Key Business Points
- Expansion of formal gold buying centres to Karonga, Jenda, and Mangochi creates new local economic activity and traceable supply chains for entrepreneurs.
- RBM converting gold to foreign exchange directly addresses forex liquidity pressures, offering a stable domestic market for traders.
- Small-scale miners and traders should engage with formal centres to secure better prices and avoid informal market risks.
The Reserve Bank of Malawi (RBM) subsidiary, the Export Development Fund (EDF), has partnered with FDH Bank plc to expand formal gold buying across the country. This partnership aims to capture more of Malawi’s gold and increase purchases from small-scale miners and traders nationwide.
The expansion of gold-buying centres marks a significant shift for Malawi’s mining sector. EDF will host centres at FDH branches in Karonga, Jenda in Mzimba, and Mangochi, while the Blantyre centre will operate from RBM premises. Currently, EDF only purchases gold through centres at RBM offices in Lilongwe and FDH’s Liwonde Service Centre. This brings structured buying services closer to communities where gold is mined.
EDF acting managing director Inglis Nyamilandu emphasized the goal of reaching more people. "At the moment, we are buying gold from only two locations, yet there are gold traders across the country," he stated. Taking services closer to mining areas should enable EDF to reach more traders and increase formal purchases. Since the government established the formal gold market in 2021, the fund has bought 1.6 million grammes, equivalent to about 1.63 tonnes.
The significance of increasing formal purchases extends beyond tracking gold. RBM disclosures show that locally purchased gold is already generating foreign exchange at a time Malawi faces forex liquidity pressures. This is crucial for businesses relying on imported inputs.
Recently, RBM told Parliament that it had started converting accumulated gold into foreign-exchange liquidity. The central bank exported 589.95 kilogrammes of gold on April 29, 2026, for $75.09 million (about K131 billion) in its inaugural gold export transaction. It opted for an outright sale to generate immediate foreign exchange liquidity.
RBM further stated that expanding gold trading centres should bring formal buying services closer to miners, improve supply consistency and traceability, reduce reliance on informal markets, and strengthen confidence in the structured market. The bank is also establishing a reserves mobilisation division to coordinate reserve activities, including gold operations.
FDH Bank plc managing director Noel Nkulichi noted that the partnership aligns with the bank’s growing focus on supporting mining and developing the mineral value chain. "As a bank with a wide branch network, we see an opportunity to use our existing infrastructure to help bring these services closer to communities," he said. This is a positive step for local entrepreneurs looking to formalize their operations.
The Malawi Government established the formal gold market in 2021 partly to curb losses of gold and gemstones through informal trading and smuggling to neighbouring countries. The gold purchase programme is owned by RBM and implemented by EDF. By participating in this formal system, traders and miners can contribute to national forex reserves while securing their own economic future. Chuma latsikizo m’misawa yathu (gold is shining in our days) for those who play by the rules.
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