Malawi's former President Bakili Muluzi continued the pro-Western foreign policy established by former President Hastings Banda. It maintains excellent diplomatic relations with principal Western countries. Malawi's close relations with South Africa throughout the apartheid era strained its relations with other African nations. Following the collapse of apartheid in 1994, Malawi developed, and currently maintains, strong diplomatic relations with all African countries.
Important bilateral donors include Canada, Denmark, Germany, Ireland, Iceland, Japan, South Korea, the Netherlands, Norway, Sweden, Republic of China (Taiwan), the United Kingdom, and the United States. Multilateral donors include the World Bank, the International Monetary Fund, the European Union, the African Development Bank, and the United Nations organizations.
Malawi assumed the chair of the Southern African Development Community (SADC) in 2001. Muluzi took an active role in SADC on issues such as the global coalition against terrorism and land reform in Zimbabwe.