Basic economic facts

GDP: US$3.441 billion (2007 est.)
GDP per capita: US$263 (2007)
Annual growth: 8.7% (2008 est.)
Inflation: 9% (2009 est.)
Major industries: tobacco, tea, sugar, mining, sawmill products, cement and consumer goods.
Main trading partners: South Africa, Germany, US, Zimbabwe, Mozambique, Netherlands, UK, Japan.

Malawi has few exploitable resources apart from land, which is at serious risk of degradation as a result of population pressure and poor farming methods. Agriculture remains the backbone of the economy, employing 85% of the working population. However, about 90% of these workers are engaged in subsistence farming. Tobacco is responsible for some 60% of export earnings, with sugar, tea and coffee contributing about 5% each. Uranium deposits in the north of Malawi will be exported from mid-2009 and will run at 1,500 tonnes a year for at least ten years, generating an annual income of some $100 million, about 5% of Malawi’s GDP and 20% of foreign exchange earnings.

 

History

Malawi takes its name from the Maravi (which means 'rays of light') empire which developed on the shore of Lake Malawi in the 16th and 17th centuries. In the 19th century Maravi was devastated by the arrival of Nguni invaders from the south, and Muslim slavers from the east, leading to the establishment of a British Protectorate of Nyasaland at the end of the 19th century. Christian missions, inspired by Livingstone's appeal to end the slave-trade, played a key role in promoting British intervention. Apart from local initiatives - most notably by John Chilembwe, an evangelical Christian minister (and national hero), in 1914 - there was little resistance to colonial rule until the 1950s when there were widespread protests against the unpopular Federation of Rhodesia and Nyasaland.

Nyasaland achieved independence as Malawi in 1964. Hastings Banda, who had returned from a successful medical practice in London to lead African protest against the Federation, became the first prime minister. He quickly adopted an autocratic style, leading to ministerial rebellions in the 1960s, which in turn led to further repression. He also adopted a policy of détente with the remaining white-ruled states in southern Africa and, in contrast with the governments of Tanzania, Zambia and (after 1975) Mozambique, took a staunchly capitalist and pro-Western line. In the climate of the Cold War donors were prepared to tolerate his domestic idiosyncrasies, especially since - again in contrast to his neighbours - he managed an effective economy in one of the poorest countries in the world. But with the collapse of communism the props, both domestic and international, were kicked away. Under donor and popular pressure, as well as feeling the effects of age (he was at least 90), he conceded multi-party democracy in 1993. Bakili Muluzi and his United Democratic Front (whose popular support was in the densely-populated south of the country) won the ensuing presidential and parliamentary elections in 1994.

International relations
 

Malawi has good relations with its neighbours, although there has been tension in the past with the other 'front-line states' because of Banda's relations with white minority regimes in the region. Banda also maintained links with Renamo when it opposed the Mozambican government during that country's civil war, although Malawian troops deployed into Mozambique to defend the Nacala Corridor against Renamo attacks. There is also a long dormant disagreement with Tanzania over Lake Malawi boundaries in the northern part.

 

Malawi's relations with the UK

UK/Malawi relations are good. The UK is a major trading partner and has also been Malawi's principal bilateral aid donor since independence.

Diplomatic representation

There are approximately 6,000 UK nationals in Malawi.

Cultural relations

The British Council is the focal point for cultural relations between Britain and Malawi.

Recent visits

Principal visits to Malawi have been from Peter Hain (Minister of State, FCO, September 2000), Hilary Benn (Permanent-Under Secretary of State, DFID, October 2001), Paul Boateng (Financial Secretary, HM Treasury, February 2002), Michael Ancram (Shadow Foreign Secretary, July 2002), House of Commons International Development Committee (October 2002), Lord David Steel (January 2003), Jack McConnell, First Minister of Scotland (May 2005), House of Commons International Development Committee (March 2006), Hilary Benn (Secretary of State for International Development, February 2007); HRH The Duke of Gloucester (May 2007); Gillian Merron (Minister for International Development, September 2008).

Principal visits from Malawi have been President Mutharika in September 2004 and November 2005; then President Muluzi in February 2002, June 2003 and January 2004.

Geography

Malawi is a landlocked country in south central Africa bordered by Tanzania to the north, Zambia to the west and Mozambique to the east and south. Over 1/5 of the total land area of 118,000 sq km comprises of Lake Malawi.

Trade and investment

Trade and investment with the UK

UK Exports: £17 million (2008)
UK Imports: £17 million (2008)

Development

The UN Human Development index ranks Malawi 166 out of 177 countries and the tenth poorest country in the world. It is the most densely populated country in Africa with few natural resources: HIV/AIDS, low educational attainment and deforestation are some of its more serious challenges. Poverty has increased in the last few decades.
 

The UK aid programme in Malawi concentrates on poverty elimination, equity and human rights. DFID's £75m development programme supports the Malawi Government's Growth and Development Strategy in three areas: governance, growth and resilience, and human development (especially health, HIV/Aids and education). This includes £20m direct budgetary support.

 

Politics

Although Muluzi's UDF was the largest party in parliament after the 1994 elections, it failed by 3 seats to win an absolute majority in parliament. Banda's Malawi Congress Party (MCP) dominated the central region and the Alliance for Democracy (AFORD) the north. In September 1994 Chakufwa Chihana, president of AFORD, joined the UDF Government as second Vice-President and a coalition government was formed. But Chihana resigned in May 1996, just as the President was about to dismiss him. AFORD decided to withdraw from the coalition, but not all the AFORD ministers resigned: 4 remained in government, and 2 AFORD MPs also joined. AFORD and the MCP boycotted the December 1996 parliamentary session in protest at UDF's 'poaching' of MPs. In April 1997, MCP and AFORD decided to end the boycott (after many of their members had ignored it anyway). Dr Banda retired later that year and was replaced as leader of MCP by former vice-president Gwanda Chakuamba. Banda died in November that year and was given a state funeral. The next presidential and parliamentary elections were again held in June 1999. Once again Muluzi won the presidency, but his party failed to gain an overall parliamentary majority.

In the 2004 presidential and parliamentary elections Bingu wa Mutharika – Muluzi's hand-picked successor as leader of the UDF - won the presidency with 36% of the vote. The MCP's John Tembo was the immediate runner-up on 27%, and Chakuamba, representing a coalition of minor opposition parties, won 26%. In the parliamentary contest the MCP overtook the UDF, and a large number of independent MPs were also elected. International observers declared the poll generally free and fair. However, they highlighted previous misuse of government resources by the UDF, and the Malawi Electoral Commission's failure to adequately address problems with the voters' roll.

Mutharika soon indicated he was his own man, in particular launching a determined attack on corruption, alienating many influential figures in the UDF, including his former patron Muluzi. Eventually Mutharika split from the party and founded his own, the Democratic Progressive Party, which drew support from a number of minor opposition parties, disaffected UDF MPs and independents. Mutharika's uncompromising approach and willingness to upset his former colleagues led to an impeachment attempt in October 2006, the arrest of the vice-president, Cassim Chilumpha, and severe delays to business in Parliament.

In May 2009, incumbent President Mutharika was re-elected for a second term and final term - amassing 67% of the vote against 31% for his main challenge, the MCP's John Tembo. In parliamentary elections held at the same time Mutharika's DPP won 114 seats (of the 193 seat Parliament), increasing thereafter to 137 with some independent candidates joining the ruling party. Polling day was peaceful in all parts of the country. Turn-out looks likely to have been up to 80%. EU and Commonwealth observer mission statements (as well as those of the AU and SADC missioins) are consistent in recognising that polling day was well managed. The EU concluded that although the universal nature of the franchise was guaranteed, the election fell short of fully meeting Malawi's commitments to international and regional standards for elections, as a number of key problem areas exposed structural and regulatory weaknesses. These included the limited capacity of the Electoral Commission, the editorial policy of state owned broadcasters that excluded opposition parties, the use of state resources for campaign purposes and a lack of a level playing field for campaigning.