Central Region
Administrative capital region hosting Lilongwe (1.1M) and tobacco markets while economy faces 35% inflation and 6M food insecure.
Central Region contains Lilongwe, Malawi's capital and largest city (1.1 million), hosting the administrative functions that moved from Blantyre in 1975. This planned relocation demonstrates how political decisions can override economic geography: Blantyre remained the commercial center while Lilongwe grew around government employment. The region anchors tobacco production, Malawi's top foreign exchange earner—the 2024/2025 selling season opened on April 9 at Lilongwe Selling Floors, with markets across the country following. Agriculture employs over two-thirds of Malawians, with 76% cultivating plots smaller than one hectare—classic smallholder dependency. The economy grew just 1.5% in 2023 (up from 0.9% in 2022), with 3.2% projected for 2024 and 4.8% for 2025. Yet 35% inflation in January 2024, driven by food prices, eroded real gains. Climate shocks pushed nearly 6 million people into acute food insecurity in 2024. The current account deficit reached 18.7% of GDP with official reserves at just 0.5 months of import cover—critical vulnerability for a landlocked nation. The 2025 US aid suspension disrupted essential services, compounding fiscal pressure. Agriculture, tourism, and mining receive priority budget allocations (8.3% for agriculture in 2024-25), with irrigation and machinery investment targeting productivity. Central Region demonstrates how administrative capital status creates employment concentration even when commercial activity locates elsewhere.