The Ministry of Trade has said Special Economic Zones (SEZs) have proven to be effective in attracting foreign investment, promoting exports, and creating jobs in many countries.
Secretary for Trade and Industry Christina Zakeyo was speaking in Lilongwe during the validation of SEZ regulations.
Developing regulations for the SEZs is crucial to attract investment, and promote economic growth by outlining specific investment incentives offered to businesses operating within SEZs, such as tax exemptions, subsidies, and streamlined regulations.
“The SEZs regulations aim to provide a clear and transparent framework for the establishment and operation of SEZs.
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“The regulations will also provide for the efficient and effective management of SEZs, including the provision of infrastructure, utilities, and services,” she said.
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According to Zakeyo, the regulations would help the country realise the key benefits of SEZs such as job creation both directly and indirectly.
“Export growth which can help to diversify the economy and reduce dependence on imports. Economic diversification by attracting industries that are new to the country or region,” she said.
The SEZs regulations cover a range of issues, including the definition and scope of SEZs, the establishment and management of SEZs, investment incentives, and regulatory framework.
“This validation workshop must confirm and ensure that the regulations are transparent, predictable, and easy to understand to ensure fairness and far-reaching accessibility. This meeting must also ensure that the regulations are competitive with those of other countries and regions in the context of regional economic integration.
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“The flexibility and adaptability of the regulation is also very critical due to continuously and rapidly changing economic conditions and investor needs locally, regionally and globally,” Zakeyo said.
The validation was conducted with support from the United Nations Economic Commission for Africa.
UN Head of Resident Coordinator’s Office Mickelle Hughes said the regulations are crucial in promoting investment in Malawi.
Malawi Investment and Trade Centre (MITC) will be the authority for the SEZs.
MITC acting Head of Trade Promotion and Trade Facilitation Lovemore Ndege said the regulations are crucial in guiding the process of managing the SEZs.
Ndege said the regulations have been developed to support the SEZ Act which was assented to in January 2024 and brought into force in March 2024.
“This Act allows provision of more liberal economic laws than those that are prevailing in the country,” he said.
Currently, Malawi is in the process of developing four industrial parks in Blantyre, Lilongwe and Mzuzu.
