Our comprehensive assessment of Malawi's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Malawi, as well as the latest industry developments that could impact Malawi's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Malawi before your competitors.
Malawi Industry Coverage (3)
While poor affordability will continue to hurt the new car component of the market in 2015, first registrations of second hand cars are facing their own obstacles as increased import taxes begin to price consumers out of the market. As such, we forecast total first registrations of cars to contract by 7.1% in 2015 and only expand slightly by 4.1% in 2016.
In February 2015, the parliament was requested to consider reducing import taxes as the increase in prices is having the two-fold effect of both hurting consumers who are now finding it hard to afford even a used car, and putting small dealers out of business. The import tax was increased in a bid to solve the problem of older cars increasing pollution levels in the country. However, dealers argue that by the time consumers finish paying for more expensive second-hand cars, they are already no longer roadworthy, which firstly defeats the purpose of a tax aimed at improving the condition of...
BMI View: The Q1 2016 East Africa report analyses the latest industry, regulatory and macroeconomic developments within the telecommunications markets in Burundi, Ethiopia, Malawi, Rwanda, South Sudan and Sudan. These six markets are characterised by several challenging business dynamics, including low consumer spending power, high infrastructure costs, large rural populations with poor access and, some cases, politically volatile environments. Limited competition in several of these markets, along with unfavourable fiscal regimes, creates considerable downside risks to market growth. 3G and 4G subscriber penetration rates, as well as their share of total mobile subscriber bases, are expected to remain among the lowest in the world for the foreseeable future.
|3G And 4G Subscribers to Increase Share of Total Mobile Market|
|East Africa Mobile Market Forecasts|
Latest Updates & Industry Developments
We now estimate Malawi had 6.39mn mobile telephony subscribers at the end of 2015, up by 10.6% y-o-y and equivalent to a mobile penetration rate of 36.5%. In the five years to 2020, we forecast Malawi's mobile market will reach 9.755mn mobile customers. 3G subscriptions are expected to grow from 20.2% of mobile subscriptions in 2015 to almost 29% of the total market in 2020.
BMI estimates Mozambique had around 15.16mn mobile subscriptions at end-2015, representing a 5.4% quarterly decline and a 0.3% y-o-y increase. This gave the country a mobile penetration rate of 58.5%. We now expect 3.5% growth for 2016 and forecast that, by...