Discoveries of minerals in parts of the country in the recent past have turned Malawi into a place of interest for prospective investors.
Recently, businesspersons from advanced economies have been on economic tours, exploring avenues for investment in the various sectors of the local economy.
And the mining sector has turned out to be one of the priority areas.
This comes as Malawi is emerging as a potentially important player in the global critical-minerals industry, with major deposits of rutile, graphite, rare earth elements, niobium and tantalum being advanced in different parts of the country.
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Recent resource estimates indicate that some of the country’s mineral projects contain hundreds of millions or even billions of tonnes of mineralised material, while feasibility studies point to projects capable of generating billions of dollars in revenue over their operating lives.
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Industrialisation, Business, Trade and Tourism Minister Simon Itaye said in an interview on Tuesday that the country was working on its legal framework and policy instruments to maximise benefits from the sector and the growing investor interest.
“We have some mines that are available in this country and that is one of the attractions for some of the investors.
“In terms of having a conducive environment, we are aware that there are gaps. But the ministry is reviewing the trade laws to ensure that the environment becomes more conducive [than before],” Itaye said.
In the past half a decade, the mining sector has registered minimal growth, stalling at around 0.7 percent.
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However, the government says plans are underway to scale up the industry’s contribution to gross domestic product (GDP) to between 10 and 15 percent by 2030 in line with aspirations embedded in the Malawi 2063— the country’s long-term development blueprint.
This means that within the next few years, Malawi should be swift in ironing out all bureaucratic impingements, creating an enabling environment to woo more investors and scaling up power supply.
It has taken the government close to four years to set up the Mining Authority and to establish a State-owned mining company, which should steer the development of mines.
And, since 2020, it is only recently that the country is hearing of conclusive steps towards having mining development agreements between the government and investors.
In an interview yesterday, Malawi Chamber of Mines and Energy National Coordinator Grain Malunga called for stronger collaboration between mining experts and policymakers, highlighting the importance of technical expertise, exploration and research in shaping effective mining policies and advancing Malawi’s mining sector.
He said geopolitics might have taken a toll on Africa that, due to the political divide, there is a scramble for minerals by private investors, nations like Malawi should position themselves to.
“Malawi is in-between the two worlds. It only takes a wise person to benefit from the scramble. That is where non-alignment becomes important.
“We have to find a way of benefitting by having proper contracts and agreements. Malawi should look at who has what, and who would give more to the country, in terms of economic development, ” Malunga said.
He rated Malawi as a greenfield; “an environment where things are just beginning”, and that the mining sector is still at its infancy stage, requiring systematic approach to benefit the economy.
According to Malunga, the growing demand for minerals on the global market has come about by energy transition to mitigate against climate change, hence the country needing to harness the shift.
The local private sector players said, with the momentum, industry players should pursue partnership to benefit from the available minerals.
Malawi Confederation of Chambers of Commerce and Industry Chief Executive Officer Daisy Kambalame said local investors were equally geared.
“The critical thing has been how to attract investors. We have been talking about how to achieve growth, and growth does not just happen, there is always room for growth and we have to make the most of it,” she said.
Malawi’s mining sector accounts for just less than one percent of GDP.
