Susnet in Liwonde National Park

Sub-Saharan Africa

Malawi

Photo by Shutterstock / Robyn Bruyns

Malawi’s economy is projected to grow by 2.0% in 2024 – a contraction in per capita terms given 2.6% population growth. Limited availability of agricultural inputs and the impact of prolonged dry spells during the growing season will result in reduced agricultural output. 

Continued liquidity challenges in foreign exchange markets are expected to continue affecting the importation of raw materials and productions inputs, constraining economic activity in industry and services. Headline inflation is expected to remain high and average 27.4% in 2024. The disinflationary impact of tightening monetary policy will be offset by lower agricultural output and resultant pressures on food prices. The adjustment of energy and other utility prices necessitated by the adjustment of the kwacha and planned for 2024 will add to inflationary pressures. Revenue is projected at 21.5% of GDP in FY2024/25. This outcome assumes the achievement of ambitious tax revenue targets, as well as increased disbursements of grants, which are expected to reach 5.4% of GDP, the highest in the last decade. 

Expenditure is expected to moderate slightly to 28.4% of GDP, thus translating to a projected fiscal deficit of 6.6% of GDP in FY2024/25. Failure to attain ambitious revenue targets and overspending would widen the deficit further, which would add to an already high and unsustainable public debt burden. Imports are expected to continue rising, driven in particular by the need for increased food imports to address domestic shortages. While exports are also projected to recover, the impact of prolonged dry spells on agricultural production may constrain export growth. The current account deficit is projected to remain high at 20% of GDP. With heightened food insecurity, both from high food prices and shortages owing to anticipated lower agriculture output, poverty is expected to worsen in 2024. The proportion of people living below the poverty line of $2.15 a day will increase slightly to 72% in 2024.

Source: World Bank, Malawi Country Overview

Human Development Index
Developed by the United Nations Development Programme (UNDP), the Human Development Index is a summary measure for assessing a country’s long-term progress in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living.

0.508

How is this information gathered?

SDG Investor Maps employ an 8-step methodology, combining data research and stakeholder consultations to identify Investment Opportunity Areas (IOAs) and potential business models with significant financial and impact potential.

Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

Read More

There are no results to display

Try adjusting your search filters to be less restrictive or view and browse all results.