07/05/2026
Editorial Comment
Lift raw minerals export ban and reform minerals taxation regime, Your Excellency
The economic problems that Malawi is currently experiencing rooted in the shortage of foreign exchange as a result of low export earnings are an indication that time is ripe for Malawi to diversify from overdependence on agriculture specifically to***co as a major export earner.
It is, therefore, appropriate that the Government has turned its focus on mining as a potential major foreign exchange earner judging from our leaders’ rhetoric.
State President Arthur Peter Mutharika showed political will to turn mining into a key economic sector when he announced a ban on export of raw minerals as soon as he ascended to the high office last year.
This manifested that the President was serious in ensuring that Malawi adequately benefits from mining through local value addition of minerals. Local beneficiation would ensure that the country earns more from the minerals sector as processed minerals attract higher prices on the market than raw minerals. In addition, local processing would help in bringing the processing technology into the country and creating job opportunities for the locals.
However, it is clear that the ban is not producing the desired results. As we previously reported, the annual economic report produced by the Ministry of Finance has shown that the Mining and Minerals Regulatory Authority (MMRA) revenue collection from mining has drastically decreased to K70-million against the total projection of K665.5-million in the 2025/26 financial year as a result of the ban.
Percy Maleta, President of the Federation of Artisanal and Small-Scale Mining in Malawi (FASMIM) is quoted in our published article that the ban has heavily impacted on the ASM trade due to lack of beneficiation facilities in Malawi, which is making export of gemstones impossible.
Maleta says the ban has caused serious harm: lost livelihoods for ASM gemstone miners, collapsed contracts, increased smuggling risks, loss of government revenue, and reduced business for logistics companies.
We, therefore, join FASMIM in calling upon the State President to lift this ban. We feel the appropriate way to encourage local beneficiation is to use taxation incentives.
Government needs to come up with taxation incentives that may include waivers for all those miners adding value to their minerals locally and raise taxes for those exporting unprocessed and semi-processed products in accordance with the stage of processing.
We feel in such a way, Malawi will be able to realise more revenue from mining without disrupting the activity as is the current case with the ban.