BWANJE ETHANOL PRODUCTION PROJECT

Project description

The Bwanje ethanol production project is earmarked to be located in Salima and Nkhotakota Districts. The project aims to establish a 21,000-litre ethanol distillery plant, utilising cassava and sugarcane as raw materials. This will involve cultivating these crops on over 1000 hectares of land and sourcing additional raw materials from local outgrower farmers in the lakeshore districts of Salima and Nkhotakota.

The project is being promoted by the Green Belt Authority, a government of Malawi corporation, which champions large-scale commercial irrigation through efficient use of land and water resources.

Financial requirements

Total project costs are estimated at EUR EU58 million (US$63 Million)

Financial feasibility

A comprehensive financial feasibility study will be conducted in partnership with the identified potential investor(s) to assess the project's economic viability.

Project feasibility

A comprehensive feasibility study, including an environmental and social impact assessment, will be conducted in collaboration with the identified potential investor(s).

One of the identified partners is Bwanje Limited which has extensive experience in ethanol production. A suitable land site has been identified and processes are underway to secure the land for investment. The land will be secured through payment of compensations to Project Affected Persons.

Malawi's market demand for ethanol is substantial, with current requirements not being met locally. Malawi produces only 30% of the required fuel ethanol thereby necessitating the need to import the remaining 70%. The country has yet to adopt natural gas, and the use of biogas and bioethanol for cooking is limited to a few households and commercial businesses.

Proposed investment model

The project will be implemented through a business-to-business (B2B) model, featuring a shareholding arrangement where investors will participate through equity investment, holding shares in the project.

Contacts

The Greenbelt Authority

P.O. Box 30776

Lilongwe 3

MALAWI.

• Eric Dudley Chidzungu, Chief Executive Officer, echidzungu@gba.gov.mw
• Linda Phiri, Director of Finance & Investments, lphiri@gba.gov.mw
• Chisomo Kumbuyo, Director of Irrigation Operations, ckumbuyo@gba.gov.mw
• info@gba.mw
• ceo@gba.mw