Lake deal offers hope to lakeshore communities

Lakeshore communities that rely on Lake Malawi for transport could soon see easier and cheaper travel if government secures a major investment to modernise water transport.

The optimism follows the signing of a Memorandum of Understanding (MoU) between Xiaoxiang Investment Limited and the Ministry of Transport and Public Works, paving the way for cooperation in developing vessels, ports and other transport infrastructure along Lake Malawi.

Secretary to the Ministry of Transport and Public Works, Bright Kumwenda, said improved transport connectivity remains critical to Malawi’s economic development, particularly as the landlocked country continues to face high transportation and logistics costs.

“Transport is the lifeline of economic development in Malawi,” Kumwenda said, highlighting the need to strengthen the country’s road, port and shipping networks.

Under the proposed cooperation, Xiaoxiang plans to support the construction of oil tankers and freight vessels that could transport fuel and other goods, providing an alternative to heavy road transportation.

For people living around the lake, the development could mean easier movement of goods and better access to markets, while businesses could benefit from lower transportation costs when moving agricultural products, minerals and construction materials.

The company also plans to participate in the renovation and construction of inland lake ports and ferry facilities, including the Chipoka ferry terminal, while supporting improved passenger and freight facilities along the lakeshore.

The proposed investment could also bring employment opportunities, with Xiaoxiang indicating that it will prioritise local workers and establish skills training programmes for Malawians in areas including port management, road construction and railway maintenance.

Communities along the transport corridors are also expected to benefit from corporate social responsibility initiatives, including support for community roads, students and other local development needs.

The project further seeks to connect road, rail and lake transport through logistics storage facilities, potentially strengthening Malawi’s position as a regional inland logistics hub and improving links to ports in Tanzania and Mozambique.

However, the MoU marks the beginning of the process, with the two sides expected to undertake further due diligence, planning and discussions on investment and financing before the proposed projects are implemented.