Sending Money to Malawi
Meeting summary:
Chair, Mick James noted that as a Charity Treasurer, one of his roles is to get the best value in exchange rates, using legitimate methods to maximise the value and impact of funds.
Mick made clear that neither he, nor anyone in the meeting, was offering any financial advice, but this was an opportunity to share experience informally and for SMP members to make up their own minds about how best to send money to Malawi.
The recent SMP survey on how members send money to Malawi reflected 9 different methods, via banks or currency exchange platforms.
The rate for £1 that SMP members were receiving at the time of completing the survey ranged from MWK 2,175 to around 5,000.
On the day the meeting was held, exchange rates were:
Reserve Bank of Malawi £1 = MWK 2,345
Currency exchange platform Mukuru £1 = MWK 4,295
Mick’s experience of using Mukuru as an individual, sending money to another individual in Malawi is very positive, it being straightforward and quick. Up to £4k per month can be sent using a phone app, with a person in Malawi receiving the money almost instantaneously. However, he volunteered that this creates a difficulty in terms of an audit trail and additionally requires him reimbursing himself from the charity, with signoff from multiple Trustees, which is not ideal. Mick is happy to share their Trustee resolutions around using Mukuru and paying to individuals, along with their anti money laundering and anti-terrorism financing policies.
In trying to send money Business-Business using Mukuru and other platforms, Mick has been met with the need to jump through many more financial hoops. This included requests to provide a variety of policies (on e.g. Anti-Terrorism, Money-Laundering, Partnership), experiencing deep dives into accounts and answering many questions. However, he estimates that by putting in approximately 35hrs of work to research the best rate and satisfy the financial regulation and money laundering procedures, he is doubling the amount of money that partners in Malawi receive.
It was recognised that some small organisations may not have the capacity to go through the in-depth business-business platform set-up checks and paperchase, but that can be well worth it when possible.
After a great deal of set-up work, one participant’s charity had managed to create a Business – Individual account with Mukuru but received a message from Mukuru to say that the Reserve Bank of Malawi had advised them to halt any Forex transactions into Malawi.
Other contributors noted that sometimes the rates provided in practice by currency exchange platforms are not always quite as good as those advertised to win new business.
A member wondered whether the currency exchange platforms satisfy OSCR’s requirement that money is sent through a regulated bank. The SMP will ask OSCR.
A contributor in Malawi whose organisation receives significant funding from Scotland and the UK through universities and major donors believed that the collaboration agreements signed with partners would not allow currency exchange platforms to be used. Without any financial advice being given, the meeting wondered whether the donor might be interested in doubling the value of their funds in Malawi by using legitimate platforms as an alternative to bank transfer.
With the need in Malawi for more foreign exchange (Fx), in December ’24, the Government of Malawi introduced a requirement that a minimum of 70% of foreign currency (e.g. GBP or USD) sent to a foreign currency account in Malawi would be automatically exchanged to Malawi Kwacha, with the customer agreeing with the bank what would happen to the remainder. The minimum was reduced in March ‘25 from 70% to 50%.
Dom Webb from Orbis Expeditions encouraged members to negotiate better rates with the Malawi banks when exchanging. ‘If you don’t ask, you won’t get’. Dom also offered to collaborate with members about using Orbis’s Malawi based institutions. If you are interested in discussing this please contact Dom at: dom@orbis-expeditions.com
Participants expressed value in the shared-experience and insights, and some offered to contribute further so that more members can benefit.
The SMP will create a webpage (signposted from its newsletter and social media platforms) which shares members’ experience and links to legitimate currency exchange platforms which members use.
Money transfer platforms used by respondents to SMP survey which are shared here by the SMP without any endorsement nor guarantee:
Send Money Easily and Quickly | Mukuru UK - More Than Money Transfers
Wise: The international account | Money without borders | Wise United Kingdom
Malawi Kwacha is not as an option. However, GBP can be transferred to certain Bureau de Changes in Malawi who will then transferred to local MKW account. i.e. Beliz Bureau de Change in Lilongwe
Foreign exchange market services & FX portals | StoneX
International Money Transfer - Send Money Online | WorldRemit
