Business and Economy of Malawi
Malawi-economy and business is not very flourishing as it features among the world’s least developed countries. The economy of the country is primarily based on agriculture. Malawi earns its revenues from agricultural products.
Agriculture accounts for 38% of the GDP and more than 90% of Malawi’s foreign earnings. The major crops grown in Malawi are maize, tobacco, sugarcane and tea. Mainly small landholders produce these. The wealth is accumulated in the hands of the elite of Malawi. The country primarily imports industrial goods and exports sugar, tobacco, and tea.
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.