Mining & Trade News

Malawi’s foreign exchange woes which have seen the United States Dollar fetching up to K5,000 on the black market while the official rate in dealer banks remains K1,700 are fueling gold smuggling, Mining & Trade Review has established.

Random interviews with gold dealers and some Artisanal and Small-scale Miners (ASMs), revealed that local gold dealers are preferring to sell their gold to business tycoons in neighboring countries such as Zambia and Mozambique, despite the Export Development Fund (EDF) offering attractive prices locally, because they prefer to trade in Dollar other than the Kwacha.

“The black market is very attractive because of the unstable exchange rate and small-scale miners prefer taking their gold to black market dealers whose prices are based on the Dollar exchange rate on the black market. The dealers export the gold to Mozambique and Zambia in order to sell in US Dollars,” said Chikomeni Manda, Managing Partner for Perekezi ASM Consulting.

In a separate interview, MD for Maleta Gems and Jewels Percy Maleta told Mining and Trade Review that there is a steady market for gold in Malawi with a good number of ASMs selling their gold to EDF.

“Besides EDF, there are other buyers in Lilongwe buying a lot of gold, they also offer attractive prices,” Maleta said.

Currently, gold is trading at an average US$94 per gram on the international market but RBM has been offering $225 per gram (about K390, 000).

But even at such a price, RBM is unable to attract many sellers on account of the volatile exchange rate with the Kwacha fairing badly on the parallel market.

Maleta suggested that in order to fetch more gold from ASMs, EDF needs to capacitate the ASMs by supporting them with equipment and skills.

“EDF should be more than a big vendor by working with cooperatives, capacitate them, and agree to buy output which is gold at agreed prices. It should borrow a leaf from most of the private dealers who go beyond just buying gold, and support ASMs with equipment and skills,” said Maleta.

ASX-listed Sovereign Metals has announced that rehabilitation of land at the test pit site mined during the pilot phase of its Kasiya rutile-graphite project in Lilongwe has made substantial progress.

Sovereign Metals MD and CEO Frank Eagar explained that soil remediation work under its pilot mining and land rehabilitation programme was concluded in December 2024 with landowners accessing the site between December 2024 and January 2025 to plant and cultivate crops without missing a planting season.

Sovereign continues to provide support and training to landowners to improve crop yields, including introducing conservation farming techniques, which have already resulted in a tripling of crop yields.

 “The successful return of farmers to their land within such a short time and without missing a single planting season after mining and backfilling 170,000m3 is an excellent outcome. This demonstration of responsible mining and land rehabilitation will build on our positive community relationships,” said Eagar

“The pilot phase of 90 farmers selected for our Conservation Farming programme has been increased to 350 for this season. Early indications are that the second season of this programme will exceed the 300% yield increases achieved in the pilot phase. The empirical data collected from these trials will feed directly into our Definitive Feasibility Study designs for mine closure and land rehabilitation.”

Rehabilitation crops, including giant bamboo, sun hemp, groundnuts and mung beans, are being tested alongside staple maize crops.

He said: “The rehabilitation programme successfully demonstrates how mined land can be quickly and efficiently returned to productive agriculture during future full-scale operations.”

“All soil remediation works as well as planting was done by hand with the use of a grader and tractor to prepare the soils. Sovereign appointed the local landowners to work with us in both the soil remediation and planting work, so that they were able to directly experience and learn about our rehabilitation work on their land.”

Sovereign is working closely with the landowners to ensure that the crops provide a good yield in 2025, while simultaneously testing a variety of rehabilitation crops. This includes the intercropping of giant bamboo with maize, which will be retained by the landowners.

“Sovereign is committed to ensuring that all mined-out land is appropriately rehabilitated to support sustainable farming practices after closure.”

Eagar explained that the soil remediation methods aim to revitalise the soils within two-to-three-years to ensure that land can be sustainably farmed in the long term. The remediation of soil to a depth of one metre from the surface will ensure the land can support  future commercial farming practices.

As part of the pilot phase, the company has constructed small rehabilitation demonstration pits that will be used to illustrate multiple and ongoing rehabilitation processes.

REHABILITATION APPROACH

The rehabilitation approach is based on agronomic principles, including promotion of sustainable farming practices and provision of various land uses after mining is finished. Rehabilitation is underway through a five-step process:

Step 1: Introduce Lime (Complete)

The soil remediation commenced with the application and incorporation of locally sourced dolomitic lime (calcium and calcium-magnesium-carbonate) to improve naturally low pH levels

. Step 2: Introduce Carbon and Basic Nutrients (Complete)

Sovereign augmented the mined area with organic carbon and basic nutrients. Tests included the application of biochar to provide carbon and fertiliser in the form of potash (MOP), phosphate (MAP) and a blend of nitrogen, potash and sulphur (NPK) 15:23:16).

Step 3: Grading, Ripping and Discing (Complete)

Lime, biochar, and fertiliser were incorporated into the soil through grading, ripping, and discing using graders and locally sourced farming equipment. This ensured that the land was level along with safe working conditions.  

Step 4: Planting of Rehabilitation Crops (In Progress)

Since December 2024, Sovereign has been planting rehabilitation crops to maximise the benefit of the coming summer rainfall. Giant bamboo has been introduced in 4 by 8 metre blocks, which will act as the primary crop to enhance carbon and bio-activity in the remediated soils. Maize and other cover crops have been intercropped between the giant bamboo within re-organised farm blocks.

Step 5: Monitoring and Evaluation (In Progress)

Sovereign continues to monitor soil remediation, plant growth and crop yields. As part of stakeholder engagement, the company is working with local farmers to improve results through conservation farming, composting operations, testing new seed varieties and establishing an indigenous fruit and farming nursery. This is serving as a live demonstration of rehabilitation and timely return of land to a pre-mining state. Results of an optimised pre-feasibility study that Sovereign completed in 2025 in conjunction with its strategic partner global mining giant Rio Tinto have shown that Kasiya is well positioned to become the lowest cost producer of both rutile and graphite, reconfirming Kasiya’s potential as leading global future supplier of strategic critical minerals outside of China. Kasiya hosts the world’s largest natural rutile deposit and second largest natural flake graphite deposit globally.

The World Bank says Malawi’s mining sector has great potential but needs urgent reforms to attract investment and boost the economy.

In its 2025 Malawi Economic Monitor Report, the Bank points out delays in finalizing Mining Development Agreements (MDAs) and issuing permits as major challenges in the sector warning that these slowdowns deter investors and stall sector growth.

“The government should engage independent legal experts to ensure mining contracts are fair and beneficial to the country. Mining agreements are complex, and delays in negotiations can result in lost investment opportunities,” the report reads.

The report observes that key institutions like the Ministry of Mining, the Geological Survey Department, the Malawi Revenue Authority, and the Malawi Mining Regulatory Authority (MMRA) are underfunded and understaffed.

“Enhanced coordination between government agencies is essential to streamline processes related to land tenure, construction permitting, and oversight. Without these reforms, investors will continue to face unnecessary bureaucratic problems that slow down project implementation,” the report states.

It says lack of accredited laboratories for mineral testing is another setback as without these facilities, the government struggles to verify the quality of mineral exports and administer taxes effectively.

The report also highlights infrastructure gaps, especially in energy and transportation as serious challenges. The Bank warns that Malawi’s reliance on hydroelectric power leaves mining operations vulnerable to drought-related shortages, while an outdated rail network forces companies to rely on expensive road transport.

“The mining sector is expected to need 60–100MW of power in the medium term and up to 160MW in the long term, but current capacity falls short. Meanwhile, the country's outdated rail network forces mining companies to rely heavily on costly and inefficient road transport, further driving up operational expenses,” the report reads.

Despite these challenges, the World Bank sees clear opportunities in the sector. The report highlights Malawi’s commitment to the Extractive Industries Transparency Initiative (EITI) as a positive step towards improving openness and accountability in resource revenue management.

“In the short term, this has set up a credible and effective platform for multi-stakeholder engagement that will help foster an inclusive dialogue around the development of the mining sector,” notes the report.

Additionally, it says the updated mining regulatory framework and capacitation of the MMRA are expected to create a more stable environment for investors while the Energy Transition Minerals (ETM) Roadmap will help the government articulate a long-term vision of  how mining can drive economic transformation.

“Well-designed regulations, developed through comprehensive consultation, are less likely to require frequent revisions, fostering the stable and predictable regulatory environment essential for building long-term confidence in the mining sector,” the report states.

Malawi has been striving to expand its mining sector as part of its broader economic diversification strategy. For years, the sector has remained underdeveloped, contributing less than 1% to the country’s GDP, despite the country being rich in minerals such as uranium, graphite, rare earth elements, and gold.

Local Artisanal and Small-scale Miners (ASMs) and Gemstones dealers have called on the Malawi Government to remove the newly introduced restrictions on the exportation of gemstones saying they are greatly affecting their business.

The Ministry of Mining recently banned exportation of gemstones and precious minerals and the Malawi Revenue Authority followed up with a notice that included “unmanufactured gemstones” among the list of restricted and prohibited imports/exports.

“Due to the ban, our markets have been taken over by our competitors and it will not be easy to gain the trust of our customers since it manifests that our country is unstable. No international buyer would want to be associated with such a country. We are, therefore, making losses and cannot service loans,” said MD for Maleta Gems and Jewelry Percy Meleta.

Maleta explained that the Government is missing the point if it thinks the ban is one way of reforming the sector saying the only way Government can reform the gemstone industry is to train more gemologists, promote value addition, create more functional mining cooperatives and ease the export process.

He said: “Equally, the Government should train its staff. We need more gemologists in Government with the right equipment and exposure to the world of gemstones.”

“Make the export process seemless, create a one-point centre unlike what is happening now where by one has to go to so many government offices to get an export permit.”

Maleta also advised the Government to learn from other leading countries like Zambia in terms of gemstone marketing, in order to make the gemstone sector attractive.

He said countries with competitive gemstone industry are reducing or removing taxes to facilitate more exports which in turn brings more forex, create more jobs as well as entice more investors.

In a separate interview, gemstone miner and dealer Chikomeni Manda also bemoaned the ban saying engaging the exporters would have been ideal before shutting down the system completely.

Manda said the reasons that led to the ban were unjustifiable and retrogressive to the sector whoe market is always unstable in nature.

He said: “The way they did it was not a proper way because they could have engaged gemstone dealers on the problems to map the way forward.”

“Even though some stones might be undervalued, when exporting they go through all appropriate channels such that we have gemologists who evaluate these stones in accordance with the prevailing market situation.”

“The gemstone market is different compared to that of other minerals. You can sell the same stone today at a high price, come tomorrow it goes at a lower price so in that scenario amount of revenue differ. As we speak, gemstones market is very down and dealers are struggling a lot in terms of marketing and pricing.”

Manda also explained that the nature of gemstone market dwells on quantity but not quality, such that some stones are sold in high volumes hence are very cheap.

He observed that the ban has only negatively impacted revenue collection from the industry and few dealers who export through right channels but fueled smuggling as many dealers continue to export the stones to bordering countries, which are later traded on the world market as mined in those nations.

Manda said: “If they are emerging issues it is better for the government to engage dealers not coming up with such decisions.”

“People think each and every gemstone is worth a fortune and the market is stable all the time, but go to Export Development Fund (EDF), being a government entity that is buying the stones. They are even struggling to find market for rhodolite and what more to a dealer who is just trying to survive.”  

“So, the government has to address the main challenge which is smuggling not go against those using right channels.” Meanwhile, the Mining Ministry is requesting all gemstone license holders who exported minerals between January 1, 2024 to February 17, 2025 to submit all their export returns to Mining and Minerals Regulatory Authority (MMRA), in order to be granted export permits.

Stakeholders in the minerals sector have expressed concern over low budget allocation to the mining sector in the 2025/26 national budget saying it does not reflect government plans of transforming the sector as outlined in Malawi 2063 and the Agriculture, Tourism and Mining economic strategy.

On February 28, 2025, Minister of Finance and Economic Affairs Simplex Chithyola Banda presented before the National Assembly the 2025/26 Budget worth MK8.05 trillion allocating MK14.2 billion to the mining sector.

Out of the MK14.2 billion, MK5.1 billion has been earmarked for Mining Regulatory Authority; K4 billion for the establishment of the state owned mining company that will operate under Malawi Development Corporation (MDC); K4.1 billion for Mining and Geological Services; and K1 billion for the Mineral Laboratory in Lilongwe.

But in an interview with Mining and Trade Review, National Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid said despite that the allocation has increased with 160% from MK5.5 billion in the previous budget, the MK14.2 is still not enough considering the requirements in the sector.

Rashid said: “From the look of the overall increase in funding, the indication is that there is some intent to develop the mining sector from government considering that the previous year the sector got only 5.5 billion Kwacha.”

“The allocations of the current 14.2 billion kwacha still is not yet convincing. Specifically, on how the funding has been allocated. A huge chunk, 5.1 billion Kwacha, has been allocated for regulation. Our understanding is that government wants to mainstream regulation of the sector first which can assist in the compliance and enforcement of laws and regulations.”

“Even though the regulation has received significant funds in the current budget, what will matter is how such funds will be used and if it will be used largely on administration costs then this will impede the other functions of the regulator.”

Rashid also said though the allocation to the state-owned mining company is still on the lower side, it indicates the intention of government to start participating directly in mining sector operations.

He said if well governed, the state-owned company can assist in facilitation of the local beneficiation drive and job creation.

Rashid said: “While the 2025/2026 budget has increased overall mining sector funding, the Ministry of Mining has received only part of the 4.1 billion Kwacha allocated to both the Mines and Geological Survey Departments. This could mean continued operational challenges for the departments as they have to share a minimal allocation for their operations like the collection of other revenues by the Department of Mines and geological data collection by the Geological Survey Department.”

“The allocation for the mining laboratory is still on the lower side for the lab to be operational with modern standards and equipment.”

Concurring with Rashid, Coordinator for Chamber of Mines and Energy, Grain Malunga said the Malawi Government needs to put more effort to ensure that the state-owned mining company is fully funded and functional.

“What is needed is to fund the Company to embark on mining for import substitution, mining and processing of industrial minerals, management of government equity in mining and support Artisanal and Small-scale Miners in mining, processing and marketing,” said Malunga.

In his remarks, Seasoned Geoscientist Ignatius Kamwanje said even though the Government is doing well on inclusive sector transformation, low funding will still obstruct implementation of the viable incentives.

Kamwanje said: “The funding itself is not enough to run the sector hence limiting incentives. However, in terms of inclusive sector transformation, the government is partly giving a true reflection.”

“There is need to scale up capacity building and formalization of ASM, I do not see a visible government involvement in this aspect.”

Government outlines in the budget statement that it is implementing key programmes and projects to strengthen the mining sector and maximize its economic potential including: reviewing gemstone export procedures to enhance transparency and accountability in management of foreign exchange earnings from gemstones; facilitating the commencement of large-scale mining projects; strengthening enforcement and inspections to ensure compliance with mining regulations; conducting geological mapping to identify more potential mineral deposits of high value; conducting mineral processing research and analytical laboratory services to improve mineral value addition; and carrying out mining investment promotion to attract investors and stimulate sector growth.

Mineral sector experts have advised mining companies and the Malawi Government to fully engage with local communities and Civil Society Organisations (CSOs) in pursuing the Mulanje Mountain bauxite and rare earth prospecting project to ensure that they are fully sensitized on the project.

Consulting Geoscientist Ignatius Kamwanje said since Mulanje Mountain is a forest reserve and an eco- tourism center, companies conducting exploration or mining activities at the site will continue facing a backlash from environmentalists, CSOs and members of the local community.

Kamwanje said: “There will still face an uphill task to thrive but reaching flexible beneficial agreements can be a way of arresting the wrangles.”

“The investors need to engage the communities in ongoing activities through employment, meetings as local participation, and; bring stories from elsewhere where mining has been successful under the same environment.”

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid in a separate interview advised investors to develop a viable stakeholder engagement strategy in order to manage both conflicts and expectations. Rashid also said there is a need to utilize the Free Prior and Informed Consent (FPIC) in Mulanje District about mining in the mountain as much as the nation needs to generate wealth.

“Besides the minerals, the ecosystems on the mountain are very important to other stakeholders socially and economically,” he said.

However, Coordinator for Chamber of Mines and Energy Grain Malunga explained in an interview that mining cannot endanger ecosystem or tourism activities in the mountain. Malunga said unlike unregulated small-scale mining which has resulted in destruction of the environment across the country, large scale mining to be conducted in Mulanje will involve the execution of modern and environmentally friendly technologies.

“Tourism can strive through geo-tourism investment. Mining of today is very sustainable. One should not confuse small scale mining with large scale mining,” he said.  

MD for Chiwandama Geo Consultants John Nkhoma said the country can realise more benefits from mining in Mulanje as compared to what is being earned from tourism activities.

“Mining, if properly done can actually bring about the much-required tourism boom and money can be realized from it. Look at the accessibility to the top of the Mountain, this requires huge investment which tourism will never achieve till end of the world,” he said.

Mulanje bauxite project has the potential to boost the country’s economy by increasing foreign exchange reserves and creating job opportunities for locals.

The project has also potential to improve the public infrastructure including upgrade of transportation networks, housing, health care and educational facilities.

A local firm Akatswiri Mineral Resources is pursuing the project, which hosts about 28-million tonnes of bauxite, and rare earth reserves at Chambe Basin.

ASX-listed Lotus Resources, which is preparing to resume uranium mining at Kayelekera in Karonga, says it has issued Malawi-based purchase orders exceeding K3,8-billion in the past three months, from December 2024 to end February 2025.

Lotus CE0 Theo Kyter explains that the development implies that the mining project is procuring goods and services from Malawi suppliers and service providers at increasing levels to ensure that locals adequately benefit from the mine.

Lotus offers businesses to Malawians across transportation, vehicles, freight, local contractors, food, IT equipment, safety gear, water, internet, cement and other areas.

“We will consider equal opportunities including to entities owned by Malawian women, provided such supplier and contractor entities offer competitive terms including prices, quantities, qualities and delivery schedules,” says Kyter. 

Lotus needs to resume operations profitably to ensure long term success and benefits for the people of Malawi

•Cost control is critical to survive   

 •The operation was forced to close in 2014 due to low revenue and high costs

•Our procurement plan prioritises Malawian businesses and allows for Malawian companies to tender   

 •It is important that Malawian companies work with Lotus to be competitive. Being uncompetitive will result in Lotus having to procure from other countries to avoid high costs

•Priority will be given to Malawian companies that are competitive with the market

   •We have clearly seen that some Malawian companies have been charging significantly higher prices and continue to increase their pricing since activity on the mine has increased – this is making those companies uncompetitive

•We will adhere to all our obligations with Malawian law and our agreement with government

•Considering local availability and pricing / quotes before making purchase decisions   

 •However, this will be with the emphasis needed to ensure that our cost base is competitive with others in the global uranium industry

Lotus is fully engaged with and has strong support from surrounding communities.

•A key focus for Lotus is strong community engagement and support and this is displayed in many ways including the recently signed Community Development Agreement, ongoing community support including support for local schools, health services and other roles

Lotus is contributing to local communities and across Malawi through:

•Growing local employment:   

 •currently over 350 local personnel are employed, which will continue to increase significantly local employees represent nearly 90% of the current site workforce

•Development of training and other programs to upskill the local workforce and continue to increase the percentage of local personnel employed, with a particular focus on increasing the percentage of local personnel employed in specialist and senior roles over time

We are working with Malawian suppliers and continue to encourage the development of local supply of goods and services through:

•Lotus controls is own contract award and procurement processes

•Considering local availability and pricing / quotes before making purchase decisions.

•Across transportation, vehicles, freight, local contractors, food, IT equipment, safety gear, water, internet, cement and other areas.

•Buying from Malawi suppliers and service providers at increasing levels, recognising that Lotus still needs to purchase goods from outside Malawi due to availability and cost considerations:   

 •In the past 3 months, from December 2024 to end February 2025, Lotus has issued Malawi based purchase orders exceeding MWK3.8 billion ­ We will consider equal opportunities including to entities owned by Malawian women, provided such supplier and contractor entities offer competitive terms including prices, quantities, qualities and delivery schedules.

Malawi’s mining industry is undergoing a transformation as new technologies reshape the exploration and extraction of the country’s mineral resources.

In a rapidly evolving landscape, advanced tools such as drones, automated machinery, artificial intelligence, and 3D mapping are laying the foundation for more efficient, safer and environmentally responsible operations.

In an interview with Mining and Trade Review, a lecturer in Earth Science at Malawi University of Science and Technology (MUST) Ellasy Gulule Chimimba explains that the selection of technology in mining depends largely on the specific tasks for example in mineral exploration drones have proven to be a game changer

. “They allow us to map and survey areas that are otherwise inaccessible or too dangerous to reach by traditional means. This not only speeds up the process but also provides higher precision in data collection,” she says.

Chimimba explains that drones are being increasingly used to perform detailed geological surveys, making them an indispensable tool in identifying mineral-rich areas.

She says that in the case of actual mining operations in Malawi where large-scale mines are still emerging, the technology applied will vary as different mining operations require different technological solutions.

Chimimba says “operations like uranium extraction at Kayelekera Mine in Karonga might rely more on automated trackless machines with GPS tracking as these systems are designed to work in environments where human intervention is minimal, ensuring both safety and operational efficiency.”

She explains that technologies such as artificial intelligence and 3D mapping are making inroads in mining by offering capabilities for real-time data analysis and predictive maintenance in so doing reducing downtime and enhancing overall productivity.

Acting Director of Mines in the Ministry of Mining Mphatso Chikoti says that the Ministry recognizes these advancements and is fully committed to integrating modern technologies, including drones and automated systems to improve efficiency and compliance in mining operations.

He confirms that the adoption of drones has already begun in various aspects of mining, including surveying and monitoring.

“Our use of drones extends beyond mapping as they are also instrumental in environmental monitoring and compliance enforcement, ensuring that mining activities adhere to both safety and environmental standards,” says Chikoti.

He also reveals that the Ministry’s proactive approach in the adaptation of new technologies has earned international recognition including an innovation award from the United Nations Development Programme (UNDP) last year.

Chikoti says the government’s strategic policies have been central to this technological push hailing frameworks highlighted in the Mines and Minerals Act 2023 and initiatives such as duty waivers on mining-related equipment. He stresses that the Malawi Government is determined to make advanced mining technologies more accessible not only to large-scale operators but also to small-scale and artisanal miners.

Chikoti says: “We understand that the initial investment for high-tech equipment can be expensive, which is why we are collaborating with development partners and financial institutions to create opportunities for miners of all scales to access and benefit from modern technologies.”

However, the path to a fully modernized mining sector is not without challenges. Both Chimimba and Chikoti acknowledge that this advancement comes with its own set of challenges.

The high cost of advanced equipment, the need for specialized training, and the reliance on imported technology are significant issues that the sector must overcome.

As Malawi navigates this technological revolution, the collaborative efforts of academia, industry and government signal a promising future for the nation’s mining sector. With ongoing investments in training and infrastructure, the integration of modern technology is expected not only to elevate operational standards but also position Malawi as a regional leader in mining innovation.

An umbrella body of civil society organisations (CSOs) working in Malawi’s extractive sector, the Natural Resources Justice Network (NRJN), says there is need for more local investors in foreign resource firms working in the country in order to promote inclusive and sustainable economic growth.

Coordinator for NRJN Kennedy Rashid told Mining and Trade Review in an interview that encouraging Malawians to own shares in mining companies will significantly increase local participation in large-scale mining in so doing scaling up benefits for Malawi.

Rashid pointed out that local shareholding in foreign companies aligns with principles of resource nationalisation, where by a country's citizens are directly involved in the ownership and management of natural resources. 

He said: “CSOs also believe that local shareholding would foster accountability and transparency within the mining sector, as Malawian shareholders would have vested interests in the governance and operations of these companies.”

“However, there are several structural and systemic barriers that must be addressed to make this a reality. Some of the issues include lack of adequate knowledge about the stock market and the potential benefits of investing in shares whereby limited financial literacy means they are unaware of how shareholding works or how it can benefit them in the long term.”

He said lack of disposable income among many Malawians has also been a challenge in investing in shares.

“Malawi's capital market is underdeveloped, and opportunities for citizens to buy shares in mining companies are not widely accessible. Investing in shares is seen as risky, especially in an industry like mining, which is prone to price fluctuations and operational risks,” Rashid said.

He, however, said despite the challenges, local ownership in mining investments can bring a lot of benefits including enhanced wealth distribution as local shareholding would ensure that more wealth from mining remains within the country creating opportunities for wealth distribution among ordinary citizens; capacity building and fostering national ownership; and strengthening the financial sector.

Rashid, therefore called for collaboration among CSOs, the private sector and Government, and mainstream mineral sector players on several fronts on financial education campaigns; mainstreaming policy reforms; and increasing access to capital to create an enabling environment for local shareholding.

Mining Expert Ignatius Kamwanje backed the recommendation from the CSOs saying it will spearhead sense of ownership as well as boosting the economy through dividends.

“On top of taxes. buying shares enhances a sense of ownership of the minerals by the locals. It is also a way of economic empowerment through dividends,” Kamwanje said.

However, Coordinator for Chamber of Mines and Energy Grain Malunga said in a separate interview that currently Malawi does not have mining companies registered on Malawi Stock Exchange hence it would be difficult to implement the proposal.

Seasoned Geologist and Mining Expert John Nkhoma, however, commented that though there is no problem in buying shares in the large scale mining companies, Malawians have to understand that it requires foreign exchange.

He, however, said it requires patience to start benefiting from investing in shares in mining companies taking into account the long time it takes for a mine to reach production stage hence wondered if many Malawians can manage to wait for such a long period before starting to reap from their investments.

“The main problem is that many Malawians want to see immediate returns,” said Nkhoma.