Lilongwe

The level of urbanisation in Malawi is very low (estimated for 2018 at 18%) but urban population growth rates are high, between 3.7% and 4.2%. Despite relatively high GDP growth (averaging 4.7% 2009-19) the high rate of urbanisation coupled with Malawi’s agriculture-dependent economic structure makes addressing poverty and backlogs in urban housing and infrastructure a significant challenge. Extremely high levels of poverty (70.9% of the population are below the international poverty level of USD 1.90 per day) has not deterred sovereign or private investors, and brings considerable developmental investments.

Case Studies

Private

Business Park, Area 46 - Residential housing developments in Area 46, Business Park. As in all the cases, securing title to land in Lilongwe is shaped by contestations regarding access to public land and role of traditional leaders. Self-built housing predominates. Yet despite extreme poverty implying that only 1% of the local population could afford formally constructed houses, a number of private developers operate in Lilongwe as well as local pension funds. Research will focus on new housing developments and a business park in Area 46. This case will draw together insights on how private sector investors build local collaborations to access land, negotiate risk and uncertainty.

Developmental

Cities Alliance (City Development Strategies, Slum Upgrading) and Japanese International Co-operation Agency (Urban Development Master Plan) have been involved in a series of closely interlocking city-wide initiatives to build institutional capacity and support delivery of key local government functions. Lilongwe City Council has significant and ongoing governmental challenges. The transcalar dimensions include city-to-city collaboration involving an international network of city governments.

Sovereign

Chinese sovereign loans for business - A Memorandum of Understanding with China (2008) realised a mixture of grants, concessionary loans and other financing, after which Chinese foreign direct investment (FDI) to Malawi jumped from US$ 0.96 million in 2006 to US$ 11.25 million by 2009. In Lilongwe, the MOU has seen construction of new Parliament buildings, hotels, government offices and new roads.