The Ministry of Trade and Industry has shut down Al Baddar Shop in Lilongwe for selling cement at prices far exceeding government-set limits, highlighting ongoing concerns about price manipulation in Malawi’s construction materials market.
The shop was closed on September 3, 2025, following thorough investigations by ministry officials into cement pricing practices. The closure represents part of broader government efforts to ensure fair pricing of essential commodities.
According to the ministry’s press release issued on September 5, the trader was supplied cement through the government’s forex initiative at an agreed price of K26,000 per 50kg bag. However, investigations revealed the shop was selling the same cement to consumers at K43,000 per 50kg bag – a markup of over 65% above the agreed price.
The government’s forex initiative was designed to help stabilize cement prices by providing favorable exchange rates to importers, with the understanding that these savings would be passed on to consumers.
The ministry warned that such pricing practices violate the Competition and Fair-Trading Act (CFTA), specifically Section 51(q), which prohibits excessive and exploitative pricing. Businesses found guilty of such violations face monetary penalties of up to 10% of their gross annual turnover.
“The Ministry, therefore, strongly warns any distributors and traders against overpricing of the imported product,” the press release stated, emphasizing that authorities will continue monitoring the market alongside the Competition and Fair-Trading Commission.
The closure of Al Baddar Shop signals the government’s commitment to protecting consumers from price exploitation. The Ministry of Trade and Industry, working with the Competition and Fair-Trading Commission, has implemented market surveillance exercises to monitor pricing practices across the construction materials sector.
The government has called on the public to remain vigilant and report suspected cases of unfair trading practices through the toll-free line 2489.
The cement industry plays a crucial role in Malawi’s construction and infrastructure development sectors. Price manipulation in this market can significantly impact both individual consumers building homes and larger construction projects essential for economic development.
The government’s intervention comes as authorities work to restore market sanity and ensure that benefits from favorable government initiatives reach ordinary consumers rather than being absorbed by traders seeking excessive
