Malawi Procurement Law & Compliance Guide

1. Primary Legislation

Key Reforms in the 2025 Act

Subsidiary Legislation (Still in Force)

The 2020 Regulations continue in force under transitional provisions (s.98(2)) to the extent they are not inconsistent with the 2025 Act.

2. PPDA — The Regulatory Authority

The Public Procurement and Disposal of Public Assets Authority (PPDA) is established under Section 4 of the PPDA Act 2025 as an independent body corporate responsible for regulating, monitoring, and overseeing all public procurement and disposal in Malawi.

Key Functions (s.5)

• ✓Develop standardized regulations, guidelines, and bidding documents
• ✓Set monetary procurement thresholds via Gazette notice
• ✓Issue "No Objection" for procurements above threshold levels
• ✓Maintain and circulate lists of debarred bidders and suppliers
• ✓Conduct procurement audits and investigate mis-procurement
• ✓Hear administrative reviews of bid protests
• ✓Suspend or debar any bidder, supplier, or contractor
• ✓Collect a 1% levy on procurement and disposal contracts (s.21)

Governance (s.7–9)

The PPDA Authority consists of nine members: six appointed by the Minister (subject to Public Appointments Committee approval) and three ex-officio members (Secretary to the President and Cabinet, Secretary to the Treasury, Solicitor General).

Members serve 3-year terms with one re-appointment. The Director General is appointed through open competitive process and must hold a Master's degree with at least 10 years executive management experience.

3. Procurement Methods

Open tender is the default. Section 38(1): "A procuring and disposing entity shall undertake public procurement and disposal proceedings by means of open methods of tender proceedings." Any non-open method requires written application to the Authority.

4. Procurement Thresholds

The Act delegates threshold-setting to the PPDA via Gazette notice (s.6(1)(a)). Thresholds are adjusted periodically — the most recent revision is the PPDA Circular effective 1 April 2024.

Exact MK threshold amounts are published in PPDA circulars, available at ppda.mw/circulars. Tenders below MK 50 million are typically published only in newspapers and not on the PPDA website.

5. Bidder Requirements

Eligibility (s.75)

To be eligible for a procurement contract, a bidder must:

• ✓Be registered with the Registrar of Companies or Registrar of Business Names, and with any applicable professional regulatory body
• ✓Be tax compliant (valid tax clearance from MRA)
• ✓Disclose beneficial ownership in accordance with the Companies Act
• ✓Not be debarred from procurement under the Act

Disqualifying Conditions (s.75(2))

A procuring entity cannot contract with a bidder that is:

• ✗Bankrupt or insolvent
• ✗In receivership or being wound up
• ✗Under court or judicial administration
• ✗Subject to legal proceedings for any of the above

Qualification Assessment (s.76)

Procuring entities may assess bidders on: legal capacity, professional and technical qualifications, financial resources, equipment and facilities, personnel and managerial capability, and past performance (including legal disputes, convictions, or false statements in the last 3 years).

7. Procurement Process Rules

Where Tenders Must Be Published (s.56)

• •The Government Gazette
• •At least one widely circulated national newspaper
• •Electronic media
• •The PDE's website and the PPDA website
• •Displayed at the PDE's head office
• •For ICB: additionally in internationally recognized business portals

Minimum Bidding Periods (s.58(5))

A shorter period requires prior PPDA approval (s.58(6)).

14-Day Standstill Period (s.70)

Before signing any contract above a prescribed threshold, the procuring entity must publish a notice of intention to award for 14 days in the Gazette, a national newspaper, the PPDA website, and the PDE's website. This gives unsuccessful bidders time to review the decision and submit complaints.

Evaluation Rules (s.62)

• •Evaluation must follow criteria set in the bidding document
• •Evaluation must start within 7 days of bid opening
• •Lowest evaluated bid wins for procurement
• •No negotiation on substance or price of bids (except single source)
• •Bidders or representatives may attend bid opening (including virtually)

Other Key Rules

• •Language: All communication must be in English and in writing (s.33)
• •Record keeping: Records must be maintained for 7 years (s.32)
• •Contract extensions: Maximum 12 months; beyond that requires PPDA No Objection (s.73)
• •Bid security: Must be provided if required by bidding documents; refusal to extend bid validity does not forfeit security (s.59, s.68)

9. Complaints & Appeals

Any bidder who has suffered or may suffer loss due to a breach of duty by a procuring entity may seek a review under Part XI of the Act (s.82).

PPDA Remedial Powers (s.83(10))

• ✓Prohibit unlawful acts by the procuring entity
• ✓Annul the unlawful decision (whole or part)
• ✓Revise or substitute the decision
• ✓Compel the PDE to pay the applicant's bid preparation and review costs
• ✓Report officials to oversight bodies for disciplinary action or prosecution

10. Anti-Corruption Provisions

Prohibited Conduct — Bidders (s.78)

• ✗Corrupt practices — offering improper inducements to influence procurement
• ✗Fraudulent practices — misrepresentation of facts
• ✗Collusion among bidders — artificial, non-competitive price levels

Prohibited Conduct — Public Officials (s.80)

• ✗Acting partially or not in the public interest
• ✗Conflicts of interest
• ✗Interfering with or exerting undue influence on procurement
• ✗Breaching confidentiality obligations

Disclosure of Interest (s.93)

Members of the Authority, committees, evaluation teams, and procurement units must disclose any direct or indirect interest. If undisclosed and the decision benefits that person, the decision is null and void.

Penalties

Debarment (s.79)

The PPDA can debar suppliers for false information, collusion, corruption, price fixing, contract misconduct, or repeated failure to comply with contract terms. Owners and directors of debarred companies are personally debarred. Debarment decisions are reviewable by the High Court. The PPDA maintains and publishes a list of debarred entities.

11. International & Donor Procurement Rules

Section 3(2)(j) of the Act: Donor procurement rules override national law when the rules conflict and the financing agreement makes donor rules mandatory. Otherwise, national procurement law applies.

14. Key Contacts & Resources

Government Agencies

Legal Resources

International Procurement Portals