Opportunity to process fruit for guaranteed local market, Malawi

Posted by Staff Writer on Thursday, February 25, 2010 at 8:44pm.

There is an opportunity to establish a fruit juice concentrate processing plant to cut back on imports that currently form the bulk of juices sold in Malawi.

Malawi’s excellent climate favours the growing of a wide range of fruits including pineapples, tangerines, mangoes, bananas and avocados. However, there is limited fruit concentrate processing, leaving large volumes of these crops to waste during their respective harvest seasons.

The existing small-scale local companies process a very limited amount of fruit juice, and consequently, the bulk of juices retailed are made from imported fruit juice concentrate.

Investment opportunities

1) Fruit juice concentrate processing plant in the southern region of Malawi

2) Fruit processing: Jams, dried fruit and canned fruit

3) Partnerships with international fair trade businesses, specialising in small-holder grown tropical fruit products

4) The country has not also fully exploited the production of fruits under irrigation, and of the 400,000 hectares of land suitable for irrigation, only 14,000 hectares is under small-holder farmer irrigation and 48,000 under estate irrigation.

Market: There is an existing domestic market and potential for export.

Incentives: These are general and include 100% investment allowance on qualifying expenditure for new buildings and machinery, 50% allowance for qualifying training costs and allowance for manufacturing companies to deduct all operating expenses incurred up to 25 months prior to start of business. Potential investors however have access to additional horticulture sector specific incentives.

For more information on this opportunity and sector specific incentives contact the Malawi Investment Promotion Agency (MIPA).

Contact person: Noel G. Lihiku
Planning and Research Manager