Malawi Still Struggling to Attract Foreign Investors
Malawi is still failing to bring in enough foreign direct investment (FDI)—the money that international companies put into building businesses, industries, and jobs in another country.
According to the Export Development Fund (EDF), Malawi’s FDI levels remain very low compared to other African countries, and progress has been inconsistent.
In 2015, Malawi attracted about $408 million (K714 billion), but this dropped sharply to just $55 million (K96 billion) in 2019. Although inflows rose again to $220 million (K385 billion) in 2024, the country is still far behind its neighbors.
For example, in 2024, Mozambique got $3.5 billion, South Africa $2.4 billion, Tanzania $1.7 billion, Zambia $1.2 billion, and Zimbabwe $597 million. Malawi’s share was just a fraction of that.
EDF says the problem is that Malawi does not have enough ready-to-go, attractive projects that foreign investors can put their money into. At the same time, weak infrastructure, low income levels, and small markets discourage investors from choosing Malawi.
This matters because FDI brings jobs, new businesses, better infrastructure, and more money circulating in the economy. Without it, Malawi struggles to grow and remains dependent on aid and debt.
Experts warn that unless the country creates strong, bankable projects in areas like energy, agriculture, mining, and manufacturing, investors will keep taking their money to other African countries.
As EDF put it, Malawi’s fundamentals are “less attractive” compared to its peers, which means the country is missing out on opportunities that could change people’s lives through job creation and development.