The mining sector is projected to grow by at least 5.8 percent in 2024 from an expected growth of 3.5 percent in 2023, figures from the Reserve Bank of Malawi (RBM) show.
But experts have challenged the government to make significant investments, including the establishment of a mining company and harmonising laws governing the sector.
In its latest Financial and Economic review, the central bank says the industry is expected to experience significant growth driven by efforts by the government to formalise the Artisanal and Small-scale Miners (ASMs) Act, which is anticipated to boost the production of gemstones and other minerals in 2024.
“Furthermore, a number of mining projects have been lined up, including the re-commissioning of Kayelekera Uranium mine, and the development of major mineral projects like the Kanyika Niobium Project in Mzimba and Rare Earth Project in Phalombe,” the review reads.
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But in an interview, Natural Resources Justice Network Executive Director Kennedy Rashid said attaining the mark would require creating an enabling environment.
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“We need all responsible ministries, departments and agencies to be effective and implement what is provided in the laws from the fiscal regime to the general administration of the sector in terms of issuance of licences and negotiations of concessions,” Rashid said.
In a separate interview, Economics Association of Malawi (Ecama) Vice President Bertha Bangara Chikadza said failure to pump enough resources into the sector and heavy reliance on foreign investors remains a challenge.
“It would have been better if the country had its own mining company, fully investing in it and doing the processing itself.
“There are a lot of proposals that the Ministry of Mining submitted which needs to be funded and be seen in the budget if we want to see notable contributions from the sector,” Chikadza said.
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In an earlier interview, Director of Mining Samuel Sakhuta said there are a number of projects expected to commence soon, which will contribute to the growth.
“The discussions have to do with royalties, taxes, community development agreements, government incentives, free carry equity participation, and value addition, among others. Once these are agreed upon, ,the mining licences will be issued,” Sakhuta said.
Mining has been earmarked as the next big thing in anchoring the local economy.
