Garments (RSA)

1996 14,075,234 Agriculture (UK), Telecoms
(Malaysia), Health (Malta), Garments
(RSA), Other (USA)

1997 5,734,982 Manufacturing (RSA), Other (USA, UK)

1998 139,883 Textiles (RSA), Chemicals (RSA),
Computers (UK)

1999 95,059,000 Finance Services (USA, UK),
Manufacturing (USA, RSA, Zimbabwe),
Distribution (UK), Communication
(Netherlands)

2000 45,220,000 Retail (UK, France), Manufacturing
(UK, RSA), Health (RSA),
Finance/Share Capital (USA)

2001 33,300,000 Manufacturing (UK, South Korea)

2002 55,573,833 Telecoms, Manufacturing,
Communications, Agriculture,
Tourism, Mining, Construction
(Taiwan, Pakistan, Netherlands, RSA,
United States, Uganda, South Africa,
India, Germany, China, Pakistan)

Source: Reserve Bank of Malawi

N.B. The Reserve Bank cautions that these figures may
under-represent the actual amounts of foreign direct
investment.


DOUGHERTY