Mining
World Bank reiterates calls for reforms in Malawi mining sector
April 03, 2025 / Modester Mwalija
World Bank Headquarters in Washington DC
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Malawi’s reliance on hydroelectric power leaves mining operations vulnerable to drought-related shortages, while an outdated rail network forces companies to rely on expensive road transport.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 Meanwhile, the country's outdated rail network forces mining companies to rely heavily on costly and inefficient road transport, further driving up operational expenses,” the report reads.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.
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Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
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Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
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