Research and consulting in Malawi

Country overview:

IOA’s experience over many years, conducting research and providing consulting services in Malawi, allows us to offer insights on the influences that have shaped the country and the trends that are shaping its future. Like other nearby countries, Malawi is heavily dependent on agricultural exports including, coffee, sugar and tea which has rendered it quite vulnerable to climate change and local rainfall patterns. Like many other states in the region the country was badly impacted by the COVID and Ukraine crises, which brought about higher debt loads, high inflation and some social unrest. These tensions are expected to come to a head in 2025 when the country returns to the polls with opposition figures raising concerns around the lack of independence of the local electoral commission.

High inflation, exchange rate instability, and large fiscal deficits, all pose challenges for the country in the medium term, though committed fiscal policies by the local central bank, including the implementation of exchange rate adjustments, monetary policy tightening, and other structural changes will lessen these somewhat. Further value addition in agriculture as well as diversification of exports will be key to ensure that the country meets its developmental objectives.

Key opportunities in Malawi:

Growth of the existing agriculture-based economy can be advanced through the rollout of agro processing facilities for coffee, tobacco and tea
The rekindling of the local uranium mining sector would be well received amid increased global demand for the mineral
A services sector is showing robust growth, particularly as tourism develops along Lake Malawi

Key concerns/risks in Malawi:

IOA researchers have identified Malawi’s landlocked position, chronic poverty and its lack of natural resources as constraints on economic growth
Climate change has already disrupted rainfall, brought drought and otherwise imperilled an agriculture-based economy
A lax business environment can frustrate investors, who are also discouraged by poor infrastructure

Find out about how IOA can help you with research and consulting services in Malawi

Tips on doing business in Malawi:

Starting a business:

Only Malawian citizens are permitted to buy freehold properties. Non-citizens are limited to 50-year leaseholds. Local regulations favour citizens who will generally receive properties over foreigners making similar bids
Foreigners are generally allowed full business ownership and are not restricted in terms of economic subsectors. Foreigners will generally require a business residence permit to undertake commercial operations in the country
(Read more at: https://www.mitc.mw/)

Doing business:

Malawi benefits from a stable macroeconomic environment and political system as well as access to other markets in the wider Southern African Customs Union region
The country is landlocked and battles an infrastructural deficit, which can complicate imports and exports. Other problems include a lack of reliable utilities and skills shortages
In order to develop the country’s non-traditional exports, local authorities offer a number of incentives. These include a 40% investment allowances for used buildings, plant and machinery and a transport tax allowance of 25% on international transport costs, excluding traditional exports

Culture and society:

English is widely spoken in administrative and commercial contexts, which eases local integration for investors from other Anglophone markets
Malawian culture is quite reserved for the region and public displays of emotion are frowned upon. There is a risk of violent crime, especially in the Mulanje district
Foreigners should be advised that members of the LGBT community face legal sanction and that same gender sexual activity is considered a crime