The Malawi Investment and Trade Centre (MITC) is planning to establish Nkhotakota as a Japanese model city following successful negotiations of a $5 billion Chinese investment deal for Chipoka in Salima District, Director General Kruger Phiri has revealed.
Speaking in an interview, Phiri disclosed that MITC has secured commitments from Chinese investors totalling $5 billion spread over five years, with expectations of $1 billion flowing into the country annually starting this year.
This follows a recent MITC trade mission to Changsha, the capital of Hunan province, where Phiri addressed 300 Chinese business leaders who are interested in investing in Malawi.
“We are creating purpose-driven cities. Chipoka will become an industrial home for Malawi, where Chinese investors will build skyscrapers, industrial parks and all necessary infrastructure,” Phiri said.
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The Chinese model city concept aims to substitute imports with locally manufactured goods while boosting exports, ultimately addressing Malawi’s persistent foreign exchange challenges and improving the balance of payment.
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Following the Chinese success, MITC is now targeting Japanese investors with plans to replicate the model city concept in Nkhotakota.
Phiri said a Malawi-Japan investment forum, scheduled for June 19 this year, would showcase opportunities to potential Japanese investors, with Industry and Trade Minister Vitumbiko Mumba leading the delegation. “We want to showcase Nkhotakota as a Japanese model city, mirroring what we have done with the Chipoka model city. Both locations offer strategic advantages including transport connectivity and proximity to Lake Malawi,” Phiri said.
The dual investment strategy forms part of MITC’s broader vision to transform Malawi’s economic landscape through targeted foreign direct investment in designated secondary cities, moving away from the traditional scattered approach to industrial development.
The model cities initiative represents a significant shift from conventional industrial park development, with MITC positioning itself as the primary gateway for investment through its one-stop shop services covering immigration, land acquisition and regulatory compliance.
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Both model cities are expected to drive import substitution, create employment opportunities and contribute to Malawi’s goal of achieving middle-income status by increasing gross domestic product per capita beyond the current $600 threshold.
