Banks urged to invest in mining

Minister of Mining Thoko Tembo has challenged the banking sector to deepen its involvement in the mining industry by developing financing products to support its growth.

Tembo said increased access to finance would be critical if Malawi is to turn its mineral wealth into industrialisation, exports and broader economic transformation.

He was speaking in Blantyre on Friday at the Bankers Association of Malawi (BAM) Dinner and Dance, held under the theme “Industrialising Malawi: From Mineral Wealth to Economic Renewal.”

Tembo said while Malawi has significant mineral deposits, translating the country’s geological potential into economic gains will require greater investment and stronger participation by local businesses.

“Mining is an anchor for Malawi’s industrialisation and economic transformation, but it requires more capital financing to encourage local participation,” he said.

He challenged banks to build specialised expertise in mining finance and develop financial instruments capable of supporting the extractive industry, particularly projects requiring long-term investment.

Tembo said the government is making progress in providing a clear, predictable and transparent regulatory environment capable of attracting investment while creating conditions for greater participation by Malawians.

Bam Council member and CDH Investment Bank Chief Executive Officer Thoko Mkavea, called on authorities to create a more conducive environment to attract and support investment in the mining sector.

Mkavea said the banking industry remained stable in the past year despite economic uncertainty, hence, committed to the cause of supporting the mining industry.

“We reaffirm our commitment to work with the government, the Reserve Bank of Malawi, development finance institutions, investors and industry to mobilise capital for industrial transformation,” Mkavea said.

He said banks would also continue developing financing structures suited to long-gestation mining and industrial projects, while supporting financial inclusion so that smaller businesses could participate in the mining value chain.

Bam Chief Executive Officer Lynes Nkungula said the banking sector remained committed to supporting Malawi’s growth aspirations through sound investments in productive sectors.

She said the industry was also investing in human capital to ensure that banks remained capable of responding to changes in the financial services sector.