Navigating Opportunities: Revitalizing Malawi’s Investment Landscape
Key Business Points
- Global investment climate remains challenging, with foreign direct investment in Africa falling 45% in the first half of 2025, affecting Malawi’s ability to attract investors.
- Investment in SDG-relevant sectors is declining, with a 10% drop in number and 7% drop in value in early 2025, hindering progress towards achieving the Sustainable Development Goals.
- Malawi’s investment environment needs improvement, with limited infrastructure, low GDP per capita, and a volatile FDI inflow trajectory, making it less attractive to investors compared to its peers.
The United Nations has warned that the global investment climate will remain challenging through the rest of 2025, citing geopolitical tensions, regional conflicts, and economic fragmentation as major concerns. This has already led to a significant decline in foreign direct investment (FDI) in Africa, with a 45% drop in the first half of 2025. Zikomo kwambiri, this is a major setback for Malawi’s business community, which relies heavily on foreign investment to drive economic growth.
According to the UN Trade and Development report, investment in sectors critical to the Sustainable Development Goals (SDGs) has also declined, with a 10% drop in number and 7% drop in value in early 2025. Kugawa kwa ma SDG, achieving the SDGs is crucial for Malawi’s development, and this decline in investment is a major concern. The report notes that investment in renewable energy and infrastructure continued to decline, while investment in the health and agriculture sectors increased, albeit at relatively low levels.
In Malawi, the situation is equally concerning, with the country achieving only 20.9% of the SDGs adopted in 2015. The UN Common Country Analysis report notes that Malawi’s overall SDG index score is below the global average, with 40.3% of the targets registering limited progress and 38.8% of the targets worsening. Kusintha kwa mitengo, improving the business environment is crucial to attracting investment and driving economic growth.
The Malawi Investment and Trade Centre (MITC) director general, Kruger Phiri, has attributed the limited investment in Malawi to chikwamawira cha mitengo, limited infrastructure, and low gross domestic product per capita. The World Bank’s Country Private Sector Diagnostic Report also notes that Malawi has one of the lowest investment rates in the region, due in part to exogenous factors. Tikukumane, it is essential for Malawi’s business community to work together to address these challenges and create a more attractive investment environment. By doing so, Malawi can kuganizira kwa nzeru, think strategically, and attract more investment to drive economic growth and achieve the SDGs.
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