1. INTRODUCTION
1.1. Background
Major reforms in the ICT Sector of Malawi go as far back as the 1990s with the advent
of sector liberalisation through the separation and commercialisation of the then
incumbent Telecommunications operator, Malawi Posts and Telecommunications
Corporation (MPTC) into the Malawi Telecommunications Limited (MTL) and Malawi Posts
Corporation (MPC). Subsequent major reforms include the implementation of the
Communications Sector Policy (1998) and the Communications Act (1998) that led to the
establishment of the Malawi Communications Regulatory Authority (MACRA). Due to
advances in technology over the years, the Communications Act (1998) was reviewed in
2016 and also the Electronic Transactions and Cyber Security Act (2016) were enacted.
These are the two current legislations for the sector.
Currently, the mobile penetration rate in Malawi is quite low in comparison to the average
African penetration rates, highlighting the tremendous potential for further growth in
Malawi. Currently, the mobile penetration rate is at 45 percent compared to the African
region average of 77.8 percent. The broadband access prices in Malawi are among the
highest in the region due to high cost and limited availability of international bandwidth.
However, the internet sector has about 50 licensed ISPs out of which only 20% are active.
The mobile penetration and broadband are expected to grow exponentially over the next
couple of years. Since, the current mobile market in Malawi is a duopoly, the Government
of Malawi has introduced a converged licensing regime in an effort to encourage further
market competition and growth. It is expected that the converged licensing regimes
will introduce new entrants into the sector and enhance competition resulting in lower
prices. In addition, service providers in Malawi have launched 3G services, invested in
LTE infrastructure or continued to extend their WIMAX wireless broadband networks.
Furthermore, Malawi gained access to international submarine cables recently following
the completion of a transit link via neighbouring countries and is currently deploying a
national fibre backbone.
As a result of these recent developments within the sector, as well as the high potential
for further rapid proliferation of ICTs within Malawi, it is evident that Malawians
will increasingly get connected to the Internet and use ICTs overtime. This increased
connectivity and use of ICT’s come with increased threats to activities of businesses and
people in Malawi. If Malawi is to fully leverage ICTs to spur socio-economic development
of the nation, it has to be ready and capable of addressing these threats.
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