Victor Chambayika Mhango
Malawi is “a virgin country in terms of business,” said Victor Chambayika Mhango, co-founder and CEO of agribusiness company Ziweto Enterprises, in a recent interview with How we made it in Africa. “You can literally start any business here in Malawi. And if you are persistent enough, if you are able to overcome the many challenges that we have, eventually you can be able to build a viable business here.”
In the agribusiness space, Mhango sees significant opportunities in food processing. Despite Malawi growing a variety of crops like soya beans, maize, and rice, the country imports much of its processed food. “There is a lot of space for investors to move in and produce products that would be able to compete with imported products and also be exported to other countries.”
He also highlights a growing middle class in Malawi, a country with about 22 million people, which “are demanding better-quality, more nutritious food. So that opens up opportunities in the market.”
This extends to livestock products, where Mhango identifies major gaps. “We can’t meet the demand for meat and other livestock products, including dairy, eggs, poultry, beef, pork – all those products are in demand in Malawi.”
Even within his own industry, there are untapped opportunities. The veterinary products Ziweto sells are all imported. “If people are ambitious enough, they can set up factories and start manufacturing vet products,” Mhango suggests.
He also notes rising demand for irrigation systems. “Because of climate change, people are looking at alternative ways of being able to produce crops without relying on rain-fed agriculture.”
However, doing business in Malawi comes with its challenges. Mhango highlights the high cost of capital, with local banks charging interest rates of around 30%. Foreign currency shortages have also been a persistent issue.
Policy inconsistencies from the government further complicate matters. “Sometimes you’ll find that they are promoting [the] export of produce. The next day, you wake up, they have banned the export of produce.”
Still, Mhango remains optimistic. “As a businessperson, those are some of the things that you have to be able to manage and overcome for you to succeed in a market like this one.”
Watch our full in-depth interview with Ziweto Enterprises CEO Victor Chambayika Mhango: Entrepreneur unlocks agribusiness opportunities
