Revitalizing Malawi’s Economy: Harnessing the Extractive Sector’s Full Potential for Sustainable Growth
Key Business Points
- Strengthening governance and safer mining practices are crucial for Malawi’s extractive sector to contribute meaningfully to the country’s economy and reduce illicit trade and loss of life.
- Value addition is essential to retain jobs and economic benefits, with stakeholders calling for efficient refining processes to create broad-based benefits, especially for the youth, as emphasized by Norwegian Church Aid–Danish Church Aid country director Stefan Jansen, who noted that "a ban alone is not enough" to achieve this goal.
- Collaboration and coordination among government ministries, departments, and agencies are necessary to regulate the sector effectively, curb illegal operations, and ensure that mining contributes sustainably to local development, as highlighted by Chamber of Mines and Energy national coordinator Grain Malunga.
The extractive sector in Malawi is at a critical point, with stakeholders calling for stronger governance, safer mining practices, and value addition to ensure that the sector contributes meaningfully to the country’s economy. During a recent Government and Extractive Stakeholders Engagement on Mining Compliance and Governance in Lilongwe, stakeholders argued that regulatory gaps are fueling illicit trade, loss of life, and missed revenue opportunities. The meeting brought together government officials, donors, mining regulators, geologists, and civil society organizations to discuss the way forward for the sector.
Stefan Jansen emphasized that Malawians are weary of poverty, inequality, and the lack of meaningful benefits from the country’s mineral wealth, noting that "Malawians are weary of poverty, inequality and the lack of meaningful benefits from our mineral wealth." He welcomed the government’s ban on the export of unprocessed minerals but warned that value-addition facilities are urgently needed to retain jobs and economic benefits. This is a crucial point, as the mining sector has seen fluctuations in its contribution to gross domestic product, with mining contributing 79 percent of the total extractive industry revenue.
The Ministry of Natural Resources, Energy and Mining is developing policy measures aimed at strengthening community protections, improving environmental safeguards, and ensuring that mining contributes sustainably to local development. Mkandawire, or partnerships, between government and private sector players will be essential in achieving these goals. Ministry of Natural Resources, Energy and Mining mining engineer George Maneya noted that the country should be able to find jobs that are self-sustaining and ensure that the environment in which operations are carried out is taken care of.
The Chamber of Mines and Energy called on ministries, departments, and agencies to jointly regulate the sector to curb galamoyo, or illegal mining operations. Faith-based groups stressed that mining reforms must prioritize equity, with Evangelical Association of Malawi vice-chairperson Rev Davidson Chifungo saying Malawians deserve fairer benefits from mineral resources. The meeting also highlighted positive cases where companies are compensating households, engaging communities transparently, and investing in social responsibility projects, such as mphamvu, or community development initiatives.
Stakeholders agreed that such models should become standard rather than exceptions. The session closed with a consensus on six priorities for reform: strengthening worker and community safety, fast-tracking value-addition facilities, enhancing transparency, improving community engagement, enforcing labour standards, and bolstering accountability mechanisms. As the extractive sector continues to play a crucial role in Malawi’s economy, uzani, or hard work, and umodzi, or unity, will be essential in achieving these reforms and ensuring that the sector contributes meaningfully to the country’s development. With the right policies and partnerships in place, Malawi can unlock the full potential of its mineral resources and create a brighter future for its people.
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