Malawi

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Malawi - In Short.

Overview of Malawi

Malawi shares its name with the Chewa word for flames and is linked to the Maravi people from whom the Chewa language originated. The Maravi settled in what is now Malawi around 1400 during one of the later waves of Bantu migration across central and southern Africa. Several of Malawi’s ethnic groups trace their origins to different Maravi lineages. A powerful Maravi kingdom, established around 1500, reached its zenith around 1700, when it controlled what is now southern and central Malawi as well as portions of neighboring Mozambique and Zambia before beginning to decline because of destabilization from the escalating global trade in enslaved people. In the early 1800s, widespread conflict in southern Africa displaced various ethnic Ngoni groups, some of which moved into Malawi and further undermined the Maravi. Members of the Yao ethnic group – which had long traded with Malawi from Mozambique – introduced Islam and began to settle in Malawi in significant numbers the mid-1800s; in the late 1800s, members of the Lomwe ethnic group also moved into southern Malawi from Mozambique. British missionary and trading activity increased in the area around Lake Nyasa in the mid-1800s, and Britain declared a protectorate, called British Central Africa, over what is now Malawi in 1891 and eliminated various political entities that sought to retain their autonomy over the subsequent decade. The British renamed the territory Nyasaland in 1907 and it was part of the colonial Federation of Rhodesia and Nyasaland – including present-day Zambia and Zimbabwe – from 1953 to 1963 before gaining independence as Malawi in 1964. Hastings Kamuzu BANDA served as prime minister at independence and, when the country became a republic in 1966, he became president. He later instituted one-party rule under his Malawi Congress Party (MCP) and was declared president for life. After three decades of one-party rule, the country held multiparty presidential and parliamentary elections in 1994 under a provisional constitution that came into full effect the following year. Bakili MULUZI of the United Democratic Front party became the first freely elected president of Malawi when he defeated BANDA at the polls in 1994; he won reelection in 1999. President Bingu wa MUTHARIKA was elected in 2004 and subsequently started his own party, the Democratic Progressive Party, in 2005. MUTHARIKA was reelected to a second term in 2009. He died abruptly in 2012 and was succeeded by Vice President Joyce BANDA, who had earlier started her own party, the People’s Party. MUTHARIKA’s brother, Peter MUTHARIKA, defeated BANDA in the election in 2014. Peter MUTHARIKA was reelected in a disputed election in 2019 that resulted in countrywide protests. The courts ordered a new the election, and in 2020 Lazarus CHAKWERA of the MCP was elected president after defeating MUTHARIKA as head of a coalition of opposition parties. Population growth, increasing pressure on agricultural lands, corruption, and the scourge of HIV/AIDS pose major problems for Malawi.
Value
Country Full Name
Malawi
Country Code
MWI
Region
Sub-Saharan Africa
Income Group
Low income
Currency Unit
GDP
12182348213
Population
19129955
Land Area
94280
Net National Income Per Capita
561.4053186
GDP per Capita (PPP)
1591.605401

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Malawi - Economic

Economy of Malawi

Landlocked Malawi ranks among the world’s least developed countries. The country’s economic performance has historically been constrained by policy inconsistency, macroeconomic instability, poor infrastructure, rampant corruption, high population growth, and poor health and education outcomes that limit labor productivity. The economy is predominately agricultural with about 80% of the population living in rural areas. Agriculture accounts for about one-third of GDP and 80% of export revenues. The performance of the tobacco sector is key to short-term growth as tobacco accounts for more than half of exports, although Malawi is looking to diversify away from tobacco to other cash crops.The economy depends on substantial inflows of economic assistance from the IMF, the World Bank, and individual donor nations. Donors halted direct budget support from 2013 to 2016 because of concerns about corruption and fiscal carelessness, but the World Bank resumed budget support in May 2017. In 2006, Malawi was approved for relief under the Heavily Indebted Poor Countries (HIPC) program but recent increases in domestic borrowing mean that debt servicing in 2016 exceeded the levels prior to HIPC debt relief.Heavily dependent on rain-fed agriculture, with corn being the staple crop, Malawi’s economy was hit hard by the El Nino-driven drought in 2015 and 2016, and now faces threat from the fall armyworm. The drought also slowed economic activity, led to two consecutive years of declining economic growth, and contributed to high inflation rates. Depressed food prices over 2017 led to a significant drop in inflation (from an average of 21.7% in 2016 to 12.3% in 2017), with a similar drop in interest rates.

Unemployment Rate

Inflation Rate

Malawi - GDP Composition

GDP Composiiton & Value Added of Malawi

Last Updated: Jan, 2021, Updated For 2020.

Malawi - GDP, Value Added

Demographics of Malawi

population density is highest south of Lake Nyasa as shown in this population distribution map
Geographic Location

Southern Africa, east of Zambia, west and north of Mozambique

Races

Chewa 34.3%, Lomwe 18.8%, Yao 13.2%, Ngoni 10.4%, Tumbuka 9.2%, Sena 3.8%, Mang'anja 3.2%, Tonga 1.8%, Nyanja 1.8%, Nkhonde 1%, other 2.2%, foreign 0.3% (2018 est.)

Languages

English (official), Chewa (common), Lambya, Lomwe, Ngoni, Nkhonde, Nyakyusa, Nyanja, Sena, Tonga, Tumbuka, Yaonote: Chewa and Nyanja are mutually intelligible dialects; Nkhonde and Nyakyusa are mutually intelligible dialects

Religion

Protestant 33.5% (includes Church of Central Africa Presbyterian 14.2%, Seventh Day Adventist/Baptist 9.4%, Pentecostal 7.6%, Anglican 2.3%), Roman Catholic 17.2%, other Christian 26.6%, Muslim 13.8%, traditionalist 1.1%, other 5.6%, none 2.1% (2018 est.)

Dependency & Expectancy of Malawi

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Malawi - Social Media Briefing

Malawi - Social Media & Social Commerce

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Politics & Policies of Malawi

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ACP, AfDB, AU, C, CD, COMESA, FAO, G-77, IAEA, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC (NGOs), MIGA, MINURSO, MONUSCO, NAM, OPCW, SADC, UN, UNCTAD, UNESCO, UNIDO, UNISFA, UNOCI, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Malawi

Export of Malawi

Import Destination

Export Destination