Economy
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Main article: Economy of Malawi
See also: Malawian food crisis and List of companies based in Malawi
Crafts market in Lilongwe
Malawi is among the world's least developed countries. Around 85% of the population lives in rural areas. The economy is based on agriculture, and more than one-third of GDP and 90% of export revenues come from this. In the past, the economy has been dependent on substantial economic aid from the World Bank, the International Monetary Fund (IMF), and other countries. Malawi was ranked the 119th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings. The government faces challenges in developing a market economy, improving environmental protection, dealing with the rapidly growing HIV/AIDS problem, improving the education system, and satisfying its foreign donors to become financially independent.
In December 2000, the IMF stopped aid disbursements due to corruption concerns, and many individual donors followed, resulting in an almost 80% drop in the development budget. However, in 2005, Malawi was the recipient of over US$575 million in aid. Many analysts believe that economic progress for Malawi depends on its ability to control population growth. A 2009 purchase of a private presidential jet followed almost immediately by a nationwide fuel shortage, which was officially blamed on logistical problems, was more likely due to the hard currency shortage caused by the jet purchase.
In addition, some setbacks have been experienced, and Malawi has lost some of its ability to pay for imports due to a general shortage of foreign exchange, as investment fell 23% in 2009. There are many investment barriers which the government has failed to address, including high service costs and poor infrastructure for power, water, and telecommunications. As of 2017[update], it was estimated that Malawi had a purchasing power parity (PPP) of $22.42 billion, with a per capita GDP of $1200, and inflation estimated at 12.2% in 2017.
Agriculture accounts for 35% of GDP, industry for 19%, and services for the remaining 46%. Malawi has one of the lowest per capita incomes in the world. The poverty rate is decreasing through the work of the government and supporting organisations, with people living under the poverty line decreasing from 54% in 1990 to 40% in 2006, and the percentage of "ultra-poor" decreasing from 24% in 1990 to 15% in 2007. In January 2015, southern Malawi was hit by floods. These floods affected more than a million people across the country, including 336,000 who were displaced, according to UNICEF. Over 100 people were killed, and an estimated 64,000 hectares of cropland were washed away.
Agriculture and industry[edit]
Main article: Agriculture in Malawi
Harvesting groundnuts at an agricultural research station in Malawi
The economy is predominantly agricultural. Over 80% of the population is engaged in subsistence farming, even though agriculture only contributed to 27% of GDP in 2013. The services sector accounts for more than half of GDP (54%), compared to 11% for manufacturing and 8% for other industries, including natural uranium mining. Malawi invests more in agriculture (as a share of GDP) than any other African country: 28% of GDP.
Beginning in 2006, the country began mixing unleaded petrol with 10% ethanol, produced in-country at two plants, to reduce dependence on imported fuel. In 2006, in response to low agricultural harvests, Malawi began a programme of fertilizer subsidies, the Fertiliser Input Subsidy Programme (FISP). It has been reported that this programme, championed by the country's president, is causing Malawi to become a net exporter of food to nearby countries. The FISP ended with President Mutharika's death. In 2020, the programme was replaced with the Affordable Inputs Program (AIP), which extends the subsidy on maize seed and fertiliser to sorghum and rice seed.
The main agricultural products include tobacco, sugarcane, cotton, tea, corn, potatoes, sorghum, cattle, and goats. The main industries are tobacco, tea, and sugar processing, sawmill products, cement, and consumer goods. The industrial production growth rate is estimated at 10% (2009). The country makes no significant use of natural gas. As of 2008[update], Malawi does not import or export any electricity but does import all its petroleum, with no production in the country. In 2008, Malawi began testing cars that run solely on ethanol, and the country is continuing to increase its use of ethanol.
Children attending a farmer meeting in Nalifu village, MulanjeAs of 2009, Malawi exports an estimated US$945 million in goods per year. Tobacco's world prices declined, and the international community increases pressure to limit tobacco production. Dependence on tobacco is growing, with the product jumping from 53% to 70% of export revenues between 2007 and 2008. Tea, tobacco, sugar, and coffee make up more than 90% of export revenue. Due to a rise in costs and a decline in sales prices, Malawi is encouraging farmers away from tobacco towards more profitable crops, including spices such as paprika. The move away from tobacco is further fueled by likely World Health Organisation moves against the particular type of tobacco that Malawi produces, burley leaf, which is more harmful to human health than other tobacco products. India hemp is another possible alternative, but arguments have been made that it will bring more crime through its resemblance to varieties of cannabis used as a recreational drug and the difficulty in distinguishing between the two types. The cultivation of Malawian cannabis, known as Malawi Gold, as a drug has increased significantly. Malawi is known for growing "the best and finest" cannabis in the world for recreational drug use, according to a recent World Bank report, and cultivation and sales of the crop may contribute to corruption within the police force.GDP in Southern African Development Community countries by economic sector, 2013 or closest year
Other exported goods are cotton, peanuts, wood products, and apparel. The destinations for exports are South Africa, Germany, Egypt, Zimbabwe, the United States, Russia, and the Netherlands. Malawi currently imports an estimated US$1.625 billion in goods per year, with the main commodities being food, petroleum products, consumer goods, and transportation equipment. Main importing countries are South Africa, India, Zambia, Tanzania, the US, and China.
In 2016, Malawi was hit by a drought, and in January 2017 there was an outbreak of armyworms around Zomba. The moth is capable of wiping out entire fields of corn, the staple grain of residents. Agriculture minister George Chaponda reported that 2,000 hectares of crop had been destroyed, having spread to nine of 28 districts.
Infrastructure[edit]
Main articles: Transport in Malawi, Rail transport in Malawi, and Communications in Malawi
The M1 road between Blantyre and Lilongwe
As of 2012[update], Malawi has 31 airports, seven with paved runways (two international airports) and 24 with unpaved runways. As of 2008[update], there are 797 kilometres (495 mi) of railways, all narrow-gauge, and, as of 2003, 24,866 kilometres (15,451 mi) of roadways in various conditions, 6,956 kilometres (4,322 mi) paved and 8,495 kilometres (5,279 mi) unpaved. Malawi also has 700 kilometres (430 mi) of waterways on Lake Malawi and along the Shire River.
As of 2022[update], there were 10.23 million mobile phone connections. There were 4.03 million Internet users in 2022. There is one government-run radio station (Malawi Broadcasting Corporation) and approximately a dozen more owned by private enterprises. In the past, Malawi's telecommunications system has been named as some of the poorest in Africa, but conditions are improving, with 130,000 land line telephones being connected between 2000 and 2007. Telephones are much more accessible in urban areas, with less than a quarter of land lines being in rural areas.
Science and technology[edit]
Main article: Science and technology in Malawi
Research trends[edit]
Scientific publication trends in the most productive SADC countries, 2005–2014
Malawi devoted 1.06% of GDP to research and development in 2010, according to a survey by the Department of Science and Technology, one of the highest ratios in Africa. This corresponds to $7.8 per person (in current purchasing parity dollars).
In 2014, Malawian scientists had the third-largest output in Southern Africa, in terms of articles cataloged in international journals. They published 322 articles in Thomson Reuters' Web of Science that year, almost triple the number in 2005 (116). Malawi was ranked 125th in the Global Innovation Index in 2025.
Policy framework[edit]
Malawi's first science and technology policy dates from 1991 and was revised in 2002. The National Science and Technology Policy of 2002 envisaged the establishment of a National Commission for Science and Technology to advise the government and other stakeholders on science and technology-led development. Although the Science and Technology Act of 2003 made provision for the creation of this commission, it only became operational in 2011, with a secretariat resulting from the merger of the Department of Science and Technology and the National Research Council. The Science and Technology Act of 2003 also established a Science and Technology Fund to finance research and studies through government grants and loans but, as of 2014[update], this was not yet operational.
In 2012, most foreign investments flowed to infrastructure (62%) and the energy sector (33%). The government has introduced a series of fiscal incentives, including tax breaks, to attract more foreign investors. In 2013, the Malawi Investment and Trade Centre put together an investment portfolio spanning 20 companies. In 2013, the government adopted a National Export Strategy to diversify the country's exports. Production facilities are to be established for a wide range of products within the three selected clusters: oilseed products, sugar cane products, and manufacturing.
Women[edit]
Mbawemi Women's group in Malawi learning how to make beeswax into candles
The ratio of male to female students shows women's access to schooling starts on a par with men's. Female students see consistent declines as age increases. The life expectancy of women was 68 in 2024. The maternal mortality rate in Malawi is particularly low compared with countries at similar levels of development.
The inheritance rights are equal by gender for children and for surviving spouses. A higher percentage of the male population is employed, and the female population has a higher total employed population and a very similar unemployment rate.[further explanation needed] This gap continues with wages.
Women's participation in national politics has been shown to be weaker than men's. Female participation in politics is further restricted by gatekeepers, who provide access to the resources needed to win elections and maintain seats in parliament. Limited participation correlates to limited numbers of women in politics. The national parliament has appointed female members to seats in the body, and over 20% of the seats in parliament are held by women.