Malawi's Potential Economic Transformation through Mining Sparks Debate
Malawi aims to reform its mining sector for economic growth, despite having numerous mining licenses.
LILONGWE, Malawi— The mineral-rich nation of Malawi in Southern Africa is poised to unlock significant economic potential through mining, according to experts, writes Brenard Mwanza.
However, concerns about transparency and accountability in the sector's contracts with mining companies are casting a shadow over the country's prospects.
Malawi, facing economic challenges and struggling to provide essential social services, could see a dramatic turnaround by tapping into its mining resources.
Dr. Grain Malunga, a prominent mining expert and former minister of natural resources, energy, and mining, emphasised the transformative impact mining could have on the nation's development.
"Mining will play a very big role in improving development as well as technology advancement, which is key nowadays," Dr. Malunga stated.
One of the key aspects of realising this potential is transparency in negotiating mining deals.
Boniface Chibwana, National Coordinator for the Catholic Commission for Justice and Peace (CCJP), expressed concerns about the lack of transparency in contracts with mining companies.
"We have noted that in the extractive industry, especially when it involves large-scale mining, there is that kind of secrecy. Information is not shared for the people to know what is contained in those contracts," Chibwana remarked.
“If you look at the proceeds that are supposedly to come from the mining sector, we see that Malawians are shortchanged and don't get what they deserve."
Emmanuel Mwanyongo, a young advocate for mining issues, emphasised the urgency of government investment in the mining sector and the need to support young artisanal miners while protecting their rights.
"The government should also open markets for young artisanal miners. They should further be protected from any human rights violations in mining industries for them to continue contributing towards changing our landscape in terms of mining because there is a future that things may work through mining," Mwanyongo said.
Wezzie Banda Matsimbe, Programme Coordinator for the Fighting Inequalities at the Norwegian Church Aid and Dan Church Aid joint country programme (NCA-DCA), highlighted the potential benefits of harnessing natural resources.
"If the natural resources are put to good use, the just energy transition can translate into improved returns such as taxes, royalties, and other benefits, thereby leading to improved living standards for Malawians and reducing inequalities," Matsimbe explained.
While the Ministry of Mining had hinted at a K5 billion investment in the establishment of the National Mining Company, it was not allocated resources in the 2023 national budget.
Experts argue that a well-funded and operational mining company could expedite mining projects and processes.
Despite issuing over 250 mining licences, Malawi has yet to see significant gains from the sector.
President Lazarus Chakwera has reiterated his commitment to reforming the country's mining sector to boost the economy and address illegal mining and mineral smuggling issues, with the potential for mining to play a pivotal role in improving Malawi's economy, one of the poorest in Africa.