Standard Bank Chief Executive Phillip Madinga, who is also commissioner for the National Planning Commission, has recommended drastic steps towards transforming the mining sector in the country.
He said the industry should urgently work towards solidifying its position as a lucrative asset for the local economy.
He was speaking on Tuesday when delivering a keynote address at the opening of the two-day inaugural Malawi Mining Investment Forum 2024 in Lilongwe.
It comes as the government says it was committed to reviewing, strengthening the enforcement of mining laws and regulations to make a fortune out of the sector.
Its contribution to the country’s gross domestic product (GDP) registered no growth, stalling at around 0.7 percent in the past five years.
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But the government plans to increase the industry’s contribution to GDP to 10 percent in line with provisions of the Malawi 2063— the country’s long-term development blueprint.
In his address, Madinga recommended strong partnerships between the mining sector with those in the energy and infrastructure sectors.
“Leveraging the latest technology and innovative techniques is also crucial in fully harnessing the potential of this industry in the modern age. This approach will not only boost efficiency, but also promote sustainable growth for the long term,” he said.
He then lamented bureaucracy in the sector which he ranked top on the list of major hindrances to progress in the mining sector.
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Madinga said the government must work towards eradicating this obstacle and towards creating a more equitable system that benefits all stakeholders.
He challenged the Ministry of Mining to take into account the opportunity cost of bureaucratic processes and prioritise swift decision-making based on lessons learned from experience. This does not mean speed surpassing governance but a balance of both is needed.
“Additionally, enabling legislation and policies must be put in place to ensure sustainable development in the mining sector.
“To achieve this, it is essential to continuously study and learn from the success stories of countries like South Africa, which have made tremendous strides in mining,” Madinga said.
He then affirmed Standard Bank’s commitment to supporting both commercial and artisanal miners, saying the bank believes in the sector’s immense potential and its contribution to economic growth.
Mining Minister Monica Chang’anamuno said Malawi stands at a critical juncture in its mining journey where there are vast opportunities but also significant challenges.
“However, I am confident that through collaboration, innovation and a shared sense of purpose, we can overcome these hurdles and unlock the full potential of our mining sector for the benefit of all Malawians,” Chang’anamuno said.
Mining is among three key sectors highlighted by the government to achieve the lower middle income economy status by 2030.
