Describes how widely e-Commerce is used, the primary sectors that sell through e-commerce, and how much product/service in each sector is sold through e-commerce versus brick-and-mortar retail. Includes what a company needs to know to take advantage of e-commerce in the local market and , reputable, prominent B2B websites.
Last Published: 4/11/2019

E-Commerce is not widely available in Malawi.  Internet penetration is estimated to be only 9% nation-wide but reaches almost 30% in cities.  Almost 85% of connected Malawians access internet on their mobile device.  Mobile phone operators are aggressively marketing mobile money currently used by 7.7% of Malawians with much higher adoption rates in urban settings.  Few people have credit or debit cards, further limiting access to internet shopping.

Current Market Trends

Malawi has been comparatively slow to embrace the internet and e-commerce in general as poor infrastructure and high taxes make internet access prohibitively expensive for the majority of Malawians, resulting in low access rates across the country. However, with the installation of an inter-country fiber optic cable through Tanzania, Malawi has seen increased broadband penetration, and rapid increase in smart mobile devices, all indications are that e-commerce will improve steadily in years to come.  As bank and mobile network operator-led mobile payment schemes steadily increase, more Malawians are using the services to pay utility bills, purchase airtime, and transfer cash. 

Domestic e-commerce (B2C)

Although some e-commerce applications, like internet banking, exist in Malawi, business to consumer e-commerce has not yet fully taken off in Malawi due to low internet penetration. However, with increased development of ICT infrastructure in Malawi, more companies are realizing the potential for e-commerce and are increasingly incoporating it into their business strategies.

Cross-Border e-commerce

Malawi is a net importer of goods and services and Malawians are increasingly shopping online for goods and services abroad (mostly for used vehicles and vehicle parts from Japan, UK, and the United States). However, few people have credit or debit cards, further limiting access to internet shopping.

B2B e-commerce

Although some e-commerce applications, like internet banking, exist in Malawi, business to business e-commerce has not yet fully taken off in Malawi due to low internet penetration. However, with increased development of ICT infrastructure in Malawi, more companies are realizing the potential for e-commerce and are icreasingly incorporating it into their business strategies.

E-commerce Services

E-commerce services are dominated by commercial banks and mobile network companies through bank-led mobile payments & internet banking schemes and mobile network operator-led mobile payment schemes.

E-commerce Intellectual Property Rights

Malawi recognizes the importance of intellectual property protection and enforcement but lacks the capacity to do so.  Enforcement of intellectual property rights is inadequate.  However, general awareness of the importance of protecting intellectual property in all forms (copyrights, trademarks, patents, trade secrets, and others) has improved.  The Copyright Society of Malawi (COSOMA), administers the 2016 Copyright Act which protects copyrights and “neighboring” rights in Malawi.  

Popular e-commerce Sites

E-commerce is an emerging enterprise in Malawi. Malawians are increasingly selling and advertising goods on online platforms, especially on informal underground markets through Facebook and WhatsApp groups.  However, most companies have not invested in technology that can support online sales and complete financial transactions on an organized mass scale. 

Online Payment

Online payments are not common in Malawi.  However, banks are increasingly offering online banking services.  Subscribers mainly use internet banking services for high value transactions.  

Mobile e-commerce

In February 2017, the combined membership of all mobile network operator-led mobile payment schemes was 3.8 million with only 34.3% of users actively using the service.  Low financial literacy levels is a likely 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. 

Digital Marketing

Digital marketing has not yet taken off in Malawi due to low internet penetration.  Most large firms serving a likely connected customer base (banks, large retailers, telecommunication companies) realize the potential of digital marketing and are increasingly incorporating it into their marketing strategies.

Major Buying Holidays

The most important buying holiday period in Malawi runs from mid-December until early-January.  During the period many governement offices and large organizations are closed, large retailers run promotional campaigns, and many Malawians spend a significant portion of their yearly disposable income.

Social Media

A growing number of Malawians are using social media through blogs, Facebook, Instagram, and Twitter. The Government of Malawi currently does not have the technical capacity and, therefore, does not curently block or filter internet content.  The GOM has expressed interest in criminalizing critical online content.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.