Malawian firm seeks property-development partners

By: Marcel Chimwala

Published: 22 Aug 08 - 0:00

Malawi’s State-owned Airports Development Limited (ADL), which is
responsible for the management of all major airports in the Southern
African country, is seeking companies to partner it in construction
projects worth about $50-million.

CEO Rodrick Chataika says
that, besides others, ADL plans to build an $18-million hotel and a
shopping complex in the capital, Lilongwe, where the country’s biggest
airport, Kamuzu International Airport, is situaed.

“We would
like to develop a hotel to ease accommodation problems that travellers
often face in Lilongwe. “This structure is expected to have conference
and shopping facilities near the airport.

“Land is already
available to fulfil our plans of building a 100- to 500-room hotel.
“What remains is to identify strategic partners.”

ADL also plans to construct an office complex in Lilongwe at a cost of $23-million.

“On
the office complex, we are scouting for partners to start off the
project. So far 90% of the people [required] to occupy the new
[facility] have expressed their commitment to the project.”

Some
government minis-tries and departments used to operate from the
commer-cial capital, Blantyre, but when President Bingu wa Mutharika’s
government assumed office three years ago, it directed that they move
to Lilongwe.

ADL says it expects to earn over $2,75-million
annually from office rentals from the Lilongwe complex, which will
finance its efforts to better manage the air travel industry and ensure
development of Malawi’s airports to international standards.

ADL
is also developing a new warehousing facility to hire out to tobacco
buying companies during the tobacco selling season. Malawi is among the
leading producers of the crop in the region.

Meanwhile, another
Malawian company, Soche Tours & Travel, is seeking international
partners for a $20-million hotel project at Chikoko Bay, in the
southern tourism district of Mangochi.

“We are looking for any
partners that can help us make this dream become a reality. “Our aim is
to develop the Chikoko Bay area, which is naturally attractive to
tourists, by constructing a state-of-the-art hotel,” says Soche Tours
& Travel MD Harry Mtuwa.

Tourism accounts
for about 4% of Malawi’s gross domestic product (GDP), while
agriculture is the main contributor, with a staggering 39%. A lack of
proper infrastruc-ture to cater for the growth of the tourism industry
is said to be the main reason for the industry’s meagre GDP
contribution.

Against this background, the Malawi government
is offering various incentives to investors wishing to take part in the
development of the tourism industry.

It is partcularly promoting
investment in ecotourism, including the building of eco-lodges in areas
with tourism potential, including wildlife reserves.