Malawi Swot Analysis

Developing Country International Business Environment Paper

SWOT Analysis of The Republic of Malawi

Prepared by:

Lisset Avila

International Business

BUS 775-11 A3/2012

Dr. Peart

Introduction

Malawi is one of the few countries in Africa in which doing business is relatively safe. Located in the southeastern region of the continent, Malawi is landlocked bordering with Zambia, Tanzania, Mozambique, and with the Lake Malawi which is the major body of water of the country. It is one of the most densely populated African countries with a regional, young, and patriarchal society. Total population is estimated to be 16,323,044 for a total land of 94,080sq, more than half the population lives below the poverty line. The population suffers from high illiteracy rate and death rate. Christianity is the major religion but Islam is also widely practiced among the people. Chewa is the official language but government and commerce is conducted in English which is spoken on most of the cities but scarcely on the rural areas. Two major cities of importance are Blantyre which is the commercial center and the largest city of the country and the capital, Lilongwe, in which all the government is located with the exception of the Supreme Court, located in Blantyre.

Political

Malawi is a multiparty democracy with 28 administrative districts which are divided into traditional authorities and then into administrative wards throughout the country. Since Malawi was once a colony of England, the legal system is a mix of English common law and customary law. The official president, Bingu wa Mutharika, died on April 2012 and vice president Joyce Banda assume presidency on April 7, 2012, next elections will be held on May 2014. The government is pro western and although there has been some setbacks it has establish good foreign policies with develop countries and is a member of several international organizations including the IMF, UN, WHO, and WTO. It has been criticized for its high levels of corruption and its life threatening prison conditions, among other violations of human rights. It has several major society issues that the government must work on including health issues like the high level of HIV/AIDS and waterborne diseases; famine, the infrastructure, and the education system. Apart from those it also has to deal with the pressure of the foreign donors, its wide black market, and the pressure from international environmental protection groups.

Economy

Economy wise, agriculture and monetary aid is what sustain of the country.