Finance

The Malawi Financial Sector Assessment Program (FSAP) was completed in December 2007. Malawi migrated to Basel II standards in January2014 to strengthen financial sector stability. Under the Basel II regime, banks are required to maintain minimum core capital and total capital ratios of 10 percent and 15 percent respectively; conduct the Internal Capital Adequacy Processes (ICAAPs) annually2 and submit the documentation to RBM; publish market disclosure reports; submit the monthly Basel II Call Report to the RBM; and maintain up to date risk management systems and standards, including enterprise wide risk management

The country’s banking sector, which includes 13 commercial banks with over 70 branches across the country, remains well capitalized and profitable, financial deepening indicators for Malawi are increasing. There are the 14 companies listed on the (Malawi Stock Exchange)MSE which has the potential of this market that is on the very edge of frontier markets. Agriculture represents 37% of GDP, accounts for over 80% of the labor force, and represents about 80% of all exports. The country has several microfinance institutions (MFIs) including, Malawi Rural Finance Company, Small Enterprises Development Organization of Malawi (SEDOM), and Credit Cooperatives (MUSCCO). Other financial institutions offering financing facilities include leasing companies (such as Leasing and Financing Company Limited) and discount houses (such as first discount House Limited, continental Discount House Limited).

Some of the financial institutions in Malawi have shown their resilience and growth that are becoming financial power houses in the region by extending their services to neighboring countries in the region.

Financial Services

For visitors to Malawi access to financial services is not a problem and the country has a number of finance instruments available for potential investors and some still unexploited. The links provided here could offer more in-depth and communication with the experts.