Malawi has remained a formal democracy since the transition to a multiparty system in 1994. A landmark ruling by the Constitutional Court, annulled the 2019 elections. This strengthened judicial independence and reshaped political competition, making coalition-building necessary. The Tonse Alliance subsequently won the rerun elections. At the same time, the growing use of ethnic symbolism in party politics raises concerns about social and political integration.

Malawi’s economy remains structurally weak, dominated by small-scale agriculture and characterized by low growth. High financing costs, unreliable electricity supply and limited telecommunications infrastructure constrain private sector activity. Social protection remains fragmented and largely donor-funded, while rising public borrowing has increased fiscal vulnerability.

Governance is challenged by limited resource efficiency, weak budget discipline and endemic corruption. External shocks, including repeated tropical cyclones, are structural challenges.

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