The Business Licensing Regulations (G.N. 45/2014) issued under the Business Licensing Act restricts the carrying on of retail business by non-Malawians to only the six urban areas (central business districts) of Blantyre, Kasungu, Lilongwe, Luchenza (Thyolo), Mzuzu and Zomba. Conduct of retail business by non-Malawians in the rural areas of Blantyre, Kasungu, Lilongwe, Thyolo, Mzuzu and Zomba as well as in the other 22 districts of Malawi is prohibited.
"Business owned by non-Malawians
9.(1) A person, who is not a citizen of Malawi, who intends to carry out a business whose core activity is retail, in any local authority listed in the First Column of the Third Schedule hereto, shall operate within, the areas designated for that purpose in the Second Column of the Third Schedule hereto.
(2) A person may carry on a busines outside the areas designated under sub regulation (1) upon approval of the Chief Business Licensing Officer and the Investment Approval Committee.
[...]
Third Schedule (reg.9) [...]
Designated areas for non-Malawian business
First column / Second Column
Local authority / designated areas
Blantyre City Council / Central Business District
Zomba City Council / Central Business District
Lilongwe City Council / Central Business District
Mzuzu City Council / Central Business District
Kasungu Municipality Council / Central Business District
Luchenza Municipality Council / Central Business District[...]" (Business Licensing Regulations, 2014 (G.N. 45 of 2014))

Business Licensing Regulations, 2014 (G.N. 45 of 2014)
[<a href="https://www.businessmalawi.com/files/Malawi-Business-Licensing-Regulations.pdf">Reg</a>]