Malawi - Economy and Education

Malawi's economy is dominated by agriculture. 90% of families are subsistence farmers, most growing maize as their main crop. Although there is fertile land, the high population density, the small size of farms, inadequate access to credit and high dependence on rainfall constrain production. The country's GDP per capita is about $600 (ie £1 per day per person).

Malawi Crops

90% of the country's export income is derived from agriculture. The main exports are tobacco (60%) tea, sugar, cotton and coffee. Diversification into other cash crops has been limited. Industrial growth is held back by inadequate raw materials, poor transport infrastructure, lack of engineering and marketing capabilities and problems of access to capital.

International loans and aid contribute about 30-40% of the national budget. The previous government borrowed heavily, creating both a high international debt burden and also high local interest rates that prevent private investment in the economy. The economic and anti-corruption reforms of the present government have qualified Malawi for the debt relief program agreed at the 2005 G8 summit.

Economic development is dependent on improved education and training for the population. Free universal primary education (8 years) was introduced in 1994 but facilities are poor and there is a lack of teachers. Many children do not complete primary schooling.

Pupils have to pass the Primary School Leaving Certificate to be selected for a government secondary school (4 years). They also have to pay fees for this stage of their education. There are a limited number of places available in various vocational colleges and the two universities.