Foreign investment down

Foreign direct investment into Malawi dropped by 31 percent last year from 1999 due to red tape and other unfavourable economic conditions, AFP reported the state investment promotion agency as revealing. Ted Kalebe, who heads the Malawi Investment Promotion Agency (MIPA) told reporters on Wednesday that US $27 million in foreign investment was recorded last year, compared to US $39.4 million dollars in 1999. He said foreign direct investment of US $4 million eight years ago shot up to US $38.6 million in 1996 and US $39.4 million in 1999. The year 2000 "was a particularly difficult year for investment promotion in Malawi," he said. He blamed the decline in foreign direct investment last year to bureaucratic bungling, unfavourable macro-economic conditions and stiff competition from neighbouring countries that offered better incentives. Inflation averaging 30 percent and a currency devaluation from 50 units to 80 to the dollar, had further deterred investment.