Government has said it is reviewing sections of the Competition and Fair Trading Act to protect local small and medium enterprises (SMEs) against foreign traders, with some amendments expected to be tabled in Parliament next year.
Ministry of Trade and Industry officials on Friday held talks with Mzuzu City Council (MCC) and Mzuzu vendors, alongside Malawi Confederation of Chambers of Commerce and Industry and Malawi International Arbitration Centre following longstanding issues vendors raised through demonstrations.
The ministry’s spokesperson Patrick Botha said in an interview on Saturday that they are consulting to have a proposed list of businesses to be reserved to indigenous Malawians, saying in the absence of legislation, it would be difficult to regulate.
He pointed out that Dapp Malawi, which sells kaunjika (second-hand clothes) both on retail and wholesale, has been asked to choose one of the two, a decision government is likely to implement in the 2026/27 financial year.
“Central Poultry Limited sells day-old chicks, chickens and feed on retail. The vendors found it monopolistic. The ministry reminded the company not to sell chickens to end consumers but to agents and distributors,” he said.
Botha revealed that some of the businesses the vendors have already listed include kaunjika, clearance of freight, groceries, transportation of goods, stand-alone bakeries and taxi services.
MCC chief executive officer Gomezgani Nyasulu, who chaired the meeting, said the reform seeks to preserve specific businesses and categories for indigenous Malawians and is ultimately expected to stop issuance of retail business licences to foreign traders.
He said the next engagement, as council, will be with Malawi Police Service, to resolve issues of multitude ad hoc road blocks within the city and Malawi Defence Force on alleged harassment of vendors at Chilumba Roadblock in Karonga.
Meanwhile, Chamber for Small and Medium Businesses Association executive secretary James Chiutsi has said despite having a liberalised market, government can implement such reforms to give an opportunity for SMEs to thrive.
“That is a positive development. We are aware that there are a lot of Malawians trading in the same businesses as the foreigners. We need to attract meaningful foreign investment only.
“Micro SMEs are in the largest numbers and are the most vulnerable even in the face of the smallest shocks. Protecting them is government’s duty,” he said.
On his part, Small-Scale Business Operators Association of Malawi general secretary Tennyson Mulimbula said the review would promote the growth of businesses owned by indigenous traders who, he said have been squeezed by foreign traders.
Mulimbula said: “The Trade Act stipulates that a business license for foreign investors requires a minimum capital investment of $250 000 (K433 million) brought in from outside the country.
“Therefore, the nullification of issuance of retail business licences for foreign traders is 100 percent applicable.”
Vendors in Mzuzu have been holding a series of demonstrations demanding revocation of retail business licences for foreign traders, including Chinese, Indian and Burundians.
Mzuzu vendors overall chairperson Alexander Sikwese said in an interview that they are excited with the move but hoped that it would materialise.
