Agriculture
Agriculture remains the cornerstone of Malawi’s economy, contributing nearly 25% of GDP and employing over 80% of the population. Encouragingly, this vital sector is undergoing transformation, with numerous success stories, innovations, and international partnerships creating a more modern, investment-ready environment. For Indian investors, the prospects in Malawian agriculture are both promising and aligned with the strengths of Indian agribusiness, technology, and policy experience.
In recent years, Malawi has seen tangible progress in diversifying its agricultural base beyond traditional crops such as maize and tobacco. Macadamia, soya, groundnuts, pulses, rice, and legumes are emerging as key export earners. The 2024 agricultural season brought encouraging signs, with improved rainfall supporting food security and foreign exchange earnings. The Tobacco Commission reported a 40% rise in earnings over the previous year, signaling the sector’s resilience even amid global market pressures.
One standout initiative is the Agricultural Commercialization (AGCOM) Project, supported by the World Bank. AGCOM has successfully connected thousands of smallholder farmers to commercial value chains, enhanced their access to finance, and expanded use of technology. The project has improved agricultural productivity and generated employment while creating attractive entry points for foreign investment in processing, input supply, and agro-logistics. The second phase of AGCOM, launched in 2024, extends this momentum and actively seeks international agritech partners, including from India.
India and Malawi share a long history of agricultural collaboration. In 2019, India and the African Union established the India-Africa Institute of Agriculture and Rural Development in Lilongwe, offering training and research support across the continent. This partnership—anchored by Indian institutions like NABARD and MANAGE—underscores India’s commitment to rural development and technology transfer in Africa. During the 2024 India-Malawi Business Forum, Malawi’s Minister of Agriculture, Sam Kawale, invited Indian firms to invest in irrigation technologies, seed production, animal vaccines, mechanization, and digital solutions, all areas where India has global leadership.
Mining
Malawi’s mining sector is emerging as one of its most promising economic frontiers, with significant untapped potential in both industrial minerals and strategic metals. With proactive government support, a modernized legal framework, and a growing global demand for clean-energy minerals, Malawi is positioning itself as a high-value destination for responsible mining investment. For Indian stakeholders seeking secure, long-term access to critical minerals and new opportunities for value-added processing, Malawi offers a compelling prospect.
In recent years, geological surveys have confirmed the presence of vast deposits of key minerals. These include rare earth elements, uranium, niobium, graphite, bauxite, coal, limestone, and one of the world’s largest undeveloped rutile (titanium dioxide) deposits at Kasiya in central Malawi. Kasiya, operated by Australian firm Sovereign Metals, is gaining global attention as a sustainable and high-grade source of rutile—essential for pigments, welding, and aerospace applications. Analysts project it could meet over 50% of the world’s supply in the next decade, creating immense downstream opportunities.
Importantly, Malawi has revised its Mines and Minerals Act (2018) to promote transparency, investor protection, and environmental accountability. Malawi’s bilateral relationship with India provides a strong foundation for deeper mining collaboration. The 2010 memorandum of understanding on mineral resource development established the framework for training, technology sharing, and joint exploration. Indian businesses already engaged in Africa’s mineral supply chains—particularly in cobalt, titanium, manganese, and rare earth elements—can look to Malawi as a secure and politically stable partner. Furthermore, India’s extensive experience in mineral processing and refining can support Malawi’s own goal of domestic beneficiation, creating new industries and jobs in the country.
In 2024, Malawi’s Ministry of Mining presented several pre-packaged investment opportunities, including lithium exploration in southern Malawi and partnerships for coal-fired brick manufacturing using local deposits. The government has also invited foreign investment in training centers and laboratory services to raise technical standards in mining. Indian institutions like the Indian Bureau of Mines or private training groups could step into these roles.
Infrastructure
Malawi’s infrastructure development has seen considerable acceleration over the last decade, supported by targeted public investment, international financing, and private sector engagement. As a landlocked country, Malawi depends heavily on efficient infrastructure to facilitate trade and ensure connectivity to regional markets like Zambia, Mozambique, and Tanzania. From roads and energy to water systems and industrial parks, the government has identified infrastructure as a critical enabler of economic growth—and an ideal sector for Indian investment.
One of the most transformative developments is the Malawi 2063 Vision, which emphasizes modern infrastructure as a core pillar for turning the country into an upper-middle-income economy. Major road projects, such as the rehabilitation of the M1 Road (from Lilongwe to Mzuzu) and the Shire Valley Transformation Programme, are significantly enhancing connectivity. With co-financing from the World Bank, the African Development Bank, and others, these roads are improving logistics for trade, agriculture, and tourism. They also offer opportunities for Indian firms experienced in road construction and engineering consultancy.
India has played a direct role in Malawi’s infrastructure growth through nearly USD 400 million in Lines of Credit. These have funded key facilities, including the construction of a cotton processing plant, sugar factories, a fuel storage depot, and water supply systems. In 2024, Indian companies were actively invited to invest in smart cities, housing, and logistics infrastructure through government PPP frameworks.
Additionally, industrial infrastructure is gaining traction. The Malawi Export Processing Zone Authority has created special industrial parks and trade zones where investors benefit from tax holidays, duty-free imports of raw materials, and repatriation of profits. India’s experience with SEZ development can be directly applied here. The Nkhotakota Industrial Park and the Lilongwe Trade City are current examples where joint ventures can thrive.
Renewable Energy
Malawi is rapidly becoming a hotspot for renewable energy development in sub-Saharan Africa. With abundant solar, hydro, wind, and biomass potential—and an ambitious government roadmap to achieve universal access by 2030—the country is attracting substantial global interest. For Indian companies focused on green technology, clean infrastructure, and off-grid energy solutions, Malawi presents both scalable projects and long-term partnership potential.
Currently, Malawi’s energy access rate is around 15% nationally and less than 5% in rural areas, offering a vast untapped market. The government has responded with bold initiatives. The Malawi Renewable Energy Strategy and National Energy Policy aim to scale up private sector investment and diversify the energy mix away from its heavy reliance on hydropower.
In the past five years, Malawi has commissioned multiple solar IPPs, including the 60 MW Kanzimbe plant, the 20 MW Golomoti project, and the 50 MW Bwengu solar farm. These are financed through international private-public partnerships, backed by Power Purchase Agreements (PPAs) with ESCOM, the national utility. Each project not only provides power but also creates local employment, supports community development, and reduces carbon emissions.
Hydropower remains a major asset. The upcoming Mpatamanga Hydro Project (350 MW), backed by IFC, Scatec, and Norfund, is set to double national capacity and supply two million people with clean electricity. Meanwhile, micro-hydro schemes are being piloted in rural communities to power health centers, schools, and small enterprises—opportunities well-suited for Indian developers and equipment suppliers.
India’s role in Malawi’s energy landscape is growing steadily. As a founding member of the International Solar Alliance (ISA), India supports the deployment of solar technologies across Africa. In 2023, India announced a USD 25 million credit line to the ISA’s Global Solar Facility, offering concessional finance for solar projects in Africa, including Malawi. Indian companies specializing in EPC (engineering, procurement, and construction), inverters, battery storage, and off-grid systems can leverage these programs to enter or expand in Malawi.
Tourism
Malawi, often called the “Warm Heart of Africa,” is emerging as a captivating tourism destination. It offers a rich blend of natural beauty, cultural heritage, wildlife, and freshwater lakes. With peaceful political conditions, improved accessibility, and regional cooperation on cross-border tourism, the country is increasingly attracting both leisure travelers and investors.
Lake Malawi, a UNESCO World Heritage Site, is the country’s crown jewel—spanning nearly a third of the country’s area. Its crystal-clear waters, white sand beaches, and aquatic biodiversity attract ecotourists, divers, and nature enthusiasts. Nearby, Mount Mulanje, Liwonde National Park, and Nyika Plateau are among the most scenic and under-explored destinations in Africa. Lonely Planet ranked Malawi among the top ten countries to visit in the world in 2022, praising its untouched nature and hospitable culture.
The government of Malawi has made tourism a national priority under its 10-year National Tourism Investment Master Plan. The strategy emphasizes upgrading tourism infrastructure, promoting cultural heritage tourism, and increasing private sector participation. Recent developments include renovations of international airports in Lilongwe and Blantyre, upgrading of lakeside roads, and digital marketing campaigns to boost visibility.
India has a growing footprint in Malawi’s tourism and hospitality sector. Indian-built hotels, restaurants, and travel agencies are contributing to a burgeoning middle-class tourism economy. At the 2024 India–Malawi Business Forum, tourism was highlighted as a new frontier for collaboration. The government invited Indian investors to build hotels, eco-lodges, water sports centers, and integrated tourism resorts. There is also a growing market for health tourism and Ayurveda-inspired retreats—areas where India holds global recognition.