COVID-19 HUB COUNTRY NOTE | MARCH 2021

Malawi: The impact of COVID-19 and food system responses

Malawi, a landlocked country in Southern Africa, remains one of the

poorest countries in the world, despite making significant economic

and structural reforms to sustain economic growth. As in other coun-

tries, the COVID-19 pandemic has had a significant impact on the

economy and livelihoods. CGIAR scientists have assessed perceptions

and experiences in rural Malawi related to COVID-19 to determine the

impact of the pandemic in the country.

ECONOMIC IMPACT OF COVID-19CGIAR modeling analysis shows that Malawi’s gross domestic prod-

uct (GDP) declined by an estimated 16.5 percent in April/May 2020

due to social distancing measures. This decline led to approximately

1.6 million people, mainly in rural areas, temporarily falling into pov-

erty. Losses in household incomes from social distancing measures

were expected across all levels of incomes, but those in the wealthiest

income quintile and urban areas experienced greater declines in their

per capita incomes.

The agricultural sector, which was exempt from most social distancing

restrictions, experienced a relatively small contraction (5.1 percent) due

to the knock-on effects of social distancing. As a result of a decline in

exports, the agri-food system (primary agriculture, agro-processing,

food trade and transport, and food services such as restaurants) is

estimated to have contracted by 10.2 percent. Food services experi-

enced a decline of 39.3 percent from the closure of schools, restau-

rants and other food outlets during the two-month social distancing

period. Disruptions in tourism also contributed to this decline.

MITIGATION MEASURES TAKEN BY THE GOVERNMENT AND THEIR EFFECTS The COVID-19 Policy Response (CPR) Portal collates government policy

measures introduced by countries in reaction to the pandemic. Malawi

implemented national lockdown measures, which were adjusted

with regional restrictions. It began with early bans on public gather-

ings in March 2020, which were extended in July and again in August.

Restrictions were also imposed on schools, with a phased approach

used to reopen.

The response in the health sector began with increased testing and

included expanded health insurance for healthcare professionals at

the forefront of the fight against the pandemic. The government also

provided more financial support for the health sector and hired more

health workers.

In terms of monetary and financial policies, the government elimi-

nated Information, Communication and Technology (ICT) fees, lowered

Figure 1: Economic modeling analysis of COVID-19 impacts in Malawi 2020

Agri-food system

Agriculture

Agro-processing

Food trade and transport

Food services

Outside agri-food system

Agri-food system

Agriculture

Agro-processing

Food trade and transport

Food services

Outside agri-food system-$195.2-22.2%

-39.3%

-18.6%

-13.5%

-5.1%

-10.4%

-$10.4

-$34.6

-$15.1

-$25.1

-$85.1

Source: Baulch et al. 2020

Percent US$ Thousand

interest rates and raised bank transaction limits. Measures were taken

to boost liquidity and lower the cost of funds for commercial banks to

support economic recovery.

The government announced an emergency cash transfer program tar-

geting around 172,000 households in Malawi’s four main cities from

May 2020 for six months. Under this scheme, each beneficiary house-

hold was to receive MWK 35,000 (about US$40) per month via mobile

money payments. The government also planned to provide cash

top-ups to existing Malawi Social Cash Transfer Program (MSCTP) ben-

eficiaries in all 28 districts of Malawi.

CGIAR COVID-19-RELEVANT WORK IN MALAWICOVID-19 in rural Malawi: Perceived risks and economic impactsA CGIAR brief presented an analysis of perceptions of COVID-19

impacts and risks for 1,020 households in eight districts in rural

Malawi, based on surveys conducted in August 2020. The study is

ongoing, and follow-up interviews will be conducted with respondents

every three months for the next year. The study’s original aim was to

understand the seasonality of rural labor activities. However, after the

onset of the pandemic, several COVID-19-related questions were incor-

porated into the survey to assess perceptions and experiences in rural

Malawi. In rural areas, the incidence of COVID-19 is very low, suggest-

ing that the disease’s direct health impacts are unlikely to be high.

Yet disruptions resulting from national policies, as well as behavioral

changes, could still drive substantial economic responses.

Field: HarvestPlus

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Program on Agriculture for Nutrition and Health.

To learn more, visit www.a4nh.cgiar.org/covidhub/

John McDermott

A4NH DirectorCo-Chair, CGIAR COVID-19 Hub j.mcdermott@cgiar.org Copyright © 2021 International Food Policy Research Institute.

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