A Malawian technology company has pledged to invest K1 billion annually in startups as part of an ambitious plan to build globally competitive businesses and transform the country’s innovation landscape.

SPARC Systems unveiled its new Innovation Space in the capital, Lilongwe, on Thursday, saying the facility would provide funding, mentorship and technical support to young entrepreneurs.

The company has already spent about K600 million establishing the hub and plans to support around 50 startups every year through incubation and acceleration programmes.

Its founder and managing director, Dr Wisely Phiri, said Malawi had the talent to produce world-class technology companies but lacked the support systems needed to help promising ideas grow into successful businesses.

“We’ve seen the problems others are meeting, and we are saying they should not meet the same problems,” he said.

Dr Phiri said many startups fail because they struggle to access technical expertise and early-stage financing.

Banks often require years of financial records and proof of profitability before extending loans, while the country has a limited pool of investors willing to take risks on new businesses.

The entrepreneur said his long-term ambition was to see at least one company emerging from the innovation space become a US$1 billion business within the next five years.

“We are a for-profit company, not an NGO. If we are putting money into these companies, we also want to get a return. It is in our interest that they succeed,” he said.

Launching the facility, Minister of Industrialisation, Business, Trade and Tourism Simoni Itaye said the investment demonstrated confidence in Malawi’s future and in the country’s entrepreneurial talent.

“Today’s launch is not merely about opening a physical space. It is about creating an environment where ideas can be transformed into businesses, where innovators can access mentorship and capital, and where entrepreneurs can build solutions that address real challenges facing our country and continent,” he said.

Mr Itaye said innovation and entrepreneurship were central to achieving Malawi’s long-term development goals under the Malawi 2063 agenda.

He said the government was implementing reforms aimed at improving the business environment, promoting digital transformation and supporting enterprise development.

The minister described the entry of SPARC Systems into the innovation ecosystem as a welcome development, saying the hub’s model directly addresses many of the challenges that prevent promising ideas from becoming successful businesses.

For years, much of Malawi’s innovation ecosystem has relied on support from development partners and universities.

SPARC’s investment marks one of the country’s most significant private sector bets on technology and comes amid growing calls for home-grown solutions to drive economic growth and create jobs for young people.