Promoting investment in tourism sector propelling Malawi's economic growth

The project also facilitated the country’s inaugural survey of foreign and domestic tourism, offering valuable insights into the country’s tourism landscape.

Implemented in Malawi from 2018-2023, the Promoting Investment and Competitiveness in the Tourism Sector Project has significantly bolstered investment in the tourism sector, propelling economic growth and sustainable development, according to the African Development Bank’s Project Completion Report, published on 26 April 2024.

Supported by a $10 million grant from the African Development Fund, the Bank Group’s concessional window, the initiative focused on enhancing the capacity of local businesses to plan and improve governance in natural resources management. A notable outcome of the project was a comprehensive strategy that attracted heightened interest from private investors, governmental entities, and development partners. This strategic blueprint also fueled a surge in the sector’s direct contribution to Malawi’s gross domestic product from 7.2 percent in 2016 to 9 percent by 2022.

The project also facilitated the country’s inaugural survey of foreign and domestic tourism, offering valuable insights into the country’s tourism landscape. With technical assistance from the World Tourism Organization, the project also helped complete capacity building in tourism statistics, culminating in the establishment of a Tourism Satellite Account system. This system enables informed decision-making and accurate assessment of the sector’s economic impact.

In addition, a seedbed center for small and medium-sized enterprises in the tourism sector was set up at Mzuzu University. The center trained an inaugural cohort of 24 entrepreneurs with a particular emphasis on empowering women. It also facilitated the award of matching grants to 18 micro, small, and medium-sized enterprises in the tourism sector. The project also provided grants to support 34 groups of small businesses operating around the Kasungu National Park, the Lake Malawi National Park, and the Chongoni Rock Art World Heritage Site.

The report notes that despite unprecedented challenges posed by the Covid-19 pandemic, Malawi’s tourism sector exhibited resilience and adaptability. While travel restrictions led to a temporary decline in visitor numbers, the gradual reopening of borders globally saw a resurgence in international arrivals, signaling the sector’s gradual recovery.