Laws and Regulations

Legal and Judicial System

Malawi’s legal system is founded on English Common Law.  The constitution of the Republic of Malawi (1995) enshrines the basic freedom to invest, freedom to own property, and guarantees fair compensation in the event of expropriation.  The court system is categorized into the Magistrate’s Court, the High Court, and the Supreme Court of Appeal.  The country also has a commercial courts to accelerate the settlement of business-related litigations.

Freedom to Invest

The government welcomes private investment and does not impose restrictions on the ownership or location of investment. Foreign Direct Investment is permitted in all sectors of the economy except for those sectors or activities that may pose a danger to health, the environment or the security of the nation.  Noteworthy is the freedom of entry and exit in terms of investment in the country.

Repatriation of foreign exchange

Foreign exchange operations in Malawi are governed by the Exchange Control Act. Investors are permitted full remittance of dividends, investments capital on repatriation, interest and principal payments for approved international loans, and approved feed for managements, licenses, royalties and similar obligations.   The Anti-Money Laundering Act was passed in August 2006 to enhance the soundness and stability of the financial system and financial institutions in the country.