Revitalizing Malawi’s Economy: Harnessing Mineral Wealth through Effective Regulation
Key Business Points
- Local Councils to Employ Mining Officers: The Mining and Minerals Regulatory Authority (MMRA) is urging local councils to hire mining officers to ensure proper oversight and coordination of mining activities at the district level.
- Devolution of Mining Functions: The mining ministry plans to devolve its functions to local councils, enabling them to handle mining issues with relevant knowledge and expertise, especially as the sector experiences rapid growth.
- Community Development Agreements: Large-scale miners must comply with Community Development Agreements before starting operations, and local councils need to develop strategies to handle illegal mining activities and support small and medium-scale miners.
The Mining and Minerals Regulatory Authority (MMRA) has emphasized the need for local councils to have dedicated mining officers to oversee and coordinate mining activities at the district level. According to MMRA Director General Samuel Sakhuta, this is crucial for ensuring that mining players and communities work together effectively, and that small or medium miners operate within the laws and by-laws. Sakhuta noted that the presence of mining officers in councils is critical for handling issues related to mining with clear knowledge and expertise.
The MMRA held a sensitization and consultative meeting with District Commissioners (DCs) to educate them on the Mines and Minerals Act of 2023. The meeting aimed to empower DCs to understand the law and trickle down the knowledge to traditional authorities and community leaders, promoting better cooperation with investors. Dowa District Commissioner Stallichi Mwambiwa described the sensitization as critical for unlocking council participation in the Agriculture, Tourism, Mining, and Manufacturing (ATMM) strategy implementation.
Mining expert Ignatius Kamwanje highlighted the need for more awareness of mining laws, citing that most disputes and misunderstandings in the sector emanate from a lack of knowledge. The meeting also discussed key areas such as Community Development Agreements and how to handle illegal mining activities. With the mining sector experiencing rapid growth, the Chamber of Mines and Minerals projects that the mining contribution to Gross Domestic Product will jump from 1% last year to 12% in 2027, when at least three mining ventures will have started production.
As the mining sector continues to grow and develop, it is essential for local councils, investors, and communities to work together effectively. The establishment of mining officers in local councils will play a crucial role in promoting sustainable mining practices and ensuring that the benefits of mining are shared equitably among all stakeholders. In Chichewa, this concept is referred to as "kugwira ntchito pamoza", or working together, which is essential for achieving economic growth and development in Malawi. As the country looks to capitalize on its mineral resources, it is crucial for businesses and investors to prioritize "-tsogolo la pasiya", or the future of the area, and work towards creating a "pulogalamu yeniyeni", or new program, for sustainable mining practices.
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