Packaging Industries Malawi (PIM) Limited

This case study examines the operational challenges faced by Packaging Industries Malawi (PIM) Limited, the country's largest paper packaging company. It details how systemic issues—including foreign exchange shortages, high transport costs due to Malawi's landlocked status, unreliable utilities, and a lack of technical skills—hinder the company's competitiveness and profitability.

• The most critical barrier to PIM's operations is a shortage of foreign exchange, which is exacerbated by the company's reliance on imported materials from the US, Canada, Europe, and South Africa. This shortage has damaged PIM's international credit worthiness, reduced production and stock levels, and increased required working capital. Furthermore, the Reserve Bank of Malawi must approve any private sector forex requests for imports exceeding US$ 50,000, a process described as costly and time consuming.
• Transport costs represent between 25 and 40 percent of PIM's overall costs. As Malawi is landlocked, inputs must be shipped to ports in Mozambique or South Africa and then transported by truck, which has become more expensive due to a fuel crisis. PIM avoids the rail network because the lines require rehabilitation and transit times are too long.
• Unreliable electricity and water supplies have forced PIM to invest in its own infrastructure, including water reserves and a generator. The monthly cost of diesel to run the generator is approximately MK 700,000, which is significantly higher than the company's usual monthly energy bill from ESCOM of around MK 400,000.
• PIM faces a severe shortage of technical skills in Malawi due to a lack of investment in technical training and education. To address this, PIM, Illovo, and other companies have funded the Malawi Industrial Training Association (MITA) with support from the Technical, Entrepreneurial and Vocational, Education and Training Authority (TEVETA).
• The company identifies several regulatory and market failures, including an inefficient Malawi Revenue Authority (MRA) and a lack of fair competition due to corrupt tender practices and subsidized imports from Asia. Additionally, PIM avoids using the Malawi Bureau of Standards (MBS) for quality certifications because the organization lacks the necessary testing facilities and international accreditation, relying instead on Nampak in South Africa.

APA

South African Institute of International Affairs (2012). Packaging Industries Malawi (PIM) Limited. https://saiia.org.za/saiia-toolkit/packaging-industries-malawi-pim-ltd/

Chicago

South African Institute of International Affairs. Packaging Industries Malawi (PIM) Limited. 2012. https://saiia.org.za/saiia-toolkit/packaging-industries-malawi-pim-ltd/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Packaging Industries Malawi (PIM) Limited |date=24 July 2012 |url=https://saiia.org.za/saiia-toolkit/packaging-industries-malawi-pim-ltd/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2012packaging, author = {{South African Institute of International Affairs}}, title = {{Packaging Industries Malawi (PIM) Limited}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jul, url = {https://saiia.org.za/saiia-toolkit/packaging-industries-malawi-pim-ltd/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }