 MALAWI, THE WARM HEART OF AFRICA BECKONS |
Those who have not been following the changes in Malawi will be surprised by its transformation in the past six years. After moving from a 31-year dictatorship to an elected democracy in 1994, the government has adopted an impressive reform program, developing structural adjustment programmes with the World Bank and the IMF. Malawi has now opened up its borders to international trade and adopted new economic policies, focusing on agricultural diversification, tourism and poverty reduction.
President Dr. Bakili Muluzi, who was first elected in 1994 then re-elected in 1999, is the main protagonist in this new chapter of Malawi’s development. "I think that the road to democracy was one of the best things that ever happened" said Muluzi. Now he plans to modernize the Malawian economy by establishing "a solid regional integration and creating investment opportunities with economic recovery."
Part of his strategy has been the liberalization of the economy through a wave of privatizations and joint venture partnerships. This pro-business attitude marks a clear departure from the previous centralized regime. "I firmly believe that the government is not here to run business," affirms Muluzi. "We are there to create conditions for people to invest."
|
Indeed, new investment opportunities have opened up in the agricultural sector, an industry which used to be dominated by the cultivation of tobacco for international markets. Malawi is now diversifying and developing new niche markets in areas such as cotton, sugar, tea, and other commodities.
Tourism has also been a new investment focus for Malawi, which is rich in wildlife and beauty. "In the development of this country, we have analysed the economy and looked at where there is the largest potential and we believe that tourism will play a vital role in this development," said Muluzi. Lake Malawi, the third largest freshwater lake in Africa, is a new destination with a great potential for tourism. "Malawi is a gateway to eastern and southern Africa with its ideal climate and a beautiful lake" concludes Muluzi.
By focusing on these specific sectors, developing the national infrastructure, privatizing state-owned corporations and attracting international business people, Malawi is setting the pace for a new era of its economic prosperity which will strengthen important social programs such as poverty alleviation and universal education. |
