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 were expected to come to a head in 2025 when the country returned to the polls, culminating in the election of Peter Mutharika, who ousted incumbent President Lazarus Chakwera amid widespread frustration over inflation, unemployment and currency shortages.

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.

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
• The sudden shutdown of Salima Sugar Company in October 2025 has raised concerns about regulatory unpredictability and the fragility of agro-industrial ventures

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

A sample IOA research report on Malawi:

Download the Malawi Profile
(2MB – PDF)