SHOCK DROP: Exporting Firms Fall by 47% — From 1,227 to Just 654
Malawi has lost 573 exporting companies in 16 years, with the number falling sharply from 1,227 firms in 2009 to only 654 in 2025, according to the Finscope Micro, Small and Medium Enterprises (MSMEs) Survey 2025.
The figures paint a worrying picture for the country’s economy, as fewer businesses are now able to sell products outside Malawi and bring in much-needed foreign exchange.
Experts say the decline raises serious concerns about whether local companies are strong enough to compete on the global market.
The survey shows that the fall in exporters is particularly severe in manufacturing and primary commodities, sectors that the government considers important for expanding Malawi’s export base.
In manufacturing alone, the number of exporting firms dropped by 53 percent, falling from 849 companies in 2009 to just 399 in 2025. This suggests that Malawi’s industrial export capacity has been weakening at a time the country is trying to promote value-added exports.
Small business owners say growing into export markets remains difficult.
Esther Manduwa, a local entrepreneur who runs a pure honey business, said many small businesses start with strong ideas but struggle to expand beyond their local markets.
“What motivated me to start a pure honey business was the lack of quality honey on the market,” she said, explaining that much of the honey sold locally is mixed with sugar.
But she said bureaucracy and taxes often slow down business growth.
“The process of registering a business can take a long time. Because of this, many of us end up selling only to customers around our area,” she said.
Manduwa believes that tax incentives and better support could help small businesses grow and eventually enter export markets.
Meanwhile, Ngabaghila Chatata, chief executive officer of Thanthwe Farms, said many agricultural businesses with export potential struggle because they lack long-term financing.
“Patient capital is what would build Malawi,” she said, explaining that agriculture requires investors who are willing to wait while businesses grow.
Economic experts have also warned that delays in reforming Malawi’s export sector could make the situation worse.
World Bank country manager Firas Raad said earlier this year that slow reforms could weaken the country’s economic stability.
“Delay is costly,” he said, warning that prolonged high inflation, large government deficits and low foreign reserves reduce investor confidence.
Business leaders say another problem is that many companies are operating far below their production capacity.
Malawi Confederation of Chambers of Commerce and Industry (MCCCI) chief executive Daisy Kambalame said improving the business environment is key to economic recovery.
According to an MCCCI survey, 51.9 percent of firms in 2025 were producing below half of their capacity, while 37 percent were operating between 50 and 75 percent capacity. Only 11.1 percent of firms were producing above 75 percent capacity.
Kambalame said sectors such as pharmaceutical manufacturing remain very small, with only four major firms operating in the country and producing only a small portion of the medicines Malawi needs.
This leaves the country heavily dependent on imports, which puts pressure on foreign exchange.
The Finscope survey also found that 74 percent of Malawi’s businesses are micro-enterprises, while only three percent are medium-sized companies. This makes it difficult for many firms to increase production and compete internationally.
With fewer exporters and many firms struggling to grow, analysts warn that Malawi must improve the business environment, support small companies and expand production if it hopes to strengthen its export sector and stabilise the economy.
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