MITC-XISE US$5bn investment deal excites investors, economists

Lilongwe, June 01, Mana: Malawian investors and economists have described the US$5 billion investment deal that the Malawi Investment and Trade Centre (MITC) has clinched with Chinese firms for a Special Economic Zone (SEZ) at Chipoka, Salima, as "game changer" that will turn Malawi into a regional hub for trade and manufacturing.

MITC announced recently that the Centre's Chief Executive Officer (CEO), Kruger Phiri, successfully pitched the ambitious investment deal at high-profile Xidian International Stock Exchange (XISE) forum in Changsha, Hunan Province, in China, attracting eight Chinese firms to finance the project.

According to the statement that MITC released recently, the eight Chinese companies formalized cooperation agreements to participate in Chipoka’s development.

"Leading the charge is Liaoning Jingmao Quantum Technology Company Limited, pledging a US$520 million investment in infrastructure, pharmaceuticals, and mining—with execution starting as early as June 2025. Meanwhile, Kings Group committed US$100 million to establish a state-of-the-art fertilizer plant, further anchoring Malawi’s agri-industrial ambitions," the statement read in part.

It further said other than spotlighting Malawi on the global map, XISE has paved way for strategic alliances that could redefine the country’s economic landscape.

Malawian investor based in the US, Michael Matengula, and UK based Malawian economist, Velli Nyirongo, have since expressed their excitement about the deal, saying it will, among others, "reshape" Malawi's tourism economy when it materializes.

"As an investor with a keen interest in emerging markets, I am both impressed and inspired by the bold steps Malawi is taking to position itself as a competitive destination for global capital," Matengula, who is CEO for Sharp Valley Holdings LLC - US, told Malawi News Agency (MANA) through an emailed questionnaire.

"The US$5 billion investment agreement signed at the XISE forum is not just a financial milestone: it is a visionary leap towards economic transformation," he added.

He further described the deal as a game-changer, and that it signals Malawi's readiness to engage with the world on a new level, one that is strategic, forward-looking, and rooted in sustainable development.

According to Matengula, the commitment from Chinese partners, especially in infrastructure, pharmaceuticals, and agri-industrial sectors, reflects confidence in Malawi's potential and governance.

He further noted that the investment initiative aligns "seamlessly" with the Malawi 2063, with potential to revolutionize Malawi's economy by diversifying its industrial base, enhancing export capacity, and attracting further foreign direct investment.

Similarly, the UK based Malawian economist, Velli Nyirongo, told MANA via a WhatsApp questionnaire that the deal will provide the "much-needed boost" to the economy through increased capital inflows, job creation, and the rapid growth of both industry and infrastructure.

Nyirongo, who is a consultant and global lead for an organization called Centre for Green Economy in Developing Countries, said the phased nature of the investment, starting with significant early funding, shows strong confidence in Malawi’s potential to become a regional hub for trade and manufacturing.

"This agreement stands out as a milestone in Malawi’s economic history: It shifts the country from diplomatic talks to concrete financial commitments and strong international partnerships.

"The involvement of eight Chinese companies reflects a well-rounded approach to industrialization and value addition, which Malawi urgently needs," said Nyirongo.

He further noted that the deal supports Malawi’s vision of developing secondary cities and that, moving forward, the country should use the existing partnership to drive other key projects, such as further development of the Chipoka area, the Shire-Zambezi Waterway, Cape Maclear, and other strategic locations that, when transformed, can give Malawi a strategic competitive advantage in trade and tourism.

Nyirongo continued that beyond short-term economic benefits, the partnership raises Malawi’s profile on the global investment stage, and he hoped that it will encourage technology transfer, and pave way for more alliances that reshape the economy.

"More than just a financial deal, this agreement is a springboard for Malawi’s long-term growth and a step in the right direction towards deeper integration into global value chains," he added.

Nyirongo's remarks echo MITC CEO's sentiments in the recent statement, which summed the US$5 billion Chipoka investment deal as being about “not just about signing deals,” but about "reshaping Malawi’s future through innovation, infrastructure, and industrial transformation.”