Investing in Malawi

Malawi is a landlocked country in southern Africa , 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%, and a wealth of natural resources. However, 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.

The government of Malawi has been actively promoting foreign investment and has implemented policies to make the investment process more efficient. 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.

The country’s strategic location and access to the African market make it an attractive destination for investors looking to tap into the continent’s potential.

Investment opportunities in Malawi include the agriculture, mining, and tourism sectors. Agriculture is the mainstay of Malawi’s economy, with majority of the population relying on it for their livelihoods. There is a growing demand for food in the country and the region, making it an attractive sector for investors. The mining sector, although relatively small, has the potential to grow in the future with the discovery of coal and other minerals. The tourism sector is also a promising area of investment, with the country home to beautiful lakes, national parks, and a rich cultural heritage.

Malawi is a landlocked country in southern Africa with a growing economy and a wealth of natural resources. The Malawi government actively encourages foreign investment and has implemented policies to make the investment process more efficient. The country’s strategic location and its access to the African market make it an attractive destination for investors seeking to exploit the continent’s potential.

Investment opportunities in Malawi include the agriculture, mining and tourism sectors. Agriculture is the mainstay of Malawi’s economy and the majority of the population depends on it for their livelihood. There is a growing demand for food products in the country and the region, making it an attractive sector for investors. The mining sector, although relatively small, has the potential to grow in the future through the discovery of coal and other minerals. The tourism sector is also a promising investment area, as the country is home to magnificent lakes, national parks and a rich cultural heritage.

Malawi flag

Malawi: Buying and Selling

Malawi has been comparatively slow to embrace the internet and e-commerce in general as poor infrastructure and high taxes make internet access prohibitively expensive for the majority of Malawians, resulting in low access rates across the country.

E-COMMERCE

Internet accessData from the International Telecommunication Union (ITU) shows that as of December 2017 Malawi had an internet penetration rate of 9.5%.

According to a 2017 report issued by the Collaboration on International ICT Policy for East and Southern Africa (Cipesa), Malawi, which has four operational telecommunication service providers, including Airtel and Telekom Networks Malawi (TNM), has the lowest penetration rate for mobile services in southern Africa, only 36%. The service offered can be unreliable, with a weak signal and daily congestion. Call rates are also among the highest in the region.

A national fibre backbone is nearing completion, while the country recently gained access to international submarine fibre optic cables via a transit link from neighbouring countries.

The most popular web search engines in Malawi are Google (93.3%), Bing and Yahoo (5.5% and 1.6% respectively).E-commerce marketE-commerce is still in its infancy in Malawi, as the country lacks the ICT and online payment infrastructures necessary to boost this sector.

In UNCTAD’s 2018 B2C E-commerce Index, Malawi ranked 134th out of 151 economies worldwide in terms of e-commerce, and 31st out of 44 African countries.

Recently, banks and mobile network providers have been working to implement m-commerce applications including m-banking, m-shopping, mobile information services, m-marketing and m-health. However, the range of applications is being limited by a number of technical, business and policy challenges. For example, with TNM Mpamba or Airtel Money, Malawians are able to pay water bills, buy prepaid electricity tokens, pay television subscription and buy phone vouchers. Malawi’s e-commerce market offers a small range of goods and services, with Jumia.mw being the biggest marketplace.

Main social networks used in the country are Facebook (with an estimated 720,000 users as of December 2017, a 3.8% penetration rate), Pinterest, Twitter and YouTube; while Whatsapp is the main instant messaging app.

African Development Bank Group 313,371 followers 1d • 1 day ago

On 10-Feb-2022, the African Development Fund signed a $14.2 million grant agreement with #Malawi to support #digitalization#financialinclusion, and #competitiveness.

Malawi’s Minister of Finance and Economic Affairs, Sosten Alfred Gwengwe, said during the project will contribute to Malawi’s long-term objective of inclusive wealth creation supported by an inclusive financial system and digital economy.

The African Development Bank Country Manager for Malawi, Macmillan Anyanwu, said the signing was an important step towards promoting the use of electronic transactions in #Malawi to increase access to affordable financial services, particularly amongst women, youth, and rural dwellers. “The project will also enable more efficient business transactions, offering small businesses the opportunity to gain access to new markets,” he said.

https://www.afdb.org/en/news-and-events/press-releases/malawi-african-development-fund-signs-142-grant-agreement-financial-digitalization-initiative-49073

African Development Fund signs $14.2 grant agreement for financial digitalization initiativeafdb.org • 2 min read

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