CURRENCY, BANKING & EXCHANGE CONTROL
The currency of Malawi is the Kwacha which is divided into 100 Tambala units. The Reserve Bank of Malawi manages foreign exchange reserves. Exchange control is enforced. Most foreign exchange transactions are carried out by commercial banks acting as agents of the Reserve Bank. Commercial Banks, forex bureaux and main hotels are authorised to transact certain foreign exchange transactions without prior reference to the Reserve Bank. The US Dollar, Pound sterling and South African Rand are well known to most Malawians. Other foreign currencies are exchangeable at banks and bureaus.
Any amount of foreign currency may be imported without prior approval. However, there are money laundering laws in force and very large amounts of cash will cause suspicion, the unwelcome attention of the authorities and inconvenience to the importer. Those who bring foreign currency into Malawi and wish to re-export it at some stage, whether for personal or business purposes, should be sure to have proof of importation given by Customs on entry or repurchase from authorised dealers – or risk seizure at time of export. Movements of foreign currency for commerce or investment should be transacted through commercial banks.
CREDIT & DEBIT CARDS
Ecobank, Indebank, MSB Bank, Nedbank and OIBM (opportunity International) use ‘Malswitch’ cards which may be used for encashment at ATM’s or as debit cards or ‘e-wallets.’ Cards issued by any of these banks and by Malswitch may be used at ATM’s operated by the others. Additionally, they may be used wherever a Malswitch terminal is installed in payment for goods or services. Malswitch terminals are generally available at filling stations, major shops, hotels and restaurants. The ‘e-wallets’ may be recharged at ATMs or, for those without bank accounts, by purchasing of credit at Malswitch offices in Blantyre, Lilongwe or Mzuzu.
National Bank and Standard Bank issue their own cards and have reciprocal encashment facilities at their ATMs. In addition VISA cards may be used at these ATMS.
Most hotels, restaurants and tour operators are able to transact with VISA, MasterCard and some with American Express. VISA has made headway in Malawi and the electronic terminals are in place at the afore mentioned but please note that they can only be operated when the owner of the card is present to punch in their pin codes; these transactions carry bank commission charges which varies from place to place but the accepted is 5%
For MasterCard and American Express available is still the old swipe system, reference to NBS in South Africa has to be made before acceptance of your card; this therefore carries a higher commission charge of 6%
Unfortunately the only means of making payment to Malawi banks is by bank transfers as no online banking facilities are in place.
Please Note: If your intention is to use your credit card when visiting Malawi or any African country for that matter, be sure to inform your bank that you are travelling and to expect transactions from Africa. In most cases, if you don’t , they will not accept the transaction and it will result in a very embarrassing moment, not to mention the inconvenience caused to your host.
