Supported by a $10 million grant from the African Development Bank, a five-year governmental project to promote Malawi’s attractions and competitiveness has helped to fuel a significant growth in the tourism sector’s contribution to GDP.
Running between 2018 and 2023, the Promoting Investment and Competitiveness in the Tourism Sector Project was initiated by the Government of Malawi in recognition of the need to diversify the country’s sources of growth and exports.
The project was aimed at increasing efficiency and effectiveness of institutions in the tourism sector by strengthening management capacity to generate revenue and create employment.
According to the African Development Bank’s Project Completion Report published at the end of April, the project “significantly bolstered investment in the tourism sector, propelling economic growth and sustainable development”.
A notable outcome of the project was the development of a comprehensive strategy – the Tourism Investment Masterplan – that attracted heightened interest from private investors, governmental entities and development partners.
“This strategic blueprint also fuelled a surge in the sector’s direct contribution to Malawi’s GDP from 7.2% in 2016 to 9% by 2022,” the report highlighted.
With technical assistance from the World Tourism Organization, the project also helped complete capacity building in tourism statistics, culminating in the establishment of a Tourism Satellite Account system. The system will help to enable informed decision-making and accurate assessment of the sector’s economic impact.
The report stated that the project had contributed immensely towards building capacity in the tourism sector.
“Initiatives implemented at institutions such as the Lake Malawi and Kasungu National Parks, Chongoni Rock Art World Heritage Site, the Malawi Institute of Tourism and Malawi Tourism Council have improved their revenue generation capacity which will enable them to sustain their activities.”
Lake Malawi and Kasungu also benefited through the construction and renovation of infrastructure such as accommodation facilities, gates, improvement of road networks and bridges, aquariums and site museums.
Supporting small businesses
The funding contributed to the establishment of an incubator centre for small and medium-sized enterprises in the tourism sector at Mzuzu University, facilitating the training of 24 entrepreneurs. Overall, 647 enterprises benefited from tourism business management training.
The project additionally provided grants to support 34 groups of small businesses operating around Kasungu, Lake Malawi National Park and the Chongoni Rock Art World Heritage Site.
