Malawi

Human Capital and Labour Report Malawi

The Republic of Malawi or Malawi, formerly known as Nyasaland, is a landlocked country bordered by Zambia to the northwest, Tanzania to the northeast, and Mozambique on the east, south and west. Lake Malawi, which is the ninth largest lake in the world, separates Malawi from Tanzania and Mozambique. Malawi covers an area of 118,000 km2 (45,560 mi²) and is home to 16.8 million people. Malawi’s real GDP growth was estimated at 5% in 2013 and is expected to accelerate to 6.1% and 6.2% in 2014 and 2015 respectively, driven largely by tobacco exports and continued growth in key sectors such as agriculture, manufacturing and services. Macroeconomic and improved governance have been identified as crucial sectors for the enabling private sector investment and sustained inclusive growth. Malawi has a growing, young working age population which can be utilized to help stimulate this inclusive growth and encourage increased investment into the country. While Malawi is on track to achieving four of the eight Millennium Development Goals (MDGs), it faces serious challenges in terms of meeting MDG targets relating to universal primary education, reducing gender inequality and maternal mortality. Education is however improving with increased enrolments across all levels, and 90% of teachers having received training in 2013. What is particularly encouraging is the large increase in tertiary enrolments which has risen by 169% from 1990 to 2011, subsequently improving the skills levels of Malawi’s emerging labour force. In 2015 seven million people within the 15-64 age group were active in Malawi’s labour force, resulting in an employment rate of 80%, most of whom work in informal sectors.

This country analysis focuses on broad human capital indicators including:

  • Country profile, including a brief overview of the country; corruption and governance indicators; and the business culture.
  • Economic indicators, including an overview of the economy; largest companies; foreign aid and foreign investment.
  • Socio-demographic indicators, including population parameters, standard of living and poverty measures.
  • Healthcare and wellness: The focus here is on the impact of Tuberculosis (TB), HIV/AIDS and malaria on the workforce and workplace; the availability of specialist healthcare and also primary and secondary healthcare.
  • Education trends, including the education level of the population and workforce; as well as education standards and output.
  • Labour force, including the economically active population; job creation; employment sectors; skills shortages; the training and skills development framework; employment of expatriates; brain drain; industrial relations; professional human resource management and more.

Throughout the research, implications, challenges and recommendations are offered to employers, policy makers, donors, investors and the human resource management fraternity. This is all done within the context of the Malawian socio-economic realities.

Where appropriate, comparisons were made against South Africa, Nigeria, and Kenya. Nigeria was selected because it is the largest economy in Africa; South Africa for being the second largest economy and most modern economy in Africa; and Kenya for its similar geographic and historical context. The data of these countries are used to provide context and perspective.

The country analysis refers only briefly to the Malawian economy, political situation or general risk factors. There are dozens of platforms, reports, research and publications available in that regard for those who wish to apprise themselves of information relating to those areas.

The research is unique by its predominant focus on the Malawian labour force.

Malawi-Human-Capital-Labour-Report-Infographic

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