The President of Commissioned Malawi Cotton Company, Mr. Bingu wa Mutharika said the company had the potential to provide employment to over 1,000 people and also increase economic activity in the township.

The investment by the Malawi-Mainland China bilateral partnership is worth US$25 million and the company will possibly help in setting up new small and medium businesses as entrepreneurs exploit job opportunities generated from the Chinese investment.

The project includes an up-to-date cotton ginnery, cooking oil extraction and textile manufacturing plants with residue processed into cotton seed cake all under one roof.

The Malawi government expects large benefits from the investment as besides a reliable market for by products like cheap cooking oil, cotton seedcake, textiles, all of these are expected to generate also a lot of taxes as well provide employment.

This business venture would provide an alternative market to the cotton growers, which would ensure remunerative prices for the cotton growers. At present, more than 300 people have been employed on the wages of K300 an 8 hour day while the minimum wage approved by the government is K167 an 8 hour day.

The company occupies 28 hectares of land is planning to employ about 1000 people after starting full operations and will organize research on the cotton varieties suitable for the local environment. It also made plans to distribute 45,000 sacks to the farmers for packaging of cotton. Recently, Malawi President Bingu wa Mutharika has challenged International Monetary Fund (IMF) that he will not devalue the currency.