Economy of Malawi
Encyclopedia
The economy of Malawi is predominantly agricultural, with about 90% of the population living in rural areas. The landlocked country in south central Africa ranks among the world's least developed countries
. Agriculture accounts for 37% of GDP and 85% of export revenues. The economy depends on substantial inflows of economic assistance
from the IMF
, the World Bank
, and individual donor nations. The government faces strong challenges: to spur exports, to improve educational
and health facilities, to face up to environmental problems of deforestation
and erosion
, and to deal with the rapidly growing problem of HIV/AIDS in Africa
.
Malawi was ranked the 119th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.
, which accounts for about 70% of export revenues. In 2000 the country was the tenth largest producer in the world (See table). The United Nations
Foreign Agricultural Office estimates the following production of unprocessed tobacco by country in 2000 (figures are in thousands of ton
nes.)
The country's heavy reliance on tobacco places a heavy burden on the economy as world prices decline and the international community increases pressure to limit tobacco production
. Malawi
's dependence on tobacco is growing, with the product jumping from 53% to 70% of export revenues between 2007 and 2008.
The country also relies heavily on tea
, sugarcane
and coffee
, with these three plus tobacco making up more than 90% of Malawi's export revenue. Tea was first introduced in 1878. Most of it is grown in Mulanje
and Thyolo
. Other crops include cotton
, corn
, potatoes, sorghum
, cattle
and goats. Tobacco and sugar processing are notable secondary industries.
Traditionally Malawi has been self-sufficient in its staple food, maize
(corn), and during the 1980s it exported substantial quantities to its drought
-stricken neighbors. Nearly 90% of the population engages in subsistence farming. Smallholder farmers produce a variety of crops, including maize, beans, rice
, cassava
, tobacco, and groundnut
s (peanuts). Financial wealth is generally concentrated in the hands of a small elite. Malawi's manufacturing industries are situated around the city of Blantyre
.
Malawi
has few exploitable mineral
resources. Malawi's economic reliance on the export of agricultural commodities renders it particularly vulnerable to external shocks such as declining terms of trade and drought. High transport costs, which can comprise over 30% of its total import bill, constitute a serious impediment to economic development
and trade. Malawi must import all its fuel products. Other challenges include a paucity of skilled labor, difficulty in obtaining expatriate employment permits, bureaucratic red tape
, corruption
, and inadequate and deteriorating road, electricity, water, and telecommunications infrastructure which hinder economic development in Malawi. However, recent government initiatives targeting improvements in the road infrastructure, together with private sector participation in railroad and telecommunications, have begun to render the investment environment more attractive.
Kentam Products Limited
.
programs supported by the World Bank
(IBRD), the International Monetary Fund
(IMF), and other donors since 1981. Broad reform objectives include stimulation of private sector activity and participation through the elimination of price controls and industrial licensing, liberalization of trade and foreign exchange, rationalization of taxes, privatization of state-owned enterprises, and civil service reform. Malawi qualified for Heavily Indebted Poor Country (HIPC) debt relief and is in the process of refining its Poverty Reduction Strategy.
Real GDP grew by 3.6% in 1999 and 2.1% in 2000. The government's monetary policy has been expansionary, and the average annual inflation has hovered around 30% in 2000 and 2001, keeping discount and commercial bank rates high (the discount rate was 47% in December 2000). In the second half of 2001, the Kwacha strengthened sharply against the U.S. dollar, moving from 80 to 60.
Malawi has bilateral trade agreements with its two major trading partners, South Africa
and Zimbabwe
, both of which allow duty-free entry of Malawian products into their countries. The government faces challenges such as the improvement of Malawi's educational and health facilities—particularly important because of the rising rates of HIV/AIDS—and environmental problems including deforestation, erosion, and overworked soils.
subsidies that were designed to re-energize the land and boost crop production. It has been reported that this program, championed by the country's president, is radically improving Malawi's agriculture, and causing Malawi to become a net exporter of food to nearby countries.
Economic grievences though took a downward slide during Mutharikas second term. Economic grivences was a catalyst that resulted in the 2011 economic protests in Malawi in July
.
purchasing power parity - $8.272 billion (2006 est.)
GDP - real growth rate:
8.5% (2006 est.)
GDP - per capita:
purchasing power parity - $800 (2007 est.)
GDP - composition by sector:
agriculture:
36.1%
industry:
18.8%
services:
45.1% (2006 est.)
Population below poverty line:
53% (2004 est.)
Household income or consumption by percentage share:
lowest 10%:
NA%
highest 10%:
NA%
Distribution of Family Income-Gini Index
39 (2004)
Inflation rate (consumer prices):
14% (2006 est.)
Labor force:
4.5 million (2001 est.)
Labor force - by occupation:
agriculture 90%, industry and services 10% (2003 est.)
Unemployment rate:
NA%
Budget:
revenues:
$1.016 billion
expenditures:
$1.097 billion; including capital expenditures of $NA (2006 est.)
Public Debt
39.4% of GDP (2006 est.)
Industries:
tobacco
, tea
, sugar
, sawmill products, cement
, consumer goods
Industrial production growth rate:
6.4% (2006 est.)
Electricity - production:
1.397 billion kWh (2005)
Electricity - production by source:
fossil fuel:
2.39%
hydro:
97.61%
nuclear:
0%
other:
0% (1998)
Electricity - consumption:
1.299 billion kWh (2005)
Electricity - exports:
0 kWh (2005)
Electricity - imports:
0 kWh (2005)
Oil Production
0 oilbbl/d (2003 est.)
Oil Consumption
5500 oilbbl/d (2004 est.)
Agriculture - products:
tobacco
, sugar cane, cotton
, tea
, maize
, potato
es, cassava
(tapioca
), sorghum
, pulses; cattle
, goat
s
Exports:
$560.3 million f.o.b. (2006 est.)
Exports - commodities:
tobacco
, tea
, sugar
, cotton
, coffee
, peanut
s, wood products, apparel
Exports - partners:
South Africa 12.6%, Germany 9.7%, Egypt 9.6%, US 9.5%, Zimbabwe 8.5%, Russia 5.4%, Netherlands 4.4% (2006)
Imports:
$832 million f.o.b. (2006 est.)
Imports - commodities:
food, petroleum products, semimanufactures, consumer goods, transportation equipment
Imports - partners:
South Africa 34.6%, India 8.1%, Zambia 7.8%, US 6.4%, Tanzania 5.8%, Germany 4.6%, China 4.3% (2006)
Current Account Balance
-$209 million (2006 est.)
Debt - external:
$468 million (2006 est.)
Economic aid - recipient:
$575.3 million (2005)
Currency:
1 Malawian kwacha (MK) = 100 tambala
Exchange rates:
Malawian kwachas per US dollar - 145.179 (2009), 135.96 (2006), 108.894 (2005), 108.898 (2004), 97.433 (2003), 76.687 (2002)
Fiscal year:
1 July - 30 June
Least Developed Countries
Least developed country is the name given to a country which, according to the United Nations, exhibits the lowest indicators of socioeconomic development, with the lowest Human Development Index ratings of all countries in the world...
. Agriculture accounts for 37% of GDP and 85% of export revenues. The economy depends on substantial inflows of economic assistance
Aid
In international relations, aid is a voluntary transfer of resources from one country to another, given at least partly with the objective of benefiting the recipient country....
from the IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
, and individual donor nations. The government faces strong challenges: to spur exports, to improve educational
Education in Malawi
Malawi has an 8-4-4 education system consisting of primary school , secondary school and university education. The official entry age into primary level education is 6 years...
and health facilities, to face up to environmental problems of deforestation
Deforestation
Deforestation is the removal of a forest or stand of trees where the land is thereafter converted to a nonforest use. Examples of deforestation include conversion of forestland to farms, ranches, or urban use....
and erosion
Erosion
Erosion is when materials are removed from the surface and changed into something else. It only works by hydraulic actions and transport of solids in the natural environment, and leads to the deposition of these materials elsewhere...
, and to deal with the rapidly growing problem of HIV/AIDS in Africa
HIV/AIDS in Africa
HIV/AIDS is a major public health concern and cause of death in Africa. Although Africa is home to about 14.5% of the world's population, it is estimated to be home to 67% of all people living with HIV and to 72% of all AIDS deaths in 2009.-Overview:...
.
Malawi was ranked the 119th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.
Agriculture
Agriculture represents 36% of GDP, accounts for over 80% of the labor force, and represents about 80% of all exports. Its most important export crop is tobaccoTobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, which accounts for about 70% of export revenues. In 2000 the country was the tenth largest producer in the world (See table). The United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
Foreign Agricultural Office estimates the following production of unprocessed tobacco by country in 2000 (figures are in thousands of ton
Ton
The ton is a unit of measure. It has a long history and has acquired a number of meanings and uses over the years. It is used principally as a unit of weight, and as a unit of volume. It can also be used as a measure of energy, for truck classification, or as a colloquial term.It is derived from...
nes.)
| Country | Production in thousands of tonnes |
|---|---|
| China China Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture... |
2,298.8 |
| India India India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world... |
595.4 |
| Brazil Brazil Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people... |
520.7 |
| 408.2 | |
| European Union European Union The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958... |
314.5 |
| Zimbabwe Zimbabwe Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three... |
204.9 |
| Turkey Turkey Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe... |
193.9 |
| Indonesia Indonesia Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an... |
166.6 |
| Former Soviet Union Post-Soviet states The post-Soviet states, also commonly known as the Former Soviet Union or former Soviet republics, are the 15 independent states that split off from the Union of Soviet Socialist Republics in its dissolution in December 1991... |
116.8 |
| Malawi Malawi The Republic of Malawi is a landlocked country in southeast Africa that was formerly known as Nyasaland. It is bordered by Zambia to the northwest, Tanzania to the northeast, and Mozambique on the east, south and west. The country is separated from Tanzania and Mozambique by Lake Malawi. Its size... |
108.0 |
The country's heavy reliance on tobacco places a heavy burden on the economy as world prices decline and the international community increases pressure to limit tobacco production
Tobacco industry
The tobacco industry comprises those persons and companies engaged in the growth, preparation for sale, shipment, advertisement, and distribution of tobacco and tobacco-related products. It is a global industry; tobacco can grow in any warm, moist environment, which means it can be farmed on all...
. Malawi
Malawi
The Republic of Malawi is a landlocked country in southeast Africa that was formerly known as Nyasaland. It is bordered by Zambia to the northwest, Tanzania to the northeast, and Mozambique on the east, south and west. The country is separated from Tanzania and Mozambique by Lake Malawi. Its size...
's dependence on tobacco is growing, with the product jumping from 53% to 70% of export revenues between 2007 and 2008.
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
, sugarcane
Sugarcane
Sugarcane refers to any of six to 37 species of tall perennial grasses of the genus Saccharum . Native to the warm temperate to tropical regions of South Asia, they have stout, jointed, fibrous stalks that are rich in sugar, and measure two to six metres tall...
and coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, with these three plus tobacco making up more than 90% of Malawi's export revenue. Tea was first introduced in 1878. Most of it is grown in Mulanje
Mulanje
Mulanje is a town in the Southern Region of Malawi close to the border of Mozambique. It is near the Mulanje Massif.Mulanje is the headquarters of the conservation group, the Mulanje Mountain Conservation Trust....
and Thyolo
Thyolo
Thyolo is a town located in the Southern Region of Malawi. It is the administrative capital of Thyolo District. The current President of Malawi, Bingu wa Mutharika, was born in Thyolo.Economy...
. Other crops include cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, corn
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, potatoes, sorghum
Sorghum
Sorghum is a genus of numerous species of grasses, one of which is raised for grain and many of which are used as fodder plants either cultivated or as part of pasture. The plants are cultivated in warmer climates worldwide. Species are native to tropical and subtropical regions of all continents...
, cattle
Cattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
and goats. Tobacco and sugar processing are notable secondary industries.
Traditionally Malawi has been self-sufficient in its staple food, maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
(corn), and during the 1980s it exported substantial quantities to its drought
Drought
A drought is an extended period of months or years when a region notes a deficiency in its water supply. Generally, this occurs when a region receives consistently below average precipitation. It can have a substantial impact on the ecosystem and agriculture of the affected region...
-stricken neighbors. Nearly 90% of the population engages in subsistence farming. Smallholder farmers produce a variety of crops, including maize, beans, rice
Rice
Rice is the seed of the monocot plants Oryza sativa or Oryza glaberrima . As a cereal grain, it is the most important staple food for a large part of the world's human population, especially in East Asia, Southeast Asia, South Asia, the Middle East, and the West Indies...
, cassava
Cassava
Cassava , also called yuca or manioc, a woody shrub of the Euphorbiaceae native to South America, is extensively cultivated as an annual crop in tropical and subtropical regions for its edible starchy tuberous root, a major source of carbohydrates...
, tobacco, and groundnut
Peanut
The peanut, or groundnut , is a species in the legume or "bean" family , so it is not a nut. The peanut was probably first cultivated in the valleys of Peru. It is an annual herbaceous plant growing tall...
s (peanuts). Financial wealth is generally concentrated in the hands of a small elite. Malawi's manufacturing industries are situated around the city of Blantyre
Blantyre, Malawi
Blantyre or Mandala is Malawi's centre of finance and commerce, the largest city with an estimated 732,518 inhabitants . It is sometimes referred to as the commercial capital of Malawi as opposed to the political capital, Lilongwe...
.
Malawi
Malawi
The Republic of Malawi is a landlocked country in southeast Africa that was formerly known as Nyasaland. It is bordered by Zambia to the northwest, Tanzania to the northeast, and Mozambique on the east, south and west. The country is separated from Tanzania and Mozambique by Lake Malawi. Its size...
has few exploitable mineral
Mineral
A mineral is a naturally occurring solid chemical substance formed through biogeochemical processes, having characteristic chemical composition, highly ordered atomic structure, and specific physical properties. By comparison, a rock is an aggregate of minerals and/or mineraloids and does not...
resources. Malawi's economic reliance on the export of agricultural commodities renders it particularly vulnerable to external shocks such as declining terms of trade and drought. High transport costs, which can comprise over 30% of its total import bill, constitute a serious impediment to economic development
Economic development
Economic development generally refers to the sustained, concerted actions of policymakers and communities that promote the standard of living and economic health of a specific area...
and trade. Malawi must import all its fuel products. Other challenges include a paucity of skilled labor, difficulty in obtaining expatriate employment permits, bureaucratic red tape
Red tape
Red tape is excessive regulation or rigid conformity to formal rules that is considered redundant or bureaucratic and hinders or prevents action or decision-making...
, corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
, and inadequate and deteriorating road, electricity, water, and telecommunications infrastructure which hinder economic development in Malawi. However, recent government initiatives targeting improvements in the road infrastructure, together with private sector participation in railroad and telecommunications, have begun to render the investment environment more attractive.
Pharmaceutical companies
Malawi has four pharmaceutical companies are actively engaged in the manufacture. They manufacture a limited range of drugs, particularly those that are in great demand on the local market. These are Pharmanova Ltd. and its sister company SADM, Malawi Pharmacies (Pharmaceuticals Limited) andKentam Products Limited
Kentam Products Limited
Kentam Product Limited is a Malawian pharmaceutical, and chemical manufacturing company that operates primarily in Malawi and is expanding internationally. Kentam's high demand products in Malawi are Kilpain , Ketaprin , and Bufen...
.
International support
Malawi has undertaken economic structural adjustmentStructural adjustment
Structural adjustments are the policies implemented by the International Monetary Fund and the World Bank in developing countries. These policy changes are conditions for getting new loans from the International Monetary Fund or World Bank, or for obtaining lower interest rates on existing loans...
programs supported by the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
(IBRD), the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF), and other donors since 1981. Broad reform objectives include stimulation of private sector activity and participation through the elimination of price controls and industrial licensing, liberalization of trade and foreign exchange, rationalization of taxes, privatization of state-owned enterprises, and civil service reform. Malawi qualified for Heavily Indebted Poor Country (HIPC) debt relief and is in the process of refining its Poverty Reduction Strategy.
Real GDP grew by 3.6% in 1999 and 2.1% in 2000. The government's monetary policy has been expansionary, and the average annual inflation has hovered around 30% in 2000 and 2001, keeping discount and commercial bank rates high (the discount rate was 47% in December 2000). In the second half of 2001, the Kwacha strengthened sharply against the U.S. dollar, moving from 80 to 60.
Malawi has bilateral trade agreements with its two major trading partners, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
and Zimbabwe
Zimbabwe
Zimbabwe is a landlocked country located in the southern part of the African continent, between the Zambezi and Limpopo rivers. It is bordered by South Africa to the south, Botswana to the southwest, Zambia and a tip of Namibia to the northwest and Mozambique to the east. Zimbabwe has three...
, both of which allow duty-free entry of Malawian products into their countries. The government faces challenges such as the improvement of Malawi's educational and health facilities—particularly important because of the rising rates of HIV/AIDS—and environmental problems including deforestation, erosion, and overworked soils.
Move towards economic independence
In 2006, in response to disastrously low agricultural harvests, Malawi, through a initiative by President Bingu Mutharika,an economist by profession, began a program of fertilizerFertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...
subsidies that were designed to re-energize the land and boost crop production. It has been reported that this program, championed by the country's president, is radically improving Malawi's agriculture, and causing Malawi to become a net exporter of food to nearby countries.
Economic grievences though took a downward slide during Mutharikas second term. Economic grivences was a catalyst that resulted in the 2011 economic protests in Malawi in July
2011 Malawian protests
The 2011 Malawi protests were protests aimed at winning political and economic reforms or concessions from the government of Malawi. On 20 July, Malawian organisations protested against perceived poor economic management and poor governance by President Bingu wa Mutharika and his Democratic...
.
Economic indicators
GDP:purchasing power parity - $8.272 billion (2006 est.)
8.5% (2006 est.)
GDP - per capita:
purchasing power parity - $800 (2007 est.)
GDP - composition by sector:
agriculture:
36.1%
industry:
18.8%
services:
45.1% (2006 est.)
Population below poverty line:
53% (2004 est.)
Household income or consumption by percentage share:
lowest 10%:
NA%
highest 10%:
NA%
Distribution of Family Income-Gini Index
39 (2004)
Inflation rate (consumer prices):
14% (2006 est.)
Labor force:
4.5 million (2001 est.)
Labor force - by occupation:
agriculture 90%, industry and services 10% (2003 est.)
Unemployment rate:
NA%
Budget:
revenues:
$1.016 billion
expenditures:
$1.097 billion; including capital expenditures of $NA (2006 est.)
Public Debt
39.4% of GDP (2006 est.)
Industries:
tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
, sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
, sawmill products, cement
Cement
In the most general sense of the word, a cement is a binder, a substance that sets and hardens independently, and can bind other materials together. The word "cement" traces to the Romans, who used the term opus caementicium to describe masonry resembling modern concrete that was made from crushed...
, consumer goods
Industrial production growth rate:
6.4% (2006 est.)
Electricity - production:
1.397 billion kWh (2005)
Electricity - production by source:
fossil fuel:
2.39%
hydro:
97.61%
nuclear:
0%
other:
0% (1998)
Electricity - consumption:
1.299 billion kWh (2005)
Electricity - exports:
0 kWh (2005)
Electricity - imports:
0 kWh (2005)
Oil Production
0 oilbbl/d (2003 est.)
Oil Consumption
5500 oilbbl/d (2004 est.)
Agriculture - products:
tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, sugar cane, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
, maize
Maize
Maize known in many English-speaking countries as corn or mielie/mealie, is a grain domesticated by indigenous peoples in Mesoamerica in prehistoric times. The leafy stalk produces ears which contain seeds called kernels. Though technically a grain, maize kernels are used in cooking as a vegetable...
, potato
Potato
The potato is a starchy, tuberous crop from the perennial Solanum tuberosum of the Solanaceae family . The word potato may refer to the plant itself as well as the edible tuber. In the region of the Andes, there are some other closely related cultivated potato species...
es, cassava
Cassava
Cassava , also called yuca or manioc, a woody shrub of the Euphorbiaceae native to South America, is extensively cultivated as an annual crop in tropical and subtropical regions for its edible starchy tuberous root, a major source of carbohydrates...
(tapioca
Tapioca
Tapioca is a starch extracted Manihot esculenta. This species, native to the Amazon, Brazil, Colombia, Venezuela, Cuba, Puerto Rico, Haiti, the Dominican Republic, Honduras, and most of the West Indies, is now cultivated worldwide and has many names, including cassava, manioc, aipim,...
), sorghum
Sorghum
Sorghum is a genus of numerous species of grasses, one of which is raised for grain and many of which are used as fodder plants either cultivated or as part of pasture. The plants are cultivated in warmer climates worldwide. Species are native to tropical and subtropical regions of all continents...
, pulses; cattle
Cattle
Cattle are the most common type of large domesticated ungulates. They are a prominent modern member of the subfamily Bovinae, are the most widespread species of the genus Bos, and are most commonly classified collectively as Bos primigenius...
, goat
Goat
The domestic goat is a subspecies of goat domesticated from the wild goat of southwest Asia and Eastern Europe. The goat is a member of the Bovidae family and is closely related to the sheep as both are in the goat-antelope subfamily Caprinae. There are over three hundred distinct breeds of...
s
Exports:
$560.3 million f.o.b. (2006 est.)
Exports - commodities:
tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
, tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
, sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
, cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
, coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, peanut
Peanut
The peanut, or groundnut , is a species in the legume or "bean" family , so it is not a nut. The peanut was probably first cultivated in the valleys of Peru. It is an annual herbaceous plant growing tall...
s, wood products, apparel
Exports - partners:
South Africa 12.6%, Germany 9.7%, Egypt 9.6%, US 9.5%, Zimbabwe 8.5%, Russia 5.4%, Netherlands 4.4% (2006)
Imports:
$832 million f.o.b. (2006 est.)
Imports - commodities:
food, petroleum products, semimanufactures, consumer goods, transportation equipment
Imports - partners:
South Africa 34.6%, India 8.1%, Zambia 7.8%, US 6.4%, Tanzania 5.8%, Germany 4.6%, China 4.3% (2006)
Current Account Balance
-$209 million (2006 est.)
Debt - external:
$468 million (2006 est.)
Economic aid - recipient:
$575.3 million (2005)
Currency:
1 Malawian kwacha (MK) = 100 tambala
Exchange rates:
Malawian kwachas per US dollar - 145.179 (2009), 135.96 (2006), 108.894 (2005), 108.898 (2004), 97.433 (2003), 76.687 (2002)
Fiscal year:
1 July - 30 June
See also
- Transportation in Malawi
- Economy of AfricaEconomy of AfricaThe economy of Africa consists of the trade, industry, and resources of the people of Africa. , approximately 922 million people were living in 54 different countries. Africa is by far the world's poorest inhabited continent...
- Economy of MozambiqueEconomy of MozambiqueThe economy of Mozambique has developed since the end of the Mozambican Civil War , but the country is still one of the world's poorest and most underdeveloped...
- Economy of South AfricaEconomy of South AfricaThe economy of South Africa is the largest in Africa, accounts for 24% of its Gross Domestic Product in terms of PPP, and is ranked as an upper-middle income economy by the World Bank, which makes the country one of only four countries in Africa represented in this category...
Further reading
- Anthony and Doreen Young, A Geography of Malawi, Second edition. Evans Brothers, Limited, London (1978) ISBN 0-237-50296-8