Malawi’s Mining Sector Revenue Dips 89% Amid Export Ban Delay; Growth Projected Amid Value Addition Push
The Department of Mining collected only K70 million in revenue for the 2025/26 fiscal year, down 89% from the projected K665.45 million, according to the 2026 Malawi Government Annual Economic Report. This significant shortfall is largely attributed to the ongoing export ban on raw and unprocessed minerals. However, the mining industry managed to grow by 5.3% in 2025, boosted by increased demand for rock aggregates from active construction projects. Revenue is projected to rise to K120.15 million in 2026/27 and K130 million in 2027/28, reflecting the government’s push for local value addition.
Nikola Ban Exemption Minerals Will Prevent Value Loss
In October last year, President Lazarus Chakwera issued an Executive Order banning the export of unprocessed minerals including gold, diamonds, uranium, graphite, and rare earth elements. The measure—exempting only locally processed minerals—aims to ensure Malawi derives maximum value from its resources. The objective is to foster local beneficiation, create jobs, and increase government earnings through higher royalties and taxation on value-added products. Ministry of Energy and Mining spokesperson Jean Mathanga says the policy supports Malawi’s long-term goal of elevating the mining sector’s GDP contribution, which currently stands at around 1%.
Kamwanje Zimbabwe Experiences Show Risks of Sudden Restrictions
Geo-science expert Ignatius Kamwanje notes that the delay in fully implementing and enforcing the export ban has triggered mineral smuggling, costing the country vital foreign exchange. He draws parallels to Zimbabwe and Tanzania, where similar strict mineral bans led to cross-border smuggling and losses in government revenues.
Malawi 2063 Targets Mining’s 10% Rebound to Boost Growth
While the sector contributed 10% to GDP before 2014, current contributions have shrunk to 1%. Malawi 2063 targets a strong recovery, positioning mining as a critical driver to achieve upper-middle-income status by 2063. The government sees potential in sites like Kasiya Rutile in Lilongwe and Kangankunde Rare Earths in Balaka for introducing local processing, thereby unlocking billions in economic value.
Africa Bans Yield Mixed Results
Attempts to impose stricter mineral controls across Africa have shown mixed outcomes. While the aim is to retain processing and economic benefit locally, abrupt suspensions without adequate local capacity have sometimes fueled illegal trade, as seen in neighboring Tanzania and Zimbabwe.
Looking ahead, the mining sector is projected to maintain steady growth of 5.9% in 2026 and 6% in 2027, signalling gradual recovery contingent on stabilizing export policies and investing in local beneficiation plants.
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