Wayne Lumbasi
The Government of Malawi has suspended the issuance of all mining licences and imposed a ban on the export of raw, unprocessed minerals, in a move aimed at strengthening regulation and increasing domestic value from the country’s mineral resources.
President Peter Mutharika, speaking to Parliament, said the measures are intended to ensure that Malawi’s mineral wealth benefits its people. “Exporting raw materials while importing finished products limits our economic potential,” he said.
All mining and exploration licences are temporarily halted while the government conducts a comprehensive audit of the licensing system and updates laws governing the sector. The ban on raw mineral exports is designed to encourage companies to develop local processing capacity, creating jobs and boosting industry.
Malawi possesses significant deposits of rare earth elements, graphite, uranium, bauxite, and gemstones such as rubies and sapphires. Much of these resources have historically been exported in raw form, reducing potential revenue. The government plans to negotiate stronger agreements with mining companies and establish a sovereign wealth fund to ensure revenues benefit the country as a whole.
Some mining operators, including those behind the Kasiya Rutile Graphite Project, say the export ban will not disrupt operations since they plan to process minerals locally before export. Still, observers warn that limited processing infrastructure and unclear implementation timelines could slow investment if not addressed promptly.
Malawi joins other African countries seeking to retain more value from their mineral resources rather than exporting raw products. Experts say the success of the reforms will depend on effective enforcement, investment in processing capacity, and clear regulatory guidelines.
By pausing licences and limiting raw exports, the government hopes stronger regulation and domestic processing will transform the mining sector into a source of economic growth, ensuring that the benefits of Malawi’s mineral wealth reach its citizens.
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