The Reserve Bank of Malawi (RBM) has announced the commencement of the Foreign Exchange (Repatriation of Export Proceeds) Directive, 2025, a measure aimed at tightening compliance on export earnings and strengthening foreign exchange inflows.

The directive, which came into effect on 1 August 2025, requires exporters of goods and services to repatriate their proceeds into Malawi within 120 days from the date of exportation.

Exporters unable to meet this deadline must notify their authorized dealer banks and formally apply for an extension to the RBM, detailing the reasons for the delay and the requested extension period.

According to the central bank, non-compliance carries stiff penalties as exporters who fail to repatriate export proceeds within the stipulated period will face a monetary penalty equivalent to 150% of the value of the unreturned proceeds, and risk deregistration as registered exporters.

Further, failure to comply with monetary penalties constitutes an offence punishable by a fine of K200 million and imprisonment of up to seven years.

The RBM also reserves the right to recover unpaid penalties as civil debts if not settled within 21 days of notice.

In a statement signed by Governor Dr. McDonald Mwale, the Bank issued a 15-day ultimatum to exporters with unreconciled proceeds beyond the 120-day limit, warning of legal action should they fail to comply.

“The Bank is calling upon all exporters who have unreconciled exports beyond 120 days to reconcile the export proceeds within 15 days from the date of this notice, failing which the Bank shall take legal action against the exporter without any further recourse,” the statement reads.

The new directive is grounded in the Foreign Exchange Act, 2025, and reflects Malawi’s broader efforts to safeguard foreign currency inflows, stabilize the economy, and align with international trade practices.