Nico Asset Managers has outlined factors that have led to slow
development, namely rising public debt levels, insufficient power
supply, persistent weak export base, high population growth rate,
political instability and adverse weather conditions.

In its April 2019 Economic Report, Investment management and advisory
firm has shows that Malawi’s central government debt stock rose by
K177.4 billion in the fourth quarter of 2018, from K3.1 trillion in
the third quarter, to K3.3 trillion, triggered by an upsurge in both
domestic and foreign debt.

On the other hand, Nico has foreseen a continued poor performance in
the export sector, which will affect the kwacha’s stability against
major currencies. The firm has also noted that the population of
Malawi, now at 17.5 million according to the report, has to be checked
for the equal and sufficient distribution of resources.

Overall, Nico Asset Managers is positive about the rest of the year.
“A good agriculture output coupled with successful implementation of
plans to diversify and expand cash crops could push the number upwards
to 5.0 percent” reads the report.