Africa-Press – Malawi. Malawi’s fiscal story in recent years has been one of crisis stacked upon crisis.
Tropical Storm Ana and Cyclone Gombe in 2022, Cyclone Freddy in 2023, and a brutal drought in 2024 battered the economy, crippling agriculture, disrupting supply chains, and tearing at an already fragile financial system. As donor support dwindled, the government’s fiscal space shrank, foreign exchange dried up, inflation soared, and households and businesses were pushed to the edge.
With no lifeline from outside, authorities are betting big on domestic revenue mobilization as the only path to survival.
The Ministry of Finance has set its sights on slashing the fiscal deficit to 6 percent of GDP. A near 40 percent surge in tax revenue in 2024/25 has boosted confidence, fueled by stronger policy and — crucially — smarter administration. At the center of this transformation is technology.
The Malawi Revenue Authority (MRA), with Swiss tech partner SICPA Malawi, has rolled out digital excise tax stamps branded Kalondola. The rollout began in May 2024 with cigarettes and alcohol before extending in July to bottled water, soft drinks, energy drinks, lotions, teas, and more. Every bottle, packet, and can now carries a secure stamp — proof of tax paid and a shield against smuggling and counterfeits. Even big players like Castel Malawi have backed the move. Corporate Affairs Director Gloria Zimba urged Malawians to reject unstamped goods, saying, “The stamps allow the government to realize the correct amount of revenue to invest in essential services and economic growth.”
Kalondola isn’t just cosmetic. In February 2025, it was fully integrated with ASYCUDA, the customs management platform. Importers can no longer clear goods without tax stamps — a game-changer at Malawi’s notoriously porous borders. “The implementation has successfully achieved one of its key objectives,” said Wilma Chalulu, MRA’s Acting Head of Corporate Affairs. “All import declarations for the specified tariff lines are now accompanied by tax stamps.” To lock this in, SICPA trained 60 officers nationwide, testing them in real field settings like the Mchinji One-Stop Border Post.
Tax stamps are only one piece of the puzzle. With World Bank support, MRA is also deploying the Electronic Invoicing System (EIS) — real-time tracking of sales to fight VAT fraud, strengthen audits, and widen the tax net. Together, Kalondola and EIS are reshaping how Malawi collects revenue, cutting leakages and restoring fairness in the marketplace.
The IMF has praised these efforts, urging Malawi to keep excises on gaming, gambling, airtime, and jewelry while tightening anti-smuggling measures. It also recommends moving toward specific excises on alcohol, tobacco, and vehicles, to align with regional standards. Malawi’s adoption of digital stamps and invoicing shows it is heeding advice — even without an IMF program in place.
Challenges remain. Malawi still owes US$669 million to commercial creditors, its exchange rate is overvalued, and climate shocks won’t relent. Yet revenues, now at 19.1 percent of GDP, are projected to keep climbing as compliance strengthens. In shops and markets, the change is visible: stamped goods dominate shelves, signaling a shift in governance. For businesses, compliance is no longer optional. For consumers, stamps are a guarantee of legitimacy. For government, every stamp is a victory in the fight for stability.
Kalondola and the EIS are no cure-all. But they represent Malawi’s clearest shot at fiscal self-reliance after decades of dependency. For businesses, the reforms bring both cost and fairness. For government, they offer credibility. For households, they promise — eventually — better services. In Malawi’s search for stability, technology has become the new pillar of trust, compliance, and resilience.
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