Investment Opportunity: Forestry & paper

Malawi's construction industry is currently experiencing a boom which has made investment in commercial forests a profitable venture. But current production doesn't meet demand in the local and foreign markets, hence the invitation to exploit commercial potential.

Overview: Malawi has large plantations of pinus patula which the Government offers as a concession for investment. Concessions and logging agreements have been issued to some private companies for about 20,000 out of around 53,000 hectares of commercial forest in Malawi.

The commercial potential of Malawi's large forest plantations such as Viphya Plateau (Lusangazi, Chikangawa), Nyika Plateau, Dedza, Mulanje Mountains and Zomba Plateau has therefore not been fully exploited.

Investment opportunities exist in the following areas:

Tree Seedling Production is a vibrant economic activity practiced by both small and large scale entrepreneurs. Currently the government is the largest buyer of seedlings.

Wood processing: The Department of Forestry offers concessions for 25-30,000 woodlots. Malawi timber is in high demand in the international markets as well as in the booming local construction, making wood processing a very profitable venture.

Furniture Manufacturing: Furniture manufacturing is a growing industry in Malawi, particularly in urban areas where there is a population explosion as people migrate from rural areas. Further investment is required in furniture manufacturing in order to make this manufacturing sub-sector competitive in the international market.

Rubber Processing: Malawi has rubber trees for the production of latex rubber at the rate of 1,300 tonnes per annum. 10% of the total tonnage is used locally for tyre re-treading, paint and mattress manufacturing. An opportunity exists to invest in rubber down stream industries for the production of shoes, bags, mats and motor vehicle products for local and regional markets.

Contact the Malawi Investment Promotion Agency (MIPA) for further information on forestry investment opportunities.

For more information: http://www.tradeinvestafrica.com/investment_opportunities/885226.htm