Mining & Trade News

Civil Society Organisations (CSOs) operating in the mineral sector have asked Members of Parliament (MPs) to implement measures to ensure decentralization of the sector

The CSOs engaged the parliamentary committee on Natural Resources and Climate Change (NRCC) on good governance in the sector.

Vice Chairperson for Evangelical Association of Malawi (EAM) Rev. Davidson Chifungo said the engagement with the committee was held understanding that the majority of the committee members are either newly elected members or those relocated from other committees.

Chifungo said the Committee plays an oversight role in the sector which should help to ensure that there is localization, accountability and justice in Malawi’s mining and energy sectors.

He said: “We wanted the committee to fully understand what localization is, as it means bringing control, decision making and benefits closer to local communities.

“They also have to understand that localization involves participation of local governments, traditional leaders, and citizens, as well as promoting ownership, inclusion, and fair benefit sharing.”

Chifungo stressed the need for decentralization saying it strengthens accountability and transparency within the sector.

He said decentralization improves service delivery and local oversight; creates opportunities for community empowerment, and encourages ethical management of resources.

Chifungo said: “Currently we have challenges in our mineral sector including; centralized control often limiting local benefits; mining and energy wealth not equitably distributed; weak local capacity and limited transparency and; environmental and social impacts on local communities.”

“As a faith-based organization, we believe parliament is the guardian of Malawi’s mineral wealth which should help to ensure laws are followed, revenues are transparent, communities are benefiting and the environment is protected.”

MEAL Officer for Natural Resources Justice Network (NRJN) Biswas Ishmael concurred with Chifungo on the major oversight role played by parliament in asserting the system of checks and balances on the executive branch of government and as the defender of citizens’ interests

Ishmael equipped the committee on Political Economy Analysis (PEA) of the mining sector for them to understand how power, incentives, and institutions shape the governance and economic outcomes of mining.

He said PEA goes beyond technical feasibility to analyse how government, companies, and local communities interact to distribute the costs and benefits of extraction.

Ishmael said: “The PEA of the mining sector is currently facing governance and institutional vulnerabilities including incentive problems whereby institutions governing mining often face conflicts of interest, and the lack of accountability or weak institutional capacity can lead to poor policy implementation.”

“PEA has also vulnerability whereby international mining companies often hold significant political power and influence over governments, particularly when governments are eager for investment.”

“Despite bearing the brunt of negative environmental and social impacts, local communities frequently have minimal, non-transparent roles in decision-making and limited access to information regarding mining policies.”

Committee Chairperson Tiaone Hendry hailed the meeting saying some of the issues brought before them were new to the members.

Hendry assured the CSOs to engage the Ministry of Energy and Mining and also consider visiting some mining sites as part of their oversight role to bring sanity in the sector.

“They have shared with us some of the information that is new to us and we have asked them to write to us formally because as a committee we will act based on formal letters.”

“We have to do checks and balances based on the formal communication. We plan to visit illegal mining sites and other mining companies to appreciate the situation and also want to take into account the Ministry of Energy and Mining so that they scale up security for our minerals.”

“Some of the issues that they have discussed with us are to do with registration and vulnerability especially on how the local communities are not benefiting from the mining sector.”

Hendry urged the CSOs to continue engaging the committee saying it is unfortunate that most of the information on the country’s mineral sector comes from foreign investors.

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