Mining & Trade News

As the Malawi Government prepares to roll out the World Bank financed US$70 Million project aimed at transforming the country’s mining sector to become a major catalyst for economic growth, the Chamber of Mines and Energy in Malawi says besides policy reforms, there is need for government to consider critical areas that will create a conducive business environment in the country.

President of the Chamber Maxwell Kazako says under the programmee, gov- ernment needs to prioritize issues such as greater regulatory certainty, faster approval processes, clearer land acquisition proce- dures and stronger support for local skills and suppliers to mining companies.

The World Bank project is expected to center its attention on strengthening institu- tional capacity, geological surveys, envi- ronmental governance and revenue management.

The proposed investment presents an op- portunity not only to strengthen institutions but also addresses long standing barriers that have slowed the sector’s growth. Greater emphasis on infrastructure devel- opment, mineral processing, digital mining systems, modern laboratory services and skills development that could significantly improve the country’s competitiveness while creating more opportunities for local businesses and communities.

However, Kazako explains that while these priorities are important, they do not fully address the practical challenges that continue to hinder investment and sustain- able growth of the mining industry in Malawi.

He says Malawi’s mining ambitions face practical challenges that go beyond geolog- ical surveys and institutional reforms hinting that poor road networks, limited rail connectivity and unreliable electricity con- tinue to make it difficult to move mineral discoveries into production.

Kazako says: “The proposed interven- tions address part of the challenge, but they do not fully reflect the realities experienced by companies operating in Malawi today. The issues of utmost importance are the practical barriers that delay the transition from discovery to production, including prolonged approval processes, uncertainty regarding land access, inconsistent applica- tion of regulations and difficulties coordi- nating with multiple government agencies.

“Reforms must translate into measurable improvements in service delivery, faster li- cense processing, coordinated inspections, digital cadaster systems and transparent communication with investors.”

He says investment in infrastructure could have an immediate impact on mining growth with priorities including upgrading roads linking mineral producing areas to railheads and ports, expanding electricity transmission to prospective mining regions, improving water infrastructure and strengthening digital systems for mining ad- ministration and land management.

Kazako says the sector also requires a legally mandated one step Mining Invest- ment Authority that would coordinate ap- provals, operate digitally and provide clear timelines for investment decisions.

Coordinator for the Chamber of Mines and Energy Grain Malunga says unlocking Malawi’s vast mineral potential requires a much broader approach that goes beyond policy reforms

Malunga says strategic investments in transport infrastructure, reliable electricity, modern mineral laboratory services, value addition technologies and efficient digital mining cadastre system would significantly improve the country’s competitiveness.

“Malawi has significant mineral potential, but mineral wealth alone does not guar- antee development. We must invest not only in discovering minerals but also build- ing trust through transparent governance, predictable regulations and efficient institu- tions,” he says.

Malunga explains that currently, the country needs practical investments in infrastructure, mineral processing, technician training and modern laboratory services.

“When investors have certainity and communities see real benefits, Malawi will become far more attractive destination for responsible mining investment.”

Commenting on the issue, National Co- ordinator of the Natural Resources Justice Network (NRJN) Kennedy Rashid agrees with the Chamber saying transport infra- structure, reliable electricity and access to finance remain the biggest barriers to min- ing investments.

Rashid says: “Without quality roads, rail links, energy supply and efficient logistics, investors will continue to face high operational costs despite improvements in geological information and regulatory systems.

“The private sector requires predictability, efficiency and partnership. One major gap is regulatory certainty. Investors need confidence that mining policies, taxation, royalties and licensing procedures will remain stable over the life of their investments. The private sector also needs faster licensing processes. Delays in obtaining exploration licenses, environmental approvals, and land access significantly increase project costs.”

Rashid also calls for support for local entrepreneurs through affordable financing and strengthening local supply chains so that Malawian businesses can participate meaningfully in the mining value chain rather than leaving the sector largely in the hands of foreign investors.

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