Malawi - Limitations on Selling US Products and ServicesMalawi - Sales Limitations
There are some limitations on foreign control.
Pursuant to the Land Act of 2016, foreigners are not permitted to acquire freehold land; foreigners are able to secure lease-hold land for terms of up to 50 years, and potentially longer. In addition, foreigners can only secure private land when no citizen has made an offer for the land and the law prohibits the passing of land by way of gift between persons who are not citizens of Malawi.
In the mining industry, small-scale prospecting and mining operations are reserved for Malawians and foreigners who have resided in Malawi for a minimum of four years.
In the case of the privatization of any state-run entity, Malawi Stock Exchange regulations limit participation of an individual foreign portfolio investor to a maximum of 10% of any class or category of security under the privatization program and limit maximum total foreign investment in any portfolio to 49%. When state-run entity is privatized, Malawian nationals are offered preferential treatment, including discounted share prices and subsidized credit. Subsidized credit carries a precondition that the shares or assets be retained for at least two years.
Retail operations in rural areas are de facto limited to Malawian citizens.