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1. China’s Role in the Modernization of Malawi’s Agriculture Sector

Author:
Raphael Mweninguwe
Publication Date:
06-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
China has assumed a key role in the modernization of Malawi’s agriculture sector, which has made recent progress in enabling smallholder farmers to produce higher crop yields. The introduction of agricultural technologies used in vegetable, fruit, maize and rice production through the China Aid Project for Agricultural Technical Cooperation has not only created employment opportunities for the local population, but has also strengthened the economic situation of small farmers in Malawi. In February, at the opening of a training for senior agricultural workers, the Embassy of the People’s Republic of China (PRC) in Malawi pledged increased support for the development of the country’s agricultural sector “under the framework of the Belt and Road Initiative, the Forum on China-Africa Cooperation (FOCAC), and the Global Development Initiative” (Xinhua, February 17). The creation of the FOCAC coincided with the new strategy of the Chinese government in the 2000s, when Beijing sought to utilize development assistance, particularly in the agricultural sector, in order to strengthen overall Sino-African relations. At that time, many African countries were desperately looking for technical assistance in order to achieve a high level of agricultural growth and to solve their persistent food insecurity problems. [1] Malawi is one of the countries on the continent that has suffered longtime food insecurity, where PRC agricultural aid and training has benefited many smallholder farmers, who have expressed their appreciation for the assistance rendered. While some farmers and extension workers express satisfaction with China’s support for Malawi’s agricultural modernization efforts, others are worried about the impacts of climate change, which threaten the full adoption of the technologies offered by the PRC. Already an estimated 3.8 million people, about 20 percent of the country’s population, are facing a food crisis due to drought and floods that hit the country during the last growing season (World Bank, April 7). But China’s technologies aim to mitigate climate change impacts through simple, low-cost, and innovative farming technologies, such as furrow and bucket irrigation.
Topic:
Agriculture, Climate Change, Development, Belt and Road Initiative (BRI), and Modernization
Political Geography:
Africa, China, and Malawi

2. School feeding programmes, education and food security in rural Malawi

Author:
Roxana Elena Manea
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
Existing investigations of the impact of school feeding programmes on educational out- comes have provided mixed evidence of success. In this chapter, I investigate a potential explanation for this lack of consensus in the literature. I argue that the prevailing food security situation at the time and place of the programme's evaluation plays a major role. I study the case of rural Malawi. I use an instrumental variable approach and propensity score matching to estimate the impact of school feeding on primary school enrolment and retention rates. I focus on villages with overlapping characteristics. I estimate that school feeding has increased enrolments by 7 percentage points on average, but the im- pact on retention rates has been relatively limited. However, when I distinguish between food-secure and food-insecure areas, not only do I finnd a larger impact on enrolments in food-insecure areas, but I also uncover a significant increase of around 2 percentage points in the retention rate of students in these same areas. Across the board, impacts are not significant in food-secure areas. I conclude that school feeding programmes bear an impact on education as long as they also intervene to relax a binding food constraint.
Topic:
Development, Education, Government, Food, Food Security, and Nutrition
Political Geography:
Malawi

3. Does Financial Literacy Influence Use of Mobile Financial Services in Malawi? Evidence from Malawi Household Survey Data

Author:
Mirriam Muhome-Matita and Takondwa Chauma
Publication Date:
12-2019
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
Mobile financial services are gaining prominence and could be a possible avenue for fast-tracking financial inclusion in developing countries, including Malawi. However, adoption and usage of such services remains low among the Malawi population. This study investigates the influence of financial literacy on financial behaviour of individuals in Malawi, specifically use of mobile phone-based financial transactions. Descriptive and econometric analyses were conducted using cross-sectional data obtained from the Reserve Bank of Malawi. Findings reveal that the likelihood of using mobile financial services increases with increasing levels of financial literacy, type of employment and peri-urban residence. Furthermore, men are more likely to transact on mobile phones than females and that although income levels matter in the use of mobile financial transactions, the magnitude of effect is negligible. Results suggest opportunities for expanding access to financial services and products such as differentiation in financial literacy education by characteristics of population including gender of users. Informal settings do not preclude expansion of digital payments, and therefore financial product innovation and addressing rural resident’s constraints to access mobile financial services is crucial.
Topic:
Development, Economics, Labor Issues, Income Inequality, Labor Policies, and Banks
Political Geography:
Malawi

4. Is Poverty a binding constraint on Agricultural Growth in Rural Malawi?

Author:
Mirriam Muhome‐Matita and Ephraim Wadonda Chirwa
Publication Date:
07-2013
Content Type:
Policy Brief
Institution:
African Economic Research Consortium (AERC)
Abstract:
Agriculture remains the most important sector in sub‐Saharan Africa and is a dominant form of livelihood for a majority of the population that resides in the rural areas. In Malawi, agriculture accounts for 35 percent of GDP and generates more than 80 percent of foreign exchange. In addition, agriculture is the most important occupation for 71 percent of the rural population in which crop production accounts for 74 percent of all rural incomes. However, agriculture has failed to get Africa out of poverty, and most countries are experiencing low agricultural growth, rapid population growth, weak foreign exchange earnings and high transaction costs (World Bank, 2008). In Malawi, for a long time, economic growth has been erratic (see figure 1) with huge swings and poverty has remained high. For instance, the annual growth rates in per capita gross domestic product averaged ‐2.1 percent in the 1980‐84 period, ‐2.7 percent in 1990‐94 period, 3.8 percent in 1995‐99 and ‐0.2 percent in the 2000‐05 period.
Topic:
Agriculture, Development, Economics, Political Economy, Poverty, GDP, Inequality, Economic Growth, and Macroeconomics
Political Geography:
Africa and Malawi

5. Institutional Analysis of Financial Market Fragmentation in Sub-Saharan Africa: A Risk-Cost Configuration Approach

Author:
Machiko Nissanke and Ernest Aryeetey
Publication Date:
08-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The paper examines the source of financial market fragmentation in sub-Saharan Africa in the framework of institutional economics. Based on fieldwork data from Ghana, Malawi, Nigeria, and Tanzania, it analyses financial risk management, the transaction costs for loan screening and monitoring, and contract enforcement. It shows how, faced with various institutional constraints, the range of clientele selected by formal and informal lenders becomes both narrow and at the extreme market-ends. It evaluates the prevailing state of managing risks for market structure, and binding institutional constraints for market transformation and deepening in sub-Saharan Africa.
Topic:
Development, Economics, and Markets
Political Geography:
Africa, Tanzania, Nigeria, Ghana, and Malawi