Afreximbank, Partners Arise IIP, Malawi, Initiates Construction of "Magwero Industrial Park" in Lilongwe

…an Integrated Industrial Park Set to Accelerate the Country's Industrialization

Afreximbank, the leading financial partner of ARISE IIP, will finance the project to a tune of USD 300 million.

Left – Right: Prof. Benedict Okey Oramah, President and Chairman Board of Directors of Afreximbank, His Excellency Dr. Lazarus McCarthy Chakwera, President of the Republic of Malawi, First Lady of Malawi, Madame Monica Chakwera and President-Founder of ARISE IIP, Mr. Gagan Gupta during the official commissioning of the groundbreaking of the Malawi “Magwero” Industrial Park

His Excellency, Dr. Lazarus McCarthy Chakwera, President of the Republic of Malawi, President and Chairman Board of Directors of Afreximbank, Prof. Benedict Okey Oramah and the President-Founder of ARISE Integrated Industrial Platforms (ARISE IIP), a pan-African developer and operator of world-class industrial ecosystems, Mr. Gagan Gupta, have unveiled the Malawi "Magwero Industrial Park" an integrated industrial park located 10 km from the capital, Lilongwe. This high-level ceremony was attended by over 5,000 guests, including numerous international and national project partners as well as local communities.

The ceremony follows the framework contract signed on June 19, 2023, between the Republic of Malawi, represented by the Malawi Export Development Fund, and ARISE IIP for the development of an integrated industrial park around Lilongwe under a public-private partnership. Afreximbank, the leading financial partner of ARISE IIP, will finance the project to a tune of USD 300 million.

Designed to expedite Malawi's industrialization process through two pillars, diversification of its economy and valorization of its natural resources, the industrial park is set to host industrial units from various sectors, including:

• Local processing of agricultural products such as soybeans, cotton, tomatoes, maize, peanuts, and retail food products.

• Manufacturing industry, featuring production units for glass, construction materials, lighting products such as LED accessories, plywood, and paper production.

Spanning 417 hectares, the industrial park enjoys a strategic location,  about 10 km from Kamuzu International Airport and Malawi’s capital, as well as being in close proximity to the Malawian railway network.

It will comprise an industrial zone, logistics warehouses, a residential area, an Internal Container Depot Terminal (ICDT), and "Plug and Play" infrastructure, offering ready-to-use hangars for small and medium-sized enterprises.

His Excellency, Dr. Lazarus McCarthy Chakwera, President of the Republic of Malawi, commented: “In fostering economic development through industrialisation, we have officially commenced construction of the first special economic zone in Malawi with assistance from Afreximbank and ARISE Integrated Industrial Platforms”. He added that Magwero Industrial Park Project will have state-of-art infrastructure to host and support a wide range of functions across multi-industry value chains in manufacturing, packaging, research and innovation, logistics and storage, and dry port services before the commodities are exported.

Prof. Benedict Okey Oramah, President and Chairman of Board of Directors, Afreximbank, emphasized the project’s significant potential to contribute to the development and diversification of Malawi’s economy: “We expect the Magwero Industrial Park to generate at least 15,000 jobs for Malawians, US$600 million in annual export revenues, and about US$600 million in foreign direct investment flows. This will significantly boost the economy of Malawi and improve the quality of life of its citizens while also positioning the country as an active and dominant player in the emerging single Continental market.” He added that ‘strong Political Will and Leadership backed by African capital and innovation represent a powerful force that will drive positive economic transformation.’

Mr. Gagan Gupta, President-Founder of ARISE IIP, expressed: "We are immensely proud of this new partnership with the Government of Malawi. The Magwero Industrial Park is more than just an economic zone, it is a particularly impactful project for Malawi and aims to catalyze investments and local job creation. This enduring partnership taking shape today with the Republic of Malawi aims to catalyze industrialization in the country by creating industrial value chains supported by international investors."

June 03, 2024