Executive Director for the Foundation for Community Support Services (FOCUS) Kossam Munthari has called for increased investment and effective implementation of mining reforms to ensure greater benefits for Malawians.
The remarks come as the Malawi mining sector is undergoing major regulatory reforms and large-scale project developments designed to spur significant economic growth.
Speaking to Umunthu FM, Munthari noted that while the mining sector plays a vital role in the country’s economic development, it leaves a lot to be desired in terms of benefits for local people.
“The country has made strides in formulating mining investment strategies for growth, but somehow we have lost our way in this sector,” Munthari said.
He pointed to the formulation of the Mining Regulatory Authority as an example, which he said has the potential to promote inclusion through regulation of the sector.
Munthari also pointed to various indabas, including the Malawi Mining Investment Forum held in the country, which he said has helped reform policies on critical minerals to ensure greater benefits for citizens.
However, Munthari noted that the country’s mining sector still lags behind when it comes to benefiting Malawians.
“Implementation of the management guidelines does not reflect the goals of the mining sector in the country’s Mining 2063 blueprint, as seen through the lack of real inclusion of local communities,” he said.
He further said the mining sector can only benefit Malawians
if government presents real, on-the-ground strategies to improve the sector,
instead of focusing only on financial support.
According to data from the Malawi Confederation of Chambers of Commerce and Industry MCCCI), currently the mining sector contributes only 1 percent to Malawi's GDP. In Malawi Vision 2063, government envisions that if the country's mineral resources are properly mined, it can contributes to annual average rate of 10 percent to the national GDP.
However, recently there have been growing concerns that the
mining sector does not fully benefit local communities, but rather foreign
investors. This has drawn calls from various stakeholders, including the Centre
for Democracy and Economic Development Initiatives (CDEDI), for government to
revise or revoke some foreign mining licences.
