HomeNewsMalawi Signs New Chinese Deal to Modernise Lake Transport and Expand Trade

Malawi Signs New Chinese Deal to Modernise Lake Transport and Expand Trade



By Burnett Munthali

The Malawi Government has signed a Memorandum of Understanding (MoU) with Chinese company Hongtai Group to modernise the country’s lake transport infrastructure, upgrade key ports and introduce new cargo and passenger vessels on Lake Malawi.

The agreement was signed on Monday at the Ministry of Transport and Public Infrastructure headquarters in Lilongwe by Secretary for Transport and Public Infrastructure Bright Kumwembe and Hongtai Group Managing Director Shan Jian Ping.

Secretary for Transport and Public Infrastructure Bright Kumwembe and Hongtai Group Managing Director Shan Jian Ping.



Under the agreement, Hongtai Group plans to modernise the Monkey Bay Shipyard to support the construction of new vessels, while also upgrading Chipoka Port and other strategic ports across the country.

The Chinese company is expected to construct two cargo vessels and one passenger vessel as part of the project. The investment will also target port loading and unloading equipment, warehousing and logistics systems, as well as the wider lake transport network.

Shan said the company’s ambition was to establish a safer, more efficient and modern lake transport system capable of increasing Malawi’s capacity to move goods and passengers.

He said lake transport could play an important role in connecting Malawi to markets across southeastern Africa despite the country being landlocked.

The project is expected to begin once the necessary arrangements are finalised, with Hongtai Group indicating that its first vessel could begin operating on Lake Malawi within about 18 months.

Kumwembe welcomed the Chinese investment, saying the modernisation of the Monkey Bay Shipyard could also create an opportunity for neighbouring Mozambique to make use of the facility.

The latest agreement follows another deal signed about six weeks earlier between the Malawi Government and Chinese investor Xiao Xiang Investment to expand Lake Malawi’s transport fleet and infrastructure.

That earlier agreement included plans for two dry cargo vessels, one fuel tanker and one passenger vessel.

Kumwembe said the growing interest from Chinese investors was positive for Malawi because it could introduce competition into the lake transport sector.

“We’re trying to make sure there is competition – we do not want to have anybody having exclusive rights of using the lake,” Kumwembe said.

He added that increased competition would give Malawians greater choice while potentially helping to make transport services more affordable.

The government’s latest agreement signals renewed efforts to unlock the economic potential of Lake Malawi by improving maritime infrastructure, expanding the transport fleet and strengthening links for the movement of goods and passengers.

For a landlocked country, improved lake transport could provide an important alternative route for regional trade and support Malawi’s wider efforts to reduce transport costs and strengthen connections with neighbouring countries.

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