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The Malawi Investment and Trade Centre (MITC) has announced plans to develop Nkhotakota into a Japanese model city, following the successful securing of a major investment agreement with Chinese investors worth USD 5 billion for Chipoka, located in Salima District. This strategic initiative is part of MITC’s broader economic transformation agenda, according to the Centre’s Director General, Kruger Phiri.
In a recent interview, Phiri disclosed that the USD 5 billion deal was secured over a five-year span, with annual inflows of USD 1 billion expected to begin this year. The agreement was the result of a high-level trade mission to Changsha, the capital of Hunan Province in China, where Phiri engaged directly with 300 influential Chinese business leaders expressing strong interest in investing in Malawi.
Phiri outlined the vision behind these “purpose-driven cities,” explaining that Chipoka is set to become a hub of industrial activity in Malawi. Plans include the construction of skyscrapers, industrial parks, and the essential infrastructure needed to support large-scale manufacturing and business operations. This development is based on the Chinese model city approach, which focuses on reducing the country’s dependence on imports by boosting local production and enhancing exports. In doing so, the initiative aims to address Malawi’s long-standing foreign exchange issues and improve its balance of payments.
Building on the momentum of this Chinese-led investment, MITC is now turning its attention to Japanese investors. The organization intends to replicate the model city concept in Nkhotakota, with the goal of attracting significant Japanese interest. To support this, MITC will host a Malawi-Japan Investment Forum on June 19, 2025. The event will be led by the Minister of Industry and Trade, Vitumbiko Mumba, and will highlight investment opportunities in Malawi to Japanese stakeholders.
“We are aiming to position Nkhotakota as the Japanese counterpart to what we are establishing in Chipoka,” Phiri explained. “Both towns offer strategic advantages such as access to transport networks and proximity to Lake Malawi, which enhances their potential for economic development.”
The development of these two model cities forms the cornerstone of MITC’s long-term strategy to revamp Malawi’s approach to industrialisation. Instead of relying on dispersed and uncoordinated development efforts, MITC is focusing on concentrated, well-planned urban industrial centers that serve as engines for economic growth. These model cities will be supported by MITC’s integrated investment facilitation services, including streamlined processes for immigration, land access, and regulatory approvals.
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Ultimately, the Chipoka and Nkhotakota model cities are expected to significantly contribute to Malawi’s national development goals. By driving local production, creating jobs, and enhancing export capacity, the initiative aims to help the country move towards middle-income status, raising the GDP per capita from the current figure of approximately USD 600.
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