Mining & Trade News

Director General of the Mining and Minerals Regulatory Authority (MMRA) Mphatso Chikoti has welcomed the idea of forming a regional regulatory frameowrk for the minerals sector which was advocated for by African leaders at this year’s Investing in African Mining Indaba in South Africa.

Chikoti, however, said in an interview that it is important for the countries to align their mining legislation to the African Mining Vision in order to come up with the continental regulatory framework.

He said: “It is interesting that African countries have now realized that they were in a 'race to the bottom' as they were trying to be more attractive to foreign investors.

“African nations have different visions and aspirations, much as we are aware that we are guided by the African Mining Vision and Southern Africa Development Corporation (SADC) protocol on mining, which tries to harmonise mining policies in Africa.

Standardisation is a welcome development but countries should also be able to customise the laws to suit their social economic aspirations and development plans.

“Personally, I am usually inclined towards the need to capacitate Africans, and Malawians in this case, to invest in mining projects.”

South Africa’s Minister of Mineral and Petroleum Resources Gwede Mantashe said he feels foreign investors play games with African countries by jumping from one to another looking to invest in one with weaker regulations

Mantashe expressed the need to review the continent’s mineral regulatory framework so that those investors with capabilities must not move from one country to another

“They must not play us games. We must have a uniform framework that guides all of us in the continent. Then we are going to be able to compete everywhere we go,” said Mantashe.

However, Coordinator for Chamber of Mines and Energy, Grain Malunga said African Continent cannot have a uniform regulatory framework until they reform Africa's sovereignty status.

Malunga said the continent can have a template from which they can domesticate their mining legal framework saying the mineral endowment of the countries and priorities are different.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid, however, welcomed the discussions saying the concern raised is valid as multinational mining companies have often taken advantage of fragmented regulations across African countries.

Rashid said: “Investors frequently move between jurisdictions seeking weaker environmental standards, lower royalties, or less stringent transparency requirements, creating a “race to the bottom” where countries compete for investment by weakening protections for citizens and natural resources.”

“In principle, a harmonized African regulatory framework could help address this challenge and if countries agree on minimum standards for taxation, environmental protection, community rights, transparency, and local content, it would limit opportunities for investors to exploit regulatory differences.”

“Such coordination could also strengthen Africa’s bargaining power with multinational mining companies and help ensure that mineral resources contribute more effectively to sustainable development.”

He said: “In Malawi, for example, mining governance is guided by national laws such as the Mines and Minerals Act, environmental legislation, and policies on land, taxation, and investment.”

“These laws operate within Malawi’s constitutional framework, meaning replacing them with a single continental system could raise legal and sovereignty challenges.

“A more practical solution is regulatory harmonization rather than full uniformity and through regional and continental platforms like the African Union, governments could agree on shared principles and minimum standards for mining governance.”

“These could cover fiscal policies, environmental protection, contract transparency, community consultation, and benefit-sharing, while allowing each country to integrate them into its national legal framework.”

Rashid also explained that harmonizing regulations alone cannot fully prevent investors from playing countries against each other.

He said the success of any framework depends on strong institutions, political commitment, transparent contract negotiations, and active oversight from parliaments, civil society, and local communities.

Rashid said there is a need for Malawi and other African countries to prioritize strengthening governance systems, improving transparency in mining agreements, enforcing environmental and social safeguards, and ensuring communities benefit fairly from mineral extraction.

He said regional cooperation on mining standards can further reduce regulatory competition and promote responsible investment across the continent.

Malawi has witnessed foreign companies closing offices on the ground of global pandemics and other challenges but later settle in other countries within the region.

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