Fuel Transporters Confront Licensing Warning: Economic Shifts in Malawi

Key Business Points

• Review licensing deadlines to avoid penalties and keep fuel supply running.
• Negotiate payment in local currency to cut foreign‑exchange costs and improve margins.
• Boost partnerships with Nocma and regulators to prioritize local transporters and capture market share.

MALAWI – The Transporters Association of Malawi (TAM) warns that many members may skip renewing LFG transport licences, risking local fuel logistics. The regulator, Malawi Energy Regulatory Authority (Mera), issued a notice for the 2026/27 financial year, stating licences must be renewed by July 15, 2026, or operators will face revocation and fines. The notice also requires fuel importers to work only with licensed carriers, a rule that tightens the market for local truck owners. These rules affect kumapereka za makanda (fuel delivery) in Malawi.

Spokesperson Frank Banda said fewer than half of the 850 tankers operating in 2020 are still active. About 60 percent of the fleet has left the business because of financial strain and payment disputes. Local carriers now receive only around 10 percent of the business from the National Oil Company of Malawi (Nocma), mainly on the Dar es Salaam route. The rest of the fuel is moved by Tanzanian trucks that are paid in US dollars, while Malawi drivers are paid in kwacha.

He highlighted a cost gap. He said local transporters earn about K800 per tonne. This zolakha (price) is far below the cost of foreign trucks. A Tanzanian truck that brings fuel into Malawi costs roughly $13,500 (about K23.4 million) to operate. Because expenses are incurred in foreign currency, receiving kwacha payments forces drivers to buy forex on the black market, eroding profits. This disparity has led many operators to consider exiting the sector.

The payment issue stems from national procurement rules that require local transactions in kwacha. Martin Msimuko, general manager of Petroleum Importers Limited (PIL), defended the practice, noting the company’s model “prioritises Malawian operators” while foreign transporters are paid in foreign currency. He acknowledged the foreign‑exchange pressure but said the policy remains unchanged.

The Truck Drivers Union of Malawi, represented by Francis Mkandawire, reported numerous complaints to government and round‑table meetings, yet no concrete solution has emerged. Mera spokesperson Fitina Khonje said the regulator will continue talks and will share any agreement with the media.

Historically, local operators protested the Delivered Duty Unpaid (DDU) system used by Tanzanian carriers. In August 2024 the High Court banned the DDU arrangement after a case by the Fuel Tanker Operators Association. In April 2026, Mera responded by allocating 85 percent of contractual fuel volumes to Malawian transporters and opening offices at loading ports.

These developments offer two key opportunities for Malawi’s business community. First, local transporters can seek financial arrangements that reduce reliance on black‑market forex, such as export‑import credit facilities or government guarantees. Second, policymakers can explore reforming payment terms to better reflect operational costs, which could attract investment and keep more trucks on the road.

TAM remains optimistic that continued dialogue will produce a mutually beneficial outcome. If talks stall, the association says it will consult members on next steps, which may include collective bargaining or legal action. The upcoming licence renewal period is a critical moment for Malawi’s fuel logistics, and stakeholders are encouraged to act now to safeguard the sector’s stability and growth.

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