In a significant overhaul of Malawi’s trade regulations, the new Competition and Fair Trading Act (CFTA 2024) has filled critical gaps in the 1998 legislation, paving the way for a fairer and more competitive business environment.
Lloyds Nkhoma, Executive Director of the Competition and Fair Trading Commission (CFTC), revealed that the CFTA 2024, which came into effect on July 1, has clarified ambiguities in the earlier Act, including enhancing consumer protection.
Nkhoma who was speaking at a media training in Blantyre on Thursday, explained that the new law introduces mandatory merger notification, replacing the voluntary system, to prevent anti-competitive mergers. The definition of a consumer has been broadened to include users of digital products, beneficiary consumers, and those using goods or services for production purposes.
Nkhoma stated, “The Act now prohibits enterprises from abusing their buyer power, protecting vulnerable farmers and small businesses from exploitation. Additionally, penalties and enforcement mechanisms have been strengthened with the introduction of administrative orders and monetary penalties for violations.”
The new law also subjects commissioner appointments and removals to parliamentary scrutiny, ensuring accountability and transparency. Furthermore, settlement and leniency programs have been introduced, allowing errant enterprises to negotiate remedies for violations.
By addressing these gaps, the CFTA 2024 strengthens consumer protection, promotes fair competition, and provides a more effective framework for regulating business practices in Malawi.
Nkhoma has called on journalists in Malawi to champion awareness about the newly enacted Competition and Fair Trading Act, 2024, to ensure a well-informed public.
