The multibillion kwacha Magwero Industrial Project in Lilongwe has drawn discomfort in the ranks and file of the Malawi Investment Trade Centre on account of Secretary to Treasury’s “illegal” directive relating to 417 hectares of land earmarked for the investment
By Chimwemwe Mangazi:
To break or to not break laws?
This is the question that has pitted government authorities against each other.
The confrontation is over the implementation of the Magwero Industrial Park (MIP) investment.
On June 1, 2024 President Lazarus Chakwera flanked by Gagan Gupta, president and founder of Arise IIP, and Benedict Oramah, president of Afrexim bank, launched the project in Lilongwe.
The launch followed a contract signed in June 2023, between the Government of Malawi, represented by the Export Development Fund (EDF), and Arise Integrated Industrial Platforms (Arise IIP).
Details show that the government institutions are at odds over a potential violation of multiple statutory regulations in the allocation of land for the project.
Ordinarily, the expectation is that the investor would pump money into the project.
The fear is that Malawi could lose money so that it can have the project.
Betchani Tchereni
On August 19, 2024, Secretary to Treasury Betchani Tchereni issued a memo, addressed to Secretary for Lands and Malawi Investment Trade Centre (MITC) CEO, announcing a waiver of premium charges and annual rent for the MIP on the 417 hectares of land in Area 55 in Lilongwe.
The total value of this waiver, the memo says, amounts to K130.3 billion for premium charges and K15.6 billion for annual rent.
“Kindly note that given the strategic nature of this project, government has granted a waiver of the premium charges and annual rent,” reads the memo, effectively giving the green light to the land allocation.
However, we have it on good authority that the decision did not sit well with some officials at MITC.
At law, MITC is the custodian of the land in question.
Officials there sought a legal opinion from Mbendera & Nkhono Associates.
A copy of the legal opinion, which we have seen and dated December 31, 2024, indicates that Tchereni committed several legal transgressions in authorising the land waiver, as requested by the Export Development Fund (EDF).
According to the legal opinion, the fundamental error lies in the lack of statutory authority for Tchereni to waive land-related charges.
It notes that the Investment and Export Promotion Act explicitly limits incentives to fiscal mechanisms such as tax allowances and duty drawbacks.
These can only be granted by the Minister of Finance.
By unilaterally waiving premium charges and annual rent totalling over K130 billion, the Secretary to Treasury exceeded his legal mandate.
It further highlights that the Public Finance Management Act strict
