In July 2025, Parliament passed Act 2 of 2025 — the Liquid Fuels and Gas Amendment Act — introducing a new government-to-government (G2G) arrangement for fuel importation into Malawi. Under the new framework, fuel imports are handled through a direct government-to-government agreement rather than through the existing private sector import arrangements.

Why this change was made

Malawi has faced recurring fuel shortages over recent years, driven by a combination of factors: limited forex availability to fund private sector imports, logistics constraints at Mozambican and Tanzanian ports, and the vulnerability of private import supply chains to payment delays.

The G2G model is intended to provide greater supply security and — in theory — better pricing through the elimination of private trader margins. Several other African countries have adopted similar arrangements for strategic imports.

What it means for fuel availability

The change in import mechanism does not eliminate the underlying forex constraint that has driven shortages. However, it does give the government more direct control over the supply chain and the ability to prioritise fuel supply as a policy matter.

For businesses in Malawi, fuel availability has been a persistent operational challenge. Queues at fuel stations, rationing, and price spikes are part of the operating environment that any company managing transport, generators, or machinery must plan for. The G2G arrangement is unlikely to eliminate these challenges entirely, but a more stable import mechanism should reduce the frequency and severity of acute shortages.

Implications for businesses with fuel-dependent operations

Any company operating vehicle fleets, generators, or fuel-powered machinery in Malawi needs an explicit fuel management plan. This includes:

  • Fuel storage capacity on-site to buffer against supply gaps
  • Relationships with suppliers who can access allocation when availability is constrained
  • Cost modelling that assumes price volatility, not stable fuel prices

The G2G arrangement does not change this calculus fundamentally. It may improve baseline availability, but the prudent approach for any operations-intensive business is to plan as if fuel scarcity remains a real risk.

Our read

The move to G2G fuel imports is a structural reform that reflects the government’s recognition that fuel security is too important to leave entirely to private market dynamics in Malawi’s current forex environment. For companies doing operational planning, it is a positive development in the medium term — but not a reason to reduce fuel contingency planning.

Sources: Bridgepath Capital, Malawi Parliament records.