Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 4/11/2019

Prices for most goods are generally market-determined.  Low priced goods tend to sell very well due to the generally low income levels of most Malawians.  The arrival of inexpensive Chinese-made products has negatively affected sales for many local and western-made products.  Pricing structures tend to take into account the cost of international and domestic transportation, whether final products or inputs.  Transportation costs can be substantial in land-locked Malawi.  Customs duties and value-added tax (16.5%) also contribute to final prices.

The state-owned Agricultural Development and Marketing Corporation (ADMARC) has intervened in the maize market in the recent past, attempting to stabilize prices.  With a declared intent of protecting poor farmers and alleviating poverty, the Government of Malawi also intervenes in the marketing of many agricultural commodities (tobacco, cotton, tea) by setting floor prices.  The pricing of petroleum products and utilities is regulated.  
 

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