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Foresight in support of Malawi's long term development aspirations

1. Scenario: Malawi's population growth presents both opportunities and challenges. Between 1990 and 2019, the population more than doubled from 8.5 million to 20.6 million and is expected to reach 41.1 million by 2043. This rapid expansion strains social services, infrastructure, and economic resources, making effective planning essential. Malawi’s economy has shown resilience, with its GDP at US$12.01 billion in 2020. Projections indicate an increase to US$19.56 billion by 2030 and an impressive US$235.3 billion by 2063, highlighting its growth potential.

2. Complication: Challenges such as high poverty rates persist, with 43.5% of the population living below the US$1.90 per day extreme poverty threshold in 2019. Without significant interventions, this rate will remain above that of similar low-income African countries by 2043. Infrastructure remains another critical area of concern, particularly in energy access. In 2020, only 18% of Malawians had access to electricity, well below the 34% average for low-income Africa. Even with projected improvements, only 26.5% will have electricity access by 2030, falling short of the government's 50% target. This highlights the need for significant investment in the energy sector to support economic development.

3. Solutions: To address these challenges, the study explores various scenarios. The Malawi Case Study from the Institute for Security Studies African Futures and Innovation (AFI) program provides an in-depth analysis of Malawi’s developmental trajectory through Current Path forecasting and various scenario analyses. The study examines key factors such as demographics, economic growth, poverty, infrastructure, and governance, offering insights into potential strategies for sustainable development.


Impact/Outcome:

  1. The Agriculture and Rural Development scenario emphasizes boosting agricultural productivity, which could make Malawi a net food exporter, increasing exports from 5.7 million metric tons in 2030 to 52.7 million metric tons by 2063. 
  2. The Human Capital Push scenario prioritizes education and health, targeting a reduction in fertility rates from 3.4 births per woman to 2.3 by 2030. This demographic shift could enable Malawi to achieve a demographic dividend by 2033, eight years earlier than the Current Path forecast. 
  3. The Business First scenario promotes economic diversification beyond agriculture and encourages investment in manufacturing and services, although it may initially slow household consumption (66.7% of GDP by 2030, down from 78.7%). 
  4. A Combined scenario (MW2063) integrates these interventions, envisioning rapid economic growth at an average of 8.5% from 2022 to 2030, achieving lower-middle-income status by 2032 and upper-middle-income status by 2058. Under this scenario, extreme poverty could be nearly eradicated by 2043, 14 years ahead of current projections. 
  5. To achieve these ambitious goals, the study recommends improving governance, enhancing public financial management, investing in agriculture and infrastructure, and fostering economic diversification. By implementing these strategies, which are aligned with the MW2063 vision, Malawi has the potential to transform into a more prosperous and sustainable economy in the coming decades.

Locations
Africa, Malawi
Intervention lever
Policy
Year published
13 December 2023
Methodology
International Futures
Industry
Public and Non-Profit Sector (Government Services, Judiciary, Military and Defence, Public Safety, CivilRegulations, Regulations, NGOs, Think Tanks, Philanthropic Foundations, International Organizations, Advocacy Groups)