The World Bank has said that in the past decade, Malawi has been able to make significant economic and structural reforms and sustain economic growth, but remains one of the poorest countries in the world, because it is overly dependent on agriculture. As a result, weather related constraints curb agricultural progress and the economy altogether, hence Malawi needs to diversify its income streams, according to the report.

The World Bank says poverty is driven by poor performance of the agriculture sector, a volatile economic growth together with a population growth and limited opportunities in non-farm activities, as figures show that in 2018, growth of Malawi’s real gross domestic product (GDP) was projected to have moderated to 3.5 percent from four percent in 2017 due to lower output in agriculture caused by dry spells and fall armyworm.

Diversification of income streams include the industry and service sectors, which have all suffered because of power outages. As Escom has recently signed agreements with three independent power producers (IPPs) to boost the power grid, a development that will grow the industry and service sectors as well.

Meanwhile, the tobacco market season has bemoaned high rejection rates and lower prices, which may negatively affect the economy, since Malawi is heavily dependent on its green gold.