Former Malawian presidential candidate, the late James Nyondo, once said the country’s economy has always been problematic and any attempt by the government to resuscitate it is a joke. “Malawi’s economy since independence in 1964 has been on life support, with donors propping our weak economy. Malawi has been among the poorest on the planet. Our economy has never created sufficient jobs and the government remains the biggest employer, that is the problem,” he said. Although this statement was made in 2013 in reference to President Joyce Banda’s comment that the economy will stabilize after certain steps taken by her administration, it still applies to the country’s more recent economic challenges.
Malawi has been plagued by severe drought, a situation that has resulted in the annihilation of the agricultural sector as the El-Nino phenomenon has affected over 2.8 million people. Despite these challenges, Malawi’s economy has been tipped to grow by about 5.1 percent by the country’s Central Bank. The factors that are likely to boost growth in the country are – improved investor confidence, favorable weather conditions, higher agricultural exports, lower inflation and moderate interest rates. According to a report from the African Economic Outlook, as compiled by Peter Mwanakatwe and Gebrehiwot A. Kebedew, growth momentum in Malawi is expected to resume in 2016, with projected growth of 5.7 percent.