US urges investment in mining, tourism to spur growth

United States deputy assistant secretary of State for Africa in the Department of State Joy Basu has joined local institutions in urging the government to invest in mining and tourism to boost productivity and enhance economic diversification.

She said this on Tuesday in Lilongwe where she engaged the business community, private sector representatives and senior government officials to understand Malawi’s business environment.

In an interview, Basu, who coordinates the US policy and cooperation on economic affairs, said Malawi should prioritise creating a business environment that is appealing to investors to channel investment to critical sectors that can create opportunities for economic growth and promote food security.

She said: “It is good that the government has outlined agriculture, tourism and mining to spur economic transformation, but we have to focus on the implementation.

“Part of that will involve bringing in investors that can channel their investments in areas where the country can generate forex.”

The recommendation coincides with a World Bank assessment that shows that the government’s drive to power local economic growth by investing in three key sectors of agriculture, tourism and mining failed to take off in 2023 amid concerns over the funding levels directed to those sectors.

The Bretton Woods institution said in the January 2024 issue of the Malawi Economic Monitor released on Tuesday that the potential of the three sectors, which are prioritised in the Malawi 2063, remains unrealised.

It reads: “Tourism, despite great potential, does not yet operate within an environment conducive to rapid growth. Consequently, the growth in tourist arrivals in 2023 has fallen behind that observed among many of Malawi’s peers.”