Tag Archives: Malawi Revenue Authority (MRA)

“Kalondola beats excise revenue target by 13.67%”-MRA tauts

…..MRA attributes the 13.67 percent surplus in excise revenue collections to improved compliance under the Kalondola system.

BLANTYRE-(MaraviPost)-The Malawi Revenue Authority (MRA) says the Digital Tax Stamps system, also known as Kalondola, has significantly improved excise tax compliance and boosted revenue collections since its rollout in 2024.

MRA Head of Corporate Affairs Wilma Chalulu told The Maravi Post in an interview that the introduction of mandatory tax stamps has forced previously informal manufacturers to register, contributing to strong growth in excise revenues.

“This shift has led to exponential revenue growth. For example, excise tax payments in the alcoholic beverages sector have increased by 500 to 600 percent, with similar upward trends in non-alcoholic beverages,” she said.

MRA has also exceeded its domestic excise revenue target, collecting about K168.86 billion against a target of K155.16 billion.

Chalulu said the system differs from the previous self-assessment model, which she described as prone to underreporting and offering limited oversight of production volumes.

She said the current regime uses a track-and-trace system that enables real-time monitoring of production, improves transparency and strengthens accountability among manufacturers.

According to Chalulu, the system has also made it harder for illicit products to enter the market, as smuggled or unlicensed goods cannot easily obtain secure excise stamps.

She said the number of registered excisable goods manufacturers has more than doubled, from 51 before implementation to 114 currently, which she attributed to increased formalisation in the sector.

Chalulu said 22 production lines are now being monitored through digital systems, including Secure Coding Lines for beverages and the Secure Activation System for tobacco products, across the country’s regions.

On enforcement, she said MRA has imposed penalties totalling about K1.46 billion as of February 28 2026, following measures such as product embargoes, detentions and seizures.

“To sustain this momentum, the Authority is deploying 24-hour surveillance, with technicians stationed at production facilities and enforcement officers at strategic checkpoints,” she said.

“We are also utilising Flexible Anti-Smuggling Teams to conduct rapid, unannounced inspections.”

Chalulu said MRA is also carrying out inspections at retail and wholesale outlets to remove unstamped or improperly stamped goods, while requiring stamp procurement and activation at entry points for imports.

She said public sensitisation campaigns are ongoing to improve compliance among manufacturers, importers and distributors.

She said overall compliance has improved, citing better record keeping and stronger adherence to licensing and reporting requirements.

However, she noted that some challenges persist in parts of the non-alcoholic beverages sector, particularly among some importers, and said MRA is addressing these through targeted engagement and enforcement.

The Kalondola system was introduced in 2024 following a 10-year agreement between MRA and SICPA Malawi, a subsidiary of Switzerland-based SICPA SA, aimed at modernising excise tax collection and strengthening accountability.

The system uses secure tax stamps that combine material and digital security features, allowing both authorities and consumers to verify product authenticity while helping detect illicit trade such as counterfeiting and smuggling.

It was rolled out in phases, with the first phase in May 2024 covering cigarettes, alcoholic beverages and non-alcoholic drinks, and the second phase extending to products such as bottled water, soft drinks, energy drinks, lotion and glycerine.

The system also improves oversight across the supply chain, particularly for excisable goods that have historically been vulnerable to under-declaration and illicit trade.

MRA has also integrated the system with the Automated System for Customs Data to streamline import processes.

Institute of Chartered Accountants in Malawi chief executive Noel Zigowa said the system also helps protect consumers.

“The requirement for a secure excise tax stamp discourages operators from openly selling illicit goods, as smuggled and unlicensed products cannot easily obtain or replicate official stamps,” he said.

Digital excise tax stamps are not unique to Malawi. Several countries, including Tanzania, Democratic Republic of Congo, Kenya, Morocco, Sierra Leone, The Gambia, Togo and Uganda, have adopted similar systems.

The International Monetary Fund has previously highlighted track and trace systems as tools for improving tax administration and strengthening revenue collection.

The hard truth behind MRA’s unjust cancellation of security service tenders

The Malawi Revenue Authority’s (MRA) recent decision to cancel the tender award intended for Masters Security Services, Iringa Security Services, and Kamu Guard Services raises serious concerns about fairness, transparency, and the integrity of procurement processes in Malawi.

The hard truth is that this cancellation is not justifiable and appears to be a reaction driven by political pressure rather than a sound business or ethical rationale.

The hard truth is that these companies have demonstrated operational excellence and delivered high standards of security services long before this tender. Masters Security Services, owned by Alfred Gangata, has a proven track record that commands respect.

To suggest that there is any conflict of interest simply because Mr. Gangata is associated with the government is to undermine the very principles of business and governance.

The question must be asked: Does holding a political office or affiliation automatically disqualify one from running a legitimate and successful business?

The hard truth is that conflating political involvement with corruption or malpractice in business is a dangerous precedent that threatens entrepreneurship and economic growth.

The hard truth is that these firms have been repeatedly successful in winning tenders from MRA and other government agencies in the past, reflecting the quality and reliability of their services. So, what has suddenly changed to warrant the cancellation of this tender? The absence of an official explanation from MRA only fuels speculation and mistrust among the public and stakeholders.

The hard truth is that transparency is paramount in public procurement, and withholding reasons for such a significant reversal undermines public confidence in the institution.

The hard truth is that the backlash from political factions such as the MCP’s wing, the Human Rights Defenders Coalition (HRDC), and others should not dictate the course of business decisions.

If MRA’s leadership bowed to such pressure, it raises questions about the independence and resilience of public institutions in the face of political interference. Should public entities be swayed by political clout rather than objective evaluation criteria? The answer is an emphatic no.

The hard truth is that the cancellation, coming after an initial notice of intention to award the contracts, disrupts the operations of these companies and places their employees and clients in uncertain positions. Security services are essential for the protection of assets and people, and any disruption can have ripple effects on safety and trust.

The hard truth is that such abrupt reversals without clear justification reflect poor governance and disrespect for contractual processes.

Furthermore, the hard truth is that the MRA Commissioner General Felix Tambulasi’s letter to Masters Security Services, while formally communicating the cancellation, conspicuously lacks any explanation.

This omission is critical. How can stakeholders assess the legitimacy of this decision without understanding the reasons? Is this a fair practice? Is this in line with procurement laws and principles of natural justice? These questions demand answers.

The hard truth is that allegations of conflict of interest should be handled transparently and with due process.

If there were genuine concerns, MRA should have conducted a thorough investigation and communicated findings openly rather than cancelling the tender abruptly. This would preserve public trust and uphold the rule of law.

The hard truth is that politics should not be a barrier to business success. Malawi, like many nations, benefits when capable individuals contribute to both governance and economic development.

The notion that one cannot hold political influence and run a legitimate business simultaneously is not only unfair but also counterproductive.

The hard truth is that this incident sends a chilling message to other business owners who may have political affiliations or backgrounds.

It risks discouraging investments and entrepreneurship, which are crucial for Malawi’s growth and development. Should Malawi’s business environment be hostage to political rivalries and vendettas? The answer must be a resolute no.

The hard truth is that the cancellation of the tender by MRA, without transparent justification and seemingly influenced by political pressure, undermines the principles of fairness, transparency, and good governance. It is an injustice to Masters Security Services, Iringa Security Services, and Kamu Guard Services, who have proven their capability and reliability over time.

Malawi’s institutions must uphold integrity and resist undue political influence to foster a healthy business environment and safeguard public trust.

So, the critical questions remain: Why was the tender cancelled without explanation? Was political interference more important than merit and service quality? How can Malawi build a fair and transparent procurement system if decisions are reversed without accountability? These are questions every Malawian should ponder as we strive for a just and equitable society.

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When has MRA become a social media’s buzz listening tax agency to cancel legal binding tender out of someone’s anger, jealousy, malice?

By Deus Chikalaza

LILONGWE-(MaraviPost)-The Malawi Revenue Authority’s (MRA) decision to cancel a tender without providing reasons has sparked a heated debate about fairness, transparency, and the influence of politics in government procurement processes.

The move has raised concerns about whether the cancellation was motivated by a desire to exclude a particular bidder, specifically one linked to a government minister.

Why punishing a company for winning a contract simply because the owner is a minister is a clear case of unfair treatment.

If the company met the tender requirements, it should have been awarded the contract regardless of the minister’s position.

Out of three companies that were intended to be awarded security services contracts only one firm’s cancellation letter has been leaked to the public.

Why this unfairness of targeting an individual over someone bitterness, anger, malice, jealousy?

This approach undermines the principles of meritocracy and creates an uneven playing field for bidders.

MRA action also raises questions about the competence and integrity of the evaluation process.

The decision to cancel the tender due to social media buzz is also troubling.

It clearly suggests that taxing agency is more concerned with managing public perception than ensuring a fair and transparent process.

Surprisingly, the leaked tender cancellation letter was issued barely days after public notice of intending to offer the contracts following social media buzz and trial.

Surprisingly also MRA has acted swiftly without engaging the wining bidders.

The decision is made within days of public hearing without waiting final decision from tender evaluation Committee.

Whose interest is MRA serving?

This unrealistic approach can create uncertainty and undermine trust in the procurement process.

Re-advertising the tender may not necessarily address the underlying issues.

Without clear guidelines and transparency, the process may be vulnerable to similar criticisms.

To ensure fairness, the MRA should establish clear criteria for the tender process and communicate these to all stakeholders.

The re-advertisement should also include measures to prevent conflicts of interest and ensure that all bidders are evaluated solely on their merits.

One potential solution is to establish an independent evaluation committee to assess bids and make recommendations, reducing the influence of individual decision-makers.

Additionally, introducing stricter conflict-of-interest guidelines and disclosure requirements for bidders with government connections can help prevent undue influence.

The MRA’s decision to cancel the tender without explanation has highlighted concerns about transparency and fairness in government procurement processes.

Addressing these concerns is crucial to maintaining public trust and ensuring that government contracts are awarded based on merit rather than political influence.

Moving forward, the MRA should prioritize transparency and fairness in the re-advertised tender process.

This includes providing clear guidelines, ensuring independent evaluation, and communicating openly with stakeholders.

By doing so, the MRA can rebuild trust and demonstrate its commitment to merit-based procurement practices.

In conclusion, MRA must follow all due process not paying attention to social media buzz otherwise the tax agency will lose public trust and credibility.

MRA should not operate under political, personal vendetta influences with calculated move to frustrate capable firms to offer quality public services.

MRA must stand by legal process without being intimidated by some noisy Civil Society Organisations (CSOs), social media commentators who have political and personal interests.

“No comment”-Gangata on MRA security services tender cancellation

LILONGWE-(MaraviPost)-State Minister and Masters Group Executive Director Alfred Gangata says “No comment” on the decision Malawi Revenue Authority (MRA) cancelling the security services the authority wanted to ward to three companies.

MRA wanted award security services to three companies including Masters Security, Iringa Security, and Kamu Guard services.

But in a public notice dated December 31, 2025, MRA has cancelled a tender awarded to all three companies without giving any reasons.

The authority is expected to re-advertise the tender to the public.

MRA publicist Wilma Chalulu has confirmed writing letter to the three companies.

When contacted Masters Group Chief Gangata on matter, he just said, “NO comment”!

The procurement reference number for the cancelled tender is MRA/Security Services/12/11/2025.

Of MRA security service contracts: Transparency, due process, danger of media trial

The article in the NATION NEWSPAPER today, headlined, “MRA security contracts stir debate” raises serious allegations and emotive concerns, but in doing so it risks collapsing legal nuance, procurement procedure, and constitutional safeguards into a narrative that appears more accusatory than analytical.

While public scrutiny of state procurement is both necessary and welcome, it is equally important that such scrutiny is grounded in law, fact, and fairness rather than conjecture, inference, and public suspicion.

At the centre of the debate is the Malawi Revenue Authority’s publication of an intention to award security contracts amounting to K5.4 billion. Crucially, an intention to award is not an award itself.

Under the Public Procurement and Disposal of Assets (PPDA) Act, this stage exists precisely to promote transparency, invite objections, and allow redress before any binding contractual obligations are entered into.

To portray this statutory step as evidence of wrongdoing is to misrepresent both its purpose and legal effect.

The article repeatedly implies impropriety by conflating an ongoing legal case involving Minister Alfred Gangata with the procurement process itself. Yet, in law, an accused person remains innocent until proven guilty.

There is no provision in the PPDA Act that imposes an automatic and blanket exclusion on a bidder merely because they are subject to legal proceedings, especially where there has been no conviction, no court-imposed restriction, and no judicial finding of guilt.

Any interpretation to the contrary dangerously undermines the rule of law and replaces it with presumption-based punishment.

Section 75 of the PPDA Act, cited by commentators in the article, must be read carefully and holistically. The law does not criminalise participation in public procurement by individuals or firms facing allegations; rather, it empowers procuring entities to assess risk, compliance, and eligibility based on verifiable criteria.

If Parliament intended to bar all bidders with pending cases, it would have said so explicitly. Instead, the law balances integrity with fairness, recognising that allegations alone cannot be the basis for exclusion in a constitutional democracy.

Equally troubling is the insinuation that MRA’s Commissioner General, Felix Tambulasi, is conflicted merely because he once represented Gangata in private practice. Malawi’s legal profession, like others across common-law jurisdictions, operates on the understanding that lawyers act for clients without assuming their guilt or innocence.

To suggest that prior professional representation automatically translates into institutional bias is to set an unworkable standard that would disqualify countless public officials from service and weaponise career history against public administration.

The Constitution’s Section 88(5), cited in the article, is also stretched beyond its intended scope. That provision is meant to prevent Cabinet ministers from abusing office for personal gain, not to criminalise the commercial existence of businesses owned by politicians, nor to bar them indefinitely from public procurement without proof of interference, influence, or abuse of authority.

No evidence is presented that Gangata used his ministerial office to influence the tender, the evaluation process, or the procurement committee at MRA.

Furthermore, the procurement process in question was conducted through open national competitive bidding, advertised publicly, and subjected to evaluation procedures prescribed by law. These facts are acknowledged in the article but curiously downplayed.

Transparency is not demonstrated by secrecy, but by openness—and MRA did exactly what the law demands by publishing the intention to award and inviting public feedback within the statutory 21-day period.

The criticism over the size of the contracts, while emotionally appealing, also lacks policy context. Security services for a national revenue authority covering multiple regional clusters, sensitive installations, and round-the-clock operations inevitably attract significant costs.

To describe the figures as “indefensible” without a comparative market analysis, benchmarking, or assessment of operational scope is to substitute outrage for evidence. Fiscal responsibility must be argued with data, not indignation.

More concerning is the broader implication of the article: that public institutions should avoid lawful decisions simply to avoid controversy. This sets a dangerous precedent.

If every procurement decision involving politically exposed persons is condemned irrespective of legality, the state risks descending into governance by perception rather than governance by law. Institutions would become paralysed, afraid to act not because they are wrong, but because they might be misunderstood.

Public accountability does not mean public lynching. Investigative journalism should illuminate facts, test legality, and hold power to account—not pre-empt judicial outcomes or imply guilt through association.

Where legitimate questions exist, they should be pursued through lawful objections, PPDA review mechanisms, and the courts, not through narratives that erode trust in institutions without definitive proof.

In the final analysis, the real danger exposed by this debate is not necessarily corruption, but the creeping normalisation of trial by media, selective legal interpretation, and the erosion of due process.

Malawi’s democracy is best served not by suspicion-driven governance, but by adherence to constitutional principles, respect for procurement law, and the presumption of innocence.

Anything less risks replacing the rule of law with the rule of outrage.

Of personal, political vendetta against Gangata’s Masters Security public service

By Falles Kamanga

BLANTYRE-(MaraviPost)-There is currently a wave of social media attacks targeting Masters Security Services Limited, questioning why the company is among those the Malawi Revenue Authority (MRA) intends to award contracts for various services.

Masters Security Services Limited is a long-established security firm owned by Minister of State Alfred Gangata.

The company has been in existence since 2010, long before Gangata joined frontline politics.

Despite being owned by a politician, the company does not involve itself in the country’s political affairs and has operated strictly as a professional security service provider.

Masters Security Services Limited has no negative record regarding its service delivery in Malawi.

However, during the previous Malawi Congress Party (MCP) administration under8 former President Lazarus Chakwera, the company faced significant challenges in accessing public contracts, largely due to what appeared to be political vendetta against Gangata.

When did Masters Security Services start in Malawi?

Masters Security Services was established in Malawi in 2010, with its primary focus on providing manned guarding and other security solutions.

Over time, the company expanded its operations to include training and consultancy services for both corporate and government clients.

In addition to its core security services, the company sponsors a successful football club, Masters Security FC.

Football Club Masters Security FC joined the TNM Super League in 2016 and went on to win the prestigious Carlsberg Cup in 2018, further cementing the company’s positive contribution to Malawian society.

Given this background, it is both naïve and unfortunate to attack the company simply because the MRA has decided to consider it for a security services contract.

Gangata, as a businessman, operates a legitimate enterprise that is fully compliant with all legal and regulatory requirements, making it eligible to bid for both private and public tenders.

There is no conflict of interest in a legally registered and compliant company bidding for public contracts.

Criticism should be fair, factual, and based on evidence, rather than driven by personal grudges or political egocentrism.

Malawi is one nation, and equal opportunities in business should be upheld without unjustly targeting others out of personal or political vendetta.

How Malawi’s Digital Tax Stamp agenda could reshape public finance

LILONGWE-(MaraviPost)-Malawi is preparing for a major change in the way taxes are recorded and collected as the Malawi Revenue Authority (MRA) moves forward with the roll-out of the Electronic Invoicing System (EIS) in February 2026.

The rollout was initially scheduled for November 2025 but was postponed after taxpayers and key stakeholders requested more time to understand the system’s technical and operational requirements.

The MRA, which has long relied on Electronic Fiscal Devices (EFDs), describes the EIS as a major digital upgrade that is more efficient, user friendly, and cost effective.

According to MRA, the shift to the EIS is part of a broader effort to improve tax compliance and record keeping.

The system promises better accessibility and functionality for businesses of all sizes, aligning Malawi with a growing list of countries pursuing similar digital tax reforms.

For example, Uganda introduced its Electronic Fiscal Receipting and Invoicing System (EFRIS) earlier this year, while Poland’s KSeF and Saudi Arabia’s FATOORAH are also underway.

Tanzania’s Electronic Financial Data Management System (EFDMS), Vietnam’s e-invoicing platform, and Mauritius’ EBS reflect the same continental and global trend.

Across these nations, governments have recognised the severe losses caused by tax non-compliance in revenue collection.

In Malawi, the issue is especially pressing as we face a fiscal deficit of MK2.4 trillion, twice the budget for education (MK1.3 trillion) and nearly four times the allocation for health (MK714 billion).

The World Bank estimates that tax evasion alone costs Malawi about 12 percent of its GDP, a figure higher than Namibia’s by roughly three percentage points.

Combined with persistent corruption, these losses have significantly constrained public investment and service delivery.

Despite previous reform efforts, Malawi’s fiscal challenges have persisted for decades. But digital interventions like the EIS and the recently introduced Digital Excise Tax Stamps (Kalondola) offer a potential turning point for revenue management and transparency.

In 2024, the MRA signed a ten-year agreement with SICPA Malawi, a subsidiary of the Swiss-based SICPA SA, globally known for secure traceability and authentication technology.

The partnership introduced the Kalondola system to modernise excise tax collection and reinforce accountability in Malawi.

The SICPA technology behind Kalondola uses secure tax stamps combining material and digital security features.

It allows both authorities and consumers to verify product authenticity while helping detect illicit trade activities such as counterfeiting or smuggling.

The system improves oversight across the supply chain, particularly for excisable goods such as cigarettes, alcoholic beverages, bottled water, carbonated soft drinks, lotions & glycerines.

These categories have historically been vulnerable to under-declaration and illicit trade.

Castel Malawi, one of the country’s largest beverage producers, publicly supported the initiative, saying the digital excise tax stamps enable accurate revenue capture that can be reinvested in essential services and economic growth.

In a press statement, Castel Malawi Managing Director Thomas Reynaud emphasized the importance of consumer vigilance in the fight against counterfeit products, which he said pose serious health risks and undermine legal trade.

“Castel Malawi Limited urges all customers to remain alert and ensure that all spirits purchased are genuine and compliant with legal standards,” said Reynaud. “Authentic Castel products carry digital tax stamps, date stamps, and batch numbers, which are clear indicators of their legitimacy and regulatory compliance.”

In supporting digital tax reforms, economic and policy expert Dumbani Mzale notes the substantial economic and governance benefits that digital tax stamps can bring to public finance management, including increased revenue collection and the reduction of illicit trade.

Mzale supports digital tax stamps

Mzale said, “Digital tax stamps (Kalondola), particularly for excisable goods like alcohol and tobacco, help governments all over the world to effectively control and collect taxes.

By minimizing opportunities for fraud and tax evasion, the state can significantly boost its revenue streams, and Malawi could be no exception if this agenda could be implemented to the letter.”

He added, “For too long, Malawi has been a victim of counterfeit products, especially beer and other key consumables.

This has resulted in the country losing billions of Kwachas in potential tax revenue, money that could have helped reduce the gap between total government expenditure and total domestic revenue, which includes tax and non-tax revenue.”

By deploying both the EIS and Kalondola, the Government of Malawi is signalling a shift toward stronger controls, cleaner tax administration, and better protection of public resources and of consumers.

Moreover, this state-of-the art technology enables leveling the playing field for legitimate actors whose contribution to growth and development of the country is paramount, contrary to illicit traders.

If implemented effectively, these reforms could help move the country toward a more stable, predictable, and equitable public finance framework.

Technology shapes Malawi’s revenue mobilization drive

LILONGWE-(MaraviPost)-Malawi’s fiscal landscape has been defined in recent years by successive external shocks and deep domestic constraints.

Tropical Storm Ana and Cyclone Gombe in 2022, Cyclone Freddy in 2023, and a severe drought in 2024 all inflicted damage on the economy, eroding agricultural output, disrupting supply chains, and compounding already fragile conditions.

At the same time, official development assistance has been on the decline, leaving the government with fewer options to cushion the population.

The result has been an erosion of fiscal space, persistent shortages of foreign exchange, growing food insecurity, and a weakened ability to maintain essential social services.

Inflationary pressures have remained high and growth sluggish, straining the capacity of households and businesses alike.

Against this backdrop, the government has turned with renewed urgency to domestic revenue mobilization as its most viable path toward macroeconomic stability.

The Ministry of Finance has set a medium-term objective of reducing the overall fiscal deficit to 6 percent of GDP, a target that hinges on sustained growth in revenue collections.

Authorities argue that the buoyancy seen in the 2024/25 fiscal year, which produced a 39.9 percent nominal increase in tax revenue over the previous year, will continue.

They attribute this not only to reinforced tax policy measures, but also to administrative reforms that have begun to change how revenue is collected and enforced.

At the heart of these reforms lies the introduction of digital excise tax stamps, branded ‘Kalondola’.

Implemented by the Malawi Revenue Authority (MRA) with technical support from SICPA Malawi, a company contracted in September 2023, the system is designed to strengthen compliance in excisable products and curb the proliferation of illicit goods.

The phased rollout began on May 1, 2024, covering tobacco cigarettes and alcoholic beverages, including beer, wine, spirits, whisky, and opaque beer, before extending from July 1 to bottled water, soft drinks, energy drinks, cereal-based beverages, fermented teas, lotions, and glycerine.

Each product now carries a secure digital stamp that serves both as proof of tax payment and a deterrent against smuggling and counterfeiting.

The move was not without resistance, but the business community has gradually aligned itself with the policy’s intent.

Castel Malawi has been among the most vocal.

Speaking to the press, its Corporate Affairs Director, Ms. Gloria Zimba, urged consumers to avoid products lacking digital stamps, underscoring that compliance ensures the government can capture the revenue needed to invest in essential services and infrastructure.

“The stamps allow the government to realize the correct amount of revenue to invest in essential social services development initiatives for economic growth,” she said.

Castel’s call reflects a growing recognition within the private sector that robust revenue systems help to level the playing field by reducing unfair competition from smuggled or untaxed goods.

The momentum has been reinforced through deeper integration of systems. In February 2025, MRA confirmed that Kalondola had been fully linked with ASYCUDA, the customs management platform used at borders.

This integration requires import declarations for affected tariff lines to include tax stamps prior to clearance, streamlining procedures and reinforcing the integrity of the importation system.

“The implementation has successfully achieved one of its key objectives, ensuring that all import declarations for the specified tariff lines are accompanied by tax stamps,” said Wilma Chalulu, the MRA’s Acting Head of Corporate Affairs.

She added that the integration had also improved operational efficiency by cutting redundancies in customs processes and boosting compliance among importers.

The MRA has coupled the introduction of tax stamps with capacity-building efforts to embed the system effectively.

Between November and December 2024, SICPA Malawi trained 60 officers nationwide in both classroom and field settings.

Practical sessions included visits to the Mchinji One-Stop Border Post, where customs officials were evaluated on their ability to enforce excise tax stamp regulations with importers.

These exercises are crucial, as Malawi’s porous borders have historically been a conduit for illicit trade, undermining both legitimate businesses and government revenues.

The IMF, in its most recent assessment of Malawi’s revenue mobilization strategy, has emphasized the importance of such measures.

The report recommended retaining excises on sectors such as gaming, gambling, airtime, and jewelry while sharpening enforcement against smuggling through prepaid tax stamps and closer monitoring of illicit trade.

It further advised shifting from ad-valorem to specific excises on goods like alcohol, tobacco, and vehicles, aligning rates more closely with regional averages to reduce distortions and protect domestic industries.

The government’s adoption of digital stamps sits squarely within these technical recommendations, signaling its willingness to act on external policy advice even in the absence of a formal IMF program.

Digitalization of tax administration has not stopped at stamps.

The Electronic Invoicing System (EIS), a project funded by the World Bank, has been rolled out to further broaden the tax base.

Through real-time electronic documentation of transactions, the EIS aims to reduce under-reporting, improve audit trails, and strengthen VAT compliance.

Together with Kalondola, the system reflects a broader strategy of using technology to modernize revenue collection and cut leakages that have historically sapped public finances.

Despite these gains, the challenges remain sobering as Malawi remains in arrears to external commercial creditors, amounting to US$669 million at the end of 2024, while its official exchange rate remains overvalued, distorting the economy and discouraging investment.

Without external budget support, the burden on domestic resources grows heavier, even as repeated climatic shocks keep driving demand for public intervention.

According to the IMF report, the authorities argued that the combination of digital tax stamps, strengthened audits, enhanced VAT inspections, and intensified debt recovery would sustain the revenue buoyancy observed in Final Year (FY)2024/25.

Revenues, estimated at 19.1 percent of GDP in FY2024/25, are projected to climb further as compliance improves and enforcement expands.

For policymakers, the central message is that technology-enabled tax administration offers one of the few levers available under current conditions.

It is both a response to fiscal necessity and an attempt to chart a more autonomous economic path after decades of heavy reliance on donors and multilateral support.

In the shops and markets, the change is already visible.

Beverages and other consumer products now display digital stamps that, while small, symbolize a shift in Malawi’s approach to governance.

For importers and manufacturers, compliance has become non-negotiable, with penalties for evasion tightening.

For consumers, the stamps serve as assurance that the product in hand is legitimate and that the purchase contributes, however modestly, to the public purse.

And for the state, each stamp represents a unit of revenue captured that might once have been lost.

Whether these efforts are enough to restore macroeconomic stability in the face of foreign exchange shortages, climate shocks, and political fragility remains uncertain.

What is clear is that authorities are betting heavily on domestic revenue measures as their best tool for navigating turbulence.

Kalondola and the EIS are no silver bullets, but they mark a deliberate step toward fiscal self-reliance, aligning Malawi’s practices with international standards while addressing immediate gaps in enforcement and compliance.

In a context where external financing is limited, such tools may well determine whether the government can maintain a grip on stability or see its fiscal position erode further.

For businesses, the alignment of compliance with national priorities offers both costs and benefits.

It imposes stricter oversight and potentially higher upfront expenses, but it also promises a more predictable and equitable operating environment.

For the state, it is a chance to rebuild credibility with citizens and external partners alike.

And for households, though the effects may be less visible in the short run, the promise lies in the possibility of better-funded services and infrastructure.

In the interplay between fiscal policy, business practice, and citizen trust, digitized tax tools have become a pillar of Malawi’s search for stability.

Enoch Chihana’s tax scandal: Why should Malawians trust him with fraud leadership?

…..AFORD under Chihana has been cozying up to the DPP, positioning itself as part of a so-called “Northern Alliance.

…..But Tuesday’s revelations make that partnership look less like a political strategy and more like a convergence of convenience among elites with questionable records..

.….It is no surprise, then, that his public defense sounded eerily similar to the DPP playbook..


By Ibrahim Mponda

When news broke on Tuesday that Malawi Revenue Authority (MRA) officers, backed by armed police, had descended on the Area 9 residence of Alliance for Democracy (AFORD) president Enock Chihana, the shockwaves rippled far beyond Lilongwe.

What unfolded was more than a tax compliance case; it was an indictment of the credibility of one of Malawi’s self-styled reformist politicians.

The MRA probe centers on AFORD-branded campaign materials, T-shirts and other items, imported through Dedza Border Post, allegedly under-declared to evade customs duty.

Chihana, who was quick to cry foul and brand the operation as “political,” maintains the goods were cleared by MRA officers a week earlier.

But his protests, instead of inspiring sympathy, have ignited uncomfortable questions about his fitness to hold public office, and, more importantly, about the company he now keeps in Malawi’s political landscape.

Enock Chihana, son of AFORD founder Chakufwa Chihana, has often spoken of his intent to restore AFORD’s relevance and reposition himself as a national leader. Only weeks ago, he told Malawians he could “fix the country in 100 days” if given the presidency.

But as Tuesday’s raid made clear, the problem is not about how fast one can fix the country. It is about whether the person making such bold claims has the moral capital, integrity, and financial discipline to be trusted with the nation’s coffers.

The optics of MRA officers seizing documents and threatening to confiscate electronic devices from a presidential aspirant’s home paint a damaging picture. Leadership is not about grand promises or nostalgia for one’s parent’s political legacy. It is about credibility, accountability, and trust.

If Chihana cannot ensure that his party pays the correct tax on imported campaign materials, why should Malawians believe he would safeguard billions of kwacha in public revenue once in office?

The scandal also casts Chihana’s recent alliance with the Democratic Progressive Party (DPP) in a troubling light.

AFORD under Chihana has been cozying up to the DPP, positioning itself as part of a so-called “Northern Alliance.”

But Tuesday’s revelations make that partnership look less like a political strategy and more like a convergence of convenience among elites with questionable records.

For years, the DPP has been synonymous with corruption, abuse of state resources, and impunity. From the infamous Midnight Six saga to the plunder of billions, the party’s history is littered with scandals.

Most recently, senior DPP figures such as Shadric Namalomba and Noel Masangwi have been arrested by the Anti-Corruption Bureau (ACB) over graft-related charges.

Now enters Enock Chihana, a man who positions himself as a reformist but whose own house is under investigation for tax fraud.

His alliance with the DPP suddenly makes sense, not as a political calculation for regional balance, but as a natural attraction among politicians who operate on the fringes of legality.

It is no surprise, then, that his public defense sounded eerily similar to the DPP playbook.

The Chihana episode also reopens an uncomfortable national debate.

Why does Malawi repeatedly entrust individuals with dubious financial or ethical records with the responsibility of leadership?

When the late Chakufwa Chihana founded AFORD, he did so on the ideals of democracy, transparency, and accountability.

His fight helped dismantle the one-party rule. Fast forward to 2025, and his son is in the headlines not for championing democracy, but for alleged tax dodging on imported political regalia.

This is more than irony, it is a betrayal.

For decades, Malawians have watched politicians who evade taxes, steal public money, or engage in shady business practices rise to positions of influence. Instead of facing permanent exclusion from leadership, such figures often find refuge in political alliances, riding on money and manipulation rather than values.

The result is predictable: public trust in politics collapses, state institutions are weakened, and the vicious cycle of corruption continues.

To its credit, the MRA acted decisively. But the real test will be whether this investigation leads to genuine accountability or whether it becomes another footnote in Malawi’s long history of selective justice.

Too often, politicians caught in the dragnet of law enforcement survive through political bargaining. Some switch parties, some strike deals, others cry victim until the scandal fades.

Chihana’s protestations of “political motives” are straight out of this handbook.

Yet Malawians deserve better. Tax evasion is not a trivial issue. Every kwacha lost through fraud is a kwacha stolen from hospitals, schools, and roads.

For a politician to be implicated in such acts while promising to fix Malawi in “100 days” is an insult to the intelligence of voters.

Malawians Must Ask the Hard Question
The question before Malawians, then, is stark: Why should someone like Enock Chihana be entrusted with national leadership?

This is not about political persecution. It is about standards. It is about recognizing that if leaders cannot demonstrate basic compliance with tax laws, they cannot be trusted with the far greater responsibility of managing national resources.

Malawians should resist the temptation to normalize corruption and financial misconduct in politics. To do so is to accept perpetual poverty, poor services, and failed governance.

The Chihana scandal should be a turning point. It must push Malawians to demand clean politics and reject leaders whose names are synonymous with fraud, tax evasion, or corruption.

Taxes are the lifeblood of any functioning state. If a politician aspiring for a position like second vice president of the country is found to be cutting corners on something as basic as customs duty, then Malawians must ask themselves what kind of leadership he represents-Governance analyst.

According to documents we have seen, the warrant issued by the Lilongwe Magistrate’s Court is linked to allegations that AFORD underpaid taxes on imported campaign materials, particularly branded T-shirts, brought into the country through the Dedza Border Post.

The warrant further authorizes MRA officers to seize a wide range of business records and electronic devices, including bank statements, invoices, importation documents, cheque books, receipts, and contracts, as well as computers, phones, and other storage devices.

In an interview shortly after the raid, Chihana confirmed being notified of the search but questioned its timing and motive.

“The consignment was cleared a week ago by their own officers. Why are they now coming to my house? I hope this is not political,” he said.

Chihana’s lawyer, Khwima Mchizi, who was present during the raid, told reporters that MRA officials did not seize any documents or property, following a brief standoff over the scope of the warrant.

“We insisted the search should be limited strictly to what the court authorized, which is tax-related records. At the end of the day, nothing was taken from the premises,” he said.

However, sources within MRA maintain that there are “reasonable suspicions” the consignment in question was undervalued, thereby defrauding the tax collector.

One officer, speaking on condition of anonymity, said investigators are probing whether AFORD deliberately under declared the value of the merchandise.

The development has sparked heated debate about Chihana’s suitability for leadership at a time when he is actively campaigning for DPP’s Arthur Peter Mutharika through an alliance agreement in which he was promised second vice presidency of the country.

Chihana has pledged that once the DPP is voted into power, the DPP-Northern Alliance will “fix Malawi in 100 days”, but the unfolding investigation raises questions about his integrity and financial accountability.

“Taxes are the lifeblood of any functioning state. If a politician aspiring for a position like second vice president of the country is found to be cutting corners on something as basic as customs duty, then Malawians must ask themselves what kind of leadership he represents,” said one governance analyst, reacting to the raid.

Chihana is the latest in a string of political figures to face scrutiny over alleged financial misconduct ahead of the elections. Critics argue that the episode underscores the need for stronger vetting of those who seek public office.

“Leadership demands trust. If someone entrusted with running government cannot demonstrate compliance with tax laws, then the question is simple: should they really be trusted with the nation’s coffers?” the analyst added.

The MRA investigation is ongoing.

MRA tax recognition award elates NBM plc

BLANTYRE-(MaraviPost)-National Bank of Malawi (NBM) plc has expressed gratitude and pride for the prestigious Certificate of Recognition it received for outstanding commitment to tax compliance and invaluable contribution to national development from the Malawi Revenue Authority (MRA).

The award was presented during MRA’s 25th anniversary celebrations held at Bingu International Conference Centre (BICC) in Lilongwe on Friday.

NBM plc Chief Finance Officer Daniel Jere said in an interview, that the recognition affirms the Bank’s position as a model corporate citizen.

He stated that over the years, the Bank has generated high profits, resulting in significant tax contributions to the national purse, often exceeding most players in the market.

“We are honoured to receive this recognition from MRA. It is testament to our commitment to fulfilling our tax obligations diligently and on time. By paying our taxes, we directly contribute to the development of Malawi, and we will continue to uphold this standard as part of our corporate responsibility,” said Jere.

Jere added that the recognition not only highlights NBM plc’s contribution to the country’s fiscus but also bears testimony to its dedication to national development.

This award inspires us to continue being exemplary in compliance matters. We understand that every tax kwacha we remit goes towards funding essential services and infrastructural development, amongst other needs, which are vital for the growth of our economy and the well-being of Malawians.”

“As one of the country’s leading financial institutions, NBM plc pledges to maintain the highest standards in tax compliance, continuing to contribute meaningfully to Malawi’s economic growth through timely and accurate payment of taxes,” explained Jere.

MRA’s 25th anniversary celebrations served as a platform to acknowledge organisations and individuals that have played a significant role in supporting the country’s revenue mobilisation agenda.

The event also reflected on MRA’s journey since its launch in 2000 and its role in funding Malawi’s development priorities.