Malawi Shops Shut Down as Traders Defy MRA's New Electronic Invoicing System

Malawi's major commercial centres ground to a halt as wholesale and retail traders across Lilongwe and Blantyre shuttered their shops in a bold act of resistance against the Malawi Revenue Authority's (MRA) new Electronic Invoicing System (EIS). A spot check in Lilongwe revealed that most shops in major trading zones had remained shut since Saturday, with similar scenes reported in Blantyre's Limbe and Bwalonjovu areas. The closure has effectively frozen supply chains that feed small-scale traders and households across the country. The impact on ordinary citizens has been immediate and painful. Miriam Chatha of Area 49, who survives on selling second-hand clothes, described the situation as unbearable. The economic stakes are significant. The MRA has in recent months been collecting over K320 billion monthly in revenue — an average of K10 to K12 billion daily. Analysts warn that even a partial shutdown in major cities like Lilongwe and Blantyre over several days could delay or disrupt billions of kwacha in trade activity and tax flows. The MRA confirmed that its Electronic Invoicing System became mandatory for all VAT-registered businesses from 1 May 2026. The EIS replaces legacy Electronic Fiscal Devices (EFDs), representing a major step toward structured invoice reporting and real-time VAT data capture. Malawi's economy is already grappling with foreign exchange shortages, rising inflation, high transport costs, and weakening consumer demand. In such conditions, prolonged confrontation between the tax authority and traders risks further destabilising market confidence and investment sentiment. While the government maintains that the reforms are necessary for modernising tax administration and improving compliance, business stakeholders argue that abrupt rollout without adequate engagement and consultation risks disrupting livelihoods and trade. As the standoff continues, pressure is mounting on both sides to find urgent common ground before the economic damage deepens.