
AN OVERVIEW OF THE SPECIALECONOMIC ZONES(SEZs) ACT, 2023
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PAYMENT SYSTEMS IN MALAWI: CHECK-LIST FOR INVESTORS
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by Lusungu Gondwe Introduction Payment systems have become a very important part of the financial services market recently. They enable fund transfers to be effected from payer to payee by utilising advanced electronic methods, such as mobile payments, contactless transactions, and digital wallets. Transitioning to these systems achieves increased speed, convenience, improved data security, and accessibility thereby empowering businesses to meet customer expectations, drive sales, and stay competitive in any marketplace. This has created a huge investment opportunity in Malawi. Not surprising that legislature imposed stringent regulatory framework for governance of payment systems. This brief note aims to inform investors […]

Qualified Reorganization and Value of Asset Acquired
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Wanangwa Hara Qualified Reorganization In Malawi, the acquisition of at least eighty percent of the equity interests in a company in exchange solely for equity interests in the acquiring company; and the acquisition of at least eighty percent, by value, of the assets of a company in exchange solely for equity interests in the acquiring company is considered a reorganization. Where this reorganization is pursuant to a written plan, undertaken for valid business purposes, and does not have as its purpose tax avoidance by any party to the reorganization, it is considered a qualified reorganization. Value of Asset Acquired In […]

VAT on Transfer of a Business as a Going Concern
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By Wanangwa Hara Applicability of VAT Under Malawi’s Value Added Tax Act, VAT is charged on every supply of goods and services for consideration during or as a part of business activities. The sale of the assets of a VAT-registered or VAT-registrable entity will be subject to VAT. Transfer of business as a going concern However, the disposal of any part of the business (including assets) capable of separate operation is zero-rated where the buyer carries on the same business i.e., transfer of business as a going concern. Transferee not registered for VAT Where a business carried on by a […]

Embracing Sustainability: Future-Proofing Businesses in the Wake of Cyclone Freddy
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Sean Longwe Introduction: Cyclone Freddy’s devastating impact has served as a wake-up call for businesses in Malawi, highlighting the urgent need to incorporate sustainability strategies into their future plans. As extreme weather events become more frequent and severe due to climate change, organizations must recognize the importance of mitigating environmental risks, embracing sustainable practices, and future-proofing their operations. By proactively integrating sustainability into their strategic plans, businesses can not only safeguard themselves against future disruptions but also contribute to a more resilient and environmentally responsible world. 1. Recognizing the Urgency of Sustainability: Cyclone Freddy’s destructive force and the subsequent economic, social, […]

The Malawi Parliament recently passed the New Mines and Minerals Bill, 2023. In this feature, Ahmed Mussa explores vital changes in comparison with the current Mines and Minerals Act of 2019
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On Thursday, April 13, 2023, Parliament passed the Mines and Minerals Bill, 2023 [the Bill] that repeals the Mines and Minerals Act, of 2019 [the Act]. The Bill has significantly changed the landscape of the mining sector. This commentary discusses the key changes and improvements made under the Bill compared to the 2019 Act and how the same will benefit and affect stakeholders in the mining sector. In addition, the commentary outlines some shortfalls and recommendations. The Bill establishes an independent Mining and Mineral Regulatory Authority [Regulatory Authority] responsible for regulating mineral resources and mining activities in Malawi. The Regulatory […]

ESG AND THE MINING INDUSTRY IN MALAWI
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By Chifundo Ngwira | Partner INTRODUCTION Around the world, Environmental, Social and Governance (ESG) have become the buzzword. This is because investors are interested in companies that are championing ESG. The view is that companies that prioritise ESG show that they care about their stakeholders as much as their profits. under ESG, Environmental issues include but are not limited to, management, compliance with environmental regulations and reduction of carbon emissions. Social issues include non-discrimination in the workplace, diversity, and inclusion of employees in the workplace, and health and safety issues at the workplace. Companies are also encouraged to empower local […]

LEFT IN THE DARK: THE CHALLENGES OF LOADSHEDDING AND ACCESS TO ELECTRICITY IN MALAWI
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Electricity is an essential service that is vital for economic and social development. It is widely recognized as a basic human right, and many countries, including Malawi, have enshrined the right to electricity in their Constitutions. However, despite the legal framework in place, many Malawians still lack access to electricity, particularly those living in rural areas. Malawians who have access to electricity are subject to “load shedding” (planned power outages), a common occurrence in Malawi. This is the main challenge that the country faces in providing access to electricity to its citizens. The following explores the laws in Malawi on […]
GAPS IN GREEN BOND REGULATION IN MALAWI: URGENT NEED FOR REFORM
by Lusungu Gondwe and Teuka Tembo Conceptually green bonds are like any other debt instruments issued for purposes of raising finance. The distinctive features of green bonds are end utilization of the proceeds, process of selecting projects and assets, management of proceeds and process of reporting and external review.[1] Presently, Malawi has no regulations specifically addressing green bonds. Bond markets in Malawi hinge principally on the operation of the Securities Act, Companies Act and Public Private Partnership Act. None of the legislation or regulations made thereunder specifically address green bonds. General requirements for issuance of debt securities may suffice for […]
The Legal 500
Country Comparative Guides
Malawi
ENERGY – OIL & GAS
Between 2011 and 2013, prospecting companies in Malawi were granted exploration licenses for six blocks where oil could be extracted and, in some blocks, production-sharing agreements were executed. The companies include RAKGAS Limited, Sacoil, Pacific Oil, and HAMRA Oil Holdings Limited among others. Malawi has oil prospects that exist in the Lake Malawi basins and Lower Shire. Notwithstanding, most oil and gas products are imported into Malawi such as petroleum. However, 10 years down the line, Malawi is yet to confirm if it can produce oil and gas now with 3 of the six oil companies relinquishing their prospecting licenses […]
Taxation and Tax Incentives available to mining companies for mining operations in Malawi
Wanangwa Hara Mining companies in Malawi are obliged to pay income tax, resource rent tax, withholding tax, customs duty, VAT and royalties. Resource Rent Tax Under the Taxation (Amendment) Act, of 2016, a mining company is obliged to pay the minimum resource rent tax of 15%. For licenced mining operations or mining projects, resource rent tax is mandatory. Royalty Rates For royalties, royalty rates range from 5 to 10% of their royalty base. Separate rules for the administration of royalty are provided in the Seventeenth Schedule to the Taxation (Amendment) Act, 2016 Act. Mineral royalties are allowable as a deduction […]
THE ROLE OF THE COMESA COMPETITION COMMISSION IN PROMOTING TRADE AND DEVELOPMENT IN EASTERN AND SOUTHERN AFRICA
by Lozindaba Mvundula The Common Market for East and Southern Africa (COMESA) is the largest regional economic community in Africa. It has a free trade area comprised of 21 member states and a population of about 586 million. In 2009, COMESA launched a customs union. COMESA aims at promoting regional integration through trade and the development of natural and human resources for the mutual benefit of all people in the region. To aid in the achievement of its objectives, COMESA has established various institutions such as the Eastern and Southern African Trade and Development Bank, the COMESA Regional Investment Agency […]
LICENSING FOR TELECOMMUNICATIONS AND BROADCASTING SERVICES IN MALAWI
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Gonjetso Dikiya Governing Law The provision of Telecommunications and Broadcasting Services in Malawi is governed by the Communication Act, of 2016. The law requires that every person/entity providing electronic communications services in Malawi should only do so after they have been duly licensed. The Malawi Communications Regulatory Authority (MACRA) is the body empowered to issue licenses for the provision of Telecommunications and Broadcasting services in Malawi. The Communications Act is supplemented by the Communications (Telecommunications and Broadcasting Licensing) Regulations, 2016 which sets out the details of the types of licenses that may be issued, and the procedures to be followed […]
EXPANDING THE FRONTIERS OF MARITIME AND EXTRACTIVE INDUSTRIES, WHAT MUST AFRICAN GOVERNMENTS CONSIDER?
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The ABCs of Legal and Tax Due Diligence in M&A mandates and other Transactions
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Wanangwa Hara Legal Due Diligence Legal due diligence [LDD] is the process of collecting, understanding, and assessing all the legal risks associated with an M&A transaction or a financing transaction. It is a pilot step taken by an investor or an acquiring company on a target. The purpose is to assess the potential risks of a transaction by reviewing all documents, obligations, and liabilities of the target. The ending LDD report will provide information to the acquirer on financial, structural, operational, regulatory, and tax legal problems with the transaction or target. The LDD will assist the acquirer on whether to […]
E-signatures and Digital Signatures in electronic transactions under the Electronic Transactions and Cyber Security Act, Malawi.
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Wanangwa Hara Introduction Malawi’s the Electronic Transactions and Cyber Security Act provides a secure legal framework that recognizes the legal value of electronic transactions and electronic documents. The Act recognizes electronic signatures, digital signatures, and digital signature certificates. Electronic Signatures Section 8 of the Electronic Transactions and Cyber Security Act provides that where a law requires a document to be signed, an electronic form of the document shall satisfy the requirement if an electronic signature is used. Set requirements must be fulfilled for an electronic signature to be authentic and valid in Malawi. The requirements include: The provisions of the […]
FRAMEWORK FOR OBTAINING INVESTMENT NT CERTIFICATES, IMMIGRATION PERMITS, AND LAND BY FOREIGN DIRECT INVESTORS IN MALAWI
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by Wanangwa Hara FDls and Portfolio Investments in Malawi Malawi is one of the preferred choices for foreign direct investment. A foreign direct investment (FOI) is an investment made by a firm, company, or individual in one country into business interests located in another country. Malawi has over fifty FOI companies from the USA, UK, Japan, China, RSA, and Germany amongst others in the main sectors of the economy. These companies operate mainly in the manufacturing and processing sector, agriculture, tourism, mining, property development, Financial and Professional Services as well as Transport and Communication. Aside FDls, Malawi also has portfolio […]
Cyber Crimes in Malawi
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Introduction “Cyber. It is the inevitable prefix that currently defines our world. From people’s privacy to inter-state relations, the term ‘cyber’ dominates the headlines and discussions – so much so that we risk being paralyzed by the magnitude of the problems we face. Online exploitation and abuse of boys and girls; the black cyber markets for the purchase and sale of illicit drugs and firearms; ransomware attacks and human traffickers making use of social networks to attract victims. The unprecedented scope of cybercrime is crossing borders in our homes, schools, businesses, hospitals, and other vital service providers” – Yury Fedotov […]
Lending & Secured Finance
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[dflip id=”1565″ ][/dflip] Read other chapters on lending & secured finance at https://iclg.com/practice-areas/lending-and-secured-finance-laws-and-regulations/malawi
Securitization
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[dflip id=”1550″ ][/dflip] Access the full Guideline at https://iclg.com/practice-areas/securitisation-laws-and-regulations/malawi
ICLG – Mining Law 2023 2023 – Promotional Guidelines
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Mining is one of the priority sectors in our pursuit of the Malawi 2063 agenda. In this International Comparative Legal Guide – Mining Law 2023 with the Global Legal Group, appreciation should go to our Head of Energy and Mining Practice at Ritz Attorneys at Law, Ahmed Mussa, together with Gonjetso Dikiya, Tawela Taona Msiska, and Ashleighn Banda as they give insights into the current mining regulatory environment in this first-ever publication. [dflip id=”1548″ ][/dflip] Read full book at https://iclg.com/practice-areas/mining-laws-and-regulations
Ritz Metis Business Brunch
Ritz Attorneys At Law hosted Metis IOM PCC from the Island of Maine, a business restructuring and strategic advisory firm at a Business Brunch at Protea Ryalls Hotel in Blantyre, Malawi on the 12th of September 2022.
CREATING THE FUTURE IN ADVANCE
At Ritz Attorneys at Law [the Firm], we realize that if we do not think about the future, we cannot have one. We know that the only way to achieve the future we crave is to invent it now. We imagine the future we deserve and go for it. We believe we cannot do business without mingling with the legal world beyond Malawi. In the past 6 months, in pursuit of this belief, our team has shared the stage with the high and mighty in the legal services market. Ahmed Mussa held ‘meet and greet’ stints with law firms and […]
What is copyright
What is copyright A copyright is an exclusive property right that belongs to the authors of any work by the mere fact of its creation. Copyright law does not protect ideas, but the expression of ideas, and the forms but a work shall be eligible for copyright irrespective of its form of expression, its quality, or the purpose for which it was created. Legal framework for Copyright in Malawi Copyrights are governed by the Copyright Act 2016. Malawi is also a signatory to various international instruments including: Berne Convention for the Protection of Literary and Artistic Works Universal Copyright Convention […]