INVESTMENT PROTECTION
The Government recognizes that the security of assets is of primary importance to investors. The Malawi Constitution and existing laws and regulations provide further assurance that investors' assets are protected. In addition, the Government will actively pursue the process of concluding bilateral investment treaties with other Governments. Malawi is also a member of the Multilateral Investment Guarantee Agency (MIGA), and is an eligible country under a number of other investment insurance programmes.
ACCESS TO INTERNATIONAL ARBITRATION
The Government acknowledges that investors must have an acceptable forum to resolve disputes that cannot be settled amicably. Parties to disputes may agree to pursue arbitration and to choose an appropriate forum, including international arbitration. The Government is a member of the International Centre for the Settlement of Investment Disputes (ICSID).
LIBERAL TRADE AND FOREIGN EXCHANGE REMITTANCES
Investors in Malawi have free access to foreign exchange, both for paying for imports and transferring financial payments abroad. This free access include the following:
- No license required to import goods into Malawi
- Full remittance of:
- Dividends
- Investment capital on repatriation
- Interest and principal payments for approved international loans
- Approved fees for management, licenses, royalties and similar obligations
LEGAL FRAMEWORK
Malawi maintains a legal system based on English common law. Its Constitution protects investment, irrespective of ownership. Malawi is also a signatory to international treaties for the protection of foreign investment and the settlement of investment disputes including.
- The Convention Establishing the Multilateral Investment Guarantee Agency (MIGA), 1986
- Bilateral Investment Guarantee and Protection Agreements
- The Convention establishing the International Centre for the Settlement of Investment Disputes between States and Nationals of Other States (ICSID), 1965
LOCAL AND EXPATRIATE LABOUR
A. Local Labour
- Malawi has a hard-working skilled labour force
- average wages are low by regional international standards
- Malawi has had no history of industrial or labour boycotts
- Free vocational training for company employees at national training centres
B. Expatriate Labour
- Work permits are routinely granted where foreign expertise is needed
- Two-thirds of after tax salary is remittable
AVAILABILITY OF LAND
- Land is readily available to investors in Malawi
- Developed industrial estates will offer factory shells with necessary infrastructure close to labour pool and transport links
- serviced land for all uses may be leased from the Government and private leaseholders. Additionally, freeholds and leaseholds exist and may be purchased or leased from the private owners.
- Government approval for any transfer of land can be obtained within 90 days of an application.
ACCESS TO CAPITAL
A. Local Financing Facilities:
- Both local and foreign investors have unrestricted access to local financing facilities. The financial system has been liberalized and special features include:
- sound commercial banks and finance houses which adhere to international standards
- no direct Government controls on credit
- market based interest rates
B. Security Markets:
- The Government encourages the development of securities markets. Under the new enabling legislation, the Capital Market Development Act, 1990, there are:
- no restrictions on issues of securities to the public
- no restrictions on private placement of securities to Malawi residents. Transfer of securities to non-residents should be registered with the Reserve Bank of Malawi.
EASE OF INVESTMENT PROCESS
The investment process in Malawi is simple. All new companies need to be registered with the Registrar of Companies, and the process takes no more than 15 days.
Manufacturing does not require a license, except for a small number of industries, which raise concerns of health and safety. However, trading activities are licensed.
For data collection purposes, foreign investment capital needs to be registered with the Reserve Bank of Malawi. The terms and conditions of international loans, management contracts, licensing and royalty arrangements and similar technology transfers require Reserve Bank of Malawi approval. These approvals are automatically granted within internationally prevailing standards.
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