Malawi has introduced several economic and policy changes affecting international visitors in 2026. Alongside the country’s new reciprocal visa policy, travellers should now also plan for a VAT increase to 17.5% and a requirement to pay accommodation in foreign currency.
VAT increase to 17.5%
From 01 January 2026, Malawi increased its standard VAT rate from 16.5% to 17.5%.
Travellers can expect a small price increase across tourism services such as:
- Hotels and lodges
- Safaris and guided tours
- Transport and restaurant meals
The impact is modest but worth factoring into your travel budget.
Accommodation must be paid in foreign currency
Malawi now requires foreign visitors to pay hotel and lodge bills in hard currency, typically:
- US Dollars (USD)
- Euros (EUR)
- British Pounds (GBP)
This applies to hotels, safari lodges and camps nationwide. While many properties already priced in USD, the rule now formalises this practice.
Why the rule was introduced
Malawi is currently experiencing a shortage of foreign currency. Tourism is a key source of hard currency, and the government wants tourism revenue to flow directly into official reserves.
How to prepare for Malawi travel in 2026
What this means for travellers
- Expect accommodation prices to be quoted and charged in USD or EUR
- International credit cards are increasingly accepted and preferred
- Bring some foreign currency as a backup
- Use Malawi Kwacha (MWK) for daily expenses such as restaurants, transport, markets and tips
Bottom line for travellers
- VAT: now 17.5% > small overall price increase
- Accommodation: payable in foreign currency
- Daily spending: still in Malawi Kwacha (MWK)
With basic payment planning, Malawi remains an easy and rewarding destination for safaris, Lake Malawi holidays and overland travel.
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