E-commerce options are not widely available in Malawi but there have been significant improvements in recent years. High licensing and connection fees make it difficult for entrepreneurs to establish and scale digital businesses and regulatory barriers further limit e-commerce expansion. Cumbersome customs procedures and extensive documentation requirements also impede cross-border e-commerce, restricting access to the Malawian market. Additional challenges include limited access to digital infrastructure, lack of financing, and regulatory hurdles. 

Internet penetration in Malawi stands at 27.7 percent nationwide as of January 2024, with urban areas at 45 percent compared to 20 percent in rural areas. Only 55.5 percent of the total population has an active cellular mobile connection. Despite the widespread availability of mobile networks, only 15 percent of the population actively uses mobile internet. 

Among connected Malawians, 96.3 percent access the internet via mobile devices. Malawi ranks 93 on the 2022 Inclusive Internet Index and 167 on the 2022 E-Government Development Index, reflecting challenges in digital public service delivery and citizen engagement. Mobile phone operators cover approximately 74.9 percent of the population with 4G networks. As of 2023, Malawi had over 10.1 million registered mobile money subscribers, with mobile money transactions increasing by 65 percent from 2022 to 2023. Commercial banks are increasingly replacing ATM cards with VISA credit or debit cards, further enhancing access to e-commerce and digital financial services. The 2020 United Nations Conference on Trade and Development (UNCTAD) e-Commerce Index ranked Malawi 141 of 152 countries for e-commerce and digital economy development

Legal & Regulatory 

The Electronic Transactions Act (2016) mandates transparency in e-commerce and provides mechanisms for dispute resolution and digital payment protection. Additionally, the Communications Act (2016) supports consumer rights by regulating service quality and pricing. In addition to these two acts, the cybersecurity act (2016) further supports this framework by formalizing penalties for cybercrimes and promoting secure digital transactions. The Data Protection Act (2024) also provides a robust legal foundation for safeguarding personal data and promoting privacy. 

While these frameworks establish a foundation for consumer protection, limited public awareness and weak enforcement mechanisms hinder their impact. Malawi is implementing the WTO Trade Facilitation Agreement and is working toward setting up a National Single Window to foster paperless trade and e-payments (UNCTAD). The Central Bank is the main regulator on e-Commerce. One of the primary complaints investors have is the high cost of connection fees, approximately $50,000, associated with e-finance connections to serve their e-Commerce businesses in Malawi. The Malawi Communications Regulatory Authority (MACRA) is also a key player in the conduct of e-Commerce in Malawi. 

The government continues to monitor implementation of e-money regulations through the central bank and the Payments Systems Act of 2019. The e-money regulations are meant to provide regulatory framework governing operations of e-money services in the country including consumer protection and protection of customer funds. MACRAis the main regulator of Information Communications and Technology in the country and, together with the Central Bank, champion implementation of government policies aimed at supporting the sector including online businesses.

E-commerce has the potential to help move the country closer to achieving development goals, but the sector needs additional structure, regulations, and enforcement. The government adopted the National ICT Policy and developed the digital economy strategy to facilitate the efficient, effective, and sustainable utilization, exploitation, and development of ICT solutions in all sectors of the economy. The National ICT Policy is focused on improving the ICT infrastructure by extending the fiber-optic backbone, cross-border interconnections, launch 4G capabilities, and the establishment of a universal service fund. 

Consumer Behavior 

Malawi has been comparatively slow to embrace the internet and e-commerce in general. Poor infrastructure and high taxes make internet access prohibitively expensive for most Malawians. High costs and slow or unreliable connections contribute significantly to the country’s low access rates, especially in rural areas. The installation of an inter-country fiber optic cable through Tanzania will increase broadband penetration and usage of smart mobile devices, indications that e-commerce will improve and expand in years to come. As bank and mobile network operator-led mobile payment schemes improve and increase, more Malawians are using the services to pay bills, purchase airtime, and transfer cash. Approximately $3.52billion was transacted through mobile payments in 2024. 

Business to consumer e-commerce has not yet fully taken off due to low internet penetration. Increased development of ICT infrastructure is leading more companies to realize the potential for e-commerce, and many are beginning to incorporate it into their business strategies. Malawi is a net importer of goods and services, and Malawians increasingly shop online for goods and services abroad, primarily for used vehicles, electronic equipment and accessories, building materials, vehicle parts, and clothes from Japan, China, the United Kingdom, and the United States. 

E-commerce services are dominated by commercial banks and mobile network companies through bank-led mobile payments and internet banking schemes, and mobile network operator-led mobile payment schemes. E-commerce transactions are usually high during the peak shopping periods from mid-December until early-January. During this period, many government offices and large organizations are closed, large retailers run promotional campaigns, and many Malawians spend a significant portion of their yearly disposable income. 

Intellectual Property Rights 

While Malawi recognizes the importance of protecting intellectual property, enforcement remains inadequate due to limited institutional capacity. This creates vulnerabilities for businesses relying on robust IPR protections, particularly in the digital space, but recent legislative advancements signal progress. Please see the Protecting Intellectual Property section for additional information.

Digital marketing is not popular in Malawi due to low internet penetration. Most large firms serving a connected customer base realize the potential of digital marketing and are increasingly incorporating it into their marketing strategies. Malawi through the ICT Association of Malawi (ICTAM) hosts an international ICT conference annually. The government, with support from the World Bank, is implementing a Digital Malawi Project that aims to improve the digital ecosystem, connectivity, platforms, and services.

For U.S. businesses engaging in e-commerce or digital marketing in Malawi, it is essential to monitor the development of this new regulatory framework and assess its impact on intellectual property protections. Businesses should also remain vigilant about potential risks, including counterfeit goods, unauthorized use of trademarks, and copyright infringement, which may persist until enforcement mechanisms are fully operational.    

Digital Marketing and Social Media

Malawians are increasingly selling and advertising goods on online platforms, mainly through blogs, Facebook, WhatsApp groups, Instagram, X, and TikTok. However, most companies have limited capabilities for supporting online sales transactions.
Local service providers overview 

The Reserve Bank of Malawi supports the national switch system (NATSWITCH) to facilitate electronic payments by linking ATMs, point of sale (POS) devices, and mobile money services. Commercial banks are linked via the Malawi Interbank Transfers and Settlement System (MITASS). These developments make electronic payments and processing of the payments much easier and faster. 

Online payments are not common in Malawi, but banks are increasingly offering online banking services. Subscribers mainly use internet banking services for high value transactions. In December 2021, the combined membership of all mobile network, operator-led, mobile payment schemes was 10.1 million with 60 percent of users actively using the service. Low financial literacy levels are likely a key factor for the low usage of mobile payment schemes, as well as the lack of sufficient cash collection points. Most mobile money subscribers use the services for airtime purchases and cash transfers.