Mutharika said the move forms part of the government’s strategy to grow the economy beyond agriculture by developing a sustainable and transparent mining sector.
He projected that Malawi could earn up to $500 million annually if mining operations at the Kasiya rutile site in Lilongwe and the Kangankunde rare earth site in Balaka are properly developed and managed.
Speaking to Channel Africa on Monday, Dr Bertha Bangara-Chikadza, a Macroeconomist and Lecturer at the Malawi University of Science and Technology, described the ban as a long-overdue step toward strengthening the country’s economic base.
“These are the measures the government should be taking. Malawi has been losing a lot of minerals through both formal and informal exports, with little revenue and limited job creation. This move supports value addition, diversification, and employment,” she said.
Bangara-Chikadza noted that while the ban represents a strong policy direction, challenges remain, particularly around technology and investment capacity.
“The President’s $500 million projection is achievable in the long term if processing is done locally, with proper technology and standards. It will take time, but with the right infrastructure, the benefits will extend beyond revenue, including industrialisation and technology transfer,” she added.
Bangara-Chikadza emphasised the need for robust regulation, formalisation of artisanal mining, and greater government investment in mineral exploration and ownership.
“The government should take a leading role instead of relying solely on foreign investors, who often keep exploration data private. If Malawi invests directly and ensures that both the state and citizens own shares in mining ventures, the sector could create significant employment and foreign exchange earnings,” she said.
Bangara-Chikadza added that although the immediate impact on foreign exchange would be minimal, the long-term gains could be transformative.
“It’s not that we are losing much now, because most resources were already leaving the country unaccounted for. But if we implement the right policies and ensure transparency, this could be a turning point for Malawi’s economy,” she said.
–ChannelAfrica–
