Editorial

Editorial November 2020

November 11, 2020
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Act on corruption to develop Malawi’s mining sector

The audio clips in circulation depicting a conversation between officials of the Ministry of Mining discussing a deal with a Chinese investor for Ilomba Granite Mine in Chitipa for the investor to pay US$300,000 and mobile phones to the government officials and mobile phones in exchange for the renewal of a mining licence is not only shameful but also disgusting.

We are not judges to blame any of the two parties for corruption but the issue remains that the fact that the two parties had the audacity to conduct those discussions is a clear manifestation that corruption is deep rooted in Malawi’s mining sector.

As reported in our lead article, the Anti-Corruption Bureau (ACB) has taken up the matter after accessing the audio clips, an action which we find commendable.

But this should not end there. We need more action from stakeholders including government, mining companies, civil society organisations (CSOs), security agents and the academia to overcome corruption in the extractive sector.

As National Coordinator for the Malawi Chamber of Mines and Energy Grain Malunga is quoted in our lead article, mining has overwhelming potential to adequately contribute to economic growth as with only one large scale mine the Kayelekera Uranium Mine on stream, the sector’s contribution to the economy surged from 1% to 10%.

However, this overwhelming potential cannot be fully realised by the country if corruption continues to take its toll in this lucrative sector.

Let us also mention that corruption is a disincentive to investment. Corruption results in failure of important projects which would have helped in attracting investment in the mining sector. In Malawi, there are questions on the failure to complete construction of the office complex to host the cadastral mineral licensing system in Lilongwe. Why did the contractor abandon the project? Responsible authorities have to take up such issues.

Corruption also overburdens investors with extra costs as they have to give money to government officials after paying licensing fees, investing in explorations and community development projects as part of corporate social responsibility or community development agreements.

Corruption also results in conflicts over mineral rights. An example is the issue of the Kangankunde Rare Earth Mine in Balaka which is still idle, despite hosting one of the world’s largest rare earth resources, due to court battles pitting government and investors.

It is also due to corruption that Malawi’s precious minerals including gold are being smuggled hence the country is losing millions of dollars.

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