Malawi
How Do Investments in Human Capital Development Affect SDG Outcomes in Malawi? A Human Capital Push Scenario
Reducing Inequality and Poverty in Malawi: Policy Analyses and Options
This report examines the role of economic and social policies in understanding the evolution of inequality and poverty in Malawi over the past three decades. Emphasizing the centrality of policy choices in addressing inequality the report indicates that most of the key policies that Malawi has been implementing have contributed to reducing income inequality. However their efficacy is being eroded by several factors including policy incoherence and infrastructure gaps.
Voluntary Peer Review of Competition Law and Policy - Malawi
The UNCTAD voluntary peer review of competition law and policy of Malawi was conducted at the Intergovernmental Group of Experts on Competition Law and Policy meeting in Geneva on July 8th 2021.
Harnessing Agricultural Trade for Sustainable Development: Malawi
Groundnuts, Sunflower and Soybeans
This study is part of a series of UNCTAD publications that focus on upgrading and diversifying specific agricultural sectors of rural economies in developing countries with a view to raising living standards among of smallholder farmers in a context of sustainable development female empowerment and food security. Malawi is a Least Developed Country (LDC) where 70 per cent of its population live below the international poverty line of US$1.90 per day. Tobacco has traditionally been its principal export earner with maize as a subsistence crop. A decline in tobacco exports due to health concerns has made it imperative to identify other promising agricultural sectors as a means of increasing foreign exchange earnings to support development. In this context the government has highlighted sunflower groundnut and soybean as priority sectors. The three crops offer a range of practical advantages: in crop cultivation through intercropping which adds to soil fertility; in value addition offering a potential to tap into markets of edible oils and livestock feed; and in diversifying away from traditional crops such as tobacco and maize it allows the country to reduce its exposure to market shocks and climate change. This study analyses the three sectors in terms of opportunities derived from exports of primary and processed products within a context of regional integration and LDC preferential access to developed country markets. It provides detailed information on the current and evolving trading regime between Malawi and its close regional partners with a focus on both formal and informal trade given that the latter accounts for a significant proportion of the country’s overall trade and notably involves female traders.
Sustainability outcomes
The per capita Gross National Income (GNI) of Malawi as a low-income country was US$1180 in 2017 and it remains one of the poorest countries in the world: 171 out of 189 on the 2017 UNDP Human Development Index. 71.5 per cent of the population can be classified as below the international poverty line of US$1.90 a day. With 84.7 per cent of the population concentrated in agriculture agricultural development will be key to lifting Malawians out of poverty. The population is also highly vulnerable to natural disasters such as floods in 2015 and a major drought in 2016. Malawi’s challenges are exacerbated by a volatile economy a near 10 per cent rate of HIV infection a 51 per cent rate of primary school completion and a high level of malnutrition as well as a 37 per cent rate of stunting for children under five. The findings of the Malawi Vulnerability Assessment Committee (MVAC) reveal that 1 million people will be food insecure during the 2019/2020 lean season. On a more positive note extreme poverty appears to have declined from 24.5 per cent in 2010 to 2011 to 20.1 per cent in 2016 to 2017. Average life expectancy also increased from about 45 in 2000 to 63 in 2017 with life expectancy for women increasing from 47.6 in 2000 to 66.4 in 2017. The infant mortality rates (per 1000 live births) declined from 100.4 in 2000 to 35.3 in 2018. Smallholder farmers produce 80 per cent of the food consumed nationally. Women are the biggest contributors to Malawi’s national food production performing between 50 and 70 per cent of all agricultural tasks and producing over 70 per cent of food consumed locally.
Upgrading trajectories: Value-addition and diversification
This chapter draws on some of the findings in the earlier chapters as well as additional literature and highlight cross-cutting and crop-specific issues challenges and opportunities related to value-addition and diversification It should be noted that the thematic elements in the following analysis interact closely in a synergistic manner and therefore cannot be discussed in isolation. For instance access to quality inputs will be critical to ensuring high enough product volumes of a minimum quality. This in turn will be a key factor in the product’s ability to compete in domestic and international markets.
Introduction
The purpose of this study is to evaluate trade-led sustainable development opportunities and challenges in the groundnut sunflower and soybean value-chains in Malawi as a means of diversifying its agricultural production base away from dependence on tobacco exports. It examines cross-cutting and sector-specific constraints and opportunities for upgrading value-addition and diversification. It also explores specific ways to mainstream food security gender inclusiveness and sustainability into agricultural trade policies and thereby assist Malawi’s government in sound policy development through a coherent and consultative approach. The study sets out broad conclusions and specific recommendations based on its findings. It was reviewed and validated by the Ministries concerned and it is expected that the policy recommendations will garner further government and broad stakeholder support of groups such as farmers’ associations the private sector agricultural experts and agencies for development cooperation.
Acknowledgements
This publication was prepared by the Trade Environment Climate Change and Sustainable Development Branch of the Division on International Trade and Commodities UNCTAD. The principal authors were Mahesh Sugathan and Eugenia Nunez with contributions received from Maria Sokolova Rodrigo Saavedra Zepeda and Julian Benda under the leadership of Eugenia Nuñez and the overall guidance of Lucas Assuncao Pamela Coke-Hamilton and Shamika Sirimanne.
Conclusions and policy recommendations
Based on the literature consulted including technical backgrounders this section lays out some broad conclusions that lead to recommendations applicable to the sunflower groundnut and soybean sectors.
Trade policy environment and frameworks
Trade policy that facilitates the regional integration of agricultural markets and value-chains has the potential to contribute to both price stability and greater food security and can also secure export markets for value-added agro-crops. This Chapter focuses on Malawi’s trade policy framework and its associated trade related opportunities and constraints while emphasizing the need to address specific constraints faced by Malawi’s exporters that could impede the regional integration of value-chains in groundnuts sunflower and soybean as well as export opportunities for primary and value-added products.
Sunflower, soybean and groundnut: Oilseeds and edible oils in Malawi
This chapter briefly provides an overview of the main characteristics of sunflower groundnut and soybean summarises their possible uses and analyses the most recent related developments in international markets.
Country overview and development background
Malawi is a landlocked country in southern Africa bordering Mozambique Zambia and the United Republic of Tanzania. It is categorised as a least developed country (LDC) and its high dependence on agriculture makes it one of the countries most affected by climate change. It has a history of being heavily dependent on official development assistance which plays a significant role in the government’s fiscal planning. In 1998 the country set itself the goal of becoming a self-reliant middle-income country by 2020 through sustainable growth and development. The national long-term perspective for development was encapsulated in the “Vision 2020” report which formed the basis of the more practical “Malawi Growth and Development Strategy” now in its third edition covering the period 2017-2022.
Executive Summary
This study is part of a series of UNCTAD publications that focus on upgrading and diversifying specific agricultural sectors of rural economies in developing countries with a view to raising living standards among of smallholder farmers in a context of sustainable development female empowerment and food security.
No. 51240. United States of America and Malawi
Agreement between the Government of the United States of America and the Government of Malawi regarding the surrender of persons to the International Criminal Court. Lilongwe 23 September 2003
No. 51204. International Development Association and Malawi
Financing Agreement (Economic Recovery Development Policy Financing) between the Republic of Malawi and the International Development Association (with schedule appendix and International Development Association General Conditions for Credits and Grants dated 31 July 2010). Lilongwe 5 June 2013