INQUIRY ON THE PROPOSED EXCLUSIVE DEALING ARRANGEMENT AND RESALE PRICE MAINTENANCE BETWEEN SEEDCO MALAWI AND ITS DISTRIBUTORS

The Competition and Fair Trading Commission (the “Commission”) is a Government agency established under the Competition and Fair Trading Act No. 20 of 2024 (“CFTA”) with a mandate to regulate, monitor, control and prevent acts or behaviour, which are likely to substantially affect competition and fair trading in any market in Malawi. In pursuance of its mandate, the Commission undertakes various activities including market inquiries, which seek to establish potential impact of trade agreements or arrangements on competition and consumer welfare in the relevant markets and the Malawi economy in general.

It is against this background that the Commission intends to undertake a market enquiry into the proposed Exclusive Dealing Arrangement (“EDA”) and Resale Price Maintenance (“RPM”) between SeedCO and its distributors. For your own information, an EDA is a vertical agreement where a supplier restricts a buyer to only purchase their products, or a buyer restricts a supplier to only sell to them, thus prohibiting dealings with competitors; while RPM is a vertical business practice where manufacturers or suppliers dictate the price at which retailers must sell their products, thus restricting competition amongst retailers.

In view of the above, the Commission kindly requests traders, consumers, the general public and other stakeholders in the seed industry to provide their information regarding the proposed EDA and RPM between SeedCo and its distributors. The Commission will be grateful for all the support you will provide to its staff during this enquiry, whose findings will assist the Commission to make its decision on the matter as provided for under Section 30 of the CFTA. Please, take note that the enquiry will take place from 28th April to 15th May, 2026; and your information will be treated with strictest confidentiality.

In case you need clarifications or further details concerning any aspect of this enquiry or you need a questionnaire or you want to send your responses, please, do not hesitate to contact the Commission through our Toll-free line 2489 or the Commission’s email address competitioncommision@cftc.mw. You may also contact us through our Competition Analyst,  Khumbo Kawonga, on phone number +265 994 275 584 or email khumbo.kawonga@cftc.mw. Thanks in advance for your usual cooperation.

Desmond Kaunda

CHIEF EXECUTIVE OFFICER