Agro GDP on the decline—report
At a time agriculture contribution to the gross domestic product (GDP) is declining, research shows that there is need to adopt agriculture development policies in the short to medium-term to boost its growth.
This is despite agriculture-led development remaining the optimal strategy for Malawi to reduce poverty and undernourishment, according to CGIAR, a global research partnership for a food-secure future dedicated to transforming food, land and water systems.
CGIAR data shows that in the past 30 years, agriculture contribution to Malawi’s GDP fell from 34.8 percent in 1991 to 24.5 percent in 2019.
Last year, agriculture’s contribution to GDP was recorded at 22.3 percent, according to the Malawi Government Annual Economic Report 2024, with the figure expected to drop to 22 percent this year and 21 percent in 2025.
Reads the CGIAR report: “Despite some signs of structural transformation, the country remains mostly rural.
“Primary agriculture, while constituting about a quarter of GDP, employs 62.4 percent of the labour force.”
Speaking separately, Mwapata Institute executive director William Chadza said in an interview yesterday that given the country’s stage of development and limited industrial prospects, the agricultural sector still offers the best immediate option for furthering the country’s economic transformation.
He said: “Despite the current problems with our agriculture, there are still good prospects.
“Population growth, rising middle incomes and urbanisation will lead to increased demand for agricultural products. There is also enormous potential to move beyond rainfed farming practices.”
On his part, agriculture economist Steven Kayira observed that not only is agriculture a significant contributor to GDP, but it also plays a critical role in ensuring food security, employment and rural development.
Meanwhile, agriculture policy commentator Felix Jumbe said trends are a true reflection of the stagnation of agriculture productivity on account of poor adoption of technologies that enhance productivity.
“Government is also focused on short-term issues such as food relief instead of long-term plans,” he said.
As a signatory to the Comprehensive Africa Agriculture Development Programme and the 2014 Malabo Declaration, Malawi has committed to achieving a six percent annual agricultural growth rate and allocating 10 percent of its budget to agricultural expenditure, with overarching goals of halving poverty and ending hunger.
But looking at the budget figures, this has not been achieved over the years.
Minister of Trade and Industry Sosten Gwengwe said in an interview yesterday that as parrt of the wider policy to boost the agriculture sector and enhance trade, his ministry is putting emphasis on supporting the manufacturing and export sectors of the economy.
He said: “Government is committed to changing the trajectory and grow this economy which has performed decimally for the past three decades.
“We should add value and produce enough for local consumption, thereby import substituting and the excess for the export market to generate foreign currency.”
