The Malawi Growth Development Strategy II recognizes the crucial role of higher education as a key driver of competitiveness and growth. The country’s higher education system needs to be overhauled to take in more students, achieve greater equity in enrollment, and offer higher-quality programs relevant to market needs. A major concern is that there are far too few qualified graduates to meet market needs in the country—a gap that is bound to negatively affect the economy if unaddressed. University management should include private sector and civil society representatives to ensure that learning is delivered more efficiently and is aligned with market needs. Encouraging private providers and exploring more sustainable avenues of financing are critical to bridge Malawi’s financing and capacity gaps in higher education.