Mining expert Grain Malunga has called on the government to put in place incentives to woo investors and propel growth of the mining sector.
This comes as agriculture, tourism and mining sectors have been singled out as key areas of focus in the medium-term to transform the economy.
In a paper published by Academia.edu titled ‘Proposed Investment Incentives for the Mining Sector’, Malunga proposes introduction of start-up capital expenditure of 100 percent allowance in the first year of assessment, spread over ten years for investors.
He further suggests a corporate tax holiday upon approval by the Minister of Finance.
“The other important agreements with the company can include the following global incentives in order to maintain economic equilibrium, refundable income tax credit for eligible individuals and corporations doing grassroots mineral exploration,” Malunga said.
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Addressing the maiden Malawi Mining Investment Forum in Lilongwe recently, President Lazarus Chakwera reiterated his aspiration of making the industry a key forex earner.
“We hope that by 2030, Malawi will be transformed because the forex that we are lacking today will be available in abundance as a result of the mineral exports that will be happening,” Chakwera said.
Malawi has several high economic value minerals whose potential needs harnessing.
They include uranium, phosphates, bauxite, kaolinitic, coal, kyanite, limestones, rare earths, graphite, sulphides, titanium minerals, and vermiculite.
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However, Malawi’s mining sector accounts for just less than one percent of Gross Domestic Product (GDP).
