Investor Loses K450m in 2 Weeks to Community Violence: Analysts Demand Government Action

A K24 billion poultry venture by Thanzi Chicks Limited in Lilongwe has suffered a devastating blow after coordinated acts of community violence and theft caused losses exceeding K450 million within two weeks. The alarming events have prompted calls for urgent government intervention to address the growing threat to investments in Malawi.

The attacks, which targeted the company’s farms in Nsaru and Msundwe, resulted in extensive damage, including the theft of a 1,000-meter electric fence and vandalism of gates and chicken facilities. Managing Director Raj Munangi revealed that the incidents followed the company’s refusal to comply with what he described as “unreasonable and extortionate demands” from some traditional leaders in the area.

In a letter to the Office of the President and Cabinet (OPC) dated January 7, 2025, Munangi warned that such criminal acts jeopardize Malawi’s appeal as an investment destination. “No investor should feel compelled to undertake any act of charity other than those aligned with their corporate social responsibility strategies,” he stated.

While the OPC confirmed receiving the complaint and assured that it is being acted on, traditional leaders have distanced themselves from the violence. Group Village Head Chinyama admitted that one of his subordinate chiefs organized the mob but claimed to have reported the matter to the police, leading to the arrest of five individuals.

Senior Chief M’bwatalika, whose jurisdiction includes the farms, expressed regret over the incidents, emphasizing the economic benefits of the investment to the area. “I have spoken to the chiefs involved, and I am working on convening a meeting between them and the investor,” she said.

Documents accessed reveal that during meetings with Thanzi Chicks on December 27 and 31, village heads presented a list of demands. These included monthly allowances for chiefs, festive season gifts, funeral expenses, and unrestricted access to farm manure. At the Msundwe Farm, the demands extended to giving the community control over hiring decisions. The refusal to meet these demands reportedly triggered the attacks.

Economic analysts and business leaders have criticized the government’s delayed response to the escalating tensions between communities and investors. Munangi has called for thorough investigations and robust measures to protect businesses, stating, “We cannot speak of wealth creation and economic growth if investors are left vulnerable to extortion and destruction.”

This sentiment has been echoed by analysts who warn that the current climate could deter potential investors, further stalling economic development. They argue that the government must take decisive action to enforce the rule of law and ensure the safety of both local and foreign investments.

Incidents of community hostility toward investors are not new in Malawi. Similar cases have been reported in other sectors, including macadamia farming. In some areas, working committees have been established to foster cooperation between investors and communities. However, the effectiveness of such initiatives remains inconsistent.

With Malawi’s economic future at stake, the government faces mounting pressure to address the root causes of these conflicts. Police and other relevant authorities must act swiftly to bring perpetrators to justice, while policymakers need to explore sustainable solutions to harmonize investor-community relations.

If no immediate action is taken, the losses suffered by Thanzi Chicks may only be the beginning of a broader crisis that undermines Malawi’s economic ambitions and its standing as a viable destination for investment.

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