By Mcloyd Chilangiza
Malawi’s manufacturing employment rate has declined from 4.3 percent in 2010 to 3.9 percent in 2024, a new report by the African Development Bank (AfDB) shows.
The Africa Industrialisation Index 2025 Report warn that the rate could continue to plummet due to low manufacturing capacity and limited expansion of value-added industries.
According to the report, Malawi trailed its neighbours such as Mozambique, which recorded 4.8 percent, and Zambia which recorded a 5.7 percent employment rate in 2024.
However, all the countries remain far below the global average of 13.74 percent.
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Apart from slow industrial expansion the report also heaps the blame to electricity shortages, financing constraints, limited technological upgrading and continued dependence on low-productivity sectors.
The index further found that Malawi’s manufacturing sector remains heavily concentrated in low-value industries, with food and beverages accounting for 38.4 percent of manufactured exports while basic metals contribute 37.4 percent.
“Countries that fail to expand manufacturing capacity risk prolonged unemployment, lower productivity and weaker economic competitiveness,” the report reads.
In the report, the AfDB calls on Malawi to strengthen industrial growth through agro-processing, regional trade integration, and value addition under the African Continental Free Trade Area.
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Ministry of Industrialization, Business, Trade and Tourism spokesperson Patrick Botha said the government is spurring industrial expansion through clear export policies including a ban on the export of raw materials.
“We recognise the challenges highlighted in the report. The government is prioritising industrialisation under Malawi 2063, focusing on value addition, export expansion, and creating an enabling environment,” he said.
Labour expert Bright Limani said the findings reflect a shrinking industrial base urging the government to provide tax incentives.
According to the World Bank’s 2026 Malawi Economic Monitor, the country is creating an estimated 40,000 formal jobs against about 270,000 young people entering the labour market annually.