The United States (US) State Department has said corruption remains a major obstacle to doing business in Malawi.
In its 2025 Investment Climate Statement for Malawi, the US State Department notes that although some progress has been made to curb the vice, firms with US affiliations have reported irregularities in tender processes and mining licensing.
The US State Department says despite these challenges, the companies have continued to pursue business opportunities in the country.
The Investment Climate Statement says corruption, fraud, bribery of public officials, illicit payments, misuse of funds and conflicts of interest are reportedly common in Malawi.
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It adds that several high-profile government scandals have occurred under all recent presidential administrations.
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According to the report, although corruption in all its forms is illegal in Malawi, enforcement remains insufficient and slow.
The 2025 Investment Climate Statement further says Malawian law requires all public officials at all levels of government to declare their assets and business interests.
“However, access to view or obtain copies of the declarations is difficult at best and the law does not extend to family members,” it says.
The US State Department adds that although all public officials are required to disclose any conflict of interest and to recuse themselves from any deliberation or decision-making process related to such conflicts, there is no clear definition of what constitutes a conflict of interest.
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“In practice, the requirements for public asset declarations, political party financial reporting, and conflict of interest disclosures are rarely enforced, and noncompliance is high,” it says.
ACB acting Director General Gabriel Chembezi asked for more time before commenting on the matter.
In its 2025 Annual Economic and Business Review, the Malawi Confederation of Chambers of Commerce and Industry (MCCCI) says foreign exchange scarcity emerged as the most significant business challenge in 2025, with 74.1 percent of respondents ranking it among their top three constraints.
The review says inflation was cited as the second most critical challenge, at 70.4 percent, followed by rising input costs at 55.6 percent, policy uncertainty at 29.6 percent, and high interest rates at 22.2 percent.
According to the MCCCI, only 3.7 percent of respondents reported not being affected by foreign exchange shortages, while 63.0 percent said they were severely and frequently impacted, highlighting the widespread and persistent nature of the challenge.
