Malawi’s industry sectors are largely underdeveloped and agriculture is the mainstay of the economy. Agriculture and allied activities account for more than half of the country’s annual production and approximately 90% of the total export volume. Tobacco is the major cash crop, which helps sustain economic growth.
Some of the major Malawi industry sectors are:
Oil sector: Malawi has no oil and natural gas reserves. Thus, the country has no upstream oil industry. The downstream oil sector is heavily dependent on the import of petroleum products from neighboring oil producing countries. Many foreign companies have operations in the downstream oil sector of the country. Approximately 74% of the total production is consumed for local energy needs and the remaining is exported to trade partners. The Ministry Of Natural Resources And Environmental Affairs regulates the oil sector of the country. One of the major concerns regarding the Malawi oil sector is illegal smuggling that occurs across the Tanzanian border. Despite several initiatives by the Malawian government, the revenue loss due to smuggling has not been controlled.