Agriculture remains the backbone of Malawi’s economy, employing nearly 80% of the population and contributing over 22% of GDP (National Agriculture Policy, 2024). It is the foundation of food and nutrition security, rural livelihoods, and export earnings, and it stands as the country’s most important driver of inclusive growth. As Malawi advances toward its long-term vision, Malawi 2063, agriculture is recognized as the first pillar of transformation, powering industrialization and urbanization through commercialized, market-oriented production.

To achieve this vision, Malawi is formulating its Third-Generation National Agrifood Systems Investment Plan (NASIP). NASIP is designed to move beyond subsistence farming toward a holistic agrifood systems approach, integrating production, processing, trade, climate resilience, and private sector investment. The plan comes at the right time, as the Government shifts toward planning based on investment analysis and curating value chain opportunities that are ready for private sector investors to drive meaningful economic development.

Within NASIP, the Cage Aquaculture, Honey, and Chilli value chains stand out as immediate, bankable opportunities. They are part of a broader portfolio of value chains under NASIP, but they exemplify the type of investments that can quickly deliver jobs, income growth, and export earnings while transforming Malawi’s agrifood systems. The Hand in Hand Initiative directly supports NASIP, serving as the key vehicle for implementing the National Agriculture Policy and realizing agrifood systems transformation. Malawi offers an open and welcoming investment environment. The Government is committed to private sector led growth, with strong incentives through the Malawi Investment and Trade Centre (MITC). Investors benefit from duty-free imports, tax holidays, and full repatriation of profits, among other benefits. The country provides access to over 20 million domestic consumers and more than 500 million in regional markets through SADC, COMESA, and AfCFTA. With abundant water resources, fertile land, a young and trainable workforce, and a stable political environment, Malawi is positioning itself as a gateway to profitable agrifood opportunities.

Chili

INVESTMENT

USD 32.2M

INTERNAL RATE OF RETURN (%)

20% for production & 20% for processing

NET PRESENT VALUE

USD 230,375 for production & USD 581,203 for processing

DIRECT BENEFICIARIES

40,000

INDIRECT BENEFICIARIES

176,000

INCOME INCREASE PER CAPITA

USD 720 for production & USD 1,000 for processing

EMISSION REDUTION (EXACT)

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