Mining players say reforms key to value addition, jobs

Ministry of Mining has expressed optimism that the proposed amendments to the Minerals Act 2023 will promote value-addition and increase local participation, helping to raise the sector’s contribution to the economy.

Secretary for Mining Rodwell Mzonde said the reforms, currently under consultation and expected to be tabled before Parliament, seek to strengthen local content requirements, encourage value addition and tighten regulation of mineral exploration activities.

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Speaking at a stakeholder consultation meeting in Lilongwe on Friday, he said exporting processed mineral products instead of raw materials can create jobs, spur industrialisation and increase the sector’s contribution to gross domestic product, which is currently at one percent.

He said: “We are going to increase local content in mining operations and create more jobs in the sector.

“But most importantly, we want to increase the contribution of mining to economic activity. These consultations are helping us to shape the law in a way that facilitates growth of the sector.”

Malawi Women in Mining Association president Ashley Simbeye welcomed proposals for promoting value addition, but said many small-scale miners, particularly women, lack the financial capacity to acquire processing equipment.

She said: “Looking at women, the financial capacity is not there to afford the machinery for value-addition.

“We would like the government to put in place structures that support the value-addition value chain.”

Chamber of Mines and Energy president Maxwell Kazako described the reforms as forward-looking, but said increased investment in energy infrastructure will be critical to support large-scale mineral processing.

He said reliable electricity supply remains a major constraint to value-addition.

“Real mining operations require a lot of energy,” said Kazako, who is also country manager for Sovereign Metals Limited.

He urged small-scale miners to form cooperatives to improve access to financing for machinery and equipment.

Under the Malawi 2063 development blueprint, mining has been identified as a key growth sector expected to help the country attain lower-middle-income status by 2030 and upper-middle-income status by 2063.

The mining sector currently contributes about one percent to the economy, according to the 2026 Malawi Government Annual Economic Report.

Before 2014, mining accounted for roughly 10 percent of economic activity, prior to the suspension of production at Kayelekera Uranium Mine following a collapse in global uranium prices.

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