Malawi, a landlocked country in southeastern Africa, may be small in size, but it’s home to some highly lucrative business opportunities. Whether you’re a budding entrepreneur, a seasoned investor, or simply curious about Malawi’s economic landscape, one burning question often arises: What is the most profitable business in Malawi?
The answer isn’t straightforward. Profitability varies by sector, scale, and market conditions. However, based on revenue, export value, market dominance, and historical performance, several industries clearly lead the way—with tobacco, financial services, agribusiness, and telecoms topping the list.
In this article, we’ll break down these high-performing sectors and explore what makes them so profitable in the Malawian context.
1. Tobacco: Malawi’s “Green Gold”
When it comes to profitability on a national scale, tobacco is by far the most dominant business in Malawi. Often referred to as the country’s “green gold,” tobacco accounts for more than 50% of the country’s foreign exchange earnings.
In the 2024 selling season, Malawi earned over US $396 million from tobacco sales—despite challenges such as droughts and fluctuating global demand. This was a 40% increase from the previous year, demonstrating the sector’s resilience and immense profitability.
Why is tobacco so profitable?
- Strong international demand, especially in Asia and Europe.
- Malawi’s favorable climate for growing burley and flue-cured tobacco.
- High return on investment for commercial growers.
- Government and private-sector support in marketing and logistics.
If you’re looking for a business model that’s deeply embedded in Malawi’s economic DNA, tobacco farming and processing are top contenders.
2. Agribusiness: Sugar and More
While tobacco leads the way, agribusiness as a whole is a close second. Sugar, in particular, plays a significant role in the Malawian economy.
One of the most successful agribusiness firms is Illovo Sugar Malawi, a company that not only dominates local sugar production but also exports regionally. Illovo is among the largest private-sector employers in the country and consistently posts strong profits year after year.
Other profitable agribusiness ventures include:
- Tea and coffee plantations.
- Groundnuts and legumes for export.
- Soybean and sunflower processing.
What makes agribusiness so viable?
- Export potential across SADC and COMESA regions.
- Government incentives for commercial farming.
- Availability of fertile land and affordable labor.
For investors and entrepreneurs, tapping into value-added agriculture (e.g., food processing or organic farming) could open doors to sustainable income streams.
3. Financial Services: Banking on Growth
Another sector that stands out in terms of profitability is banking and financial services. Malawi’s top banks—National Bank of Malawi (NBM), FDH Bank, and FMB Capital Holdings—have all recorded massive profits and hold substantial market shares.
For example, FDH Bank recorded a 55% increase in profit after tax in 2024. NBM also saw a profit surge of 19% the same year. These banks dominate the Malawi Stock Exchange, with valuations ranging between US $1.7 billion and US $2 billion.
Why is banking so lucrative?
- High demand for digital banking and mobile finance.
- Limited competition from foreign banks.
- Strong growth in SME and microfinance lending.
- Robust profit margins on loans and financial products.
If you’re interested in starting a fintech startup or mobile banking service, Malawi’s underserved financial markets present major opportunities.
4. Telecommunications: Connecting the Profits
In recent years, telecommunications has emerged as a high-profit sector, thanks to increased mobile phone usage and digital penetration. Airtel Malawi and TNM (Telekom Networks Malawi) are the two giants dominating this space.
Airtel Malawi, for instance, is valued at around US $790 million, making it one of the most profitable and valuable companies in the country. Telecom services like voice, data, and mobile money continue to generate huge revenues.
Key drivers of telecom profitability:
- Rapid growth in mobile internet users.
- Expanding mobile money and digital services (e.g., Airtel Money).
- Recurring revenue from prepaid services.
- Low infrastructure costs relative to customer base.
For entrepreneurs, supporting services like mobile payments, internet cafes, or reselling airtime and data can also be profitable on a smaller scale.
Honorable Mentions: Emerging Opportunities
While the sectors mentioned above are the clear leaders in profitability, several emerging industries also show great promise in Malawi:
- Real estate: Especially in urban centers like Lilongwe and Blantyre.
- Transport and logistics: Vital for trade and agriculture.
- Tourism and hospitality: Untapped potential in eco-tourism and cultural travel.
- ICT and digital services: Growing interest in e-commerce and tech startups.
These industries may not yet match the scale of tobacco or telecom, but they are set to grow as Malawi continues to modernize its economy.
Final Thoughts: Which Business is Best for You?
So, what is the most profitable business in Malawi?
- On a national level, tobacco remains the top earner, thanks to its global demand and high margins.
- For corporate investors, banks and telecoms offer the best returns.
- For entrepreneurs, agribusiness and digital services present viable paths to profitability with lower startup costs.
Whatever your interest or investment level, understanding Malawi’s profitable sectors is key to success. And with the right strategy, you too can tap into the business opportunities that are helping shape the country’s future.