East Africa: Exclusive – Yamaha Faces Heat Over Monopoly Deal in Malawi – – COMESA Cracks the Whip
Yamaha Motors is in trouble with regional trade watchdog COMESA over plans to give one company, Paramount Holdings, full control to sell its products in Malawi. This move has sparked outrage among local businesses and triggered a formal investigation.
Sources say Yamaha quietly signed an exclusive deal with Paramount in 2023, cutting out other firms like Stansfield Motors and Luthando Holdings, which had been working with Yamaha through sub-dealer networks. COMESA says this kind of monopoly goes against its fair trade rules and hurts small businesses and consumers.
“Giving power to just one company kills competition and raises prices,” a source at the COMESA Competition Commission said. The commission has now summoned Stansfield Motors to a key meeting on July 14 in Blantyre to get answers.
Meanwhile, the matter is also in court. Stansfield and other dealers got a court order last year to block Yamaha’s exclusive deal with Paramount. They argue Yamaha should work with all qualified companies, not just one favourite, to create jobs and protect local traders.
There are also questions being raised about Malawi’s Director of Public Prosecutions, Masauko Chamkakala, with critics accusing him of turning a blind eye.
If Yamaha is found guilty of breaking COMESA rules, it could face heavy penalties and be forced to cancel the monopoly deal — a big win for fair business in Malawi.
By Nyasa Times.
