In the far southeast of Africa, there is such a country surrounded by landlocks, it is called Malawi, a land of tranquility and mystery. Here, with vast waters, dense forests and abundant minerals, it is a treasure land full of potential. Until recently, a new figure began to appear in this land - the Chinese, who sow hope and reap the fruits here, gradually painting a new picture of Chinese colors on the land of Malawi. Walking into Lilongwe, the capital of Malawi, you will be surprised to find that there are more than 2,000 overseas Chinese living and working in peace and contentment, and they are active in many industries such as commerce, engineering, and agriculture.
Their existence is not a lonely scatter, but a vibrant community. Blantyre, the capital of the southern district, is also a testament to the wisdom and hard work of the Chinese. Let's peel back a little bit of this canvas and look at the Chinese companies that have taken root in Malawi. They are not just business entities, but ambassadors of culture and friendship. China-Africa Cotton Company, TBEA, Gezhouba...... These resounding names continue to grow in Malawi's land, and their businesses cover a wide range of fields, including engineering contracting, agricultural development, textiles, etc., building a vast and complex economic network. How have these Chinese companies performed in 2020?
The number of newly signed engineering contracts reached 48, with a contract value of up to US$137 million, and a turnover of US$166 million, demonstrating the strength of Chinese enterprises to the world. However, the business world is always challenging. When investing and trading in Malawi, it is important to be very vigilant. The market size here is limited, and the credibility of the merchants is uneven. As a result, Chinese investors often prefer to use safer payment methods such as telegraphic transfer (TT) or letter of credit (LC). Despite this, Malawi is open to foreign investors and the business environment is gradually improving, but investors need to choose their entry points carefully and control the size of their investments.
However, for Chinese workers working on this land, Malawi is a land of opportunity. Construction engineers and mining engineers can get much higher salaries than their domestic counterparts here, and the salaries of ordinary jobs such as carpenters, bricklayers, and rebar workers are also considerable. This lure of high salaries has attracted 294 Chinese laborers to travel thousands of miles to Malawi to realize their dreams of wealth. The investment projects of Chinese in Malawi are also diverse, covering industries such as communications, automobiles, bags, toilet paper, and shoemaking, as well as hotels, restaurants, supermarkets and other service fields.
Among them, there are some large-scale projects, such as Huaan Lilongwe Golden Peacock Hotel, China-Africa Textile Company Spinning Mill, Grand Trade Park, etc., all of which are the crystallization of Chinese wisdom and hard work. In this magical land, Lake Malawi is a shining jewel set between three countries, and as the third largest lake in Africa, it quietly tells the past and future of this continent. Malawi has a land area of 118,000 square kilometres, including 24,000 square kilometres of water, and a population of only 17.6 million. The abundance of natural resources has added unlimited potential to Malawi.
With a forest cover of up to 35 per cent, mineral resources including rare earths, titanium ores, bauxite, uranium ores, emery, pyrite, limestone, coal, graphite, as well as precious stones, gold and diamonds, all form part of Malawi's unique wealth code. Every day of overseas Chinese and Chinese-funded enterprises in Malawi is an exploration of the unknown and the pursuit of dreams. Their stories are as deep and fascinating as the waters of Lake Malawi. With the passage of time, the tree of hope they planted in this land is gradually taking root and blossoming. This is not only a testimony of the friendly cooperation between China and Malawi, but also a portrayal of the indomitable and pioneering spirit of the Chinese.
In the future, what kind of Chinese stories will be staged in this land? Let's wait and see. In the southeast of Africa, there is a landlocked country that is called Malawi. The country is known as the "Warm Heart of Africa", but its reality is not as warm as the nickname suggests. You may not know much about Malawi, but its story is worth digging into. Malawi is a small, predominantly agricultural country, and the pace of life here is much more peaceful than in the busy cities. In the fields, the farmers work hard, and their lives are closely related to the land.
Tobacco, sugar cane, tea, maize are the crops that the people of Malawi work for every day and are a source of livelihood. However, what you may not know is that one of the least developed countries designated by the United Nations has hidden treasures beneath it that has caught the world's attention. Malawi is rich in mineral deposits, including more than 20 kinds of mineral products such as titanium ore, bauxite, uranium ore, etc., among which rare earth reserves exceed a staggering 30 million tons, and the mining cycle is expected to exceed 30 years. Such a figure undoubtedly brings great temptation to investors around the world. However, in stark contrast to the abundance of its underground resources, Malawi's economic development has struggled.
Malawi is heavily financially dependent on foreign aid, and its supporters include the European Union, the United Kingdom, the United States, the World Bank, and Japan. According to the World Bank, only 14 percent of Malawi's workforce is formally employed, and the figure is as low as 3 percent in urban areas, with the majority working in industry and services. This employment situation reflects the underdeveloped technology and low productivity level in Malawi. Against this backdrop, Malawian workers earn a staggering $1.54 a day. Imagine what such an income can buy in today's life, and this situation has undoubtedly exacerbated the hardships of the people of Malawi.
The hardships of life may also have something to do with the security situation in Malawi. Although terrorist attacks are rare in this land, the annual rate of criminal cases is relatively high. All these require Malawi residents to be aware of safety and take precautions at all times. In such an environment, the lives of the people of Malawi go on. Their agricultural exports account for about 80 per cent of total exports, with tobacco exports being the main source of foreign exchange earnings. This also means that while subsistence agriculture is the backbone of Malawi's economy, its economic situation is still subject to the vicissitudes of the international market. In recent years, trade between China and Malawi has gradually increased.
In 2021, the total value of China's exports to Malawi was US$280.51 million, while the total value of imports from Malawi was US$9.81 million. Behind these figures is the flow of commodities such as textiles, mechanical and electrical equipment, clothing, fertilizers, etc., as well as the trading of agricultural products such as tobacco, tea, and sugar. China, the world's second-largest economy, has gone along some of the way to bringing life to the small African country. Malawi, known as the warm heart of Africa, faces many challenges. Financial dependence, low productivity, and high crime rates are all realities that Malawi needs to face.
However, in this challenging land, there is still hope flickering. As the world's attention to it grows, its future may be changed by the treasures it underneath and the golden tobacco leaves on its farmland. For us, this distant African country is not just a point on the map, its story, its current situation, its potential, all of which deserve our attention and consideration. How will the future of Malawi, this small country, be written? This is an unsolved puzzle and a mystery waiting for the world to explore.