Mining & Trade News

The Ministry of Trade and Industry, in collaboration with institutions of higher learning and financial bodies, has rolled out initiatives aimed at equipping individual Artisanal and Small-scale Miners (ASM) and cooperatives with the necessary skills, technology, and funding to enable them process minerals locally before exporting.

In an interview with Mining and Trade Review, Director of Micro, Small and Medium Enterprises (MSMEs) in the Ministry of Trade and Industry Limbikani Kachiwaya explained that the Malawi Government has introduced programs to train the miners, provide processing equipment, and facilitate access to financing.

“We are determined to ensure that our minerals add more value to the economy before leaving the country,” Kachiwaya said.

He explained that at the heart of this initiative is the incubation program at the Small and Medium Enterprises Development Institute (SMEDI) center in Mponela. The facility provides training and access to value addition machinery, enabling miners to refine and enhance their raw materials.

“This program allows aspiring miners to gain hands-on experience with cutting and polishing techniques, among other skills,” he said.

To strengthen these efforts, the government has partnered with the Malawi University of Business and Applied Sciences (MUBAS) and the Malawi University of Science and Technology (MUST) to establish industrial parks that will double as incubation centers.

“Machinery from previous government programs has already been donated to these institutions, and an official Memorandum of Understanding (MoU) is set to be signed soon. The industrial park at MUBAS is nearing completion, with equipment installation at 99 percent, while work at MUST is ongoing,” he said.

In addition to training individual miners, the government has facilitated the formation of mining cooperatives, with 10 groups already receiving training in partnership with the Department of Mines in the Ministry of Mining.

“These cooperatives are expected to benefit from the expertise at MUBAS and MUST, ensuring they acquire the necessary skills to produce high-quality, market-ready mineral products. The training programs are scheduled to commence in this financial year,” Kachiwaya said.

To ensure that small-scale miners have the financial backing to transition from raw mineral extraction to value addition, the Ministry of Trade has engaged the National Economic Empowerment Fund (NEEF).

“The Ministry has successfully written a proposal to NEEF for a dedicated loan product tailored for mining cooperatives. Eligible groups can now access up to K250 million, with potential extensions up to K500 million for viable projects. This funding will allow cooperatives to acquire advanced processing machines from international suppliers and establish production lines capable of competing in both local and foreign markets,” he said.

Another key element of the government’s approach will be the formation of a union that will bring together primary cooperatives. This will enhance production capacity and ensure that locally processed minerals are produced in large quantities to penetrate international markets.

“Small-scale miners, when working individually, lack the capacity to scale up production. But by pooling resources under a union, they can operate at an industrial level and negotiate better prices on the global market,” Kachiwaya stated.

In a separate interview, Acting Director for Mines in the Ministry of Mining, Mphatso Chikoti explained that the Ministry of Mining developed the Mines and Minerals Policy (2013-under review) which, among others, promotes investment in downstream value-addition of minerals in the country—for instance, cutting and polishing of gemstones and production of jewellery.

He said that the Ministry has a Laboratory and Research Division, founded in 1981 alongside other divisions of the Department of Mines. This division was established to provide training to small-scale artisanal miners and mining cooperatives on how to use processing and refining equipment.

“Additionally, it delivers training to improve the quality of mined products. Training on mineral processing technologies and proper gemstone grading methods ensures an improvement in the quality of the final products,” Chikoti said.

He also stressed the need for formalization, noting that illegal mining remains a significant challenge to value addition efforts. Chikoti explained that illegal miners, often operating in remote areas, continue to use rudimentary methods that make it difficult to enforce quality standards and provide support.

“Illegal mining is one of the biggest setbacks to our sector’s growth. It undermines government efforts to ensure that minerals are properly processed before being sold. We are working on formalization programs to educate and integrate these miners into the legal system,” he said.

Chikoti said that the Ministry of Mining has been engaging stakeholders, including large-scale mining companies, to encourage responsible mining practices and investment in local processing facilities.

In a separate interview, Sovereign Services Managing Director Frank Eagar expressed support to the government’s push for value addition.

He said his company, which is developing the Kasiya Rutile-Graphite Project, believes that local processing will be a game-changer for the economy.

“Sovereign Metals sees great potential in developing value-added industries around our Kasiya Rutile-Graphite Project. Processing minerals within Malawi will not only create jobs but also maximize the revenue that stays in the country,” he said.

Eagar explained that once a mining licence is granted, his company will commit to align with national beneficiation goals. He hailed government support so far, particularly in processing approvals and easing bureaucratic problems through Technical Working Groups, saying it has been instrumental in facilitating Kasiya exploration activities.

Eagar said: “However, the lack of accredited laboratories for mineral sample testing, limited incentives such as tax holidays or waivers, and the country's ongoing foreign exchange constraints affecting fund repatriation may discourage investors,”

Eagar warned.  “Our current role is focused on exploration, but once we transition into mining, we expect value addition to naturally attract industries that use rutile and graphite. This could spur local industrialization and enhance the global competitiveness of Malawi’s mining sector.”

As Malawi continues to develop its mining sector, the focus remains on ensuring that mineral wealth translates into tangible economic benefits. By equipping miners with skills, providing financial support, and enforcing cooperative structures, the government is positioning the sector for sustainable growth.

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