The Competition and Fair Trading Commission (CFTC) has ordered RAB Processors Limited to pay a fine as a percentage of its annual gross revenues, after being found that the company’s pricing practices were excessive and exploitative, disproportionately affecting consumers.
According to a statement signed by CFTC chief executive officer Lloyds Vincent Nkhoma, the Commission launched investigations against RAB Processors Limited (trading as Kulima Gold) on 21st January, 2025, following reports of exponential increases in fertilizer prices.
“The Commission found that the company’s pricing practices were excessive and exploitative, disproportionately affecting consumers. This conduct was deemed to violate Section 51 (q) of the Competition and Fair Trading Act (CFTA), which prohibits excessive or exploitative pricing in relation to consumers.
“Furthermore, the Commission determined that the company’s actions constituted unconscionable conduct under Section 51(g) of the CFTA, as they unfairly burdened consumers without regard for faimess or equity.
“The Commission further noted that fertilizer is a critical input for agriculture in Malawi, and such practices undermine food security and economic stability for farmers and the general public,” reads the statement in part
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The Commission also ordered the company to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in exploitative pricing of goods, contrary to section 51 (q) of the CFTA.
It has also ordered Rab Processors Limited to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in unconscionable conduct, contrary to section 51 (g) of the CFTA.
