Geography: Facts About Malawi

General Facts About Malawi

• Known as the Warm Heart of Africa
• Total area of 118,484 square kilometers
• 20% of the area is occupied by Lake Malawi
• Lake Malawi is also known as the Calendar Lake because it is 365 miles by 52 miles
• Located in the Great African Rift Valley
• Tallest mountain is Mulanje Mountain at 3000m asl
• Landlocked, and surrounded by Mozambique, Zambia, and Tanzania
• Population of over 20 million
• 2.56% annual population growth rate
• Over half the population is youthful
• The economy affected by climate change
• Economy was impacted by the COVID-19 Pandemic

Natural Disasters

• Tropical storm Chalane in December 2020
• Tropical storms Ana, Gombe and Jasmine in 2022
• Cyclone Freddy in 2023
• Cyclone Idai caused 60 fatalities, 3 missing, 672 injuries, 975,072 affected, 100,00 homes damaged, and over 400,000 hectares of crops destroyed.
• Cyclone Ana affected 964,967 people, killed 46, and injured 206.
• Tropical Cyclone Freddy caused 511 deaths and 533 missing persons
• 91,000 injured as a result of Tropical Cyclone Freddy
• Tropical Cyclone Freddy flooded 200,000 hectares
• Infrastructure was destroyed by Tropical Cyclone Freddy

Malawi's Population

• Mainly Bantu
• Divided into three regions (North, Centre and South)
• Each region has major ethnic groups
• English and Chichewa are the official languages
• Other languages spoken are Tumbuka and Yao

Tribe Composition

• Chewa 34.4%
• Lomwe 18.9%
• Yao 13.3%
• Others 13.8%
• Ngoni 10.4%
• Tumbuka 9.2%

Education levels

• According to UNESCO, Malawi has 4.5 million students enrolled in primary and secondary education
• 3.7 million (83%) are enrolled in primary education
• 11% of children of official primary school age are out of school
• Poorer children most likely to fall into this category
• 67.3% adult literacy rate in 2021

Health problems

• HIV and AIDS
• Neonatal disorders
• Lower respiratory infections
• Tuberculosis
• Diarrheal diseases
• Malaria
• Non-communicable diseases (stroke, diabetes)
• Ischemic heart disease
• Cholera outbreak reported since March 3, 2022
• 36,943 cholera cases and 1210 associated deaths reported from all 29 districts
• Polio resurfaced in 2023- a mass vaccination campaign was launched

Economic indicators

• Per capita GDP for 2023 projected to be €534
• Malawi is ranked 174 out of 189 countries on the Human Development Index
• Measured by education, access to water, sanitation, etc.
• Over half of the population lives in poverty
• One fifth in extreme poverty

Primary Teachers Salaries

• 0-2 Years €709.56
• 2-5 Years €949.22
• 5-10 Years €1,409.91
• 10-15 Years €1,710.43
• 15-20 Years €1,866.17
• 20 Years + €2,012.87

Unemployment Rate

• 2014 5.0%
• 2016 5.0%
• 2018 4.9%
• 2020 5.7%
• 2022 5.6%
• Malawi is poor by many measures

Political System

• One-party rule from 1964 ended in 1993
• Dr. Hastings Kamuzu Banda was the leader in 1964
• Multi-party elections held every five years
• Malawi has had five presidents since 1994
• The President of Malawi is both head of state and head of government
• Executive power is exercised by the government

Government entities

• Ministry of Finance and Economic Affairs in charge of Economic Development
• Malawi Investment and Trade Centre (MITC) for investment promotion
• Small Enterprise Development Institute (SMEDI) for promotion of small and medium enterprise
• National Economic Empowerment Fund (NEEF) provides financial support

Non-governmental organizations

• The Malawi Innovation Challenge Fund (MICF)
• Growth Accelerator Malawi
• Digital Malawi Project
• The Agriculture Commercialisation Project
• The Financial Inclusion and Scaling Project
• Modern Cooking for Healthy Forests

GDP Structure: Agriculture

• About 22% of Malawi’s GDP
• 64.1% employment (58.4 youth employment)
• 75% of foreign exchange earning
• 90% of people’s livelihoods
• Agriculture has decreased in contribution, while the Services Sector is increasing

Structure of GDP: Agriculture

• Main food crops grown: maize, cassava, sweet potatoes, sorghum, bananas, rice, and Irish potatoes
• Cattle, sheep and goats are raised
• Main industries deal with agricultural processing of tobacco, tea and sugar
• Timber products are important
• Tobacco accounts for 55% of exports
• Other exports are sugar, tea, and coffee
• EU is the largest exports destination: 50%
• Other exports destinations: Zambia, Zimbabwe, South Africa and USA

Export of Services

• Increased from €46.6 million in 2002 to €435 million in 2021
• Insurance and banking are some of the notable sectors

National Development Plans: MW2063

• Malawi is currently implementing Malawi Agenda 2063, a long term plan
• The plan runs from 2020 to 2063
• The long term aspirations of Malawians are to become an inclusively wealthy and industrialized country by 2063

The MW2063 Three Pillars

• Agricultural Productivity and Commercialisation.
• Industrialisation.
• Urbanisation

Seven Enablers

• Mindset Change
• Effective Governance Systems and Institutions
• Enhanced Public Sector Performance
• Private Sector Dynamism
• Human Capital Development
• Economic Infrastructure
• Environmental Sustainability
• The National Planning Commission is responsible for monitoring the implementation of this vision
• Sectoral Policies and Plans.

Economic Sustainability involves

• Having a long term view
• Diversifying sources of funding
• Giving the National Planning Commission autonomy

Malawi Special Economic Zones (SEZ)

• Malawi is establishing Special Economic Zones (SEZs) to fast-track industrialization
• Four designated sites for the development of SEZs and Industrial Parks are:
• MZUZU (Dunduzu – 72 hectares)
• Lilongwe (Area 55 – 417 hectares)
• Blantyre (Matindi – 130 hectares) using PPP approach
• Chigumula, in Blantyre, spans an area of 22.7 hectares
• Is designated as an industrial park funded by the government
• There is currently no designated area as export processing zones
• Export processing categories are: (a) natural rubber and wood products, (b) macadamia and coffee, (c) textiles
• Government facilitates the process by offering land and infrastructure
• Energy, water, and roads are very important
• Private Public Partnership approach (PPP) is implemented for SEZs

Economic Cooperation: Malawi's Memberships

• African Union
• Southern Africa Development Community (SADC)
• Common Market for Eastern and Southern Africa (COMESA)
• and African Continental Free Trade Agreement (AfCFTA)
• Commonwealth
• China
• UK
• USA
• European Union
• India
• Japan
• IMF
• World Bank

Malawi's Memberships: African Union

• A continental body aimed at achieving an integrated, prosperous, and peaceful Africa
• Focuses on: Agriculture, rural development, blue economy, sustainable environment, economic development, tourism, trade, industry and mining

Economic Cooperation: Southern Africa Development Community-SADC

• Comprising 16 member states
• Population of 363 million
• Areas of focus: Peace, security, good governance, industrial development, and Infrastructure

SADC Areas of focus Contd:

• Social and human capital development
• Gender equality
• Women empowerment
• Food agriculture and natural resources
• Environment and Climate change
• Disaster risk management
• Youth development and empowerment

Malawi's Memberships: Common Market for Eastern and Southern Africa-COMESA

• Aims at promoting regional integration
• Trade and the development of natural and human resources for the mutual benefit for COMESA member countries
• 21 member stares comprising 600 million people stretching from North Africa to Southern Africa
• Includes activities in agriculture, industry and private sector development, trade, custom services, gender and social development

Bilateral Relations: Malawi and China

• Republic of China and the Republic of Malawi formally established diplomatic relations 28 December 2007 after severing ties with Taiwan
• Bilateral Trade Agreements signed 2008, affords Malawian exports preferential access to China's markets and provides incentives for Chinese INVESTMENT in Malawi

Major Development Projects Funded by the Chinese Include:

• Malawi Parliament Building

• The Karonga-Chitipa Road

• Lilongwe Water Program worth €63.5 million concessional loan,.

• Construction of a dual carriageway in Lilongwe worth €47.2 million Grant

• Construction of 5 community technical colleges in the country worth €14.2 million grant.

• Malawi signed a belt road initiative in 2022

• Increased Investment by Chinese Business in Malawi.

• National Fibre Backbone Project Phases I and II.

• Export of peanuts, soybeans, agricultural products to China has become easier

• China donates medical supplies to combat the COVID-19 pandemic.

• August 2023, agreements were signed on maintenance of the Parliament Building, feasibility study on the Judicial Complex and Zero Tariff Treatment to Products under 98 percent .

• The Confucius Institute at the University of Malawi holds activities

• Chinese language classes, Chinese Language Competitions and Confucius Institute Day

• Chinese communities in Malawi donated PPEs and disaster relief materials

Bilateral Relations: Malawi and the UK

• Invests major development financing to build Malawi's education, health systems, and support humanitarian
• Climate emergency- building the resilience of Malawians and responding to climate shocks
• A perpetual state of emergency should be avoided
• €7.4 million in the thematic area of women and girls
• €5.5 million in humanitarian preparedness
• €1.3 million for global health
• €1 million for trade and supply chains
• €1 million for investment and growth
• €0.2 for Governance & institutions critical to broader development

Bilateral Relations: Malawi and USA

• Bilateral foreign assistance totalled €117.5 million in FY2020
• Targets include health, agriculture, education, environment, and governance
• The United States seeks to:
  • Strengthen public and private institutions
  • Better delivery of basic welfare
  • Improve food security
  • Strengthen community resilience
  • Preserve Malawi's biodiversity
  • Mitigate climate change
  • Empower the private sector and civil society
  • Promote economic growth
  • Advance human rights and good governance
• Provided €3.4 billion since 2003
• Over €0.9 billion in Malawi's HIV response through the President's Emergency Plan for AIDS Relief (PEPFAR)
• African Growth and Opportunity Act in 2015
• US exports to Malawi totalled €21.7 million in 2019
• Products are wheat, machinery, pharmaceutical products, and small electronics
• US imports totalled €75.5 million in 2019
• Products are tobacco, tea, sugar, nuts, and coffee
• Investment in agriculture, leisure and tourism, retail and power infrastructure

Bilateral Relations: Malawi and the European Union

• ACP-EU Cotonou Partnership Agreement
• EU's willingness to contribute to poverty reduction, sustainable development and integration into the world economy
• Areas of Focus: Economic Relations, Trade and Investments, Sustainable Development and Green Economy, Development Cooperation and Humanitarian Aid, Energy, Environment and Climate Change, Human Rights, Democracy, Rule of Law, Civil Society Dialogue, Cultural and Public Diplomacy

Bilateral Relations: Malawi and India

• India was the 3rd largest trading partner to Malawi in 2015
• India is the 4th largest source of imports to Malawi
• India is the 7th largest destination of Malawi's exports.
• Indian firms in the country are involved in following industries: agro processing, chemicals, energy, financial services and insurance,.
• Agro processing, Financial services/insurance, IT, Software, logistics etc
• Since 2016, €0.9 million has been given for grants to Malawi to respond to natural disasters
• Dal processing plans built in Liwonde and Luchenza
• A sugar processing plan in Salima
• Indian Technical and Economic Cooperation Programme and has transferred technology to Malawi (ITEC)
• Malawi enjoys duty free tariff preference
• India is a preferred destination for Malawians seeking medical treatment

Bilateral Relations: Malawi and Japan

• Malawi's exports to Japan were €7.01 million in 2021
• Japan’s exports to Malawi were €30.47 million in 2021
• The following were granted in 2020:
  • Granted €502.12 million
  • Technical Cooperation €307.61 million
  • Japan’s loans to Malawi were €210.01 million
• Japan has been sending volunteers for over 50 years through Japanese Overseas Cooperation Volunteers
• €1.87 million has been provided per year for peace building

Malawi and the IMF

• IMF has been in Malawi since the Structural Adjustment Program in the 1980s
• Debt as at 2021 was €7.6 bn representing 63.93% of the country' GDP
• Running the Program Monitoring with Board involvement (PMB
• Disbursement of €83.3 under the Rapid Credit Facility- Food Shock Window To improve the lives of Malawians

Malawi and the Worldbank

• World bank supports Malawi
• Reduce poverty and promote economic growth
• Work with government, partners and civil society
• Helping: Social protection, agriculture, health, crops, water and industry

Foreign Direct Investments (FDIs) in Malawi:

• Country recorded a peak of million in 2018
• Experienced low point of €51.9million in 2019 due to COVID 19
• 2022-FDIs reached €177.9million
• 45.6point increase from €122.2 million
• Foreign investment is generally granted national treatment
• Constitution protects investment
• Need: business license, a tax registration number, and a land use permit
• The FDI contributes towards attainment of set objectives of transforming Malawi into an inclusively wealthy and self-reliant industrialized ‘upper middle-income country' by the year 2063.

Sectors Attracting FDI

• Agriculture investments.
• Countries are Africa, United States of America, the UK and India
• Renewable energy (solar, wind, waste energy and hydropower)
• Exploration of rare earth and other minerals
• Agro-processing, manufacturing and tourism
• Realignment of the sectors with the Malawi'63 pillars.

Implementing policies and reforms that create conducive environment for investment

• Wide array of fiscal and non-fiscal incentives implemented equally
• Private sector participation
• Implementation of the 242.8 million Infrastructure Development Project
• Support power system upgrading Streamlining investment processes to improve the ease of doing business

Tourism

• Contributes 7.7% to GDP
• Malawi main tourist industry helps support Local people
• Provides employment opportunities and other support
• Malawi has Ten national parks and wilderness park
• Lake Malawi is a UNESCO World Heritage Site with the largest fish species
• Great freshwater snorkelling in clear water

Malawi Tourism-Likoma Island

• Accessible via boat
• Beautiful beaches, lodges clear water
• Scenery Of Saint Pauls Cathedral for 135+ Years

Malawi Tourism Lake Malawi National Park

• UNESCO World Heritage Site
• Third deepest freshwater lake
• The dense basin Population has diseases
• 800-1000 fish
• Great snorkelling and diving

Small Scale Sectors of Opportunities

Sectors which the slides point to as having opportunities for entrepreneurs.

• Restaurant
• Snacks store
• Personal fitness
• Business consultant
• Music trainer
• Courier service -Recycling —Makeup artist

Starting A Business in Malawi

All foreign investors can establish a business and make money

• They need a BRP
• Acquire Leases after 50 yrs

A Business Stalls Due to

• No assess to credit of low credit
• Value Chain integration Is weak
• No business support.

Getting A Business For Sale.

• Through website
• Consumers electronics are available

Loans Available From the Following Start up Support Givers.

• Nation economic employment funds
• Government Of Malawi offers 4 types loans
• Small and medium enterprises development institute-capacity for development
• Private- kweza partners, offer business strategy

Investment Processes

• Manufacturing does not require licence unless health is compromised
• Business license- seven days
• Investment -ten days.
• Investment Threshold is €47,169 for BRP
• Also, the investor must hand in the forms. Police.

In addition: Investment Process.

• A project Is needed and plan proposal
• Capital Inflow Required with reserve bank
• Tax commissioner must receive tax
• Employees need a permit.

Investment- Career Opportunities

Stock Market open to Foreign Investors The stock market is accessible to investors even if they have no fortune. The stock market needs an consultant

• Malawi is safe and foreign investors can start work to any section
• The country offers government incentives.

Opportunities in malawi

Foreigners Can Get Post Grade PHD at University Can also be a

• lecturer Researcher