This article examines trends and developments in science and technology in Malawi.
Socio-economic context
Malawi is one of underdeveloped countries in the world yet, it spends 1% of its gross domestic product (GDP) on research and development (R&D). This is one of the highest ratios in Africa. Malawi thus has the potential to harness science, technology and innovation to reduce poverty and diversify of its agriculture-dependent economy. The challenges will attract adequacy for Foreign Direct Investment (FDI) to foster technology transfer and empower the private sector to serve as an engine of Economic Growth.
The introduction of a multi-party system in 1994 has resulted in a stable democratic government for the past two decades. This makes the country an increasingly re-assuring destination for foreign investors. The government has recently reformed its financial management system in terms of formulating and implementing a series of fiscal incentives to attract foreign investors. The country has also introduced a series of policy instruments to promote FDI, including tax incentives and the Malawi Innovation Challenge Fund for private businesses, which nurtures productive partnerships between Firms.
The need for research and services is important, in a country where 93% of the population still lacks access to electricity, 47% improved sanitation and one in four adults lacks any form of family planning.
The country's economy grew annually by 5.6% on average from 2003 to 2013. This makes it the sixth-fastest growing economy in the Southern African Development Community (SADC). Between 2009 and 2013, GDP per capita rose by 6%, from $713 to $755 in purchasing power parity. It is projected that between 2015 and 2019, annual growth in real GDP will range from 5% to 6%. Malawi's ratio of donor funding to capital formation rose considerably over the period 2007–2012. The African continent plans to create an African Economic Community by 2028, which would be built on the main regional economic communities, including the SADC.
Malawi has one of the lowest levels of human development in the SADC. However, it is also one of three African countries that have been ‘making especially impressive progress for several Millennium Development Goals,’ along with Gambia and Rwanda, including with regard to primary school net enrolment (83% in 2009) and gender parity, which has been achieved at primary school level.
Enrolment in higher education is struggling to keep up with rapid population growth. Despite a slight improvement, only 0.81% of the age cohort was enrolled in university by 2011. Moreover, although the number of students choosing to study abroad increased by 56% between 1999 and 2012, their proportion decreased from 26% to 18% over the same period. Malawi devoted 5.4% of the GDP to education in 2011. Of this, 1.4% of the GDP went to funding higher education. Between 2006 and 2012, the number of students enrolled in higher education almost doubled to 12,203.
An economy dependent on agriculture
The economy of Malawi is predominantly agricultural. Over 80% of the population is engaged in subsistence farming, even though agriculture only contributes 27% of the GDP. The services sector accounts for more than half of GDP (54%), compared to 11% for manufacturing and 8% for other industries, including natural uranium mining. Malawi invests more in agriculture (as a share of GDP) than any other African country: 28% of GDP.
Agriculture accounts for 90% of export revenue. The three most important export crops are tobacco, tea and sugar cane – with the tobacco sector alone accounting for half of the exports. Moreover, most products are exported in a raw or semi-processed state. Tobacco accounts for half of the country's exports (50%), natural uranium and its compounds for a further 10%, and raw sugar cane for 8%.
The government's attempts to diversify the agriculture sector and move up the global value chain have been seriously constrained by poor infrastructure, an inadequately trained workforce, and a weak business climate.