H. E. Dr.(Mrs) Chrissie Chawanje Mughogho
ANA. Malawi is a small country of about 14 million people. It is often referred to as the "Warm Heart of Africa" due to the warmth and friendliness of the people. Excellency, tell our readers about the people, culture and the kind of government in your country.
Her Excellency: Yes, Malawi is an African country having a population of about 14 million people. My country is well known as the “Warm Heart of Africa” because Malawians are friendly people full of genuine smiles and sense of humour that originate from their peaceful minds and hearts. They have a unique culture of expressing warmth and friendliness to foreigners who come to visit the country. You would certainly expect this warmth from a nation that lives peacefully with her neighbours and has never waged any war with any country since her independence from Britain on 6 July 1964. Malawians cherish democratic values, as such we have a democratically elected Government with His Excellency Ngwazi Prof. Bingu wa Mutharika as President of the Republic of Malawi. The three arms of Government namely, the Executive, Judiciary and Legislature are operating with full independence in upholding the rule of law.
Malawians stem from a number of peaceful ethnic groups whose culture is marked by a wide range of dances, music, customs, handicrafts and carvings. We have several monuments, historical sites and archaeological sites throughout the country. One unique place where visitors can learn more about Malawi’s culture is Chongoni Center of Culture and Art situated at Mua in Dedza District. This center has some of the best carvings in the world, some of which are found in the Vatican and other leading museums. I would like to take this opportunity to invite Indian tourists to visit Malawi and experience the rich cultural heritage and the warm hospitality of the vibrant people of Malawi.
ANA: Is it right to say that relations between India and Malawi have been cordial and there are no major differences on issues of bilateral, regional or global significance? If yes, what are the reasons for this in your assessment?
Her Excellency: You are indeed right to say that relations between Malawi and India are cordial. These good relations date back to time of independence from the colonialists. In 1983, the Late His Excellency Dr. Hastings Kamuzu Banda, Former President of the Republic of Malawi paid an official visit to India in order to cement the bilateral ties. This was cordially reciprocated by the official visit to Malawi by the Late Hon. Mrs Indira Gandhi, then Minister of Information and Broadcasting who came to represent the Indian Government in Malawi’s first independence celebrations in 1964. This was later followed by the working visit to Malawi by Hon. Samrendra Kundu, former Minister of State for External Affairs in 1979. If you look back you will notice that India had a resident diplomatic Mission in Lilongwe, the capital city of Malawi but was moved to Lusaka, Zambia in May, 1993 but I am glad to inform you that the Government of India is planning to re-open its resident Mission in Malawi soon. Malawi opened a resident diplomatic Mission in New Delhi in February 2007 as a way of consolidating the good relations that already existed. Since then, bilateral relations between the two countries are growing from strength to strength
You may note that high profile dignitaries have been exchanging visits between the two countries. For example, in January 2010, Honourable Hamid Ansari, Vice President of India visited Malawi and our Chief Justice and Speaker of Parliament have also visited India recently. The bilateral relations have grown from strength to strength reaching greater heights marked by the State Visit to New Delhi by His Excellency the President of Malawi from 2 to 6 November 2010. During the State Visit Malawi and India signed several MOUs to partner in the fields of health, agriculture and rural development. Malawi supported India in her bid for the United Nations Security Council non-permanent seat, and we are now supporting India’s bid for the permanent seat in the UNSC. India is a true friend of Africa as indicated in its support for the African Union development agenda.
ANA: Malawi was one of the few countries that supported India’s nuclear tests in 1998. It is now a nuclear power in its own right and is poised to enter the Nuclear Suppliers Group (NSG) even though it is not a signatory to the NPT. Excellency, do you see this as a vindication of your support to India?
Her Excellency: Indeed Malawi was one of a few countries that supported India’s position on the issue in 1998 and we are happy that India is now a nuclear power in its own right.
ANA: India is today an upcoming country that has a focused Africa policy. Excellency, where does Malawi fit into this and what are the measures that your government is taking to enhance bilateral ties?
Her Excellency: As you may be aware, Malawi was Chair of the African Union in the year 2010 and has just handed over the Chairmanship of the African Union to Equatorial Guinea. During Malawi’s tenure as chair of the African Union, there has been exchange of knowledge and expertise between Africa and India in the fields of science, technology and trade. Malawi is an ardent participant of the Africa-India Forum Summits that have taken place, and we encourage the Government of India to continue organizing such fora to promote dialogue between Africa and India. Malawi is one of the beneficiaries of the various opportunities offered by the Government of India, through the Africa-India fora relationship.
ANA: The total trade between the two countries is less than US$ 200 million. Excellency, do you think this represents the true potential? If not, what are the initiatives that are being taken or planned to further improve economic and trade cooperation? We would also like you to indicate the potential areas where trade and economic cooperation can be enhanced.
Her Excellency: Malawi and India have been partners in trade for a very long time. Malawi, just like India, is an agricultural country. Therefore, most of Malawi’s exports to India have largely been agricultural commodities like pulses, particularly, thoor dhal (pigeon peas). Although India grows pulses in large quantities, it still imports pulses from other countries such as Malawi. Pulses account for about 60 percent of Malawi’s exports to India. Over the years bilateral trade between the two countries has mostly been in favour of India.
However, the bilateral trade between India and Malawi, increased by almost 100 percent from 2008-2009 to 2009-2010. Imports from Malawi to India showed a remarkable growth during this period, increasing from US$47 million in 2008-09 to US$103.76 in the year 2009-10, showing a trade imbalance in favour of Malawi. The main explanation for this is the Duty Free Tariff Preference Scheme (DFTP) extended by the Indian Government to developing countries. Malawi, as one of the developing countries took advantage of this window. As I said, the President of Malawi, His Excellency Ngwazi Professor Bingu wa Mutharika, paid a State Visit to India in November last year. He and the Prime Minister of India, Dr. Manmohan Singh held fruitful bilateral discussions. They agreed to increase trade between the two countries to US$ 300 million by 2013. From all indications this target will be achieved. My mission as High Commissioner is to collaborate with relevant sectors both in India and in Malawi to ensure that we attain this target, if not surpassing it. We are sensitizing our exporters about the huge potential market in India of not only pulses but also other products.
With regard to potential areas for further economic cooperation, Malawi is keen to access appropriate technology from India for enhancement and development of Small and Medium Enterprises (SMEs); we would also like our two countries to enhance trade and investment, and in our pursuit to do this we are in the process of signing a bilateral Investment Promotion and Protection Agreement (IPPA). We would also like the two governments to sign a Double Taxation Avoidance Agreement.
ANA: A related question is the prevailing investment climate in your country. You are aware Indian companies are venturing globally to set up new establishments. They go to places which offer good incentives for investment. What are the incentives that could drive Indian investments into Malawi? And is there sufficient awareness about these in India?
Her Excellency: Regarding investment climate in Malawi, you will be delighted to know that Malawi is one of the few peaceful countries in Africa and indeed in the world. Malawi has again this year been rated on the Global Peace Index (GPI) as the second most peaceful country in Africa after Botswana. In 2009, Malawi was rated the second after Botswana by the Institute for Economics and Peace, a research center that looks at the relationship between economics and peace. This is a clear testimony that Malawi is an ideal place where one can invest money without getting worried about security. Malawi’s economy has been stable and continues to grow at an average rate of 6.7 percent since 2005. At the moment, inflation is pegged at 7.1 percent.
Malawi offers an attractive investment climate, featuring stable political environment; friendly and kind people; liberalized economy; preferential access to world markets under various agreements. Government has put in place modern telecommunications systems and the country has daily flights connecting to regional and international markets. For exports, the government has established Industrial Estates and Export Processing Zones.
The government recognizes that the security of assets is of primary importance to investors. The Malawi Constitution and existing laws and regulations provide further assurance that investors' assets are protected. In this regard, Malawi is also a member of the Multilateral Investment Guarantee Agency (MIGA), and is an eligible country under a number of other investment insurance programmes.
The Government acknowledges that investors must have an acceptable forum to resolve disputes. Parties to disputes may agree to pursue arbitration and to choose an appropriate forum, including international arbitration. Malawi is a member of the International Center for the Settlement of Investment Disputes (ICSID).
Malawi offers attractive incentives including: 100 percent investment allowance on qualifying expenditure for new buildings and machinery; allowance up to 40 percent for used buildings and machinery, 50 percent allowance for qualifying training costs; allowance for manufacturing companies to deduct all operating expenses incurred up to 25 months prior to the start of operations and loss carry forward of up to seven years. All this is in place to enable companies take advantage of allowances; and free repatriation of dividends, profits, and royalties, just to mention a few.
On awareness about these incentives, the Mission is doing everything possible to ensure that we provide this information to potential investors in India. For example, we are working with various Chambers of Commerce and Industry like the Confederation of Indian Industry (CII); Federation of India Chambers of Commerce and Industry (FICCI); Associated Chambers of Commerce and Industry (ASSOCHAM) and the Gujarat Chamber of Commerce. We also have a website where information is readily available for prospective investors. In addition to this, we produce bi-annual magazine which carries information on investment opportunities available in Malawi.
ANA: We notice a complete absence of cultural exchanges between the two countries. This is surprising for a country that has a unique culture that unfortunately, the people of India are unaware of. Excellency, are you satisfied with the level of cultural exchanges? If not, are there any interventions that are being planned?
Her Excellency: Let me start by saying that Malawi believes that arts and culture are a key component to the development of any nation and its people. As such, the government established a Department within the Ministry of Tourism and National Parks, whose principal mandate is to preserve and promote the Malawi culture. In spite of the fact that there have not been as many cultural exchanges as we would have liked between Malawi and India, I am pleased to inform you that with the support of the Indian Council of Cultural Relations (ICCR), the Malawi National Dance Troupe visited India in 2010 and performed some folklore dances at the Kamani Auditorium in New Delhi. I am also pleased to inform you that our High Commission intends to intensify the promotion of Malawi culture in India by bringing some young Malawian artists to come and perform in the other major cities of India.
Although no Indian cultural troupe has performed in Malawi for many years, the High Commission will continue to work with the Indian Council of Cultural Relations (ICCR) to arrange for arts and cultural exchanges on a more regular basis.
While we are talking about cultural exchanges, I wish to bring to your attention that Malawi hosts a three-day festival of music and cultural exchange known as the "Lake of Stars Festival." The festival, which provides a platform for both local and international artists to showcase their talents, is held on the sandy and palm-fringed shores of Lake Malawi. It draws international crowds of young people from as far as the United Kingdom, Germany and other European countries, as well as the United States. In collaboration with Indian Council of Cultural Relations (ICCR), the High Commission will explore the possibility of encouraging Indian artists or even Bollywood stars to perform at this year’s Lake of Stars Musical Festival to be held from 30 September to 2 October 2011.
