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Country Commercial Guides for FY 2000: Malawi Report prepared by U.S. Embassy Lilongwe, released July 1999    Note*

CHAPTER III. Political Environment

Brief Synopsis of Political System

16. On June 15, 1999, Malawi held its second democratic presidential and parliamentary elections since Independence in 1964. (the first were in May 1994.) President Bakili Muluzi was re-elected to serve a second five-year term as President, defeating Gwanda Chikuamba, the joint presidential candidate of Malawi's two leading opposition parties, the Malawi Congress Party (MCP) and the Alliance for Democracy (AFORD). The UDF won 93 seats in the National Assembly, while AFORD won 29 and MCP won 66. Independent candidates won four seats. In all, the National Assembly has 193 seats, of which three were unoccupied as of August 1999. Women hold sixteen seats. The political system combines aspects of both parliamentary and presidential government frameworks. There is no clear-cut ideological difference among the three political parties. Parliamentary politics have been volatile over the past five years -- political parties changing alliances, members of parliament (MP's) elected on party lines declaring themselves independent, and ongoing debate over the limits of executive versus legislative authority.

17. Malawi's Constitution guarantees freedom of speech, religion, and assembly. Malawi has a tripartite system of government with Executive, Legislative, and Judicial branches. The President is the Head of State and of Government. The Office of the President and Cabinet (OPC) is the working office of the Executive. Malawi has a fairly independent but overburdened judiciary, which derives its procedures from English Common Law. Although not part of the formal judicial system, traditional authorities often mediate in disputes/legal matters at the village level. There exist unproven allegations of political bias in some cases.

Major Political Issues Affecting Business Climate

18. Despite privatization and infrastructure improvement initiatives, there is a growing concern among the public that the Government lacks the political will to seriously improve the business climate and crack down on corruption. While there are free and lively print media, the Government still exercises control of the two radio stations (the country's only nationwide stations) of the Malawi Broadcasting Corporation. MBC does not air some news items - especially those about labor or opposition party positions. Two private radio stations, Capital Radio FM 102.5 and FM 101, broadcast news which includes a broader spectrum of opinion. However, these stations reach only limited areas, primarily in Malawi's Southern Region. Malawi's first and only television station, "TV Malawi " began operations in March 1999. International television networks are accessible through pay television broadcasts via rooftop antennas and through private satellite dish receivers.

Nature of Political Relationship with the United States

19. Malawi has sound diplomatic, commercial, and social ties with the United States. The U.S. Mission enjoys access to and congenial relations with the Government of Malawi, as well as with opposition parties, business and commercial organizations, and representatives of other sectors of Malawi society. About two dozen U.S. businesses have local subsidiaries or agency relationships. Peace Corps volunteers and American missionaries are located throughout the country. In recent years, the United States has been the third leading bilateral donor to Malawi.