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The principal sources of economy in Malawi are: Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication

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The principal sources of economy in Malawi are: Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication

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Camilo Agudelo

https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Agriculture%2C%20Mining%20and%20Quarry%2C%20Manufacturing,main%20sectors%20of%20Malawi's%20economy.

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The principal source of the Malawian economy is agriculture, which dominates the country's as we’re is Malawi located, exports, and employment. It accounts for a significant portion of the GDP, generates over 80% of export earnings, and employs a large percentage of the workforce.

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What is the principal source of the economy in malawi?

The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks. (google)

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In the last three decades, Malawi has been heavily impacted by climate change, experiencing more frequent and intense extreme weather events, including droughts, floods, and cyclones. These events have significantly affected agriculture, food security, water resources, and the overall well-being of the population.

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Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi's economy.

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Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi's economy.

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https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Agriculture%2C%20Mining%20and%20Quarry%2C%20Manufacturing,main%20sectors%20of%20Malawi's%20economy.

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Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi’s economy.

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particularly retail, tourism, and professional services—form the backbone of the economy, Colombia also has sizeable agricultural, manufacturing and mining sectors, with key exports including coal, coffee, gold and oil.

https://www.focus-economics.com/countries/colombia/#:~:text=While%20services%E2%80%94particularly%20retail%2C%20tourism,%2C%20coffee%2C%20gold%20and%20oil.

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Find Colombia’s latest economic outlook here - with historical data, analysis and expert forecasts from the world’s leading economists.

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The principal economic source of the country Malawi are Agriculture, Mining, Manufacturing, Tourism, Transport so its economy is heavily underdeveloped and mainly based in agriculture

Source: https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Agriculture%2C%20Mining%20and%20Quarry%2C%20Manufacturing,main%20sectors%20of%20Malawi's%20economy.

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The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

https://www.worldbank.org/en/country/malawi/overview#:~:text=The%20economy%20is%20heavily%20dependent,external%20shocks%2C%20particularly%20climatic%20shocks.

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 21.1million (2023) with an annual growth rate of 2.6%.

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) (FY21- FY25).

Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition that received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of several political parties known as the Tonse Alliance. In late June 2024, President Chakwera appointed a new Vice President, Michael Usi, UTM, following the death of Vice President Saulos Chilima in a plane crash on June 10, 2024. The next general election is scheduled for September 16, 2025.
Economic Overview,
Malawi's real GDP is projected to grow modestly by 2% in 2025, which would not be sufficient to prevent a fourth consecutive contraction in per capita income. The GDP growth will be driven by a modest recovery in the agricultural sector, which experienced negative growth in 2024 due to El Niño-induced drought conditions.

Additionally, modest growth is anticipated in the industrial and services sectors and will remain subdued due to the continued unavailability of foreign exchange, which is constraining the importation of production inputs. The real appreciation of the official exchange rate will continue to incentivize imports and discourage export growth, deepening external imbalances.

Real GDP growth is however projected at 2.4% in 2026, and this stagnation impedes efforts to reduce poverty in Malawi.

The budget deficit is expected to widen to 8.7% of GDP in 2025, driven by election year spending and the need to absorb some critical expenditures previously financed by the United States government.

Inflation is expected to remain above 30% due to a weaker agricultural recovery, the imposition of new import bans constraining supply, as well as continued high money supply growth.

The outlook is subject to significant downside risks, including potential fiscal slippages that could entrench macroeconomic instability. While direct and indirect effects of recent trade policy shifts have caused a downward shift in growth projections, continued uncertainty and weaker than expected global demand may further adversely affect Malawi's growth prospects. Failure to address external imbalances may further perpetuate input shortages. Upside risks include the potential unfreezing of U.S. aid to Malawi, easing of trade restrictions, faster-than-expected development of mining mega-projects, and the rapid conclusion of debt-restructuring negotiations with commercial external creditors.
Development Challenges
In the past three years, per capita income has declined as Malawi's economic growth lagged population growth. The period has seen widening fiscal and current account deficits, an unsustainable debt burden, increasing capital and price controls, and severe foreign exchange shortages, hindering economic stabilization efforts.

Frequent climatic disasters and other exogenous shocks have exacerbated these challenges, making it difficult for poor households to build resilience.

In 2024, Malawi's economy faced significant challenges, with real GDP growth slowing to 1.8% due to a severe drought and acute foreign exchange shortages. The poverty rate rose to 71.2%. The interplay of external sector imbalances, inflationary pressures, and fiscal constraints has deepened economic vulnerabilities, impeding recovery prospects.

Despite significant progress in reducing child mortality and fertility rates, hunger remains a critical concern due to successive weak harvests since 2022. This has hindered human capital development, with the rate of stunted children under five stagnant at 38% since 2015. Foreign exchange constraints have also limited imports to compensate for the food supply deficit.

The number of people living in poverty is expected to increase in 2025 amidst this challenging economic environment and rising food insecurity, with an additional 417,000 people falling below the $2.15 per day threshold, bringing the total number of people living in poverty to 15.8 million.

Last Updated: Apr 16, 2025

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision.

A Performance and Learning Review was approved in the third quarter of FY25 and included an extension of the CPF period to FY26. The PLR also revised the CPF's framework by recasting the third focus area around strengthening climate resilience and crisis response.

As of March 2025, the World Bank's portfolio in Malawi consists of 27 IDA lending operations with a total commitment amount of $3.23 billion of which nine projects (worth $1.09 billion) are regional projects. These are complemented by $165.17 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.

International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that support private sector growth, job creation, increased energy generation and access to energy, improved agricultural productivity and diversification, and greater access to finance and financial inclusion.

IFC is providing transactional advisory services to the government on developing bankable projects in water and energy infrastructure, and purpose-built student accommodation at several national universities through public-private partnerships.

In the financial sector, IFC is providing trade finance solutions to financial institutions to support critical imports and business activity. IFC's advisory support is helping improve credit reference systems and collateral registries to improve access to finance for SMEs and previously underserved communities.

In the agribusiness sector, IFC is providing support to strengthen value chains, enhance climate resilience to increase productivity and promote agri-processing as part of local value addition, helping to diversify Malawi's exports and create new and better jobs.

Last Updated: Apr 17, 2025

The $135 million Governance to Enable Service Delivery Project (GESD) aims to strengthen Local Authorities' institutional performance, responsiveness to citizens, and management of resources for service delivery.

Through the project's introduction of a new Performance Based Grant (PBG), an architecture has been established that increases the trust to consolidate expenditure through local government systems thereby achieving meaningful deepening of decentralization.

Since its launch in 2020, results achieved include:

· Strengthening Local Government Institutional Performance: A significant increase in local government capability as measured by the Local Authority Performance Assessment (LAPA), with an average score increase of 28 points (out of 100) across all 28 of rural Malawi's Local Authorities (LAs).

· Filling Locally Identified Infrastructure Gaps: 681 infrastructure projects that respond to citizen-driven needs across sectors including health, education, and transport have been delivered or are underway through decentralized local government structures.

· Bolstering Financial Management of Resources: Audit performance has progressed from a 3-year backlog to a 2023 result where all LA audits are current, with 10 of 28 receiving an unqualified opinion.

· Supporting Co-Production of Demand-side Accountability Structures: District CSO Networks in all 28 LAs are working together with local governments to support their delivery of the PBG to unlock further resources for citizens.

The $72.4 million Digital Malawi Program Phase I: Malawi Digital Foundations Project(DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses and citizens. Since its implementation in 2018, results achieved include:

Supporting Youth - 10 Tech Hubs were supported across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 19,000 youth (versus original target of 5,000), with over 50% of beneficiaries being female.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 83,000 students from 81 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though the Malawi Research and Education Network, MAREN. Around 40% of the students are female.

Over 100 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Over 500 government sites including offices, post offices, hospitals, among others have been provided with internet connectivity which is critical for improved efficiency of public service delivery.

The national data center has been constructed in Lilongwe to serve data hosting needs including safe storage and protection of government data.

The 2019 ambitious $100 million Malawi Energy Access Project (MEAP) was designed to fast-track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. The project is expected to be complete by the end of 2025.Since the start of its implementation, results include:

Over 1million people now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Ngwee Fund, meaning "bright!" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led Off-Grid solar segment of the market, has forged partnerships with five leading solar companies in Malawi, embarking on a connection campaign to provide solar home systems to about 180,000 households, achieving 90% of the target.

Last Updated: Apr 16, 2025

The European Union, African Development Bank, United Nations agencies, bilateral donors such as Norway, Ireland, FCDO, the US Government, Germany, Japan, China, Iceland, the Government of Flanders and the World Bank Group and the International Monetary Fund are among Malawi's key development partners.

The World Bank Group is collaborating with a range of development partners to promote important economic, social and policy reform agendas in Malawi. The EU, Norway, Ireland, and the Government of Flanders are financing a Multi-Donor Trust Fund (MDTF) in support of an IDA-financed Food System Resilience Program (FSRP) - a six-year engagement aiming to boost agri-business productivity and commercialization. A similar MDTF, financed by UK-FCDO, Iceland, Norway, European Union and USAID is backing the Social Support for Resilient Livelihoods Project (SSRLP). This large IDA-funded social protection engagement seeks to improve resilience among poor and vulnerable communities and to strengthen the country's national platform for managing social safety nets.

In the energy sector, the World Bank Group is collaborating with a range of development financing institutions (DFIs) to prepare the implementation of the large Mpatamanga Hydropower Storage Project (MHSP). The MHSP will be structured as a private-public partnership (PPP) and aims to transform Malawi's energy landscape and accelerate economic growth. Once completed, MHSP will more than double the country's installed capacity of electricity generation. The DFIs include the European Investment Bank (EIB), the African Development Bank (AfDB) and Proparco, among others.

Last Updated: Apr 22, 2025

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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Droughts and floods, the most severe of these hazards, have increased in frequency, intensity, and magnitude over the past twenty years, with dire consequences on food and water security, water quality, energy resources, and sustainable livelihoods of the most rural communities.

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In the last three decades, Malawi has experienced increasing climate change impacts, including more frequent and severe droughts and floods, which have significantly affected agriculture, water resources, and human health. These changes have led to food insecurity, reduced crop yields, and increased vulnerability to diseases associated with these extreme weather events. 

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In the last three decades, Malawi has experienced increasing climate change impacts, including more frequent and severe droughts and floods, which have significantly affected agriculture, water resources, and human health. These changes have led to food insecurity, reduced crop yields, and increased vulnerability to diseases associated with these extreme weather events. 

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Camilo Agudelo

https://www.trocaire.org/sites/default/files/resources/policy/malawi-climate-change-case-study.pdf

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The principal source of economy in Malawi is agriculture, with 80% of its economy coming from this. Although the country also uses mining, manufacturing tourism between others to sustain its economy

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The principal source of economy in Malawi is agriculture, with 80% of its economy coming from this. Although the country also uses mining, manufacturing tourism between others to sustain its economy

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 20.41 million (2022) with an annual growth rate of 2.6%.

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) FY21- FY25.
Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition which received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of nine political parties known as the Tonse Alliance. The next general election is scheduled September 2025.
Economic Overview
Malawi's economy continues to be significantly weakened by frequent exogenous shocks coupled with macro-fiscal imbalances. Growth is projected to increase in 2023 to 1.6% as electricity supply improves, compared to 0.9% in 2022. However, severe, and persistent shortages of foreign exchange continue to subdue growth. The country is expected to secure a staff-level agreement with the IMF and return to an Extended Credit Facility by the end of 2023.

The economy is expected to grow at 2.8% in 2024, supported by further anticipated macroeconomic reforms. However, such growth remains insufficient to substantially mitigate the prevailing high levels of poverty.

Following Tropical Cyclone Freddy, agriculture output has grown only marginally since last year. Inflation has remained high at 28.4% in July 2023. Food prices are increasing rapidly, reaching 39.3% year-on-year in July 2023 mainly driven by supply constraints. To contain inflationary pressures, the policy rate was increased to 24%, from 14%. With interest rates rising, the fiscal burden of debt service has increased. While foreign exchange reserves have exhibited a modest improvement, they remained low at 0.7 months of import cover in July 2023. Recurrent climate shocks pose a considerable risk for exacerbating food supply shortages in Malawi. Coupled with persistent inflation, rising domestic prices, and an anticipated decline in per capita income, the percentage of individuals subsisting on less than $2.15 per day (2017 PPP) is projected to increase from 71% to 72% in 2023.

The implementation of fiscal consolidation reforms has resulted in a modest decrease in expected deficits, from 11.9% of GDP in 2022 to 10.4% expected in 2023. However, public debt is still in distress and unsustainable, estimated to reach 80.3% of GDP in 2023. Amidst rising interest rates and continued borrowing, interest expenditure is expected to consume 24% of the current budget.
Development Challenges
Low agricultural productivity and limited commercialization has resulted in stagnant growth in incomes for the majority of Malawians. Structural challenges faced by the sector include market distortions such as price controls, trade restrictions, poorly targeted subsidies, and low access to inputs, which constrain investment and export-led growth. These effects are magnified by increasingly frequent and destructive tropical cyclones, including Cyclone Freddy in February 2023, which resulted in estimated losses and damages of more than $500 million.

External imbalances impede more rapid economic growth. Exports as a share of GDP have been declining over decades, driven by weak demand for tobacco and an overvalued exchange rate, which has resulted in low foreign exchange reserves and a rising spread between the official and parallel rates. The imbalance has made foreign exchange scarce, in turn constraining productive imports, including machinery and fuel for production.

Weak public financial management systems have caused the government to miss its fiscal targets, resulting in unexpected and high deficits. High and rising domestic interest rates mean that debt servicing costs continue to erode fiscal space.

Last Updated: Oct 06, 2023

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision. A Performance and Learning Review of the CPF is expected in the third quarter of FY24.

As of September 2023, the World Bank's portfolio in Malawi consists of 19 IDA lending operations with a total of $2.34 billion of which seven (worth $607.77 million), are regional projects. These are complemented by $133.92 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.
International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that help diversify the economy, develop energy infrastructure, and improve access to finance.

Under the infrastructure and natural resources program, IFC is providing public-private partnership advisory services to the water, transport, and energy sectors. IFC supports private sector involvement in hydro and other renewable energy power projects identified as a priority in Malawi's Integrated Resource Plan.

IFC is supporting value addition enterprises in the agribusiness sub-sector, diversification of Malawi's exports, and increasing agricultural productivity through support of irrigation projects and working with the government to improve the environment for private sector investments in this sector.

In the financial sector, IFC provides advisory support with the aim of increasing access to finance for small and medium enterprises (SMEs), and to help improve the collateral registry and credit reference systems.

Last Updated: Oct 06, 2023

The Equity with Quality and Learning at Secondary Project (EQUALS) aims to improve the quality of science and mathematics instruction in Community Day Secondary Schools (CDSSs) and increase access to secondary education in selected remote areas. Since March 2019, the project has made significant progress including:

90% of the targeted secondary schools have reached the desired student-textbook ratio of 1:1 in the four selected science and mathematics subjects.

140 unqualified teachers have been enrolled to the University Certificate for Education (UCE) program including training of nearly 4,500 secondary school teachers on remediation to address COVID-19 school closure effects.

A Digitized Inspection Tool, construction monitoring tool, and an online registration and payment platform for end of cycle examination have been developed as ICT tools to improve education quality and system management.

The Digital Malawi Program Phase I: Malawi Digital Foundations Project ($72.4 million)  (DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses, and citizens. Since its implementation in 2018, achievements include:

10 tech hubs have been established across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 10,000 youth, of whom over 50% are female. The tech hubs competitively awarded sub-grants of $2,500 to young entrepreneurs.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 66,000 students from 66 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though Malawi Research and Education Network, MAREN. Around 40% of the students are females.

Over 30 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Malawi Energy Access Project (MEAP). The 2019 $100 million project was designed to fast track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. Since the start of its implementation results include:

Over 180,000 individuals now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Fund, meaning "bright" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led off-grid solar segment of the market, has forged partnerships with five leading solar companies, embarking on a connection campaign to provide solar home systems to nearly 1 million people.

Last Updated: Oct 06, 2023

The World Bank in Malawi continues to strengthen partnerships with other Development Partners in implementing high impact and large-scale projects. The ongoing Shire Valley Transformation Programme in partnership with the African Development Bank; and The Social Support for Resilient Livelihoods Project (SSRLP)- Malawi's flagship safety net programme, financed by a multi-donor Trust Fund which includes USAID, Republic of Iceland, UKAID, Ireland and European Union, are some of the projects that demonstrate World Bank collaboration and partnerships at country level.

Last Updated: Sep 25, 2023

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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Malawi is particularly prone to adverse climate hazards that include dry spells, seasonal droughts, intense rainfall, riverine floods, and flash floods. Droughts and floods, the most severe of these hazards, have increased in frequency, intensity, and magnitude over the past twenty years, with dire consequences on food and water security, water quality, energy resources, and sustainable livelihoods of the most rural communities.

https://climateknowledgeportal.worldbank.org/country/malawi/vulnerability#:~:text=Droughts%20and%20floods%2C%20the%20most,of%20the%20most%20rural%20communities.

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The main economical source of Malawi is Agriculture, "the primary sector is estimated to account for 21.8% GDP, 80% of export revenues, and 62% of employment" for the part that agriculture dominates in the nation.

Source: https://www.lloydsbanktrade.com/en/market-potential/malawi/economical-context#:~:text=With%20about%2080%25%20of%20the%20population%20living%20in,62%25%20of%20employment%20%28World%20Bank%2C%20latest%20data%20available%29.

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Main Economic Sectors:

Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi's economy.

https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Whilst%20Agriculture%20is%20the%20mainstay,%2C%20groundnuts%2C%20textiles%20and%20apparels.

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The main sources of economy from Malawi are

Main Economic Sectors:

Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi's economy.

https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Agriculture%2C%20Mining%20and%20Quarry%2C%20Manufacturing,main%20sectors%20of%20Malawi's%20economy.

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Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi’s economy.

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the principal source of economy in malawi is the Leading sub-sectors in the agriculture industry in Malawi include tobacco, crop farming, livestock production, horticulture, fisheries and aquaculture, irrigation, and agro-processing.  Malawi’s desire to move away from reliance on rain-fed agriculture is opening opportunities for irrigation farming.

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the principal source of economy in malawi is the Leading sub-sectors in the agriculture industry in Malawi include tobacco, crop farming, livestock production, horticulture, fisheries and aquaculture, irrigation, and agro-processing.  Malawi’s desire to move away from reliance on rain-fed agriculture is opening opportunities for irrigation farming.

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emilio gonzalez and Juan Jose Cortes

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International Trade Administration | Trade.gov

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This is a best prospect industry sector for this country. Includes a market overview and trade data.

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Malawi’s economy is largely based on agriculture, with tobacco being the main export crop. Other important sectors include tea, sugar, and cotton production, as well as fishing and forestry.

https://www.economicactivity.org/the-economic-system-of-malawi-an-analysis/

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What is the economic system of Malawi? The economy of Malawi is based on a mixed economy. The country's economic system combines elements of a market economy and a planned economy.

Malawi's economy is largely based on agriculture, with tobacco being the main export crop. Other important sectors include tea, sugar, and cotton production, as well as fishing and forestry.

In Malawi, the economy is composed of a private sector, consisting of individuals and businesses that make autonomous decisions based on self-interest, and a public sector, where the state determines the production and distribution of certain goods and services. No country is purely capitalist or purely communist.

What do the freedom indexes tell about the economic system of Malawi?

Now, to determine if a country is mostly a market economy or a planned economy, it is useful to examine some economic indexes. For instance, according to the 2022 Index of Economic Freedom, which measures the ability of every human to control his own labor and property, Malawi is ranked 134th globally and 26th in Sub-Saharan Africa indicating that the country has a mostly unfree economy.

In a similar way, the 2022 Freedom House index evaluates the state of political rights and civil liberties globally. Generally, market economies tend to align more with democracy and freedom, while command economies tend to be characterized by greater state control and fewer democratic and civil liberty protections.

Malawi gets a score of 66/100, which qualifies it as Partly Free. Malawi is considered to have a government that does not control what people do, and people can make their own economic decisions, but it is only considered an electoral democracy, lacking full liberal democratic protections.

What do the biggest companies in Malawi say about the country's economic system?

The biggest company in Malawi should also be looked at, as well as whether it is a state-owned or private company. In this case, Standard Bank Limited is a Malawian financial services provider offering banking, insurance, and investment services.

The company s a subsidiary of Standard Bank Group, a large African financial services organization headquartered in South Africa. It shows how the biggest companies in the country are owned by private shareholders, in this case by multinationals.

The historical factors that have influenced the economic system of Malawi

The current mixed economy system of Malawi is a result of a combination of factors, including the country's colonial history, its post-independence economic policies, and its current economic and political environment.

Colonial rule saw the introduction of a market-based economy, while post-independence policies focused on state-led development and the promotion of small-scale agriculture. In recent years, the government has implemented economic reforms to promote private sector growth and foreign investment, while also providing social safety nets to protect the most vulnerable.

Sources

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The Economic System of Malawi: An Analysis - Economic Activity

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What is the economic system of Malawi? The economy of Malawi is based on a mixed economy. The country's economic system combines elements of a market economy

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In the last three decades, Colombia has experienced significant impacts from climate change, including increased temperatures, altered rainfall patterns, and more frequent extreme weather events. These changes have led to issues like decreased water availability, agricultural challenges, and increased vulnerability to natural disasters

https://wmo.int/news/media-centre/rate-and-impact-of-climate-change-surges-dramatically-2011-2020

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"Each decade since the 1990s has been warmer than the previous one and we see no immediate sign of this trend reversing. More countries reported record high temperatures than in any other decade. Our ocean is warming faster and faster and the rate of sea level rise has nearly doubled in less than a generation. We are losing the race to save our melting glaciers and ice sheets," said WMO Secretary-General Prof. Petteri Taalas.

"This is unequivocally driven by greenhouse gas emissions from human activities," said WMO Secretary-General Prof. Petteri Taalas. "We have to cut greenhouse gas emissions as a top and overriding priority for the planet in order to prevent climate change spiralling out of control," he said.

"Our weather is becoming more extreme, with a clear and demonstrable impact on socio-economic development. Droughts, heatwaves, floods, tropical cyclones and wildfires damage infrastructure, destroy agricultural yields, limit water supplies and cause mass displacements," said Prof. Taalas. "Numerous studies show that, in particular, the risk of intense heat has significantly increased in the past decade."

The report documents how extreme events across the decade had devastating impacts, particularly on food security, displacement and migration, hindering national development and progress toward the Sustainable Development Goals (SDGs).

But it also showed how improvements in forecasts, early warnings and coordinated disaster management and response are making a difference. The number of casualties from extreme events has declined, associated with improved early warning systems, even though economic losses have increased.

Public and private climate finance almost doubled between 2011 and 2020. However, it needs to increase at least seven times by the end of this decade to achieve climate objectives.

The report was released at the UN Climate Change Conference, COP28, and emphasizes the need for much more ambitious climate action to try to limit global temperature rise to no more than 1.5°C above the pre-industrial era.

The Decadal State of the Climate report provides a longer-term perspective and transcends year-to-year variability in our climate. It compliments WMO's annual State of the Global Climate report. The provisional annual report for 2023, released at COP28, said that 2023 is set to be the warmest year on record.

The report is based on physical data analyses and impact assessments from dozens of experts at National Meteorological and Hydrological Services, Regional Climate Centres, National Statistics Offices and United Nations partners.

Key Findings:
It was the warmest decade on record by a clear margin for both land and ocean.
Global mean temperature for the period 2011-2020 was 1.10 ± 0.12 °C above the 1850-1900 average. This is based on the average of six data sets used by WMO. The warmest six years on record globally were between 2015 and 2020.

Each successive decade since the 1990s has been warmer than all previous decades.

The warmest years of the decade were 2016, because of a strong El Niño event, and 2020. The largest positive anomalies for the decade, in places more than 2 °C above the 1981-2010 average, were in the Arctic.

More countries reported record high temperatures than in any other decade.
Atmospheric concentrations of the three major greenhouse gases continued to increase over the decade.
For about 10,000 years before the start of the industrial era, atmospheric carbon dioxide remained almost constant at around 280 ppm (ppm=number of molecules of the gas per million molecules of dry air). Since then, CO2 has increased by nearly 50% reaching 413.2 ppm in 2020, primarily due to the combustion of fossil fuels, deforestation, and changes in land-use.

The decadal global average CO2 during 1991-2000 was 361.7ppm, during the decade 2001-2010 it was 380.3 ppm, while in 2011-2020 it rose to 402.0 ppm.

During the same periods the average growth rate increased from 1.5 ppm/yr and 1.9 ppm/yr to 2.4 ppm/yr.

In order to stabilize the climate and prevent further warming, emissions must be sustainably reduced.
Rates of ocean warming and acidification are increasing.
Around 90% of the accumulated heat in the Earth system is stored in the ocean. Ocean warming rates show a particularly strong increase in the past two decades.

Ocean warming rates for the upper 2000m depth reached rates of 1.0 ± 0.1 Wm-2 over the period 2006-2020, compared with 0.6 ± 0.1 Wm-2 over the full 1971-2020 period. It reached a record high in 2020 and it is expected that this trend will continue in the future.

A consequence of the accumulation of CO2 in the ocean is its acidification, namely a drop in the oceanic pH, which makes it more challenging for marine organisms to build and maintain their shells and skeletons.
Marine heatwaves are becoming more frequent and intense.
In any given year between 2011 and 2020, approximately 60% of the surface of the ocean experienced a heatwave.

The three years having the highest average of days with marine heatwaves were 2016 (61 days), 2020 (58 days), and 2019 (54 days).

Marine heatwaves have become relatively more intense in the most recent decade. Category II (Strong) events have become more common than those rated in Category I (Moderate). There was an average of 0.5 day extreme marine heatwave (Category IV) per year in the past decade, with 1 full day in the El Niño year 2016. In the past these extreme events - which can change entire ecosystems - were so uncommon that they could hardly be measured on a global scale.
Global mean sea level rise is accelerating, largely because of ocean warming and the loss of land ice mass.
From 2011 to 2020, sea level rose at an annual rate of 4.5mm/yr. This compares with 2.9 +/- 0.5mm/yr in 2001-2010.

Global mean sea level rise has accelerated, mostly due to a speeding up of ice mass loss from the Greenland ice sheet, and, to a lesser extent, due to accelerated glacial melting and ocean warming.
Glacier loss is unprecedented in the modern record.
Glaciers that were measured around the world thinned by approximately 1m per year on average between 2011 and 2020.

The latest assessment based on 42 reference glaciers with long-term measurements reveals that the period between 2011 and 2020 saw the lowest mean mass balances of any observed decade. Some of the mass balance reference glaciers have already melted away, as the winter snow nourishing the glacier melts completely during the summer months.

Nearly all the 19 primary glacier regions have witnessed increasingly large negative values from 2000 to 2020.

The remaining glaciers near the Equator are generally in rapid decline. Glaciers in Papua, Indonesia are likely to disappear altogether within the next decade. In Africa, glaciers on the Rwenzori Mountains and Mount Kenya are projected to disappear by 2030, and those on Kilimanjaro by 2040.
Greenland and Antarctica lost 38% more ice between 2011 and 2020 than during the 2001-2010 period.
The Greenland and Antarctic continental ice sheets are the largest freshwater reservoirs on Earth, storing a volume of 29.5 million km3 of frozen water. When ice sheets lose mass, they directly contribute to raising the global mean sea level and, therefore, monitoring the volume of ice they gain or lose is critical to assessing sea level change.

During the 2011-2020 decade, Greenland lost mass at an average rate of 251 Gigatonnes (Gt) per year and reached a new record mass loss of 444 Gt in 2019. The Antarctic continental ice sheet lost ice at an average rate of 143 Gt yr- during this decade, with more than three-quarters of this mass loss coming from West Antarctica. Compared to the previous decade (2001-2010), this represents an increase of nearly 75% in ice losses. This is not the same as Antarctic sea ice.

For the Greenland and Antarctic ice sheets combined, there was an increase of 38 % in ice losses compared to 2001-2010. It confirms the sustained increase in losses compared to the 1990s (1992-2000), when Greenland and Antarctica ice sheet losses amounted to 84 Gt yr.
Arctic sea ice extent continues a multi-decade decline: the seasonal mean minimum was 30% below average.
Arctic sea ice continued to decline, particularly during the summer melt season. The mean seasonal minimum extent during the 2011-2020 period was 4.37 million km2, 30% below the 1981-2010 average of 6.22 million km2. The decrease was less pronounced, but still substantial, during the winter accumulation season, with an annual mean maximum during the decade of 14.78 million km2, 6% below the 15.65 million km2 average for the 1981-2010 period.

Reduced sea ice extent was accompanied by a decrease in thickness and volume, although data for these indicators are more limited. There has also been a marked decrease in the extent of ice which lasted for more than one year. In March 1985, old ice (four years or more) accounted for 33% of the total ice cover of the Arctic Ocean, but that figure had fallen below 10% by 2010, and in March 2020 it had dropped to 4.4%.
The ozone hole was smaller in the 2011-2020 period than during the two previous decades.
On average, over the 2011-2020 period, the annual maximum mass deficit was lower than during the previous two decades. Due to the actions taken under the Montreal Protocol, the total amount of chlorine entering the stratosphere from controlled and uncontrolled Ozone Depleting Substances (ODSs) such as Chlorofluocarbons (CFCs) declined by 11.5% from its peak value of 3660 ppt in 1993, to 3240 ppt in 2020.

Total ozone values in the Antarctic are projected to return to 1980 values by around 2065. Total springtime ozone is expected to return to 1980 values in the Arctic by approximately 2045.

Sustainable Development
In order to achieve the SDGs and meet the targets of the Paris Agreement, there is need for synergistic action, whereby advancements in one can lead to improvements in the other.
For the very first time, this report demonstrates concrete connections between extreme events and development. Working in interdisciplinary collaboration with United Nations agencies and National Statistics Offices, select case studies demonstrate how extreme events across the decade have impeded progress toward the SDGs.

Extreme events across the decade had devastating impacts, particularly on food security and human mobility. Weather and climate-related events were responsible for nearly 94% of all disaster displacement recorded over the last decade, and played a role in the backward trend in the progress of global efforts to end hunger, food insecurity, and malnutrition.

For many extreme events, the likelihood of an event of that magnitude has been altered, often greatly, because of anthropogenic climate change. Virtually every attribution study found that the likelihood of an extreme heat event increased significantly.

Heatwaves were responsible for the highest number of casualties, while tropical cyclones caused the most economic damage.
The number of casualties from extreme events has declined, associated with improved early warning systems, but economic losses have increased.
A major contributor to this decrease has been improved early warning systems, driven by improvements in forecasting, coupled with improved disaster management. The 2011-2020 decade was the first since 1950 when there was not a single short-term event with 10,000 deaths or more.

However, economic losses from extreme weather and climate events have continued to increase. While Hurricane Katrina in 2005 remains the world's most costly weather disaster, the next four most costly events were all hurricanes that occurred in the 2011-2020 decade, and whose greatest impacts were in the United States and/or its territories.

There was great contrast between events causing large numbers of casualties and those incurring great economic losses, both in terms of the type of event and their geographic distribution. Of the 13 known events resulting in more than 1000 deaths, six were heatwaves; four were monsoonal flooding or landslides associated with such flooding, and three were tropical cyclones.

Of the 27 events with known economic losses exceeding 10 billion US dollars (USD), in 2022, 16 occurred within the United States and eight in East Asia; 13 of the 27 events were tropical cyclones, eight floods and three wildfires.

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Rate and impact of climate change surges dramatically in 2011-2020

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"Each decade since the 1990s has been warmer than the previous one and we see no immediate sign of this trend reversing. More countries reported record high temperatures than in any other decade. Our ocean is warming faster and faster and the rate of sea level rise has nearly doubled in less than a generation.

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In addition to floods, in the last few decades Malawi has experienced droughts during the 1978/79, 1981/82, 1991/92 and 1993/94 crop growing seasons. Therefore Malawi is highly vulnerable to climate change under even modest temperature increases.

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In addition to floods, in the last few decades Malawi has experienced droughts during the 1978/79, 1981/82, 1991/92 and 1993/94 crop growing seasons. Therefore Malawi is highly vulnerable to climate change under even modest temperature increases.

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Trocaire.org

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Since april 2021, The country of malawi has been suffering severe consequences like for example, change in rain patterns, severe changes in temperature and decreased monthly rainfall affecting overall the health of the citizens and their economy

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Since april 2021, The country of malawi has been suffering severe consequences like for example, change in rain patterns, severe changes in temperature and decreased monthly rainfall affecting overall the health of the citizens and their economy

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https://www.climatecentre.org/wp-content/uploads/RCRC_IFRC-Country-assessments-Malawi_Final3.pdf

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2017, agriculture accounted for about one-third of GDP[12] and about 80% of export revenue. The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. The IMF and World Bank has spearheaded structural reforms in Malawi for decades.[11]

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Lilongwe University of Agriculture and Natural Resources

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Malawi is highly susceptible to climate change and it has caused dry spells, seasonal droughts, intense rainfall, riverine floods, and flash floods that make climate patterns more erratic and difficult to predict affecting agriculture and economic activities.

Sources: https://climateknowledgeportal.worldbank.org/country/malawi/vulnerability#:~:text=Malawi%20is%20particularly%20prone%20to,riverine%20floods%2C%20and%20flash%20floods.

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Most significant are changes in the start, length and quality of the growing season, increased frequency and intensity of climate-related disasters, esp prolonged droughts and flooding,sometimes in the season in the same areas

https://unfccc.int/sites/default/files/keynote_on_climate_change_in_malawi.pdf

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The global climate crisis will affect Malawi through increased temperatures (certain), decreased mean monthly rainfall (uncertain), increases in the amount of rainfall during extreme events (highly likely), and an observed increase in the frequency and intensity of drought events.

https://www.climatecentre.org/wp-content/uploads/RCRC_IFRC-Country-assessments-Malawi_Final3.pdf

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Malawi has experienced droughts during the 1978/79, 1981/82, 1991/92 and 1993/94 crop growing seasons. Therefore Malawi is highly vulnerable to climate change under even modest temperature increases.

https://www.trocaire.org/sites/default/files/resources/policy/malawi-climate-change-case-study.pdf

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Climate change will lead to crop pest, weakening global market through economy crisis, and causing unpredictable weathers with extreme conditions

Source: https://unfccc.int/sites/default/files/keynote_on_climate_change_in_malawi.pdf

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affectations for malawi last three decades: mario montoya

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affectations for malawi last three decades: mario montoya

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https://climateknowledgeportal.worldbank.org/country/malawi

Over the past five decades, Malawi has experienced more than 19 major floods and seven droughts, with these events increasing in frequency, magnitude and scope over the years. In 2015 and 2016, Malawi experienced serious and unprecedented floods and droughts due to climate change, with effects on key socio-economic sectors and, consequently, on the economy. In early March 2019, heavy rains hit Malawi, causing severe flooding in the southern, and to a lesser extent, central, regions.

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The country of Malawi has been affected by climate change causing several flooding and drought in the crops

https://www.trocaire.org/sites/default/files/resources/policy/malawi-climate-change-case-study.pdf

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The economy of Malawi depend on agriculture, that employs over 80% of population. Also in January 2021 the government launched “Malawi 2063” which purpose is to transform Malawi into a wealthy, self-reliant country, through the focus on agriculture commercialization, industrialization, and urbanization.

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 21.1million (2023) with an annual growth rate of 2.6%.

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) (FY21- FY25).

Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition that received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of several political parties known as the Tonse Alliance. In late June 2024, President Chakwera appointed a new Vice President, Michael Usi, UTM, following the death of Vice President Saulos Chilima in a plane crash on June 10, 2024. The next general election is scheduled for September 16, 2025.
Economic Overview,
Malawi's real GDP is projected to grow modestly by 2% in 2025, which would not be sufficient to prevent a fourth consecutive contraction in per capita income. The GDP growth will be driven by a modest recovery in the agricultural sector, which experienced negative growth in 2024 due to El Niño-induced drought conditions.

Additionally, modest growth is anticipated in the industrial and services sectors and will remain subdued due to the continued unavailability of foreign exchange, which is constraining the importation of production inputs. The real appreciation of the official exchange rate will continue to incentivize imports and discourage export growth, deepening external imbalances.

Real GDP growth is however projected at 2.4% in 2026, and this stagnation impedes efforts to reduce poverty in Malawi.

The budget deficit is expected to widen to 8.7% of GDP in 2025, driven by election year spending and the need to absorb some critical expenditures previously financed by the United States government.

Inflation is expected to remain above 30% due to a weaker agricultural recovery, the imposition of new import bans constraining supply, as well as continued high money supply growth.

The outlook is subject to significant downside risks, including potential fiscal slippages that could entrench macroeconomic instability. While direct and indirect effects of recent trade policy shifts have caused a downward shift in growth projections, continued uncertainty and weaker than expected global demand may further adversely affect Malawi's growth prospects. Failure to address external imbalances may further perpetuate input shortages. Upside risks include the potential unfreezing of U.S. aid to Malawi, easing of trade restrictions, faster-than-expected development of mining mega-projects, and the rapid conclusion of debt-restructuring negotiations with commercial external creditors.
Development Challenges
In the past three years, per capita income has declined as Malawi's economic growth lagged population growth. The period has seen widening fiscal and current account deficits, an unsustainable debt burden, increasing capital and price controls, and severe foreign exchange shortages, hindering economic stabilization efforts.

Frequent climatic disasters and other exogenous shocks have exacerbated these challenges, making it difficult for poor households to build resilience.

In 2024, Malawi's economy faced significant challenges, with real GDP growth slowing to 1.8% due to a severe drought and acute foreign exchange shortages. The poverty rate rose to 71.2%. The interplay of external sector imbalances, inflationary pressures, and fiscal constraints has deepened economic vulnerabilities, impeding recovery prospects.

Despite significant progress in reducing child mortality and fertility rates, hunger remains a critical concern due to successive weak harvests since 2022. This has hindered human capital development, with the rate of stunted children under five stagnant at 38% since 2015. Foreign exchange constraints have also limited imports to compensate for the food supply deficit.

The number of people living in poverty is expected to increase in 2025 amidst this challenging economic environment and rising food insecurity, with an additional 417,000 people falling below the $2.15 per day threshold, bringing the total number of people living in poverty to 15.8 million.

Last Updated: Apr 16, 2025

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision.

A Performance and Learning Review was approved in the third quarter of FY25 and included an extension of the CPF period to FY26. The PLR also revised the CPF's framework by recasting the third focus area around strengthening climate resilience and crisis response.

As of March 2025, the World Bank's portfolio in Malawi consists of 27 IDA lending operations with a total commitment amount of $3.23 billion of which nine projects (worth $1.09 billion) are regional projects. These are complemented by $165.17 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.

International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that support private sector growth, job creation, increased energy generation and access to energy, improved agricultural productivity and diversification, and greater access to finance and financial inclusion.

IFC is providing transactional advisory services to the government on developing bankable projects in water and energy infrastructure, and purpose-built student accommodation at several national universities through public-private partnerships.

In the financial sector, IFC is providing trade finance solutions to financial institutions to support critical imports and business activity. IFC's advisory support is helping improve credit reference systems and collateral registries to improve access to finance for SMEs and previously underserved communities.

In the agribusiness sector, IFC is providing support to strengthen value chains, enhance climate resilience to increase productivity and promote agri-processing as part of local value addition, helping to diversify Malawi's exports and create new and better jobs.

Last Updated: Apr 17, 2025

The $135 million Governance to Enable Service Delivery Project (GESD) aims to strengthen Local Authorities' institutional performance, responsiveness to citizens, and management of resources for service delivery.

Through the project's introduction of a new Performance Based Grant (PBG), an architecture has been established that increases the trust to consolidate expenditure through local government systems thereby achieving meaningful deepening of decentralization.

Since its launch in 2020, results achieved include:

· Strengthening Local Government Institutional Performance: A significant increase in local government capability as measured by the Local Authority Performance Assessment (LAPA), with an average score increase of 28 points (out of 100) across all 28 of rural Malawi's Local Authorities (LAs).

· Filling Locally Identified Infrastructure Gaps: 681 infrastructure projects that respond to citizen-driven needs across sectors including health, education, and transport have been delivered or are underway through decentralized local government structures.

· Bolstering Financial Management of Resources: Audit performance has progressed from a 3-year backlog to a 2023 result where all LA audits are current, with 10 of 28 receiving an unqualified opinion.

· Supporting Co-Production of Demand-side Accountability Structures: District CSO Networks in all 28 LAs are working together with local governments to support their delivery of the PBG to unlock further resources for citizens.

The $72.4 million Digital Malawi Program Phase I: Malawi Digital Foundations Project(DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses and citizens. Since its implementation in 2018, results achieved include:

Supporting Youth - 10 Tech Hubs were supported across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 19,000 youth (versus original target of 5,000), with over 50% of beneficiaries being female.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 83,000 students from 81 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though the Malawi Research and Education Network, MAREN. Around 40% of the students are female.

Over 100 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Over 500 government sites including offices, post offices, hospitals, among others have been provided with internet connectivity which is critical for improved efficiency of public service delivery.

The national data center has been constructed in Lilongwe to serve data hosting needs including safe storage and protection of government data.

The 2019 ambitious $100 million Malawi Energy Access Project (MEAP) was designed to fast-track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. The project is expected to be complete by the end of 2025.Since the start of its implementation, results include:

Over 1million people now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Ngwee Fund, meaning "bright!" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led Off-Grid solar segment of the market, has forged partnerships with five leading solar companies in Malawi, embarking on a connection campaign to provide solar home systems to about 180,000 households, achieving 90% of the target.

Last Updated: Apr 16, 2025

The European Union, African Development Bank, United Nations agencies, bilateral donors such as Norway, Ireland, FCDO, the US Government, Germany, Japan, China, Iceland, the Government of Flanders and the World Bank Group and the International Monetary Fund are among Malawi's key development partners.

The World Bank Group is collaborating with a range of development partners to promote important economic, social and policy reform agendas in Malawi. The EU, Norway, Ireland, and the Government of Flanders are financing a Multi-Donor Trust Fund (MDTF) in support of an IDA-financed Food System Resilience Program (FSRP) - a six-year engagement aiming to boost agri-business productivity and commercialization. A similar MDTF, financed by UK-FCDO, Iceland, Norway, European Union and USAID is backing the Social Support for Resilient Livelihoods Project (SSRLP). This large IDA-funded social protection engagement seeks to improve resilience among poor and vulnerable communities and to strengthen the country's national platform for managing social safety nets.

In the energy sector, the World Bank Group is collaborating with a range of development financing institutions (DFIs) to prepare the implementation of the large Mpatamanga Hydropower Storage Project (MHSP). The MHSP will be structured as a private-public partnership (PPP) and aims to transform Malawi's energy landscape and accelerate economic growth. Once completed, MHSP will more than double the country's installed capacity of electricity generation. The DFIs include the European Investment Bank (EIB), the African Development Bank (AfDB) and Proparco, among others.

Last Updated: Apr 22, 2025

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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The main economical source of Malawi.

Is located estimated population is 21.1million (2023) with an annual growth rate of 2.6%.

Malawi is one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 20.41 million (2022) with an annual growth rate of 2.6%.

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) FY21- FY25.
Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition which received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of nine political parties known as the Tonse Alliance. The next general election is scheduled September 2025.
Economic Overview
Malawi's economy continues to be significantly weakened by frequent exogenous shocks coupled with macro-fiscal imbalances. Growth is projected to increase in 2023 to 1.6% as electricity supply improves, compared to 0.9% in 2022. However, severe, and persistent shortages of foreign exchange continue to subdue growth. The country is expected to secure a staff-level agreement with the IMF and return to an Extended Credit Facility by the end of 2023.

The economy is expected to grow at 2.8% in 2024, supported by further anticipated macroeconomic reforms. However, such growth remains insufficient to substantially mitigate the prevailing high levels of poverty.

Following Tropical Cyclone Freddy, agriculture output has grown only marginally since last year. Inflation has remained high at 28.4% in July 2023. Food prices are increasing rapidly, reaching 39.3% year-on-year in July 2023 mainly driven by supply constraints. To contain inflationary pressures, the policy rate was increased to 24%, from 14%. With interest rates rising, the fiscal burden of debt service has increased. While foreign exchange reserves have exhibited a modest improvement, they remained low at 0.7 months of import cover in July 2023. Recurrent climate shocks pose a considerable risk for exacerbating food supply shortages in Malawi. Coupled with persistent inflation, rising domestic prices, and an anticipated decline in per capita income, the percentage of individuals subsisting on less than $2.15 per day (2017 PPP) is projected to increase from 71% to 72% in 2023.

The implementation of fiscal consolidation reforms has resulted in a modest decrease in expected deficits, from 11.9% of GDP in 2022 to 10.4% expected in 2023. However, public debt is still in distress and unsustainable, estimated to reach 80.3% of GDP in 2023. Amidst rising interest rates and continued borrowing, interest expenditure is expected to consume 24% of the current budget.
Development Challenges
Low agricultural productivity and limited commercialization has resulted in stagnant growth in incomes for the majority of Malawians. Structural challenges faced by the sector include market distortions such as price controls, trade restrictions, poorly targeted subsidies, and low access to inputs, which constrain investment and export-led growth. These effects are magnified by increasingly frequent and destructive tropical cyclones, including Cyclone Freddy in February 2023, which resulted in estimated losses and damages of more than $500 million.

External imbalances impede more rapid economic growth. Exports as a share of GDP have been declining over decades, driven by weak demand for tobacco and an overvalued exchange rate, which has resulted in low foreign exchange reserves and a rising spread between the official and parallel rates. The imbalance has made foreign exchange scarce, in turn constraining productive imports, including machinery and fuel for production.

Weak public financial management systems have caused the government to miss its fiscal targets, resulting in unexpected and high deficits. High and rising domestic interest rates mean that debt servicing costs continue to erode fiscal space.

Last Updated: Oct 06, 2023

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision. A Performance and Learning Review of the CPF is expected in the third quarter of FY24.

As of September 2023, the World Bank's portfolio in Malawi consists of 19 IDA lending operations with a total of $2.34 billion of which seven (worth $607.77 million), are regional projects. These are complemented by $133.92 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.
International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that help diversify the economy, develop energy infrastructure, and improve access to finance.

Under the infrastructure and natural resources program, IFC is providing public-private partnership advisory services to the water, transport, and energy sectors. IFC supports private sector involvement in hydro and other renewable energy power projects identified as a priority in Malawi's Integrated Resource Plan.

IFC is supporting value addition enterprises in the agribusiness sub-sector, diversification of Malawi's exports, and increasing agricultural productivity through support of irrigation projects and working with the government to improve the environment for private sector investments in this sector.

In the financial sector, IFC provides advisory support with the aim of increasing access to finance for small and medium enterprises (SMEs), and to help improve the collateral registry and credit reference systems.

Last Updated: Oct 06, 2023

The Equity with Quality and Learning at Secondary Project (EQUALS) aims to improve the quality of science and mathematics instruction in Community Day Secondary Schools (CDSSs) and increase access to secondary education in selected remote areas. Since March 2019, the project has made significant progress including:

90% of the targeted secondary schools have reached the desired student-textbook ratio of 1:1 in the four selected science and mathematics subjects.

140 unqualified teachers have been enrolled to the University Certificate for Education (UCE) program including training of nearly 4,500 secondary school teachers on remediation to address COVID-19 school closure effects.

A Digitized Inspection Tool, construction monitoring tool, and an online registration and payment platform for end of cycle examination have been developed as ICT tools to improve education quality and system management.

The Digital Malawi Program Phase I: Malawi Digital Foundations Project ($72.4 million)  (DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses, and citizens. Since its implementation in 2018, achievements include:

10 tech hubs have been established across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 10,000 youth, of whom over 50% are female. The tech hubs competitively awarded sub-grants of $2,500 to young entrepreneurs.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 66,000 students from 66 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though Malawi Research and Education Network, MAREN. Around 40% of the students are females.

Over 30 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Malawi Energy Access Project (MEAP). The 2019 $100 million project was designed to fast track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. Since the start of its implementation results include:

Over 180,000 individuals now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Fund, meaning "bright" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led off-grid solar segment of the market, has forged partnerships with five leading solar companies, embarking on a connection campaign to provide solar home systems to nearly 1 million people.

Last Updated: Oct 06, 2023

The World Bank in Malawi continues to strengthen partnerships with other Development Partners in implementing high impact and large-scale projects. The ongoing Shire Valley Transformation Programme in partnership with the African Development Bank; and The Social Support for Resilient Livelihoods Project (SSRLP)- Malawi's flagship safety net programme, financed by a multi-donor Trust Fund which includes USAID, Republic of Iceland, UKAID, Ireland and European Union, are some of the projects that demonstrate World Bank collaboration and partnerships at country level.

Last Updated: Sep 25, 2023

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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The main sources of Malawi economy are agriculture, tourism, mining, and manufacturing

https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Agriculture%2C%20Mining%20and%20Quarry%2C%20Manufacturing,main%20sectors%20of%20Malawi's%20economy.

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Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi’s economy.

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With about 80% of the population living in rural areas, the economy of Malawi is predominantly agricultural: the primary sector is estimated to account for 21.8% GDP, 80% of export revenues, and 62% of employment

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 20.41 million (2022) with an annual growth rate of 2.6%

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) (FY21- FY25).
Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition that received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of several political parties known as the Tonse Alliance. The next general election is scheduled September 16, 2025.
Economic Overview
Malawi's economy is projected to grow by 2.0% in 2024 - a contraction in per capita terms given 2.6% population growth. Limited availability of agricultural inputs and the impact of prolonged dry spells during the growing season will result in reduced agricultural output.

Continued liquidity challenges in foreign exchange markets are expected to continue affecting the importation of raw materials and productions inputs, constraining economic activity in industry and services. Headline inflation is expected to remain high and average 27.4% in 2024.

The disinflationary impact of tightening monetary policy will be offset by lower agricultural output and resultant pressures on food prices. The adjustment of energy and other utility prices necessitated by the adjustment of the kwacha and planned for 2024 will add to inflationary pressures. Revenue is projected at 21.5% of GDP in FY2024/25. This outcome assumes the achievement of ambitious tax revenue targets, as well as increased disbursements of grants, which are expected to reach 5.4% of GDP, the highest in the last decade.

Expenditure is expected to moderate slightly to 28.4% of GDP, thus translating to a projected fiscal deficit of 6.6% of GDP in FY2024/25. Failure to attain ambitious revenue targets and overspending would widen the deficit further, which would add to an already high and unsustainable public debt burden.

Imports are expected to continue rising, driven in particular by the need for increased food imports to address domestic shortages. While exports are also projected to recover, the impact of prolonged dry spells on agricultural production may constrain export growth.

The current account deficit is projected to remain high at 20% of GDP. With heightened food insecurity, both from high food prices and shortages owing to anticipated lower agriculture output, poverty is expected to worsen in 2024. The proportion of people living below the poverty line of $2.15 a day will increase slightly to 72% in 2024.
Development Challenges
Vulnerabilities in the Malawian economy continue to be exacerbated by weather and climate-related shocks paired with scarcity of foreign exchange that constrains the importation of raw materials.

Recurring floods and prolonged dry spells compounded by limited availability of agricultural inputs and weak domestic and regional market integration keep agricultural output below its potential.

Persistent liquidity challenges and distortions in foreign exchange markets continue to constrain the importation of raw materials for the production process, further undermining growth.

A lack of trade dynamism and low levels of investment persist. Lower agricultural output and slow implementation of policies to support crop diversification and economic transformation constrain exports, as does the widespread presence of non-tariff barriers, strict capital controls, and high trade costs. These, in turn, affect the accumulation of foreign exchange reserves. With continued high import demands, the current account deficit remains elevated, placing additional pressure on reserves.

Fiscal imbalances have been a central challenge to reducing inflation, following years of an expansionary fiscal policy. Slow implementation of public financial management reforms, paired with growing statutory expenditure requirements, continue to exert upward pressure on government expenditure.

With limited availability of external financing and high levels of domestic borrowing, public debt continues to rise, resulting in debt servicing requirements in excess of 35% of revenues.

The prevalence of poverty remains high, with rates exceeding 70% - one of the highest in the world. The continued high rate of poverty is exacerbated by a sluggish economic recovery and persistent food shortages following a series of weather shocks, high susceptibility to fluctuations in food prices, and ongoing rapid population growth.

Last Updated: Apr 11, 2024

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision. A Performance and Learning Review of the CPF is expected in the first quarter of FY25 and will include a request for extension of the CPF period to FY26.

As of March 2024, the World Bank's portfolio in Malawi consists of 29 IDA lending operations with a total commitment amount of $3.35 billion of which 8 projects (worth $822.28 million) are regional projects. These are complemented by $170.74 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.
International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that help diversify the economy, develop energy infrastructure, and improve access to finance.

Under the infrastructure and natural resources program, IFC is providing public-private partnership advisory services to the water, transport, and energy sectors. IFC supports private sector involvement in hydro and other renewable energy power projects identified as a priority in Malawi's Integrated Resource Plan.

IFC is supporting value addition enterprises in the agribusiness sub-sector, diversification of Malawi's exports, and increasing agricultural productivity through support of irrigation projects and working with the government to improve the environment for private sector investments in this sector.

In the financial sector, IFC provides advisory support with the aim of increasing access to trade finance and finance for small and medium enterprises (SMEs), and to help improve the collateral registry and credit reference systems.

Last Updated: Apr 03, 2024

The Equity with Quality and Learning at Secondary, EQUALS Project aims to improve quality of science and mathematics instruction in Community Day Secondary Schools (CDSSs) and increase access to secondary education in selected remote areas. Since March 2019, the project has made significant progress including among others:

90% of the targeted secondary schools have reached the desired student textbook ratio of 1:1 in the four selected science and mathematics subjects.

more than 1,400 school heads and their deputies have been trained on school management and instructional leadership including training of nearly 4,500 secondary school teachers on remediation to address COVID-19 school closure effects.

Cost-effective construction of 92 block classrooms and the expansion of 103 Community Day Secondary Schools CDSS is ongoing including furnishing classrooms and science blocks, gender and disabled-friendly ablution blocks, libraries, and equipping ICT laboratories.

Nearly 630 auxiliary teachers have now been enrolled on a government payroll at the end of their temporary contract to reduce teacher to pupil ratio.

The $72.4 million Digital Malawi Program Phase I: Malawi Digital Foundations Project(DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses and citizens. Since its implementation in 2018, results achieved include:

Supporting Youth - 10 Tech Hubs have been established across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 19,000 youth (versus original target of 5,000), with over 50% of beneficiaries being female.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 83,000 students from 81 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though Malawi Research and Education Network, MAREN. Around 40% of the students are females.

Over 100 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Over 500 government sites including offices, post offices, hospitals, among others have been provided with internet connectivity which is critical for improved efficiency of public service delivery.

The 2019 ambitious $100 million Malawi Energy Access Project (MEAP) was designed to fast-track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. Since the start of its implementation, results include:

Over 180,000 individuals now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Fund, meaning "bright!" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led off-grid solar segment of the market, has forged partnerships with five leading solar companies in Malawi, embarking on a connection campaign to provide solar home systems to nearly 1 million people.

Last Updated: Apr 03, 2024

The European Union, African Development Bank, United Nations agencies, bilateral donors such as FCDO, USAID, Germany, Norway, and China, the World Bank Group, and the International Monetary Fund are among Malawi's key development partners.

The government and its cooperating partners have a Development Cooperation Strategy (DCS 2014-2018) which is currently being updated. It guides development cooperation in the country. The DCS advocates inclusive partnerships, government leadership and country ownership of the national development agenda, and alignment around national systems and strategies. It also embraces focusing on results that matter to poor citizens and encourages partnerships among development actors based on mutual trust, transparency, and accountability.

Last Updated: Apr 03, 2024

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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The Malawi economy is agro based with agriculture contributing 37% of the national GDP and employing 80% of the total workforce. Main exports are tobacco, tea, sugar, apparel and clothing, cotton, nuts, pulses, sawn & plied wood, natural rubber, coffee, spices, hides & skins and wooden furniture.

Major imports are petroleum products, fertilizer, manufactured goods, equipment and machinery. The economy has largely been import dependent and this has necessitated policy shift towards enhancing production and export. Malawi has to this effect, worked hard to improve the environment for doing business and macroeconomic stability which are the cornerstones for profitable investment.

https://www.malawiconsulate.co.za/index.php/invest-in-malawi/country-economic-overview

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Country Economic Overview The Malawi economy is agro based with agriculture contributing 37% of the national GDP and employing 80% of the total workforce.…

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ODS 13: Climate action

Climate change has severely affected Malawi with droughts and floods, negatively affecting agriculture and thus the country's economy.

agriculture in malawi is critical because it employs over 80% of the population

https://www.worldbank.org/en/country/malawi/overview#:~:text=The%20economy%20is%20heavily%20dependent,external%20shocks%2C%20particularly%20climatic%20shocks.

https://climateknowledgeportal.worldbank.org/country/malawi

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 21.1million (2023) with an annual growth rate of 2.6%.

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) (FY21- FY25).

Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition that received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of several political parties known as the Tonse Alliance. In late June 2024, President Chakwera appointed a new Vice President, Michael Usi, UTM, following the death of Vice President Saulos Chilima in a plane crash on June 10, 2024. The next general election is scheduled for September 16, 2025.
Economic Overview,
Malawi's real GDP is projected to grow modestly by 2% in 2025, which would not be sufficient to prevent a fourth consecutive contraction in per capita income. The GDP growth will be driven by a modest recovery in the agricultural sector, which experienced negative growth in 2024 due to El Niño-induced drought conditions.

Additionally, modest growth is anticipated in the industrial and services sectors and will remain subdued due to the continued unavailability of foreign exchange, which is constraining the importation of production inputs. The real appreciation of the official exchange rate will continue to incentivize imports and discourage export growth, deepening external imbalances.

Real GDP growth is however projected at 2.4% in 2026, and this stagnation impedes efforts to reduce poverty in Malawi.

The budget deficit is expected to widen to 8.7% of GDP in 2025, driven by election year spending and the need to absorb some critical expenditures previously financed by the United States government.

Inflation is expected to remain above 30% due to a weaker agricultural recovery, the imposition of new import bans constraining supply, as well as continued high money supply growth.

The outlook is subject to significant downside risks, including potential fiscal slippages that could entrench macroeconomic instability. While direct and indirect effects of recent trade policy shifts have caused a downward shift in growth projections, continued uncertainty and weaker than expected global demand may further adversely affect Malawi's growth prospects. Failure to address external imbalances may further perpetuate input shortages. Upside risks include the potential unfreezing of U.S. aid to Malawi, easing of trade restrictions, faster-than-expected development of mining mega-projects, and the rapid conclusion of debt-restructuring negotiations with commercial external creditors.
Development Challenges
In the past three years, per capita income has declined as Malawi's economic growth lagged population growth. The period has seen widening fiscal and current account deficits, an unsustainable debt burden, increasing capital and price controls, and severe foreign exchange shortages, hindering economic stabilization efforts.

Frequent climatic disasters and other exogenous shocks have exacerbated these challenges, making it difficult for poor households to build resilience.

In 2024, Malawi's economy faced significant challenges, with real GDP growth slowing to 1.8% due to a severe drought and acute foreign exchange shortages. The poverty rate rose to 71.2%. The interplay of external sector imbalances, inflationary pressures, and fiscal constraints has deepened economic vulnerabilities, impeding recovery prospects.

Despite significant progress in reducing child mortality and fertility rates, hunger remains a critical concern due to successive weak harvests since 2022. This has hindered human capital development, with the rate of stunted children under five stagnant at 38% since 2015. Foreign exchange constraints have also limited imports to compensate for the food supply deficit.

The number of people living in poverty is expected to increase in 2025 amidst this challenging economic environment and rising food insecurity, with an additional 417,000 people falling below the $2.15 per day threshold, bringing the total number of people living in poverty to 15.8 million.

Last Updated: Apr 16, 2025

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision.

A Performance and Learning Review was approved in the third quarter of FY25 and included an extension of the CPF period to FY26. The PLR also revised the CPF's framework by recasting the third focus area around strengthening climate resilience and crisis response.

As of March 2025, the World Bank's portfolio in Malawi consists of 27 IDA lending operations with a total commitment amount of $3.23 billion of which nine projects (worth $1.09 billion) are regional projects. These are complemented by $165.17 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.

International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that support private sector growth, job creation, increased energy generation and access to energy, improved agricultural productivity and diversification, and greater access to finance and financial inclusion.

IFC is providing transactional advisory services to the government on developing bankable projects in water and energy infrastructure, and purpose-built student accommodation at several national universities through public-private partnerships.

In the financial sector, IFC is providing trade finance solutions to financial institutions to support critical imports and business activity. IFC's advisory support is helping improve credit reference systems and collateral registries to improve access to finance for SMEs and previously underserved communities.

In the agribusiness sector, IFC is providing support to strengthen value chains, enhance climate resilience to increase productivity and promote agri-processing as part of local value addition, helping to diversify Malawi's exports and create new and better jobs.

Last Updated: Apr 17, 2025

The $135 million Governance to Enable Service Delivery Project (GESD) aims to strengthen Local Authorities' institutional performance, responsiveness to citizens, and management of resources for service delivery.

Through the project's introduction of a new Performance Based Grant (PBG), an architecture has been established that increases the trust to consolidate expenditure through local government systems thereby achieving meaningful deepening of decentralization.

Since its launch in 2020, results achieved include:

· Strengthening Local Government Institutional Performance: A significant increase in local government capability as measured by the Local Authority Performance Assessment (LAPA), with an average score increase of 28 points (out of 100) across all 28 of rural Malawi's Local Authorities (LAs).

· Filling Locally Identified Infrastructure Gaps: 681 infrastructure projects that respond to citizen-driven needs across sectors including health, education, and transport have been delivered or are underway through decentralized local government structures.

· Bolstering Financial Management of Resources: Audit performance has progressed from a 3-year backlog to a 2023 result where all LA audits are current, with 10 of 28 receiving an unqualified opinion.

· Supporting Co-Production of Demand-side Accountability Structures: District CSO Networks in all 28 LAs are working together with local governments to support their delivery of the PBG to unlock further resources for citizens.

The $72.4 million Digital Malawi Program Phase I: Malawi Digital Foundations Project(DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses and citizens. Since its implementation in 2018, results achieved include:

Supporting Youth - 10 Tech Hubs were supported across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 19,000 youth (versus original target of 5,000), with over 50% of beneficiaries being female.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 83,000 students from 81 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though the Malawi Research and Education Network, MAREN. Around 40% of the students are female.

Over 100 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Over 500 government sites including offices, post offices, hospitals, among others have been provided with internet connectivity which is critical for improved efficiency of public service delivery.

The national data center has been constructed in Lilongwe to serve data hosting needs including safe storage and protection of government data.

The 2019 ambitious $100 million Malawi Energy Access Project (MEAP) was designed to fast-track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. The project is expected to be complete by the end of 2025.Since the start of its implementation, results include:

Over 1million people now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Ngwee Fund, meaning "bright!" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led Off-Grid solar segment of the market, has forged partnerships with five leading solar companies in Malawi, embarking on a connection campaign to provide solar home systems to about 180,000 households, achieving 90% of the target.

Last Updated: Apr 16, 2025

The European Union, African Development Bank, United Nations agencies, bilateral donors such as Norway, Ireland, FCDO, the US Government, Germany, Japan, China, Iceland, the Government of Flanders and the World Bank Group and the International Monetary Fund are among Malawi's key development partners.

The World Bank Group is collaborating with a range of development partners to promote important economic, social and policy reform agendas in Malawi. The EU, Norway, Ireland, and the Government of Flanders are financing a Multi-Donor Trust Fund (MDTF) in support of an IDA-financed Food System Resilience Program (FSRP) - a six-year engagement aiming to boost agri-business productivity and commercialization. A similar MDTF, financed by UK-FCDO, Iceland, Norway, European Union and USAID is backing the Social Support for Resilient Livelihoods Project (SSRLP). This large IDA-funded social protection engagement seeks to improve resilience among poor and vulnerable communities and to strengthen the country's national platform for managing social safety nets.

In the energy sector, the World Bank Group is collaborating with a range of development financing institutions (DFIs) to prepare the implementation of the large Mpatamanga Hydropower Storage Project (MHSP). The MHSP will be structured as a private-public partnership (PPP) and aims to transform Malawi's energy landscape and accelerate economic growth. Once completed, MHSP will more than double the country's installed capacity of electricity generation. The DFIs include the European Investment Bank (EIB), the African Development Bank (AfDB) and Proparco, among others.

Last Updated: Apr 22, 2025

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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The Malawi economic source is based in agriculturee approximately 80% of the Malawi population are employed in agricultura but this source is very vulnerable to external and it is something that cannot be controlled such as extreme climate shocks https://www.worldbank.org/en/country/malawi/overview. This means that the country's economy depends on the climate, this is related to the 13 ods because this objective talks about to take action for a better and stable climate.

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 20.41 million (2022) with an annual growth rate of 2.6%

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) (FY21- FY25).
Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition that received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of several political parties known as the Tonse Alliance. The next general election is scheduled September 16, 2025.
Economic Overview
Malawi's economy is projected to grow by 2.0% in 2024 - a contraction in per capita terms given 2.6% population growth. Limited availability of agricultural inputs and the impact of prolonged dry spells during the growing season will result in reduced agricultural output.

Continued liquidity challenges in foreign exchange markets are expected to continue affecting the importation of raw materials and productions inputs, constraining economic activity in industry and services. Headline inflation is expected to remain high and average 27.4% in 2024.

The disinflationary impact of tightening monetary policy will be offset by lower agricultural output and resultant pressures on food prices. The adjustment of energy and other utility prices necessitated by the adjustment of the kwacha and planned for 2024 will add to inflationary pressures. Revenue is projected at 21.5% of GDP in FY2024/25. This outcome assumes the achievement of ambitious tax revenue targets, as well as increased disbursements of grants, which are expected to reach 5.4% of GDP, the highest in the last decade.

Expenditure is expected to moderate slightly to 28.4% of GDP, thus translating to a projected fiscal deficit of 6.6% of GDP in FY2024/25. Failure to attain ambitious revenue targets and overspending would widen the deficit further, which would add to an already high and unsustainable public debt burden.

Imports are expected to continue rising, driven in particular by the need for increased food imports to address domestic shortages. While exports are also projected to recover, the impact of prolonged dry spells on agricultural production may constrain export growth.

The current account deficit is projected to remain high at 20% of GDP. With heightened food insecurity, both from high food prices and shortages owing to anticipated lower agriculture output, poverty is expected to worsen in 2024. The proportion of people living below the poverty line of $2.15 a day will increase slightly to 72% in 2024.
Development Challenges
Vulnerabilities in the Malawian economy continue to be exacerbated by weather and climate-related shocks paired with scarcity of foreign exchange that constrains the importation of raw materials.

Recurring floods and prolonged dry spells compounded by limited availability of agricultural inputs and weak domestic and regional market integration keep agricultural output below its potential.

Persistent liquidity challenges and distortions in foreign exchange markets continue to constrain the importation of raw materials for the production process, further undermining growth.

A lack of trade dynamism and low levels of investment persist. Lower agricultural output and slow implementation of policies to support crop diversification and economic transformation constrain exports, as does the widespread presence of non-tariff barriers, strict capital controls, and high trade costs. These, in turn, affect the accumulation of foreign exchange reserves. With continued high import demands, the current account deficit remains elevated, placing additional pressure on reserves.

Fiscal imbalances have been a central challenge to reducing inflation, following years of an expansionary fiscal policy. Slow implementation of public financial management reforms, paired with growing statutory expenditure requirements, continue to exert upward pressure on government expenditure.

With limited availability of external financing and high levels of domestic borrowing, public debt continues to rise, resulting in debt servicing requirements in excess of 35% of revenues.

The prevalence of poverty remains high, with rates exceeding 70% - one of the highest in the world. The continued high rate of poverty is exacerbated by a sluggish economic recovery and persistent food shortages following a series of weather shocks, high susceptibility to fluctuations in food prices, and ongoing rapid population growth.

Last Updated: Apr 11, 2024

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision. A Performance and Learning Review of the CPF is expected in the first quarter of FY25 and will include a request for extension of the CPF period to FY26.

As of March 2024, the World Bank's portfolio in Malawi consists of 29 IDA lending operations with a total commitment amount of $3.35 billion of which 8 projects (worth $822.28 million) are regional projects. These are complemented by $170.74 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.
International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that help diversify the economy, develop energy infrastructure, and improve access to finance.

Under the infrastructure and natural resources program, IFC is providing public-private partnership advisory services to the water, transport, and energy sectors. IFC supports private sector involvement in hydro and other renewable energy power projects identified as a priority in Malawi's Integrated Resource Plan.

IFC is supporting value addition enterprises in the agribusiness sub-sector, diversification of Malawi's exports, and increasing agricultural productivity through support of irrigation projects and working with the government to improve the environment for private sector investments in this sector.

In the financial sector, IFC provides advisory support with the aim of increasing access to trade finance and finance for small and medium enterprises (SMEs), and to help improve the collateral registry and credit reference systems.

Last Updated: Apr 03, 2024

The Equity with Quality and Learning at Secondary, EQUALS Project aims to improve quality of science and mathematics instruction in Community Day Secondary Schools (CDSSs) and increase access to secondary education in selected remote areas. Since March 2019, the project has made significant progress including among others:

90% of the targeted secondary schools have reached the desired student textbook ratio of 1:1 in the four selected science and mathematics subjects.

more than 1,400 school heads and their deputies have been trained on school management and instructional leadership including training of nearly 4,500 secondary school teachers on remediation to address COVID-19 school closure effects.

Cost-effective construction of 92 block classrooms and the expansion of 103 Community Day Secondary Schools CDSS is ongoing including furnishing classrooms and science blocks, gender and disabled-friendly ablution blocks, libraries, and equipping ICT laboratories.

Nearly 630 auxiliary teachers have now been enrolled on a government payroll at the end of their temporary contract to reduce teacher to pupil ratio.

The $72.4 million Digital Malawi Program Phase I: Malawi Digital Foundations Project(DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses and citizens. Since its implementation in 2018, results achieved include:

Supporting Youth - 10 Tech Hubs have been established across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 19,000 youth (versus original target of 5,000), with over 50% of beneficiaries being female.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 83,000 students from 81 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though Malawi Research and Education Network, MAREN. Around 40% of the students are females.

Over 100 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Over 500 government sites including offices, post offices, hospitals, among others have been provided with internet connectivity which is critical for improved efficiency of public service delivery.

The 2019 ambitious $100 million Malawi Energy Access Project (MEAP) was designed to fast-track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. Since the start of its implementation, results include:

Over 180,000 individuals now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Fund, meaning "bright!" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led off-grid solar segment of the market, has forged partnerships with five leading solar companies in Malawi, embarking on a connection campaign to provide solar home systems to nearly 1 million people.

Last Updated: Apr 03, 2024

The European Union, African Development Bank, United Nations agencies, bilateral donors such as FCDO, USAID, Germany, Norway, and China, the World Bank Group, and the International Monetary Fund are among Malawi's key development partners.

The government and its cooperating partners have a Development Cooperation Strategy (DCS 2014-2018) which is currently being updated. It guides development cooperation in the country. The DCS advocates inclusive partnerships, government leadership and country ownership of the national development agenda, and alignment around national systems and strategies. It also embraces focusing on results that matter to poor citizens and encourages partnerships among development actors based on mutual trust, transparency, and accountability.

Last Updated: Apr 03, 2024

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The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

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Malawi is particularly prone to adverse climate hazards that include dry spells, seasonal droughts, intense rainfall, riverine floods, and flash floods. Droughts and floods, the most severe of these hazards, have increased in frequency, intensity, and magnitude over the past twenty years, with dire consequences on food and water security, water quality, energy resources, and sustainable livelihoods of the most rural communities. From 1979 to 2008, 2,596 people perished due to natural disasters, and nearly another 21.7 million people were adversely affected. Floods and droughts are the leading cause of chronic food security, which is endemic in many parts of the country.

https://climateknowledgeportal.worldbank.org/country/malawi/vulnerability

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World Bank Climate Change Knowledge Portal

# data[].attributes.attachment_link.description
The Climate Change Knowledge Portal (CCKP) provides global data on historical and future climate, vulnerabilities, and impacts.

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The main source of Malawi's economy is agriculture, as in Colombia. The SDGs are fundamental in terms of the development of countries, there are 17. Number 8 is especially related to the economy, and says that the country must have decent employment and economic development. Both countries find it difficult to meet this goal due to labor exploitation and because their main economic source is difficult to improve or increase their profits. They may try to go for more industrial sectors, although it may not be efficient due to the environment of the countries, especially Malawi.

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The country of Malawi has been affect by the different climate change.Climate extremes and weather events severely the adaptive capacity of individuals and communities via declining yields and food security. The land surface warming is likely to exceed the global mean increase, under all greenhouse gas emissions pathways By the of the century temperature increases under business as usual indicate an average warming.

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The principal source of economy in Malawi is agriculture. Main exports in Malawi include tobacco, tea, sugar, cotton, rice, groundnuts, textiles and apparels.  Tobacco, tea and cane sugar together generate over 70% of export earnings, Agricultire in malawi is deeply connected with the ODS 12: Responsible Consumpition and production, as most of the population relies on farming for survival, and sustainable farming practices are essential to protect the environment and ensure long term productivity.

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Agriculture, Mining and Quarry, Manufacturing, Tourism, Financial and Professional Services, Transport and Communication form the main sectors of Malawi’s economy.

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In the last 3 decades, Colombia has been affected by climate change by damage in the mountains and plants because of the phenom of kid, also because of the temperatures of the last three decades are not stable as they were before.

https://dicf.unepgrid.ch/colombia/climate-change

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Climate change / Colombia | Interactive Country Fiches

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The climate in Colombia is already changing. In the last twenty years, temperature has increased by at least 1°C. Maximum temperatures have risen by about 1°C per decade in the high mountains, and 0.6°C per decade in the sub-paramo regions. A statistically significant increase in rainfall between March and December was recorded between 1950 and 2006, which was partly offset by a decrease in June–April rains.

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Malawi, adverse climate change problems that include dry spells, seasonal droughts, intense rainfall, riverine floods, and flash floods. Which demonstrates that the ODS of climate action is not being able to release it because things such as: low-income status and reliance on rain-fed agriculture are happening so that’s why the climate change problems are happening.

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World Bank Climate Change Knowledge Portal

# data[].attributes.attachment_link.description
The Climate Change Knowledge Portal (CCKP) provides global data on historical and future climate, vulnerabilities, and impacts.

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1.the principal source of economy in colombia is the exportation of coffee and other crops, also the exportation of minerals like emeralds and coal with the manufacturing.                      2.in the last three decades colombia has been affected by climate change in several ways such as rising temperatures, average rainfalls and flooding causing different populations of ecosistems and whole societies to decrease. 

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1.the principal source of economy in colombia is the exportation of coffee and other crops, also the exportation of minerals like emeralds and coal with the manufacturing.                      2.in the last three decades colombia has been affected by climate change in several ways such as rising temperatures, average rainfalls and flooding causing different populations of ecosistems and whole societies to decrease. 

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SAMUEL BOHORQUEZ

https://www.climatecentre.org/wp-content/uploads/RCCC-Country-profiles-Colombia_2024_final.pdf

https://www.focus-economics.com/countries/colombia/#:~:text=While%20services—particularly%20retail%2C%20tourism,%2C%20coffee%2C%20gold%20and%20oil.

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The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

https://www.worldbank.org/en/country/malawi/overview

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Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country's estimated population is 20.41 million (2022) with an annual growth rate of 2.6%

Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, which employs over 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.

In January 2021, the government launched the Malawi 2063 Vision that aims to transform Malawi into a wealthy, self-reliant, industrialized upper-middle-income country, through a focus on agriculture commercialization, industrialization, and urbanization. The first 10-year implementation plan anchors the World Bank's Country Partnership Framework (CPF) (FY21- FY25).
Political Context
Malawi has enjoyed sustained peace and stable governments since independence in 1964. One-party rule ended in 1993. Since then, multi-party presidential and parliamentary elections have been held every five years.

Malawi's sixth tripartite elections were conducted in May 2019. The presidential results were nullified in February 2020 by the Constitutional Court. Fresh presidential elections were held on June 23, 2020, in which Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the UTM Party were elected as president and vice president respectively after getting 58.6% of the votes. They won against Peter Mutharika of the Democratic Progressive Party and United Democratic Front coalition that received 39.4% of the votes. President Lazarus Chakwera and Vice President Saulos Chilima lead a coalition of several political parties known as the Tonse Alliance. The next general election is scheduled September 16, 2025.
Economic Overview
Malawi's economy is projected to grow by 2.0% in 2024 - a contraction in per capita terms given 2.6% population growth. Limited availability of agricultural inputs and the impact of prolonged dry spells during the growing season will result in reduced agricultural output.

Continued liquidity challenges in foreign exchange markets are expected to continue affecting the importation of raw materials and productions inputs, constraining economic activity in industry and services. Headline inflation is expected to remain high and average 27.4% in 2024.

The disinflationary impact of tightening monetary policy will be offset by lower agricultural output and resultant pressures on food prices. The adjustment of energy and other utility prices necessitated by the adjustment of the kwacha and planned for 2024 will add to inflationary pressures. Revenue is projected at 21.5% of GDP in FY2024/25. This outcome assumes the achievement of ambitious tax revenue targets, as well as increased disbursements of grants, which are expected to reach 5.4% of GDP, the highest in the last decade.

Expenditure is expected to moderate slightly to 28.4% of GDP, thus translating to a projected fiscal deficit of 6.6% of GDP in FY2024/25. Failure to attain ambitious revenue targets and overspending would widen the deficit further, which would add to an already high and unsustainable public debt burden.

Imports are expected to continue rising, driven in particular by the need for increased food imports to address domestic shortages. While exports are also projected to recover, the impact of prolonged dry spells on agricultural production may constrain export growth.

The current account deficit is projected to remain high at 20% of GDP. With heightened food insecurity, both from high food prices and shortages owing to anticipated lower agriculture output, poverty is expected to worsen in 2024. The proportion of people living below the poverty line of $2.15 a day will increase slightly to 72% in 2024.
Development Challenges
Vulnerabilities in the Malawian economy continue to be exacerbated by weather and climate-related shocks paired with scarcity of foreign exchange that constrains the importation of raw materials.

Recurring floods and prolonged dry spells compounded by limited availability of agricultural inputs and weak domestic and regional market integration keep agricultural output below its potential.

Persistent liquidity challenges and distortions in foreign exchange markets continue to constrain the importation of raw materials for the production process, further undermining growth.

A lack of trade dynamism and low levels of investment persist. Lower agricultural output and slow implementation of policies to support crop diversification and economic transformation constrain exports, as does the widespread presence of non-tariff barriers, strict capital controls, and high trade costs. These, in turn, affect the accumulation of foreign exchange reserves. With continued high import demands, the current account deficit remains elevated, placing additional pressure on reserves.

Fiscal imbalances have been a central challenge to reducing inflation, following years of an expansionary fiscal policy. Slow implementation of public financial management reforms, paired with growing statutory expenditure requirements, continue to exert upward pressure on government expenditure.

With limited availability of external financing and high levels of domestic borrowing, public debt continues to rise, resulting in debt servicing requirements in excess of 35% of revenues.

The prevalence of poverty remains high, with rates exceeding 70% - one of the highest in the world. The continued high rate of poverty is exacerbated by a sluggish economic recovery and persistent food shortages following a series of weather shocks, high susceptibility to fluctuations in food prices, and ongoing rapid population growth.

Last Updated: Apr 11, 2024

The World Bank Group Malawi Country Partnership Framework (CPF) FY21-25 focuses on three areas: bolstering foundations for growth and accountability, promoting private sector-led jobs, and strengthening human capital development, with digital development and women's empowerment as cross-cutting themes. The CPF is anchored in the Malawi 2063 vision. A Performance and Learning Review of the CPF is expected in the first quarter of FY25 and will include a request for extension of the CPF period to FY26.

As of March 2024, the World Bank's portfolio in Malawi consists of 29 IDA lending operations with a total commitment amount of $3.35 billion of which 8 projects (worth $822.28 million) are regional projects. These are complemented by $170.74 million in trust funds (both Bank and Recipient Executed).

The portfolio includes financing for programs in agriculture and food security, urban resilience and land, social protection and jobs, governance, basic service delivery (including health, education, and water and sanitation), and support in the energy, transportation, digital development, trade logistics, finance, and competitiveness sectors.
International Finance Corporation (IFC)
IFC's engagement in Malawi focuses on investment and advisory activities that help diversify the economy, develop energy infrastructure, and improve access to finance.

Under the infrastructure and natural resources program, IFC is providing public-private partnership advisory services to the water, transport, and energy sectors. IFC supports private sector involvement in hydro and other renewable energy power projects identified as a priority in Malawi's Integrated Resource Plan.

IFC is supporting value addition enterprises in the agribusiness sub-sector, diversification of Malawi's exports, and increasing agricultural productivity through support of irrigation projects and working with the government to improve the environment for private sector investments in this sector.

In the financial sector, IFC provides advisory support with the aim of increasing access to trade finance and finance for small and medium enterprises (SMEs), and to help improve the collateral registry and credit reference systems.

Last Updated: Apr 03, 2024

The Equity with Quality and Learning at Secondary, EQUALS Project aims to improve quality of science and mathematics instruction in Community Day Secondary Schools (CDSSs) and increase access to secondary education in selected remote areas. Since March 2019, the project has made significant progress including among others:

90% of the targeted secondary schools have reached the desired student textbook ratio of 1:1 in the four selected science and mathematics subjects.

more than 1,400 school heads and their deputies have been trained on school management and instructional leadership including training of nearly 4,500 secondary school teachers on remediation to address COVID-19 school closure effects.

Cost-effective construction of 92 block classrooms and the expansion of 103 Community Day Secondary Schools CDSS is ongoing including furnishing classrooms and science blocks, gender and disabled-friendly ablution blocks, libraries, and equipping ICT laboratories.

Nearly 630 auxiliary teachers have now been enrolled on a government payroll at the end of their temporary contract to reduce teacher to pupil ratio.

The $72.4 million Digital Malawi Program Phase I: Malawi Digital Foundations Project(DIGMAP), aims to increase access to affordable, high-quality internet services for government, businesses and citizens. Since its implementation in 2018, results achieved include:

Supporting Youth - 10 Tech Hubs have been established across the country providing training in digital skills, basic ICT literacy and entrepreneurship, to over 19,000 youth (versus original target of 5,000), with over 50% of beneficiaries being female.

Over 50 young tech enthusiasts have been matched with internship programs in various organizations.

Internet for Academia - Over 83,000 students from 81 higher learning institutions in Malawi are now able to access cheaper and reliable internet connectivity though Malawi Research and Education Network, MAREN. Around 40% of the students are females.

Over 100 Free Public Wi-Fi spots are now available in public locations including post offices, hospitals, schools, libraries, marketplaces, and airports, providing access to free internet, and for business continuity.

Over 500 government sites including offices, post offices, hospitals, among others have been provided with internet connectivity which is critical for improved efficiency of public service delivery.

The 2019 ambitious $100 million Malawi Energy Access Project (MEAP) was designed to fast-track electrification efforts and provide electricity access to approximately 1.6 million people, constituting 8% of the population. Since the start of its implementation, results include:

Over 180,000 individuals now have access to electricity, bringing long-awaited relief to customers who have been waiting for over five years.

Electricity Supply Corporation of Malawi, ESCOM, the implementing agency has embraced transparency and accountability by publishing all quarterly connection targets on its customer engagement platforms.

The Ngwee Ngwee Fund, meaning "bright!" in Chichewa, an integral part of the MEAP, established to provide working capital and grants, fostering the growth of the private sector-led off-grid solar segment of the market, has forged partnerships with five leading solar companies in Malawi, embarking on a connection campaign to provide solar home systems to nearly 1 million people.

Last Updated: Apr 03, 2024

The European Union, African Development Bank, United Nations agencies, bilateral donors such as FCDO, USAID, Germany, Norway, and China, the World Bank Group, and the International Monetary Fund are among Malawi's key development partners.

The government and its cooperating partners have a Development Cooperation Strategy (DCS 2014-2018) which is currently being updated. It guides development cooperation in the country. The DCS advocates inclusive partnerships, government leadership and country ownership of the national development agenda, and alignment around national systems and strategies. It also embraces focusing on results that matter to poor citizens and encourages partnerships among development actors based on mutual trust, transparency, and accountability.

Last Updated: Apr 03, 2024

# data[].attributes.attachment_link.description
The World Bank Group supports Malawi's efforts to reduce poverty and promote economic growth by working with the government, development partners, and civil society.

# data[].attributes.body
Malawi, adverse climate change problems that include dry spells, seasonal droughts, intense rainfall, riverine floods, and flash floods. Which demonstrates that the ODS of climate action is not being able to release it because things such as: low-income status and reliance on rain-fed agriculture are happening so that’s why the climate change problems are happening.

# data[].attributes.attachment_link.title
World Bank Climate Change Knowledge Portal

# data[].attributes.attachment_link.description
The Climate Change Knowledge Portal (CCKP) provides global data on historical and future climate, vulnerabilities, and impacts.

# data[].attributes.body
Malawi has been affected in a bad way because of climate change over the past 30 years the country has experienced increased frequency, intensity, and magnitude of extreme weather events like droughts and floods, leading to negative impacts on food security, in the other hand Colombia has been affected also by climate change but it didn't affect as much as malawi

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In the past 3 decades, Climate change has affected Malawi with more frequent and severe floods, affecting agriculture and water resources causing a big impact on human health. Malawi is pursuing the climate action sustainable development goal through various initiatives planned for 2040, aiming for a significant reduction of greenhouse gasses emissions.

Source: https://climateknowledgeportal.worldbank.org/sites/default/files/2018-10/wb_gfdrr_climate_change_country_profile_for_MWI.pdf

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The principal sources of economy in Malawi are agriculture, mining and quarry, manufacturing, tourism, and financial services. Agriculture employs a large percentage of workforce and accounts for a majority of export earnings.

Source: https://www.malawiembassy.de/TRADE-AND-INVESTMENT#:~:text=Agriculture%2C%20Mining%20and%20Quarry%2C%20Manufacturing,main%20sectors%20of%20Malawi's%20economy.