Malawi remains one of Africa’s poorest countries, with three out of every four people living below the international poverty line, according to a new report by the African Development Bank (AfDB).
The 2026 Indicators on Gender, Poverty, the Environment, and Progress towards the Sustainable Development Goals in African Countries ranks Malawi as the fourth poorest country in Africa, with 75.4 percent of its population living below the international poverty line.
Only the Democratic Republic of Congo (85.3 percent), Mozambique (81.4 percent) and South Sudan (76.5 percent) recorded higher poverty levels.
AfDB said poverty continues to undermine economic transformation across the continent because “economic growth alone is not creating enough productive and well-paying jobs.”
The bank added: “The findings provide governments with an evidence-based guide for setting development priorities and allocating limited public resources more effectively, while helping identify sectors where investment can deliver the greatest impact.”
The report comes as Malawi continues to grapple with high inflation, recurring climate shocks, foreign exchange shortages and weak job creation.
In May 2026, the World Bank also warned that poor economic management was undermining Malawi’s fight against extreme poverty, placing the country among 43 countries where poverty levels are projected to stagnate or worsen.
Malawi aims to attain lower middle-income status by 2030 and upper middle-income status by 2063. However, average economic growth of about 2.2 percent remains well below the estimated 10.6 percent required to achieve the 2030 target.
The National Planning Commission (NPC) said the economy grew by 1.9 percent in 2025 from 1.7 percent in 2024. However, with population growth estimated at 2.6 percent, GDP per capita declined for the fourth consecutive year due to weather-related shocks that reduced agricultural output.
Mzuzu University economics lecturer Christopher Mbukwa said the latest figures show that successive development strategies have failed to reduce poverty.
“The Malawi 2063 [MW2063] First 10-year Implementation Plan has a target of Malawi reaching lower middle-income status. So far, it has not reduced poverty five years since it was launched in 2021.
“It seems we have no solutions to make economic growth resilient. With each climatic or external shock, our economic growth is affected,” he said.
NPC director general Frederick Changaya said the country must focus on raising productivity rather than relying solely on population control.
“While we are targeting average growth of between 12 and 15 percent to make this vision a reality, the current structure where the majority are in the agriculture sector is not helping the economy,” he said.
The AfDB report covers all 54 African countries and tracks progress towards the 17 Sustainable Development Goals using indicators on gender, poverty and the environment.
