Malawi’s manufacturing employment rate has dropped from 4.3 percent in 2010 to 3.9 percent in 2024, highlighting a worrying decline in the country’s industrial sector, according to the African Development Bank (AfDB).
The Africa Industrialisation Index 2025 Report warns that the situation could worsen further due to weak manufacturing capacity, poor industrial expansion, electricity shortages, and limited investment in value-added industries.
The report shows that Malawi is lagging behind neighbouring countries in manufacturing employment, with Mozambique recording 4.8 percent and Zambia reaching 5.7 percent in 2024.
Despite performing better than Malawi, the two neighbouring countries still remain far below the global average manufacturing employment rate of 13.74 percent.
According to the AfDB, Malawi’s industrial sector continues to struggle because of persistent structural challenges, including unreliable electricity supply, limited access to financing, low technological advancement, and overdependence on low-productivity economic sectors.
The report also found that Malawi’s manufacturing industry remains heavily concentrated in low-value production.
Food and beverages account for 38.4 percent of Malawi’s manufactured exports, while basic metals contribute 37.4 percent, showing limited diversification into higher-value industrial products.
“Countries that fail to expand manufacturing capacity risk prolonged unemployment, lower productivity, and weaker economic competitiveness,” the report....
