GSB in Malawi
GSB Malawi Overview
The GSB Malawi programme was introduced to Malawi in February 2007 and will run for an initial period of nine months. The programme is distinct from GSB programmes inneighboring countries as for the first time the programme has been placed directly in a government investment promotion agency. The strategic placement of GSB at the Malawi Investment Promotion Agency (MIPA) not only enables the programme to leverage MIPA’s resources and support in attracting pro-poor investment to the country, but also ensures the sustainability of the programme through knowledge transfer and on-the-job-training.S
The GSB Malawi programme consists of two components:
- Facilitating pro-poor investment to the country.
The GSB Broker, Jan Willem van den Broek, is responsible for identifying pro-poor investment opportunities, developing innovative business models, brokering partnerships between key stakeholders, and marketing projects to both local and international investors.
- Building capacity at the Malawi Investment Promotion Agency (MIPA) to attract, facilitate and promote investment in the country.
In addition to the GSB Broker, GSB Project Development Analyst, Agnes Martha Wierzbicki, and GSB Business Development Analyst, Lolita Francesca B. Belandres offer their assistance to the GSB Broker in his activities and improving MIPA’s investment resources and outreach activities.
Active Projects
Bringing ICT to rural areas
Bringing ICT and associated services to the rural areas increases the availability of information, generates more income and reduces market distortions. It also saves time and money by substituting physical travel and postal service, increases productivity through more coordinated systems, and reduces pricing arbitrage of goods and services.
Celtel, one of the two mobile network providers in Malawi, is planning to introduce kiosks to rural areas. These kiosks will offer not only pay phone services to the poor, but a host of other services made available through General Packet Radio Service (GPRS) technology.
The kiosks will operate as independent business outlets. GSB is designing a small business loan scheme to provide the kiosk owner with the initial start-up capital that s/he will need in order to lease the kiosk and equipment. This scheme will not only promote and facilitate small businesses in rural areas, but will also allow Celtel to roll-out its kiosks quicker, once the initial pilot proves a success. Furthermore, GSB is helping Celtel to identify additional value-added services that the kiosk owner can offer to its clients. Download project brief
Cassava processing facility
The Warm Heart Food Company seeks US$4.3 million in financing for the construction of a modern cassava starch production facility in Lilongwe. The facility will extract high-quality starch from locally-produced cassava tubers which will be sold locally, regionally and internationally. The current project plan foresees the involvement of local smallholder farmers to supply cassava to the facility. It is estimated that the production facility (once running at full capacity) will assist 11,000 smallholder farmers, thereby creating additional revenues of anywhere from US$ 800 to US$ 1,200 per hectare per year. As soon as the first facility is successful, the company foresees the establishment of another nine factories in the region. Download project brief
Fish processing facility
Maldeco, a subsidiary of Press Corporation involved in commercial cage fish farming on Lake Malawi, seeks a joint venture partner for the construction of a fish processing facility in Mangochi. The facility will cost an estimated US$5 million, of which Press Corporation expects to contribute US$2.5 million. The fish processing facility will produce a high-quality chambo fish fillets which will be sold locally and exported throughout the region. In is expected that the production facility will stimulate commercial fish farming activities among the communities along Lake Malawi. Press Cooperation is therefore also interested in researching and implementing a model that will equip communities with fish cages, high quality fingerlings and fish feed, thereby creating enough revenue for these communities to have a sustainable business. Download project brief
Markets for Mzuzu Coffee
GSB is helping Mzuzu Coffee Planters Cooperative Union, in northern Malawi, to find new export markets for its specialty coffee. The cooperative, composed of over 3,500 smallholder farmers, not only exports green beans, but also roasts and brands the coffee under the “Mzuzu” name. Roasted Mzuzu coffee won the 2005 USAID-sponsored Malawi cupping competition and since then Mzuzu coffee has been showcased at numerous international cupping competitions. It is hoped that the successful Mzuzu smallholder farmer coffee model can be replicated in other parts of the country. Download project brief
SuperBlu stove production facility
BluWave seeks US$ 800.000 in financing for the set up a “SuperBlu” ethanol cook stove production facility in Malawi, which can be sold locally, regionally and internationally. This ethanol stove was developed by the founders of BluWave, who recognized that there is significant market potential for the application of ethanol in households in Malawi as a replacement of firewood. Based on this assumption, over the last four years BluWave has developed, tested and prototyped an ethanol based cook stove in close cooperation with the University of Vienna. The current model is efficient, robust, fulfils all safety standards and can be produced locally.
When successful, this project will support the development of a local renewable energy industry in Malawi and the wider utilization of locally produced ethanol as alternative to charcoal, firewood and paraffin. With 100,000 households in Malawi using the ethanol stoves, 720,000 tons of carbon is abated and 21,300 hectares of trees are saved annually. Furthermore this will lead to reduced GHG emissions and deforestation, enhanced carbon sinks, and declined exposure to carbon monoxide, soot and other household pollutants. Download project brief
