Most of the manufacturing industries in Malawi are situated in the city of Blantyre. The export cost is quite high culminating into loss of fund. As the economy is agro-based it suffers a lot in the face of drought. Another impediment to the success of Malawian economy is the unavailability of skilled labor, inadequacy of electricity.
Apart from this, red tapism, corruption is rampant.
Post independence Malawi government implemented some policies to help the growth of Malawi-economy and business. The government supported the private concerns in terms of infrastructure and skill. Press Holding's Limited monopolized the Malawi- economy and business sector till mid 1980s. Economy soared until 1979 but post this period it faced a downward trend that extended till 1982. To improve the situation the government implemented certain foreign policies, privatized the public sector, encouraged foreign investments and eliminated price controls.
Two trading partners of Malawi are Zimbabwe, South Africa with whom Malawi has bilateral trade agreements. Malawi-economy and business incurs lot of assistance from the IMF, World Bank and individual donor nations.