World Bank has said Malawi just like most other African countries should put concerted efforts in creating employment for its citizens to help grow its economies.
The call comes at a time when Malawi economic growth rate has been revised downwards to 1.3 percent from 4.6 percent as earlier projected.
World Bank Chief Economist for Africa Mr Shantayanan Devarajan told African journalists through a te le-conference that a third of African countries would grow their economies at above 6 percent this year.
The te le-conference marked the launch of the Africa’s Purse, an analysis of Africa’s economic performance by the World Bank.
Mr Shantayanan said citizens don’t feel the growth in terms of figures and numbers hence the need for Malawi to translate it into poverty reduction.
“The only way to do this is by generating employment and increase the productivity of the workers particularly those in the informal sector,” he said
The Africa’s Purse projects that most African economies would grow relatively this year but with a caution that the continent’s “growth rates could still be vulnerable to deteriorating market conditions in the Euro-zone” as the global economy remains fragile.
The analysis further notes the high urbanisation rate will negatively impact on the social and economic opportunities.
“Africa’s economy is expected to grow at 4.8 percent in 2012, broadly unchanged from 4.9 percent rate in 2011 and largely on track despite setbacks in the global economy,” notes the report.
However, Malawi’s economy on the other side has for some time now remained volatile owing to drop in donor support during the late Bingu wa Mutharika regime where most of these development partners withheld aid.
40 percent of the country’s budget is from the development partners.