Reserve Bank of Malawi warns against over dependence on agriculture

A top central bank official says the country’s over dependence on agriculture has negatively affected the economic growth.

Kabambe: Invest in other sectors

Reserve Bank of Malawi governor Dalitso Kabambe says the country’s per capita has remained stagnant because of over reliance on agriculture.

“If the agriculture sector is hit, all sectors will shrink which is not a very good situation,” he said.

He said the country needs to diversify its investment priorities such as investing in tourism, mining, manufacturing.

Statistics show that the GDP per capita only accounts to four per cent of the world’s average.

Kabambe warned that if the country fails to invest in other sectors, it will lose out its economic gains.

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19 replies on “Reserve Bank of Malawi warns against over dependence on agriculture”

  1. migodi, any tangible project that could be making money here in mw all would will and is going into pitala and his string pockets
    mgodi ku
    mwanza
    kayerekerera
    nkhoma
    phalombe
    miyala ku dzalanyama ikupitabe ku CANADA ,Australia as samples
    zoooooonaaaa???????
    mxii zitsilu . inu ku khotiko mind the step musawaikile kumbuyo apo biii ,mob

  2. #REBASE the kwacha now just like the ex BOZ Governor – GONDWE did in Zambia.Then it will be cheaper to import machines for industrialisation.Otherwise with this weak kwacha nothing will change.

  3. AMALAWI MWINA SIMUKUDZIWA DZIWANI IZI LERO:CHONDE WERENGANI MUKHALE NDICHITHUZITHUZI PANKHANI YA POPULATION CONTROL.NICK CONGRATULATIONS YOU HAVE REMINDED ME A VERY IMPORTANT ISSUE POPULATION CONTROL MAIKO ONSE AMENE anthu AKUMAPITA KAPENA TI MANENA KUTI CHINA,SINGAPOLO MALASYA ANAKWERA MUMADZUWA KUTI CHINA CHOMWE ADACHITA NDI POPULATION CONTROL.POPULATION VERSUS DEVELOPMENT OR RESOURCES NDI PAMENE TIKUYENERA KUGANIZIRAPO MWAKUYA A MALAW. VUTO LAMALAWI NDI SMALL TERRITORY BUT LARGE POPULATION KAWERENGENI BUKU LA ANNA HISTORY OF NYASALAND AND RHODESIA(1891 to 1953).VUTO LA NYASALAND AMATI OVERPOPULATION BUT SMALL TERRITORY.VUTOLI PALIBE AKULIGANIZIRA.NGAKHALE ZIPANI ZONSE ZIDALEPHERA KUFOTOKOZA MMANIFESO ZAWO ANGATSUTSE NDANI.PALIBE MANIFESO YOMWE NDINAIONA IKUNENA MFUNDO ZA KUPSA PA NKHANIYI.

    AMALAWI DZIWANI IZI MUKAMAKHALA FACTS:

    1 Land size: Malawi 118,484 km2 Mozambique 801,537 km2 Zambia 743,398km2

    2. Population: Malawi 18 million Mozambique 28,861,863 Zambia 16 million

    3.population density:Malawi 151 people per km2 Mozambique 36 people per km2 Zambia 32 pep per km2

    4.Malawi MU MOZAMBIQUE AKULOWAMO 7 times

    5. Malawi MU ZAMBIA AKULOWAMO 6 times koma population pafupi kufafana kapena yathu kuchuluka.

    CONSEQUENCIES

    1. MALO OKHALA NDI OLIMA ATHA

    2.NKHALANGO ZATHA

    3.CHAKUDYA KUSOWA

    4CHILENGEDWE CHA SINTHA

    FOOD FOR THOUGHT

  4. Kabambe.You need to talk to politicians there is a lot of dilly Daleying in Malawi. All are stealing ,the have no plans for the citizens. Oil drilling not yet up to Now.Uganda came behind Malawi on discovery but Uganda already exports crude.Malawi started industrial hemp but up to now Parliament can no approve. Politians just want The country to come to stand still.Chilima looks very visionary on Malawi issues. Not these thievery icons.

  5. INDIA INVESTED IN RAIL TRANSPORT TO FACILITATE TRANSPORTATION OF GOODS INCLUDING FARM PRODUCE. ROAD INFRUSTRUCTURE SHOULD BE PRIOTIZED TO AREAS WHERE THERE IS ECONOMIC ACTIVITIES.FOR EXAMPLE,NKHOTAKOTA ROAD TO DWAGWA OR DWANGWA TO SALIMA.HUNDREDS OF TRUCKS FROM DWANGWA USE THIS ROAD.WHAT IT MEANS THIS IS AN ECONOMIC ROAD THAT SHOULD HAVE BEEN PRIOTIZED TO STATE OF ART ROAD NOT OTHER TARMAC ROAD THAT HAVE BEEN CONSTRUCTED SOMEWHERE ARE JUST WHITE ELEPHANTS NO ECONOMIC VALUE.MSEWU WOTI MUNTHU ANTHA KEDYERAPO NSIMA NDIGALIMOTO IMODZI YOMWE OSADUTSA.

  6. CHINA INAKWERERA ULIMI OMWEWO.KAWERENGENI MBIRI YA CHINA INE NDILI NYO KUYAMBIRA BC AD MPAKA 2019 NDIULIMI OMWEWO MUKUTI TISAMAUDALIRE OMWE UDAKWEZA DZIKO.NKHALANI SERIOUS AKULU.YOU ARE TALKING TO THE NATION.THERE ARE PEOPLE IN THIS COUNTRY WHO CAN DEVELOP THIS COUNTRY BUT HAVE NO CHANCE.THIS IS THE PROBLEM WITH OUR COUNTRY.USE THE TALENT THAT WE HAVE MALAWI WILL DEVELOP KOMA ZOMASANKHANA POGWIRA NTHITO SIZIDZAPINDULIRA WINA ALIYENSE NGAKHALE ENA MUKUPINDULA ZA INU NOKHA LERO KOMA ZIDZUKULU ZA ZIDZUKULU ZANU ZIDZAKUSEKANI MTSOGOLO.

  7. Tangochtani invest in agriculture ndi MK500 Billion komanso road infrastructure komwe anthu amalima muone ngati Dzikoli silingakwere.Tachitani invest in solar energy ndi Mk100 billion muone ngati vuto la Magetsi silitha.Pitani pa morocco mukaone solar investment anthu a serious osati oyesa kapena tima investment tomakonzekera kachisankho short term we need longterm plans for 50 years or so.BWANJI MALAWI ADZAKUTUKULE NDANI

  8. Signal from IMF.What are the maphia analysts comments.Kuli ziii no comments.That is typical Malawi.Zikungowabowa.Bravo Peter.Carry own.Leave the Mbuli behind.

  9. The governors has no clue on what to comment. Last time he assured Malawians that price of maize will go down at that time the price was MK9.000 now its MK15.000. I suggest his keeps quite he has no bright brain.

  10. Honourable governor I understand your concern but however certain factors have to be taken note of. You mentioned about diversification. How can this happen if we don’t have enough energy or simply reliable electricity supply ? I believe people have invested in tourism but maybe they need a boost by banks lending money to these entrepreneurs. I still feel agriculture can boost Malawi’s economy by promoting mostly irrigation system. Money lender organisations can help small scale farmers so that they mustn’t be relying on rain only. We have enough water in most of our rivers which is not utilised to its maximum potential. How much mineral deposits do we have in Malawi and are sustainable ? Why can’t the government invest in Solar energy for power and sell the surplus to our neighbouring countries ?

    1. A remarkable thinking to take Malawi forward and to dissolve our daily life challenges is looking back on other resources such as mining and industry development all over the country.
      Malawi is covered with Farming Estates companies which employ seasonal workers
      I totally agree Malawi depending heavily on agriçultural revenue won’t lift out our society burden till further time to come.
      Malawi by not investing in Energy and Road infrascture developments will never change Malawi’s economic growth.
      Malawians suffer more or immigrating to foreign countries is because of lack of industries which foreign investors and local investors fail to invest in Malawi .
      Malawi has got poor energy and Road infrasctural network in Africa of which makes investors shy away.
      We need a unique and a reasonable leadership to uplift the burden of our economy.

  11. Surely the nation needs to diversify it’s investment priorities. The agriculture sector is facing a lot of challenges now, ranging from climate change to lack of reliable markets for produce. But as long as our economic development agenda is being led by politicians, we should forget about economic growth.

    1. I feel the same ,this farming issue we need even to equip our farmer with machinery which even if the Government purchase them the politicians will just get them for their person gain and leave the farmers in hoe cultivation let’s try in other activities which can boost our economy .it’s long time Malawi only depend on Tobacco eishh

  12. Of course Malawi is heavily dependent on maize for food, and on tobacco for Foreign Exchance and tax-revenue. We have known this for ever. It is not an ideal situation.
    But should not investment-bankers like Kabambe take some responsibility, from their air-conditioned offices in Lilongwe, for the skewed investment policies that he complains about? The diversifications he proposes (tourism, mining etc) all benefit rich foreigners and make Malawians into unskilled slaves. Manufacturing is made impossible by cheap second-hand imports from abroad.
    The key issue is corruption-control and population-control, but we require MUCH better political leadership to achieve that —!

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