Economic transformation through modern market systems, a case of Malawi

Over the past two months, and in quick succession, Minister of Local Government and Rural Development Dr. Ben Malunga Phiri has covered the breadth and width of the country flagging off construction of modern markets in selected districts.

This, being part of a landmark project by the administration of Professor Arthur Mutharika to establish robust local market systems is a partnership between Government of Malawi and the International Fund for Agricultural Development (IFAD).

The market facilities are being constructed under the Transforming Agriculture Through Diversification and Entrepreneurship (Trade) to the combined amount of K84 Billion.

For decades, markets - in the African context - have evolved beyond the traditional open-air spaces characterized by make-shift structures to modern infrastructure that is secure and convenient for both merchants and their clients.

Despite this being the case across the SADC region, Malawi has lagged behind in accommodating its traders in such modern structures across all the major economic centres.

Mutharika’s declaration early this year about his resolve to address this problem comes as a timely intervention.

“As part of accelerating local development, I am pleased to announce that in the 2026/27 financial year, with financing from International Fund for Agricultural Development, my Government will construct 2-storey market buildings in the cities of Blantyre, Lilongwe and Mzuzu,” said the President when officially opening the 2nd Meeting of the 52nd Session of Parliament and the 2026/27 Budget Meeting.

Since the declaration was made, the Local Government minister has inaugurated construction of all earmarked modern markets. These are Mkondezi Market in Nkhata Bay, Chimbiya Priority Market in Dedza, Limbe Produce Main Market in Blantyre, and modern markets in Mzuzu and Lilongwe.

Prior to commencement of construction at the aforementioned sites, Phiri had already commissioned the Malembo Market in Lilongwe Rural.

All these efforts by the administration speak into the commitment and political will to help smallholder farmers and rural producers to participate effectively in economic growth through easy access to markets and connectivity with other key stakeholders across the value chain.

Phiri, views the development as a perfect response by government to sustainable empowerment of local communities.

He links the programme to the country’s long-term development agenda, Malawi2063, saying the modern market infrastructure would promote orderly urbanization, agricultural commercialization and local economic growth.

For decades, Malawi has grappled with internal economic migration which has seen tens of thousands of people moving to cities in search of opportunities.

“Economic migration will always be there, but there is a need to control it. Two things that we are doing, we are going up in terms of infrastructure to accommodate more people. Other than that, we are again doing rural growth centres to control the economic migration wherever possible, to provide rooms for our people there to trade and improve themselves,” he says.

The markets are expected to be completed within two years from the date of commencement.