Packaging Industries Malawi (PIM) Limited

Packaging Industries Malawi (PIM) Limited, the country's largest paper packaging company, faces significant operational hurdles including acute foreign exchange shortages, high transport costs due to Malawi's landlocked status, and irregular utility supplies. The company struggles with a lack of local technical skills, inefficient tax and customs procedures, and a national standards bureau (MBS) that lacks international accreditation. To mitigate these, PIM has invested in its own power and water infrastructure and co-funded the Malawi Industrial Training Association (MITA) to address the skills gap.

• The shortage of foreign exchange is identified as the most critical barrier to business, as PIM relies heavily on imported materials from the US, Canada, Europe, and South Africa. This shortage has damaged the company's international credit worthiness, reduced production and stock levels, and increased required working capital.
• Transport costs for importing manufacturing inputs account for 25% to 40% of PIM's overall costs. These costs are inflated by Malawi's landlocked geography, a reliance on expensive truck transport over rail due to the need for railway rehabilitation, and a recent fuel crisis.
• Irregular electricity and water supplies have forced PIM to invest in its own 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.
• A severe lack of technical skills and artisans in Malawi hinders PIM's ability to expand. In response, PIM, Illovo, and other companies have funded the Malawi Industrial Training Association (MITA) with support from TEVETA to build a local skills base.
• PIM avoids using the Malawi Bureau of Standards (MBS) for quality certifications because the organization lacks the necessary testing facilities, skills, and international accreditation, opting instead to use resources from 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} }