Mining & Trade News

We join stakeholders in the minerals sector in urging the Malawi Government to promote local participation in the minerals sector if it is to adequately contribute to economic development of the nation.

As mineral sector expert Dr Grain Malunga says in our article on Page 7, it is important for Malawi to promote local goods and services in the mining sector in order to maximize benefits from the sector to the local population and ensure sustainable economic growth with mining as a key enabler as stipulated in Malawi 2063.

We also feel Dr. Malunga’s sentiments are in line with the Mines and Minerals Act 2023 which as reported in the said article obliges resource firms to procure goods and services locally and only consider foreign or imported when Malawi does not have the required goods or services.

Resource firms involved in large scale mining ventures are mostly foreign owned and we feel one of the most important ways Malawians can benefit from such ventures is through getting employment and procurement contracts from these projects.

We, therefore, urge the Ministry of Mining to play a role in promoting locally owned enterprises to serve the mining sector and also Malawians to take up key positions in resource firms operating in the country.

It is through participation of locals in these firms that the Malawians will do away with the mentality by some that large scale mining is for rich foreigners, and any animosity towards foreign mining investors.

We, therefore, also join Dr Malunga in urging resource firms to engage locals wherever possible.

We understand that countries in the region have more developed mineral sectors compared to Malawi hence have a pool of experienced personnel including consultants, contractors and suppliers.

However, it is important that the resource firms invest in capacity building initiatives to ensure that the locals, who are the actual owners of the minerals, are equally competent in offering the required goods and services.

As Coordinator for Natural Resources Justice Network Kennedy Rashid is quoted in the article, what is required is for companies to also share their operational needs with local communities for them to be aware of what is expected from them to participate directly in the sector.

Foreign owned firms should not provide to mines what Malawians are capable of offering including mineral exploration and environmental and social impact assessment consultancies, media and government liaison, car hire services, supply of personal protective equipment, civil works and supply of mining equipment. 

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