malawi: the impact of covid-19 and food system responses
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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
The CGIAR COVID-19 Hub is led by the CGIAR Research
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.
All rights reserved. Contact ifpri-copyright@cgiar.org for permission to republish.
1201 Eye Street, NW, Washington, DC 20005 USAT. +1-202-862-5600 | F. +1-202-862-5606 | ifpri@cgiar.org | www.ifpri.org
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTEA world free of hunger and malnutrition
The CGIAR Research Program on Agriculture for Nutrition and Health is led by IFPRI
Ekaterina Krivonos
Deputy DirectorCGIAR System OrganizationCo-Chair, CGIAR COVID-19 Hube.krivonos@cgiar.org
Melissa Cooperman/IFPRI
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