Malawi’s commitment to transparency in the extractive sector is under renewed scrutiny after the latest Malawi Extractive Industries Transparency Initiative (MWEITI) reports revealed widespread refusal by companies—and even a key government department— to disclose financial and production data.
The findings are contained in the 7th and 8th MWEITI Reports, published earlier this year.
The documents show a worrying decline in compliance with less than 50 percent of the companies required to submit data for the 2022/2023 reporting period complying, marking the lowest disclosure rate since Malawi joined the global Extractive Industry Transparency Initiative (EITI) framework in 2015.
According to the report, more than half of the companies in mining, forestry, construction, and associated extractive operations failed to submit reporting templates, despite repeated reminders from the MWEITI Secretariat. MWEITI warns that such low compliance “undermines the purpose of EITI,” raising fears that some entities may be concealing revenue, understating production, or avoiding scrutiny over payments made to the government.
The report identifies nine companies that submitted no data at all, even though government records show they made payments amounting to K 29.2 billion in the same period.
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Non-compliance was not limited to companies. The Department of Forestry, a major contributor to public revenue through licenses, permits, and timber levies, submitted no data for reconciliation.
The report shows a “zero-submission” entry for the department, despite several follow-ups by MWEITI.
This development is striking because private forestry companies complied, making the Department of Forestry the only government institution to ignore the reporting requirement.
But Director of the Forestry Department Ted Kamoto said he has not yet seen the report.
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But the report has revealed weak internal record management, persistent delays, and a lack of laws governing the process.
The report itself notes “continued failure despite reminders,” raising concerns about accountability within the department.
Mining expert Grain Malunga says lack of transparency creates room for under-declaration of revenue, illicit financial flows, and loss of public trust.
“Without complete data, Malawi cannot meaningfully monitor production volumes, tax compliance, or potential revenue leakages,” Malunga said.
Spacer Mbaka of Shayona Cement argues that his company is one of the most compliant companies in Malawi.
“It’s surprising to us as well because as far as reporting is concerned, we are one of the most compliant companies in Malawi. We have submitted everything,” Mbaka said.
But the report shows otherwise, and MWEITI standards require all entities with payments or financial flows in a reporting year to disclose them.
Economic analyst Veli Nyirongo believes some firms simply do not want to reveal operational details such as production output, tax payments, or government contracts.
Malawi still does not have an MWEITI Act, meaning participation is voluntary and compliance largely depends on goodwill.
The Natural Resources Justice Network (NRJN) Programs Manager Joy Chabwera said the absence of a legal framework is the root cause of persistent non-compliance.
“We have had repeated attempts to push for a bill that have stalled due to limited political interest and bureaucratic delays.” Chabwera said
The Ministry of Natural Resources Principal Secretary Richard Pelekamoyo said the government would like companies in the extractive industry not only to be compliant with the law but also to be seen to comply at all times.
“In instances where the law has gaps, a review will be undertaken to address the gaps in the relevant laws and ensure that it is comprehensive.” Pelekamoyo said.
Governance experts warn that Malawi’s repeated failure to enforce transparency threatens investor confidence, donor support, and the country’s reputation within the international EITI community. The reports also show missed opportunities for citizens to know how much Malawi earns from mining, quarrying, cement manufacturing, forestry, timber extraction, and potential oil and gas exploration.
One governance expert, Michael Kaiyatsa, told Malawi News that the issue goes beyond submission of forms, saying it is fundamentally about whether Malawians can trust the system.
“If companies withhold information and government departments cannot account for revenues, then the transparency framework collapses.” Kaiyatsa
He said civil society organisations will continue to push for the finalisation and enactment of an MWEITI bill to give the initiative legal force.
The 8th report has recommended for the government to urgently operationalize a legal framework that ensures mandatory reporting in line with EITI standards.
As Malawi positions itself for increased investment in mining—including rare earths, coal, gemstones, cement production, and lithium— transparent management of natural resources remains essential if benefits are to reach ordinary citizens.
For now, however, the latest reports show a growing trend of opacity, with both private companies and public institutions choosing not to disclose information.
