By Khumbo Msambala Salanje
Government has intensified its push for clean transport by maintaining strong incentives for Electric Vehicles (EVs) amid rising global fuel prices.
In the 2026/2027 National Budget, EVs remain completely duty-free and excise-tax free, making them the most tax-efficient vehicles in the country.
Hybrid vehicles also benefit from reduced excise tax rates of between 10 and 20 percent despite not enjoying the full exemptions granted to EVs.
The policy shift comes at a critical time with tensions in the Middle East, particularly the ongoing US–Israel–Iran conflict, global oil markets remain volatile, threatening further increases in petrol and diesel prices.
Malawi, which relies heavily on fuel imports, faces risks of inflationary pressure and foreign exchange strain and by promoting EV adoption, government aims to reduce dependence on imported fossil fuels and cushion citizens from external fuel shocks.
According to Sky Energy Africa Managing Director, Schizzo Thomson, government incentives on EVs, particularly the continued removal of customs duty and excise tax, is stimulating investment in clean energy solutions by significantly reducing the upfront cost of electric vehicles.
He said this is making EVs more accessible to businesses and individuals at a time when both Malawi and the global community are facing challenges related to fossil fuel imports and exports amid the ongoing US–Israel–Iran conflict.He added that such policy signals are likely to encourage private sector players to invest more in electric mobility, renewable energy generation and the development of charging infrastructure across the country.
“The removal of customs duty and excise tax on EVs is a progressive policy direction for Malawi. It lowers the cost barrier for EV adoption and sends a strong signal to investors that the country is serious about transitioning to clean and sustainable transport,” said Thomson.
He emphasised that, for the incentives to effectively accelerate Malawi’s transition towards clean transport and low-carbon mobility, there is need to sustain and complement them with supportive policies, including financing mechanisms and infrastructure development.
Thomson urged businesses and consumers to maximise these incentives by integrating electric vehicle adoption with renewable energy solutions, particularly solar photovoltaic (PV) systems, in order to build a fully sustainable and clean energy ecosystem.
He noted that high initial infrastructure costs, limited public awareness and uneven geographical coverage remain major technical and logistical challenges in expanding EV charging network nationwide.
“These barriers can be addressed through strengthened public-private partnerships, consistent policy support and continued investment in renewable energy and grid infrastructure,” he said.
Malawi Energy Regulatory Authority (MERA) Public Relations Officer, Fitina Khonje, said the Authority is finalising an e-mobility framework to guide the adoption and integration of EVs.
“MERA is collaborating with neighbouring countries to learn from their experiences and best practices in promoting e-mobility.“We are also participating in the E-Mobility Steering Committee, chaired by the Ministry of Energy with support from the World Bank, to drive the country’s e-mobility agenda forward,” Khonje said.
She added that MERA has worked with the Malawi Bureau of Standards to update the Malawi Wiring and Installation Standard to include technical requirements for EVs, providing clear guidelines for safe installation and charging.
Centre for Environmental Policy and Advocacy (CEPA) Executive Director, Herbert Mwalukomo, commended government saying maintaining custom duty and excise tax free on EVs is progressive and timely.
“It’s a positive development and encouraging as we fight climate change. Even though Malawi has not historically contributed much to global emissions, we suffer the impacts of climate change,” he said.
Although challenges such as limited charging infrastructure and higher upfront costs remain, the incentives signal a long-term government strategy to strengthen energy security, lower emissions and protect Malawians from global fuel price volatility.
