Malawi

The Republic of Malawi or just Malawi, as it is more considered was formerly known as Nyasaland. It is as densely populated democratic country situated in Africa’s southeastern portion. Malawi is also regarded as the “warm heart of Africa” and bordered by Tanzania, Zambia and Mozambique. Although the name Malawi has unknown origins, there have been notes that this may be from the southern tribes who resembled Malawi as the “glitter of the sun rising across the lake”. This is actually evident in their flag.

With regards to the economy of Malawi, it has a GDP per capita of about $596. It is a densely populated and landlocked country. Moreover, Malawi’s actual economy is largely dependent on their agriculture sector. Thus, Malawi is said to only have a limited number of exploitable resources. Mineral is one of them. Then again, the 3 chief crops that they prioritize would be tea, tobacco and sugar.

There was a time when the president of Malawi discussed agricultural concerns with their farmers and urged them to consider other crops that cam grow in Malawi. This would include cotton, which has a high chance of being an alternative principal crop of the country. Tobacco can also be considered since the cigarette consumption along the West is continually declining.

As per tradition, Malawi is known to be self-sufficient in their staple food, which is maize, during the late 1980s. They exported this to their neighbors that were drought-stricken. Thus, the agriculture sector would represent about 38.6% of their GDP. This would account fro over 80% of their labor force and 80% of all the actual exports. This also means that 90% of Malawi’s total population is more on subsistence farming.

A variety of crops is being produced by smallholder farmers. This would include beans, maize, rice, tobacco, cassava, coffee and groundnuts. 63.7% of the total income of Malawi’s rural population comes from the agricultural sector. 65% would be from the raw materials of the manufacturing sector and 87% would be from their total employment. Financial wealth is also generally concentrated on the small elite’s hands. Thus, the manufacturing industries of Malawi are situated along the Blantyre city.

Moreover, the economic reliance of Malawi with regards to the exportation of their agricultural commodities has it vulnerable to some external shocks. This would include declining terms of drought and trade. Aside from this high import costs add to their serious impediment on their country’s economic development. It is essential that Malawi imports all of its fuel products.

Setbacks 

The other setbacks that Malawi is experiencing would be on their bureaucratic red tape, difficulty in getting expatriate employment permits, corruption, deteriorating and inadequate electricity, road, telecommunications and water infrastructures. These are the noted factors that hinder Malawi’s economic development.

In Livingstonia, Malawi the child mortality rate is 103/1,000. There are supposedly millions of orphans in this part of Malawi. About 700,000 of these orphans are from couples who died of the dreaded AIDS. In fact, their government estimated that about 14.2% of their entire populations have HIV and AIDS. In 2003, about 90,000 deaths were from AIDS.  Aside from this 30% of entry cases in private hospitals in the region were linked with HIV infections. The figures are already very alarming and their government has already sought help in order to contain the problem or better yet, eradicate it. This is mostly with the fact that since this is poor community and most of the women there were drawn to prostitution. Thus, the life expectancy of men there would be 43.35 while the women would be 42.61.

Furthermore, famines are considered a major problem in Malawi. This is because about 1/3 of the population are experiencing a scarcity in food. 30% percent of their entire population was affected.

There are also several factors that affect the repeated famine cases in Malawi:

•    Poor distribution of fertilizers
•    Widespread monocultures
•    Droughts
•    Government corruption
•    Bilharzias
•    Widespread AIDS epidemic
•    Malaria

This is the reason why a few relief organizations, along with other international and local organizations are committed to helping Malawi by distributing parcels of food. Their government also implemented a supposedly fertilizer and maize seed starter pack farm. It is just that abuses became a bit rampant and most of the time, the poorest among their people didn’t receiver any item that was meant for them.

This is why the Bingu wa Mutharika administration discontinued the said program. Instead, subsidized fertilizers became the next project for their local subsistence farmers. It made a good turn because a radical improvement was seen on Malawi’s agriculture, which somehow paved the way fro Malawi in becoming a trusted food net exporter of nearby countries. Thus, Taiwan’s government even donated over millions of bags with rice annually to Malawi. This is along with a permanent medical and agricultural technical aid mission.

Furthermore, the so-called pro-western foreign policy that was established by the then President Banda was continued. This is to maintain excellent diplomatic relations with the major Western countries. Aside from this, Malawi maintains a strong diplomatic relation with all other African countries.

Malawi accommodated millions of refugees last 1985 up to 1995 fro Mozambique. This placed a somewhat substantial strain on the government of Malawi and also hauled inflows of significant international assistance. This eventual repatriation and accommodation of the Mozambicans was considered by the international organizations as a major success. Thus, in 1996, several Congolese and Rwandan refugees who were seeking asylum came to Malawi. The Malawi government didn’t turn away these refugees and in turn, invoked the “first country of asylum” principle. This principle connotes that those refugees who are seeking asylum and requested this in another country initially, Malawi will not grant them the asylum they need. They should first seek asylum in Malawi. With this principle, there were no apparent reports on actual forcible repatriation from the refugees.

Properties in Malawi 

When it comes to land being sold in Malawi, there were no indications that there is actually land being developed in the area. Like most African countries, Malawi is a poor nation. They continue to face a lot of setbacks. Thus, with the rampant cases of HIV, AIDS and refugees seeking asylum in the region, it is a wonder if investors would consider their business in Malawi. Only time can tell if positive changes will happen in their country.

Mauritius

The Republic of Mauritius or simply Mauritius as it is more known is a small island nation along the African continents coast. This is on the southwestern portion of the Indian Ocean and a good 900 kilometers off the eastern portion of Madagascar.

Aside from the Mauritius Island, there are also other islands included in the republic. This would include islands like Rodrigues, Agalega and St Brandon Islands. Thus, Mauritius is supposedly part of the so-called Mascarene Islands.

The Economy 

With regards to the economy of Mauritius, ever since the country gained independence last 1968, from the low income they get from their agricultural sector, it developed into a middle income and diversified type of economy. This is with the growing financial, industrial and tourist sectors of Mauritius.  About 5% up to 6% of growth was seen during most of the period. This is with the increase of their life expectancy, improved infrastructures and lowered infant mortality rates.

Moreover, with an estimated $16.28 billion last 2005, it is reported that Mauritius ranks the 2nd in Africa for having the highest GDP per capita. The 1st one would be the Equatorial Guinea who successfully derives most of their revenue from their oil exports.

It is also indicated that the economy of Mauritius is dependent mainly on the sugarcane plantations, services, textiles and tourism. It is also said that there other sectors are starting to rapidly develop as well. Hence, Seychelles and Mauritius are basically the only 2 African nations that have a high rating for the Human Development Index.  

Moreover, sugarcane is being grown on 90% of their cultivated land area. This would account to a 25% total of actual export earnings. In 1999, there was a drought that severely damaged their sugar crops. With the development of strategy centers for foreign investment, it attracted over 9,000 offshore entities. This was aimed for commerce at South Africa and India. This is amidst the fact that their banking sector reached more than $1 billion all by itself.

From 2000 up to 2004, the economic performance of Mauritius made a positive turn due to the strong economic growth of their employment sector with about 7.6%. Their biggest trading partner would be France, which has very close ties with Mauritius. They also provide technical assistance that comes in various forms.

Plans for Improvement 

Within the next 4 years, Mauritius is gearing to become a duty-free island, so as to provide their locals with imports that have lower prices and can attract a lot of tourists to go to Dubai and Singapore. Aside from this, their Finance Minister, Rama, Sithanen, recently reduced their country’s corporate tax for about 15%. This is from the 2007 up to 2008 budget. There is also an upcoming plan by the ADB Network which is guaranteed to make Mauritius the 1st nation to have the so-called coast-to-coast wireless internet access. It is said that the wireless hot spot would cover 60% of the entire island and can be accessed by 70% of the entire population. During the latter part of 2007, antennas were provided to about 98% of the entire island.

Thus, Mauritius has a thriving economy. It is showing a lot of potential. Employment in the area seems to have now significant concerns. This may be a good destination to look into. Still, research and asking around would be the best ways to know more about the real estate sector in Mauritius.