The Malawi Communications Regulatory Authority (MACRA) is setting up a ‘regulatory sandbox’ aimed at supporting innovation in digital products, services, and business models.
The idea behind the sandbox is to provide a controlled and flexible environment where companies can test solutions, without being subject to the full weight of standard regulatory obligations.
Currently, the programme is only open to local companies, with startups and SMEs particularly encouraged to apply. MACRA says that international participants may be considered in the future, based on the initiative’s progress.
The sandbox is designed to be adaptive to specific technology categories, tailored to reflect the relevant types of risks involved. For example, Artificial Intelligence projects may face stricter data protection and security standards, compared to other innovations.
“Consumer protection is central to the sandbox,” said Joseph Kadzokoya, project officer for the MACRA-Muuni Fund.
“All participants must implement safeguards, such as transparency in service terms, opt-in mechanisms for users, and strict adherence to data protection requirements. MACRA will continuously monitor testing activities to mitigate risks to the consumers,” he said.
Participants will receive regulatory guidance, technical oversight, and structured feedback throughout their testing period, said Kadzokoya.
While direct funding is not part of the programme, the regulator has said it will help facilitate linkages with industry experts and investors.
“Participants will receive temporary regulatory relaxation, such as exemptions from full licensing or certain compliance obligations, depending on the nature of their innovation. However, these flexibilities are limited, closely supervised, and do not compromise consumer safety,” he noted.
Each testing cycle will last between six to 12 months, depending on the complexity of the project.
The programme will have a limited number of participants per cycle to ensure focused support. MACRA has said that quality and manageability will take precedence over volume.
Applications will be assessed based on innovation potential, consumer benefit, scalability, adherence to safeguards, and policy contribution.
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