Thousands of business operators across Malawi staged widespread protests in early February 2026, closing their shops and marching to government offices to denounce planned tax changes, particularly the introduction of an Electronic Invoicing System (EIS) aimed at tightening tax reporting and widening the revenue base. The demonstrations, which took place over several days in major urban centres including Blantyre, Lilongwe, Zomba and Mzuzu, forced the government to delay the rollout of the EIS — initially due to take effect this week — until April amid mounting pressure from traders who say the reforms will further strain an already fragile economy.
Business owners from the informal and small-scale sectors, many dressed in black as a sign of distress, shuttered their businesses en masse and carried petitions to Malawi Revenue Authority (MRA) offices calling for the abandonment of the new system. They argue that the EIS — which requires traders to issue electronic tax invoices and upload stock records in real time — will impose additional costs and administrative burdens at a time when many are already struggling with acute economic pressures. These pressures include a chronic shortage of foreign currency, forcing importers to buy dollars at inflated black market rates; rising prices for fuel and electricity; and cuts in foreign aid that have weakened purchasing power and squeezed businesses’ operating margins.
The protest movement was characterised by both its scale and relative peace, with tens of thousands of signatures on petitions presented to tax officials and large numbers of traders participating in marches during the past week. In Blantyre, representatives of small business owners told officials that without urgent relief, many firms risked closure because of the compounded effect of economic challenges and new reporting requirements. “Our businesses are under threat because of the economy,” said one demonstrator after delivering a petition to the MRA. Traders fear that having to declare stock values and comply with EIS reporting will drive up the cost of goods, making their prices less competitive compared with neighbouring countries.
The MRA has defended the system, saying the EIS is a technical measure designed to modernise tax collection and reduce evasion by bringing more accurate data into the formal tax net. Public notices issued by the authority outlined that the EIS was introduced under amendments to Malawi’s VAT law and requires businesses to transition from older Electronic Fiscal Devices (EFDs) to the new software platform, with non-compliant tax invoices no longer acceptable for input VAT claims after the deadline.
Government officials, including the minister of finance, have urged citizens to remain resilient as authorities pursue fiscal reforms to stabilise the economy, cut expenditure and improve revenue collection. President Peter Mutharika, elected last year with pledges to revive the economy, has overseen a series of controversial fiscal adjustments, including increases in fuel and electricity prices. Economists acknowledge that while the measures are rational in theory — potentially boosting revenue and improving transparency — implementing them amid severe macroeconomic instability could deepen hardship for those in the informal sector who lack the resources to absorb new compliance costs.
The protests in Malawi reflect broader tensions around digital tax systems in Africa, where countries such as Kenya, Nigeria, Egypt and Uganda are also adopting electronic invoicing and real-time reporting frameworks to enhance tax compliance and broaden fiscal capacity. Yet in contexts of economic distress, these reforms have sparked resistance from traders who argue that their immediate survival should take precedence over long-term revenue goals.
