The Malawi Communications Regulatory Authority (MACRA) is launching a ‘regulatory sandbox’ to foster innovation in digital products, services, and business models.
This sandbox concept offers companies a controlled and flexible setting to test their solutions without complying with the full array of standard regulatory requirements.
This initiative is open exclusively to local entities, particularly encouraging applications from startups and small to medium-sized enterprises (SMEs). MACRA has indicated that international participants may be welcomed in the future, depending on the initiative’s progress.
The sandbox will be tailored to address specific technology categories, considering the unique risks associated with each. For example, projects involving Artificial Intelligence will likely face stricter data protection and security standards than other types of innovations.
“Consumer protection is a fundamental aspect of the sandbox,” stated Joseph Kadzokoya, project officer for the MACRA-Muuni Fund.
“All participants must implement safeguards, including transparency in service terms, user opt-in arrangements, and strict compliance with data protection regulations. MACRA will continuously oversee testing activities to minimise consumer risks,” he added.
During their testing period, participants will benefit from regulatory guidance, technical support, and organised feedback, according to Kadzokoya.
While direct funding is not included in the program, MACRA will help create connections with industry experts and potential investors.
“Participants will enjoy temporary regulatory relief, such as exemptions from full licensing or certain compliance requirements, based on the specifics of their innovations. However, these flexibilities will be limited, closely monitored, and will not compromise consumer safety,” he emphasised.
Depending on the project’s complexity, each testing phase will last between six and twelve months.
The program will limit the number of participants in each cycle to ensure dedicated support. MACRA has stated that the focus will be on quality and manageability rather than sheer volume.
Applications will be evaluated based on their potential for innovation, consumer benefits, scalability, adherence to safety measures, and overall contribution to policy.
