Malawi and the European Union (EU) have signalled a shift in their 50-year relationship from traditional aid toward production, trade and infrastructure investment, as the country faces mounting pressure to rebuild foreign exchange reserves and strengthen productive sectors.
Speaking during Europe Day commemorations in Lilongwe on Thursday, Minister of Foreign Affairs George Chaponda said Malawi’s priority is now to use its preferential access to European markets by boosting local production and competitiveness.
“With preferential access to the European market already in place, our focus is now on enhancing productive capacity and competitiveness,” Chaponda said.
His remarks come as Malawi continues to grapple with forex shortages, rising debt and growing calls to reduce dependence on donor support.
EU Ambassador Daniel Aristi Gaztelumendi said relations between Malawi and the EU, which began in 1976 under the Lomé Conventions, have evolved from support for agriculture and rural infrastructure into a broader economic partnership aligned with Malawi’s development priorities.
“What began in the 1970s as support to rural infrastructure and agriculture has grown into a deep and multifaceted development partnership,” he said.
Gaztelumendi said the EU is now focusing on strategic investments through its Global Gateway initiative, targeting infrastructure, energy and productive sectors. He disclosed that approval for three new Global Gateway flagship programmes worth €143 million is nearing completion in Brussels.
The projects include AgriCatalyst, aimed at supporting agricultural value-chains such as rice, soybeans and coffee; an energy efficiency enhancement programme targeting power infrastructure; and a youth education and skills initiative focused on secondary education and technical and vocational training.
The ambassador also highlighted major infrastructure projects already underway, including the rehabilitation of 300 kilometres of the M1 and the Mpatamanga Hydropower Station project, expected to generate 356 megawatts of electricity.
According to Gaztelumendi, the hydropower project could eventually enable Malawi to export electricity within the Southern African Development Community region and generate foreign exchange.
Trade is also becoming central to the partnership. Gaztelumendi said the EU accounted for 35 percent of Malawi’s exports in 2024, making it the country’s largest export market under the Everything But Arms initiative, which provides duty-free and quota-free access to European markets for least developed countries.
Chaponda said future cooperation would be guided by Malawi 2063, particularly in industrial growth, infrastructure development and participation in regional and global value chains.
Despite the growing investment commitments, Malawi still faces challenges including low production capacity, infrastructure bottlenecks and limited competitiveness if it is to fully benefit from the evolving partnership.
