The World Bank has said Malawi is losing out on an estimated $100 million (K175 billion) in private tourism investment and about 60 000 potential jobs due to a concession framework for high-value tourism sites.

The Bretton Woods institution says this leaves Malawi as the least competitive tourism destination globally, with the economy accounting for just 2.5 percent of tourism activity among six south eastern African countries assessed by the World Bank.

Tourists riding boats on Lake Malawi. | Nation

Data contained in the June 2026 World Bank Malawi Country Private Sector Diagnostic shows that despite tourism’s potential as a source of foreign exchange, 95 percent of tourism revenue in 2024 came from domestic travellers, compared to 78 percent in South Africa and 47 percent in Rwanda.

Ironically, most international visitors travel to Malawi to visit friends and relatives, contributing to low spending levels of just $37 (about K65 000) per visitor in 2024, compared to $312 (about K546 000) in Rwanda, $258 (about K452 000) in Mozambique, $781 (about K1.3 million) in Zambia and $838 (about K1.4 million) in South Africa.

The World Bank said the absence of a concession system is discouraging private investment in tourism while the current licensing regime is failing to support quality development.

“The licensing regime does not promote high-quality sites and instead facilitates overdevelopment,” reads the report in part.

While Malawi’s tourism footprint in the region remains small, the World Bank says opportunities exist to expand the sector, particularly around Lake Malawi and niche tourism segments.

Malawi remains one of the least competitive tourism destinations globally, ranking 115th out of 119 countries in the World Economic Forum’s Travel and Tourism Development Index 2024.

Tourism is strategically prioritised under the long-term development blueprint, Malawi 2063, in recognition of its transformative contribution to socio-economic development, job creation and poverty reduction.

Beyond its direct impact on gross domestic product (GDP), foreign exchange earnings and employment,0 the sector provides unique livelihood opportunities for women, the youth and other vulnerable groups, while stimulating indirect gains.

However, the sector has continued to register strong recovery from the Covid-19 pandemic with its contribution to the economy now exceeding pre-pandemic levels, according to the 2026 Malawi Government Annual Economic Report.

In an interview yesterday, Malawi Tourism Council executive director Memory Momba Kamthunzi observed that “tourism has become a critical pillar of Malawi’s economic transformation to reduce the country’s dependence on tobacco”.

But she said high travel costs, weak infrastructure and skill shortages limit the local tourism sector’s capacity to provide an alternative source of foreign exchange.

Ministry of Industrialisation, Business, Trade and Tourism Principal Secretary Jeanie Mnyenyembe is quoted as having said Malawi was pursuing stronger regional tourism integration as part of efforts to expand tourism revenues and attract more visitors.

She also cited deteriorating road infrastructure to key tourist attractions, high borrowing costs facing local tourism investors, weak international marketing and shortages of specialised hospitality skills.

The 2026 Malawi Annual Economic Report indicates that the tourism sector contributed K1 trillion to the GDP in 2025 from the previous year’s K865.2 billion.

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