Located in Southern Africa, Malawi is landlocked, sharing its borders with Mozambique, Zambia, and Tanzania. The country has an estimated population of 18.6 million (2019), which is expected to double by 2038.
Malawi remains one of the poorest countries in the world despite making significant economic and structural reforms to sustain economic growth. The economy is heavily dependent on agriculture, employing nearly 80% of the population, and it is vulnerable to external shocks, particularly climatic shocks.
Economic Overview
Malawi’s economy continues to be heavily affected by the COVID-19 pandemic. Headline inflation picked up to 8.4 percent in August 2021. Robust food supplies following the strong agriculture season led food inflation to decelerate to 9.7 percent.
The increase in agriculture yield has contributed to stronger employment in rural areas, while urban employment has only shown a slower recovery from the pandemic. The national poverty rate has slightly declined from 51.5% in 2015/16 to 50.7% in 2019/20
The Malawi Growth and Development Strategy (MGDS), a series of five-year plans, guide the country’s development. The current MGDS III, Building a Productive, Competitive, and Resilient Nation, will run through 2022 and focuses on education, energy, agriculture, health, and tourism. In January 2021, the government launched the Malawi Vision 2063 that aims at transforming Malawi into a wealthy and self-reliant industrialized upper-middle-income country. (Source: The Worldbank)
How to Expand Your Business in Malawi the Smart Way
Africa HR Solutions offers HR outsourcing services in Malawi to facilitate your workforce management on the African continent:
- Hire people on the African continent without a registered entity
- Complete payroll rundown and management
- A central point of contact for all your queries
- Guaranteed compliance to local laws
- Professional indemnity and employer liability
As always, Africa HR Solutions guarantees 100% compliance for your business operations in Africa.
