Last week, I stepped into a dazzlingly stocked shop owned by a foreigner. The shelves brimmed with an astonishing array of items, from humble plastic cups to cutting-edge electronic marvels. After browsing through the treasure trove for what felt like an eternity, I finally snagged a few repair tools. The prices were a pleasant surprise—almost too good to resist!
The merchandise in the shop was overwhelmingly, if not entirely, of Chinese origin. At first glance, one might marvel at how fortunate Malawians are to enjoy access to Chinese goods without the need to journey all the way to China. But upon deeper reflection, this seemingly convenient reality reveals a more troubling undercurrent.
It is worrying because every sale in that shop siphons away Malawi
s precious foreign reserves, simultaneously fattening China’s coffers. Each of those items found its way into the country only after settling its FOB price plus freight charges in hard-earned foreign currency. Every transaction in that shop subtly drains Malawi’s wealth while enriching China in the global financial arena.
What is more, while shopping there is perfectly legal and socially acceptable, it inadvertently fuels employment abroad while leaving Malawians jobless. Workers in the foreign country are engaged to produce the goods flooding our markets. The more we buy, the greater the demand for their labour, subtly boosting their employment levels—even if just by a tiny fraction—while opportunities for local manufacturing and job creation remain stifled.
Not long ago, I was visited by a woman seeking employment as a security guard. She had once worked for Encor Products, a company that once thrived at Makata Industrial Site. In its prime, Encor manufactured a wide range of metallic cooking pots and kitchenware. However, with the advent of liberalization, consumers shifted to imported alternatives—often cheaper and, in some cases, of superior quality. On the surface, there is nothing wrong with this; every individual has the right to choose products based on preference, regardless of their origin. Yet, the harsh reality is that prioritizing imports over locally made goods can be devastating. For companies like Encor, it meant closure, leading to job losses and stories like hers.
The impact of shops like the one I visited would be negligible if Malawi had a robust export base to offset the balance of trade. Sadly, this is far from reality. Our exports are alarmingly scant. To put things into perspective, our northern neighbour, Tanzania, boasts annual exports valued at $16 billion, with gold alone accounting for 37.4% of that total. To the west, Zambia achieves about $11 billion in annual exports, 70% of which comes from copper. In stark contrast, Malawi’s export value barely reaches $1 billion a year, with a staggering 55% of that figure tied to tobacco.
Unlike our neighbors, we are not as richly endowed with natural resources. We lack Tanzania’s vast gold deposits and Zambia’s abundant copper reserves. To be honest, our economy cannot hold a candle to theirs. This stark reality calls for embracing the wisdom of the old adage, “Ukaipa dziwa nyimbo“—if you lack certain blessings, focus on honing what you do have. It is time for Malawi to identify its unique strengths and leverage them to carve out a sustainable economic niche.
I often argue that the key to progress lies in searching within what we have — identifying what we can do better than anyone else in the world and focusing our energies there. Take the Gulewamkulu practitioners, for instance. These skilled artisans are masters of basketry. While it might sound unconventional, exposing them to modern basketry techniques could transform them into world-class producers of high-quality, unique basketry products.
Moreover, no one performs Gulewamkulu better than the Chewa people of Malawi, Zambia, Mozambique, and Zimbabwe. This globally recognized intangible cultural heritage of humanity presents an untapped opportunity. Imagine an annual Gulewamkulu carnival, drawing throngs of tourists eager to witness this mesmerizing tradition. Beyond that, cultural centers across Malawi could offer year-round performances for visitors, giving them an unforgettable taste of this rich heritage—at a fee that directly benefits local communities. With the right investment and vision, such initiatives could transform cultural pride into a significant economic asset.
Regarding the merchandise in that exclusively Chinese shop, Malawians must step up and position themselves to manufacture some of these items locally. By doing so, we can reduce our heavy dependence on imported goods and the relentless drain on our foreign reserves. If the strategies outlined in this discussion are effectively implemented, Malawi can strengthen its forex reserves, paving the way for the nation to rise out of the economic doldrums in which it is currently trapped.