Malawi ranked 8th poorest in Africa, World’s fastest growing consumer

Malawi has been ranked as the eighth poorest country on the continent and the fastest growing consumer market in the world .

Richest Lifestyle, a publication that is dedicated to the lifestyle of celebrities, rich and fabulous people around the globe, as of 2004, 54 percent of Malawians lived under the poverty line on less than $1 (about K460) a day while the country is faced with the shortage of foreign exchange, leading to its failure to pay for some imports.

In another report, Euromonitor found after analyzing markets by expected consumer expenditure and annual real growth this year that Malawi is fastest world growing consumer.

Consumer spending iis set to grow 18.2 percent year-on-year in 2014, the report said.

Malawi’s total consumer expenditure will likely reach $5.6 billion by the end of this year, translating into spending of only $335 per capita, the research firm said.

The growth may be fast, but Euromonitor analysts cautioned that such a low level of spending inevitably limits business opportunities.

Furthermore, finding ways to invest in Malawi can also be challenging, as barriers to investment include a shortage of foreign exchange and poor infrastructure.

“In the short term, consumer market growth in Malawi will be supported by the country’s improved economic performance (which will help to raise incomes) and slowing consumer price inflation (which will raise consumer demand),” Euromonitor said.

Last year, another report ranked Malawi as the second world’s worst performing economy, according to ranking by the International Monetary Fund (IMF) which rates countries by at least one measure.

President Peter Mutharika, speaking during his inauguration said government will take a bottom-up approach that involves and directly benefits ordinary people.