emphasised that there are natural synergies and
complementarities between the two economies
and there is need to tap them for mutual benefi t
and suggested that Indian companies could form
partnerships in Malawi for the domestic economy
and for the wider Southern African Development
Community (SADC) and Common Market for
Eastern and Southern Africa (COMESA). Such
partnerships would result in a win-win outcome
for both sides.
India is Malawi’s third biggest trading
partner and exports pharmaceuticals, electrical
machinery, iron and steel pipes & sheets,
mechanical appliances, printed books & products,
and commercial vehicles to Malawi. Malawi
mainly exports Pigeon Peas and other agricultural
products like sugar, tea, coff ee, etc. to India. The
total bilateral trade was US$ 216.05 million in
2017-18, but, Malawi being landlocked with an
open border as a SADC member country, the
actual trade is estimated to be much higher.
Since 2008, the Government of India has
extended Lines of Credit (LOC) of around US$
156.5m for projects like the Salima Sugar Factory;
60 million litre Fuel Reserve Facilities; Cotton
Ginneries; Dal Processing Plants, etc. Currently,
India is executing the US$ 23.5m LOC Blantyre
Water Project which is expected to be completed
by June 2019. In addition, India has given a Grant
of US$ 5 million in 2010 in the form of laboratory
and medical equipment, tractors and agricultural
equipment and donated US$ 2m as disaster
relief. An LOC of US$ 10m for an International
Convention Centre in Blantyre city has been
converted to a Grant project. During his recent
visit, the Hon’ble Vice President announced an
LOC of US$ 215m for 18 water projects in Malawi
and gifted medicines, cancer treatment equipment,
ambulances, books, artifi cial limbs, etc.
While official figures for investments by
Indian companies are not available, it is estimated
that around US$ 500 m have been invested in
Malawi. As per an offi cial document released in
April 2018, Indian private capital has a share of 19
percent and is the largest single contributor in the
Malawi economy, with China being at 12 percent,
Africa as a whole contributing 21 percent and the
rest of the world at 48 percent. As per the report,
Indian investment is also the largest contributor
to the creation of private sector jobs in Malawi.
There are more than 15 Indian companies present,
either directly or through authorised dealers, in
Malawi like Tata, Ashok Leyland, Bharti Airtel,
Bajaj Auto, TVS, Atul Auto, Eicher, Mahindra,
Kirloskar generators, Escorts, Godrej, Su Kam
inverters, Shakti Pumps, Sonalika Tractors,
etc. Some Indian companies are involved in
road infrastructure projects as consultants and
Larsen & Toubro & Kalpataru are involved in
the upgradation of electrical infrastructure under
a US funded project in Malawi.
There is scope for enhancing trade and for
investments in the fi elds of mining of coal and rare
earth minerals, equipment manufacture, information
technology, auto parts, transport, pharmaceuticals,
defence production, agriculture, irrigation, food
processing, health, education, power generation,
especially renewable energy including solar. The
SMEs sector in India has been growing and been
active in frugal innovation in recent years and
SMEs in both countries could form collaborative
partnerships in areas of mutual interest.
The strong developmental, economic and
commercial ties have created a constituency of
trust and friendship between India and Malawi.
Malawi has been supportive of India’s position on
the expansion of the UN and conveyed support
to the G4 initiative for expansion of the UNSC
but it would abide by the decision taken by the
African Union with regard to the UN reforms.
Malawi was among the early signatories of, and
ratifi ed, the International Solar Alliance (ISA)
Framework Agreement in November 2017. The
Minister for Natural Resources, Energy and
Mining, Hon. Aggrey Masi, represented Malawi
at the ISA Founding Conference on 11 March
2018 in New Delhi.
India and Malawi have built a stable
developmental, economic and strategic
partnership which ensures that mutual interests
are safeguarded and both countries are on
the same page on major international and
multilateral issues including in achieving the
Sustainable Development Goals (SDGs). For
India, Malawi is an integral component of its
extended neighbourhood and the enhanced
partnership with Malawi, under the overall thrust
towards Africa, is a link in the chain that India
should endeavour to build, to ensure sustainable
development and security, including maritime
security, in the region.
* The author is former Indian Ambassador to
Madagascar and Comoros
2019 • INDIA-MALAWI • 9