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Country Commercial Guides for FY 2000: Malawi Report prepared by U.S. Embassy Lilongwe, released July 1999    Note*

CHAPTER IV. Marketing U.S. Products and Services

Distribution and Sales Channels

20. Product distribution in Malawi can be problematic since some rural areas are difficult to reach and become inaccessible during the rainy season (roughly November to April). In addition, there is negligible purchasing power outside cities. Some local companies have a network of rural distributors, but many firms opt to reach rural markets through wholesale arrangements with local entrepreneurs.

Use of Agents and Distributors

21. Subsidiary or affiliate companies of U.S. organizations operate in several areas including agro-industry and tobacco, computers/office equipment, and petroleum products. Finding partners or agents and distributors for U.S. products should not be difficult.

Franchising

22. There are no restrictions on franchising in Malawi

Direct Marketing

23. The Malawi business community is aware of a limited range of U.S. products. A U.S. company may market directly through an established importer, by winning a tender, or by opening an office in Malawi. Since most products imported into Malawi come from nearby South Africa, competitive pricing and reliability of supply are essential to enter and stay in the market.

Joint Ventures/Licensing

24. The Government of Malawi allows joint ventures under the Partnership Act. The amount and form of capital invested in a joint venture are not regulated. Joint ventures, however, must be licensed by the Registrar General in the Ministry of Justice.

Steps to Establishing an Office

25. The Government of Malawi is officially supportive of foreign businesses interested in establishing agency, franchise, joint venture, or licensing relationships. The Malawi Investment Promotion Agency (MIPA) publishes "A Roadmap for Investors" which may be obtained upon request. Other Malawi organizations useful in establishing commercial links with Malawi are: the Malawi Chamber of Commerce and Industry, the Malawi Development Corporation (MDC), and the Malawi Export Promotion Council (MEPC). (Addresses are provided in Appendix E).

Selling Factors/Techniques

26. Most manufacturers distribute their products through wholesalers or agents.

27. The U.S. Embassy in Lilongwe has a resident Economic/Commercial Officer and a local Economic/Commercial/Labor Specialist. The United States Information Service, also in Lilongwe, houses a small commercial library.

Advertising/Trade Promotion

28. Malawi has one television station which is government-funded. The elite own satellite dishes and videocassette recorders. Product advertisement can be done through the print media and radio broadcasting. The newspapers with the largest circulation are The Nation and The Daily Times. The Malawi Broadcasting Corporation (MBC) reaches significantly more Malawians than any other radio station or any of the print media.

Product Pricing

29. Prices for most goods are generally market-determined. Petroleum and sugar are still subject to some degree of price controls. The maize price floats within a Government-set price band. State-provided utilities and services (telephones, water, electricity, etc.) are also subject to varying degrees of government price administration. International phone calls are very expensive.

Sales Service/Customer Support

30. A number of companies and agents offer these services.

Selling to the Government

31. The Government of Malawi issues periodic tender notices for supplies and services in local and international publications 15 to 90 days before the bids are due. Detailed bid documents are normally obtained from a specific Government ministry, department or agency for a non-refundable fee. Completed bids accompanied by a specified deposit are usually submitted to The Secretary, Malawi Government Central Tender Board (MGCTB), Kirkcaldy House, Livingstone Avenue, P.O. Box 51300, Limbe, Blantyre, Malawi. Bids are often opened in the presence of bidders or their representatives. The Embassy sends Trade Opportunity (TOP) telegrams with information on major public bids to the National Trade Data Bank (NDTB - see paragraph 31) at the U.S. Department of Commerce in Washington, DC.

Protecting your Product from IPR Infringement

32. See paragraph 57.

Need for a Local Attorney

33. A local attorney is required only when preparing "Articles of Association" before registering a company.

Checking Bona Fides

34. Firms that specialize in verifying the authenticity, diligence, and bona fides of banks, agents, and customers do not exist in Malawi. It is not difficult, however, to obtain information on business entities.