Country Profile: Malawi

Malawi, 'The Warm Heart of Africa' is best known for its friendly people and its lake, which attracts thousands of visitors every year. For 30 years under the rule of Banda, the 90% of the population who lived in rural areas saw little improvement in their quality of life. The country is now a multi-party democracy, Banda's Malawi Congress Party being defeated in the first multi-party election in 1994 by Bakili Muluzi's United Democratic Front, which won again in 1999.

Between 1980 and 1990 changes in the local political situation - in particular Zimbabwe's independence which cut the formerly strong economic links with South Africa - led to Malawi's economy going into decline, and smallholder incomes decreased by 41%. Serious droughts in the early to mid 1990s caused a further plunge in the smallholder sector's contribution to the economy, and increased Malawi's dependence on foreign finance for development programmes. This in turn further increased her debt repayment obligations.

Under structural adjustment policies imposed in the '90s, rural areas have been hit particularly hard. State subsidies and fixed prices for agricultural products have been curtailed, as state-run marketing and credit networks have been disrupted, and the commercial sector has been burdened by high interest rates and value-added tax. Although economic performance has improved since 1995, a recent survey showed that 43% of the rural population still lack the most basic needs.

Malawi's Agriculture: Cash Crop Estates and Subsistence Smallholders

Estates, growing tobacco (60% of estate land area), tea (20%) and sugar (18%), account for 90% of foreign exchange earnings, a dangerously high proportion of this coming from tobacco. With easier access to inputs, credit, agricultural services and markets as well as use of high technology, productivity on the estates is higher than among smallholders. However the expansion of tobacco growing has increased Malawi's severe problem of deforestation, large quantities of wood being needed for barn construction and as fuel for curing the leaves.

Smallholder agriculture accounts for 80% of Malawi's food production and 65% of agricultural GDP. Most rural farmers in Malawi have very small holdings. The average size has halved since 1970, and 70% have less than a hectare on which to grow the bulk of their food for the year. This, in combination with declining soil fertility, use of unimproved seed varieties, negligible fertilizer use, and limited access to credit and extension services, has seriously limited smallholder productivity.

Until 1991, smallholders were not allowed to grow high value cash crops, such as burley tobacco, and concentrated instead on low yielding maize varieties that are now grown on more than 75% of their land area. Other important food crops include cassava, sweet potatoes, rice, sorghum, groundnuts, and pulses. Recent indications suggest that farmers who have begun growing burley tobacco are significantly adding to their income.

Since 1994 successive programmes have distributed free seeds and fertilizers to farmers, as a way of improving food security at both national and household levels. In the last three years good rains have led to bumper harvests. In addition, the current programme of 'starter packs' has encouraged intercropping of maize with legumes in some areas where it was previously little practised. This has helped farmers in those areas to obtain greater productivity from their land. The programme however, is not without controversy; some argue that it perpetuates a dependency mentality, and there is evidence that it can be manipulated for political ends.

Other localised initiatives include: promotion of low-input, drought resistant crops such as cassava and sweet potatoes; sustainable maize production using open pollinated varieties; continued cash crop support e.g. for tobacco, sunflowers and groundnuts, and innovative production schemes enabling smallholders to produce and sell spices (e.g. paprika), vegetables and flowers, potentially for export.

Malawi has high population growth which is increasing the pressure on its natural resource base. Many farmers have to cultivate on steep hillsides and other marginal lands, often with inadequate soil and water conservation. As more land is opened up to production, problems such as soil erosion, declining soil fertility and increased soil run off, and the resulting siltation of rivers, are worsening. The government believes that education is the answer, and has abolished primary school fees. However the quality of education provided suffers from the increased pressures on the system, and the drop out rate of students is high.

Another Way? Alternatives to Farming

In the face of falling incomes and greater pressure on resources, many smallholders are looking for other sources of income. As a result local markets have sprawled and small businesses mushroomed in both rural and urban areas. Informal marketing of firewood and charcoal has increased, as subsidies for paraffin and electricity have been removed. Various initiatives are supporting off-farm activities such as trading, small-scale manufacture and eco-tourism. The informal sector represents a possible way forward for Malawians. Urbanisation is happening at a rapid rate and this poses new challenges as well as offering some potential opportunities to the poor, such as informal trading and services.

The Impact of AIDS

HIV/AIDS is of immense concern in Malawi. It is creating a massive drain on already meagre resources, both in terms of the cost to the health services, and also in the devastation occurring among the professional classes. The trained manpower being lost both through actual sickness and death, and additionally through frequent attendance of funerals, is having a major impact on Malawi's economy. Women also face a huge threat from AIDS: females in the 15 to 24 age bracket are three times more likely to be HIV+ than males, and the number of children who have lost their mothers has doubled since 1995. Despite this the rapid population growth is exerting extreme pressure on land, natural resources, employment, education and health facilities, and hence Malawi's ability to satisfy basic human needs. Under these conditions it is likely that the number of households living under the poverty line will increase.

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