New Labour-Tech Tool Targets Informality Reduction

Malawi’s technology sector has marked a milestone with the launch of Antchito, a homegrown workforce-management application designed to formalize employment relationships, simplify payroll processes, and strengthen workplace compliance. Developed by local entrepreneurs in partnership with the Ministry of Labour and the Malawi Communications Regulatory Authority, the platform aims to digitalize employment documentation for small and medium-sized enterprises (SMEs) and domestic employers.

The app allows users to register employees, generate payslips, and file statutory contributions directly through mobile devices. With smartphone penetration estimated at 43% and rising, officials believe digital solutions like Antchito can expand social-security coverage and transparency in wage payments—long-standing gaps in Malawi’s informal-dominated labor market.

Malawi’s unemployment rate stands near 5.6%, but underemployment remains widespread, with over 80% of the workforce engaged in informal or semi-formal activities. The International Labour Organization estimates that digital employment tools could improve tax compliance and reduce disputes by creating verifiable records of hours and pay. Employers using Antchito will receive automatic reminders for contract renewals and compliance deadlines linked to pension and health schemes.

The initiative complements the government’s Digital Malawi Programme, supported by the World Bank, which seeks to enhance connectivity, promote e-services, and strengthen digital entrepreneurship. Developers report that over 1,200 small businesses pre-registered for the beta version, covering sectors from construction and hospitality to domestic work. The platform operates on a freemium model, charging subscription fees only for expanded analytics and bulk payroll features.

The kwacha (MWKUSD=X) remains under depreciation pressure near 1,760 per dollar, raising input costs for firms reliant on imported ICT hardware. Inflation, hovering at 9.8%, limits disposable income but also motivates small businesses to optimize workforce efficiency. The central bank has maintained its policy rate at 24%, citing the need to stabilize currency and contain price volatility.

If adoption scales as projected, Antchito could enhance formal employment recordkeeping for up to 250,000 workers within three years, generating valuable data for fiscal planning and labor-market analysis. The platform’s emphasis on transparency, compliance, and convenience could help reshape Malawi’s SME ecosystem—one app download at a time.