India-Malawi India-Malawi 2019 | Page 32

This is being championed by the Ministry of Industry and Trade (MoIT), through MITC. So far, MITC intends to develop several areas into SEZs and these include; the Agro-processing Special Economic Zone (AP-SEZ), possibly along Zalewa, an Industrial Park at Chigumula Blantyre where 27.3 ha of land has already been set aside for this purpose, an Industrial Park in Lilongwe and another at Chintheche, Nkhata-Bay. With support from the Enhanced Integrated Framework (EIF) project, the institution (MITC) is at an advanced stage in the procurement of a consultant to conduct a feasibility study and develop a roadmap for the establishment of an AP-SEZ. Export Processing Zones The Export Processing Zones (EPZs) regime was established to attract export-orientated industries, by offering them especially favourable investment incentives as compared to the remainder of the manufacturing sector in the country. The Export Processing Zones Act came into force in 1995. All companies engaged exclusively in manufacturing for export may 32 • INDIA-MALAWI • 2019 apply for EPZ status, as Government accords EPZ status only to fi rms (foreign or domestic) that produce exclusively for export. There are no specifi c zones dedicated to export processing in Malawi, rather it is fi rms which are designated the status of EPZs and are located in areas of choice and convenience to the investor. The Ministry of Industry and Trade administers the Export Processing Zones Regime in Malawi assisted by the EPZ Monitoring and Evaluation Committee as stipulated in the Act. An Export Enterprise Certifi cate is valid for a period of fi ve years and may, thereafter, be renewed for successive periods of two years and companies can choose to graduate or not from the scheme. The law requires all exporters to repatriate back to Malawi 100 percent of export proceeds and register the same with the Reserve Bank of Malawi within 6 months of export. Traditional industries such as tobacco, tea, coff ee, and cotton are excluded from the EPZ Regime. Currently, the fi rms operating under the EPZ status are in three categories of export products namely, (a) natural rubber and wood products; (b) macadamia and coff ee; and (c) textile.