But it spends 1% of its gross domestic product (GDP) on research and development (R&D), making it have one of the highest ratios in Africa.
It is also one of three African countries that have been "making especially impressive progress for several Millennium Development Goals", along with Gambia and Rwanda, with regard to primary school net enrolment (83% in 2009) and gender parity at the primary school level.
Although the number of students choosing to study abroad increased by 56% between 1999 and 2012, their proportion decreased from 26% to 18% over the same period.
The services sector accounts for more than half of GDP (54%), compared to 11% for manufacturing and 8% for other industries, including natural uranium mining.
Tobacco accounts for half of the country's exports (50%), natural uranium and its compounds for a further 10%, and raw sugar cane for 8%.
[2][1] The government's attempts to diversify the agriculture sector have been constrained by poor infrastructure, an inadequately trained workforce, and its business climate.
[2][1] Malawi's foreign direct investment (FDI) has been growing since 2011 due to a government reform of the financial management system and the adoption of the Economic Recovery Plan.
In 2012, the majority of investors came from China (46%) and the UK (46%), with most FDI inflows going to infrastructure (62%) and the energy sector (33%).
The government has introduced a series of fiscal incentives to attract foreign investors, including tax breaks.
[2][1] Despite being one of the poorest countries in the world, Malawi devoted 1.06% of GDP to gross domestic expenditure on research and development in 2010, according to a survey by the Department of Science and Technology, which makes it one of the highest ratios in Africa.
[2]Between 2008 and 2014, scientists from Malawi collaborated most with their peers from the United States, followed by the UK, South Africa, and ex-aqueo Kenya and the Netherlands.
[2] In 2014, Malawian scientists had the third-largest output in Southern Africa, in terms of articles catalogued in international journals.
This compares with 6 for Mozambique, 15 for the United Republic of Tanzania, 20 for Swaziland, 21 for Zimbabwe, 59 for Namibia, 71 for Mauritius, 103 for Botswana, and 364 for South Africa.
This policy has been under revision with UNESCO assistance to re-align its approaches with the second Malawi Growth and Development Strategy (2013).
A 2013 mid-term review of the Regional Indicative Strategic Development Plan for 2005–2020 noted that limited progress had been made towards STI targets, owing to the lack of human and financial resources at the SADC Secretariat to coordinate the programmes.
In 2013, ministers responsible for the environment and natural resources approved the development of the SADC Regional Climate Change programme.