Ministry of Finance and Economic Affairs has introduced stiff penalties on exporters that do not follow export proceeds directive to ensure that foreign exchange from exporters is channelled into formal system.
A Foreign Exchange (Repatriation of Export Proceeds) Directive 2025 indicates that effective August 1 2025, exporters that do not channel their export proceeds into formal the system face up to K200 million fine for an authorised dealer bank and K100 million for exporters.
The directive, among others, directs exporters to ensure they channel export proceeds into the formal system within 120 days to ensure that export proceeds are tracked.
Reads part of the directive: “An exporter who has received export proceeds shall, within two working days of being informed about the receipt of the export proceeds notify the authorised dealer bank and identify custom declaration forms to which the export proceeds relate to.”
The order compels exporters to sell 25 percent of the export proceeds to the Reserve Bank of Malawi (RBM) at the prevailing selling rates of the receiving authorised dealer bank.
“The authorised dealer bank shall, within seven days of being notified by the registered exporter as provided reconcile the export proceeds against the identified customs declaration forms in the exports reconciliation system,” reads the directive.
In an interview on Friday, financial expert Brian Kampanje described the fine as an effective deterrent for illegitimate exporters and needs to be strengthened by additional oversight.
“This is a step in the right direction, but a lot more needs to be done to overcome illegal and unauthorised exports which slip through our borders every day, translating to substantial forex leakage,” he said.
Bankers Association of Malawi chief executive officer Lyness Nkungula said in an interview the new directive reflects a deliberate effort to tighten oversight and promote transparency in foreign exchange usage.
“While the documentation may introduce additional steps for travellers and banks alike, it also reinforces accountability, particularly important in the context where forex reserves are strained,” she said.
But Nkungula highlighted that the success of this regulation will rest on how efficiently the supporting systems are implemented, saying clear communication, streamlined processes and collaboration will be key to ensuring compliance.
In November last year, the RBM also ordered ministries, departments and agencies to transfer their foreign current denominated accounts from commercial banks to the central bank, a move meant to enhance forex availability, but Financial Market Dealers Association warned this could cripple forex liquidity.
