Adopts Special Economic Zones Act, 2023
06 Dec 2023
On December 6, 2023, the Parliament of Malawi enacted the Special Economic Zones Act, 2023, establishing a framework for the development and regulation of Special Economic Zones (SEZs) in Malawi. The Act establishes the Special Economic Zones Authority (SEZA) and the Special Economic Zones Fund (SEZF) to promote and facilitate both foreign and domestic investments.
Key Aspects:
Types of SEZs: Agriculture and food zones, business services parks, dry ports, export promotion zones, ICT parks, industrial parks, science and technology parks, secondary cities, tourist and recreational zones, and urban centres.
Developer Rights: Up to 50-year leasehold titles, renewable; ability to sublet or sell land; develop and service SEZ land and assets; enter into development contracts with third parties.
Benefits for SEZ Entities:
- Tax Incentives: Exemptions from import duties, withholding taxes, stamp duties, various local business charges, and corporate income tax for an initial period of five years.
- Non-Tax Incentives: A competitive investment climate, profit repatriation, foreign currency dealings, and safeguards against expropriation.
These incentives complement existing laws such as the Taxation Act and the Taxation (Priority Industries) Regulations 2013.
-
Type:
-
Promotion and facilitation (Investment facilitation , Investment incentives, Special economic zones)
-
Sources:
