Malawi is situated in Southern Africa. It is 118.000 km2, that’s about three times the size of the Netherlands. 13,6 million people live in Malawi, it is one of the most densely populated countries in Africa. Although the political situation is already for decades very stable, Malawi is on the 5th place on the list of poorest countries of the world. The BBP per capita is $161 and the unemployment rate 53%. Recent government initiatives targeting improvements in the road infrastructure, together with private sector participation in railroad and telecommunications, an economical growth in 2007 of 8,5% and a strong decline of the inflation have begun to render the investment environment more attractive.
Malawi's economy is heavily dependent on agriculture. Its two most important export crops are tobacco and tea. Nearly 85% of the population engages in subsistence farming. These farming products have to be transported. The fuel price is a about 1 euro a litre. Buying or driving a car or minibus is too expensive for many people. That is why bicycles are very popular in Malawi, about 10% of the Malawians have a bicycle (1,3 million people). The bicycle cart is the perfect way of transport to fill up the market niche for short/cheap transport in densely populated Malawi.
