Malawi Risks Losing $500M Conservation Deal Over Delayed Agreement

The deal's potential collapse would mark a significant setback for Malawi's environmental conservation and employment initiatives.

Some of the committee members

LILONGWE, Malawi— Malawi risks losing a $500 million deal with global commodity trading firm Trafigura due to delays in signing a key agreement, parliamentary officials said Tuesday, writes Meclina Chirwa.

The warning came after the Parliamentary Committee on Natural Resources and Climate Change questioned Ministry of Justice and Ministry of Natural Resources officials about the stalled memorandum of understanding.

Committee Chairman Werani Chilenga said the initiative, which began in 2022, focuses on protecting Miyombo trees along the Mozambique border.

"It is very unfortunate that until today, Malawi has not signed the MOU," Chilenga said during the hearing.

The agreement would create jobs and support conservation efforts in the southern African nation, according to Chilenga.

Principal Secretary Richard Perekamoyo told lawmakers the memorandum remains under review due to concerning provisions, but did not specify the issues.

"We appeared before the committee to give an update regarding the MOU and plan the way forward," Perekamoyo said. "We have taken note of their concerns and will work on that."

Government officials plan to meet with Trafigura representatives to resolve outstanding matters. They aim to complete the agreement by February.

The deal's potential collapse would mark a significant setback for Malawi's environmental conservation and employment initiatives.

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