Over 400,000 at Risk of Falling into Poverty

A recent report by the World Bank has raised concerns about the economic well-being of hundreds of thousands of Malawians.

According to the “Poverty, Prosperity, and Planet Report 2024,” more than 400,000 people in Malawi are at risk of falling into poverty in 2025.

The report attributes this trend to persistent economic hardships and growing food insecurity, with many individuals projected to fall below the poverty line of 3,764 Kwacha per day.

The World Bank’s findings highlight the pressing need for effective economic policies and interventions to mitigate the impact of poverty on vulnerable populations.

“By acknowledging the complexities of poverty and working towards tailored solutions, stakeholders can help mitigate the risks facing vulnerable populations and foster a more prosperous future for Malawi,” reads part of the report.

As the country face economic challenges, the risk of poverty remains a significant concern for many Malawians leading to the economist Richard Zimanani expressing skepticism about the report’s details, questioning the World Bank’s reliance on broad econometric models that may not fully capture Malawi’s unique circumstances.

Zimanani attributes high poverty levels to factors such as: low saving habits due to limited financial resilience and vulnerability to economic shocks, weak exports resulting from reduced foreign exchange earnings and decreased economic growth.

“This underscores the importance of nuanced analysis and context-specific solutions to address economic shocks as we seeks to accelerate growth and reduce poverty, it is essential to develop targeted interventions that account for local challenges and opportunities,” he said.

The World Bank’s report serves as a timely reminder of the need for sustained efforts to promote economic stability, improve food security, and enhance the well-being of Malawians.