Experts have warned that outdated laws, high Internet costs and weak consumer protections are holding back Malawi’s e-commerce sector.
They warn that the country may not effectively benefit from the African Continental Free Trade Area (AfCFTA) as a result.
The concerns were raised during a consultative workshop in Lilongwe on Friday jointly organised by the Ministry of Trade and Industry and the Ministry of Finance and Economic Affairs with support from Digitalisation, Financial Inclusion and Competitiveness (Dfic) project.
The workshop forms part of a broader gap analysis that will feed into the development of a national e-commerce policy, strategy and legal framework.
In an interview, Dfic e-trade specialist Sangwani Mkandawire said Malawi has made progress, but still faces major hurdles.
He said: “We can all attest that there is still a lot of mistrust when it comes to using e-commerce platforms.
“High Internet costs and weak infrastructure raise the cost of online trading and these costs are eventually borne by the consumer.”
Mkandawire said Dfic’s two components; namely, digital financial services and competitiveness were designed to address structural barriers and create a more inclusive e-commerce ecosystem.
Esami Trapca trade law expert Thoko Ngwira said Malawi’s legal framework has fallen behind regional and global standards.
He said: “Since 2016, we have had the Electronic Transactions and Cybersecurity Act, but it only partially regulates e-commerce,.
“Most Malawians trade through unregulated social media platforms such as Facebook, which offer no protection if a dispute arises.”
He further said stronger regulation could also improve revenue collection.
Ngwira said aligning Malawi’s frameworks with AfCFTA’s digital trade protocol and the Pan-African Payment and Settlement System could reduce foreign exchange-related challenges by enabling cross-border transactions in local currencies.
Ministry of Trade and Industry principal trade officer Ezron Nyirongo stressed the practical obstacles that discourage consumers.
“There are issues with payments, delivery, transport and communication. Our people need trustworthy systems so that they are not cheated when buying online,” he said.
Nyirongo also called for broader awareness and education., adding: “From primary schools to small and medium enterprises, people need to be sensitised so that they understand how to take advantage of digital trade.”
On forex constraints, he noted that e-commerce cannot be viewed in isolation, saying e-marketing is not an economic policy, but it is a way of doing business.
The African Development Bank has committed $13 million (about K22.7 billion) through Dfic to finance digital reforms, with a focus on expanding digital financial services and improving Malawi’s competitiveness in online trade.
