Malawi bans exportation of minerals

Gilbert Munetsi

Zim Now Writer

The Ministry of Mining in Malawi has announced an immediate temporary ban on the export of all minerals, a development it said aims to streamline export procedures and ensure efficient and transparent processes within the country’s mining sector.

The announcement was made through a statement issued on Tuesday, with Secretary for Mining Joseph Chizotem Mkandawire, explaining that the decision was made after thorough consideration. He added that it is intended to enhance regulatory frameworks that will strengthen the mining industry and contribute to Malawi’s economic growth.

"The ban has been imposed to allow the Ministry to streamline all export procedures that will ensure efficient and transparent processes," the statement read. "This decision has been taken after careful consideration with a view to improving the overall mining sector in Malawi," he said.

The Ministry assured stakeholders that the move is temporary and is designed to pave the way for a more robust and accountable mining sector. It pledged to keep stakeholders and the general public informed and engaged throughout the process, with further updates to be communicated as they become available.

Malawi’s mining sector is a key contributor to the economy, with significant exports of minerals such as uranium, coal, gemstones, and rare earth minerals. However, the industry has long faced criticism over transparency, governance, and revenue management. The temporary export ban is expected to provide an opportunity to address these challenges, introduce improved procedures, and ensure that the benefits of the mining industry are equitably distributed among the Malawian people.

Industry stakeholders are awaiting further communication from the Ministry regarding the duration of the ban and the anticipated changes to export regulations. Many hope that this move will lead to reforms that attract investment while safeguarding Malawi’s natural resources for future generations.

Meanwhile, Zimbabwe has previously taken proactive steps to maximize benefits from its mineral wealth by prioritizing local mineral beneficiation. Recognizing the economic potential of refining its minerals domestically, the Zimbabwean government has introduced stringent regulations to curb the export of raw minerals. For example, the country has imposed bans and export taxes on unprocessed minerals like lithium to encourage local refining, boost industrial growth, and create employment opportunities.

The country has also been actively engaging with investors to establish refineries and processing plants, aiming to stimulate economic development and enhance technological capacity. These policies align with a broader African objective to retain more value from the continent’s rich mineral resources.

It is estimated that Africa loses an average of $60 billion annually due to illicit financial flows and the lack of mineral beneficiation. Malawi and Zimbabwe, like many other resource-rich African nations, have historically seen their raw materials exported to European and Asian markets, where they are refined and transformed into high-value products. These refined products are then sold back to Africa at significantly higher prices, perpetuating a cycle of economic dependence and underdevelopment.

By implementing policies that promote local beneficiation and ensuring greater oversight in the mining sector, both Malawi and Zimbabwe aim to break this cycle. These measures will not only enhance their respective economies but also strengthen regional efforts toward achieving sustainable and inclusive development in the mining industry.