Up to now, there was no detailed examination of Austrian political, economic and developmental links to Malawi, a country which clearly does not constitute a priority of Austrian policy in South Africa. However, as the authors point out bilateral relations have been intensified especially since 1986, the year when the new Austrian coalition government came into being and foreign policy was handed over to the conservatives. Apart of an intensification in trade links (exports of machineries and imports of mainly tobacco), development aid increased end is likely to boost over the next couple of years as Austria’s Malawi agreement with the World Band will come into effect. Under this agreement a high amount of development finance will be devoted to the establishment of Tedzani III, a big water power station al the Malawi Shire River constructed by two specialised Austrian companies. In the framework of that, a Malawi consulate has been established in Vienna a short while ago. While the authors view this intensification of Austria’s relationship with the Banda regime as problematic, they argue for stronger links to the democratic opposition in Malawi.