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Government highlights investment opportunities in Malawi’s minerals sector

May 23, 2024 / Modester Mwalija
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Sakhuta: Investors are encouraged to take advantage of the global energy transition

The Ministry of Mining is courting global investors to take advantage of the ongoing reforms in Malawi’s sector and invest in the sector, which offers abundant opportunities.

Director for Mines in the Ministry of Mining Samuel Sakhuta said in his presentation at the Malawi Mining Investment Forum that Malawi has untapped mineral wealth including critical minerals essential for global energy transition and industrial development.

Sakhuta said: “Malawi offers a compelling case for investment due to its abundant mineral resources, stable political environment, and a range of incentives.”

“Investors are encouraged to take advantage of the global energy transition to explore opportunities in critical minerals such as rare earths whose deposits are in abundance and also development minerals such as limestone vital for infrastructure development projects like road construction and cement production.”

“The transition to clean energy necessitates the exploitation of critical minerals, positioning Malawi as a key player in the global energy landscape.”

In addition to mineral exploration, Sakhuta emphasized the potential for leveraging mining to enhance agricultural productivity through the local production of fertilizers.

 “Mining can play a pivotal role in supporting agricultural growth by providing the raw materials needed for fertilizer production, thereby reducing dependency on imports,” he said.

Sakhuta explained that the Malawi Government is carrying out various reforms and offering several incentives aimed at attracting and retaining investors.

 “Malawi offers a conducive investment climate with measures such as security of tenure, transparent contract negotiations, and tax incentives,” he said.

Sakhuta said as part of the reforms, the government has established the state-owned mining company to partner the private sector in pursuing strategic mining projects.

He said the government has also established the Malawi Mining and Minerals Regulatory Authority to streamline licensing processes and enhance regulatory oversight.

In his address, CEO for Standard Bank Philip Madinga called for collaboration among stakeholders to ensure sustainable growth of Malawi’s mining sector.

“If we are to reach our goal of raising the Gross Domestic Product (GDP) from 0.8 % to 10 % then we must not underestimate the power of collaboration between the public and private sector, as through strategic partnerships and innovative financing mechanisms, we can pave way for transformative growth and prosperity,” he said.

Madinga also urged stakeholders to prioritize infrastructure development, particularly in energy and transportation as essential enablers for mining sector growth.

“Investment in infrastructure is not just a necessity, it is a catalyst for unlocking Malawi’s mining potential,” he said.

Commenting on the delays in finalizing Mining Development Agreements (MDAs), Madinga called for streamlined processes and proactive engagement to expedite investment decisions urging government to consider the importance of balancing regulatory requirements with the urgency of attracting investment to the sector.

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