Expectations are high that construction of the first of Special Economic Zones (SEZ) and a dry port, will commence soon in Area 55 in Lilongwe following the signing of a development agreement between the government and Arise Integrated Industrial Platforms (ARISE IIP).
A statement published by ARISE indicates that the agreement, in line with ARISE IIP’s ambition to unlock Africa’s industrial potential, will support the government in advancing the country’s long-term vision of becoming an inclusively wealthy and self-reliant industrialised upper-middle income country by 2063.
“With an investment of approximately $150 million (about K255 billion) in infrastructure development and in partnership with Afrexim bank, the Special Economic Zone (SEZ) and the dry port will aim to stimulate and attract multi-sector investments, both industrial and commercial, in the country and offers logistic services and inland container depot services to enterprises in Malawi.
“It will seek to promote the local processing of raw materials into high value-added finished products, with an emphasis on agricultural products and inputs. Arise IIP will oversee the majority of the project, holding a 65 percent stake, while the remaining 35 percent will be shared by the Malawi government and local investors,” the statement reads.
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In an interview, Thursday, Minister of Trade and Industry Sosten Gwengwe confirmed the development saying Afrexim bank has provided the resources to ARISE and commencement of the project is expected once the developer mobilizes.
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“This collaboration with Arise Integrated Industrial Platforms (Arise IIP) represents a significant opportunity to boost trade, investment, and job creation in the country. Given Arise IIP’s proven success in developing major projects across Africa, we look forward to seeing the positive impact of our joint efforts,” Gwengwe said.
Founder and CEO of Arise IIP Gagan Gupta said it is a great honour to partner with the government of Malawi for the establishment of an Integrated Industrial Platform and a dry port in the country.
“Leveraging our experience as developers and operators of industrial ecosystems across the African continent, we are committed to supporting the Malawian Government’s initiatives for national development,” Gupta said.
Construction work is scheduled to begin in 2024 with the zone expected to become operational from 2026. The project is set to create approximately a minimum of 132,000 direct jobs and over 26,000 indirect jobs.
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Arise IIP has been expanding its footprint in Africa, with 12 integrated industrial zones accelerating the continent’s industrialisation.
For example, in Benin, Arise IIP manages the Glo-Djigbé Industrial Zone dedicated to the local processing of agricultural raw materials such as cotton, cashew nuts, pineapples, shea nuts, and soya with the aim of creating flourishing value chains ranging from the supply of raw materials to the processing of resources and the export of finished products.
The industrial zone is expected to create more than 300,000 direct jobs by 2030.
