The European Union (EU) head of delegation, Marchel Gerrmann has emphasized the need for the country’s leadership to enhance transparent and accountability in Mining sector if Malawi was to attain a membership at Extractive Industries Transparency International (EITI).
The EU Ambassador Gerrmann was speaking to The Maravi Post on Thursday, August 20, 2015 in the capital Lilongwe following the launch of the must awaited a countrywide high resolution airborne geophysical data.
The data which is the first of its kind has revealed huge buck of mineral deposits in almost corners of the country’s which is an opportunity for possible economic growth if tacitly managed well through extraction industry taxes generation.
“This is a great opportunity for Malawi to have such important data which will give prospective investors to appreciate what the country has on stock on minerals ready exploration. Through proper extraction process, the country expects to have much need forex from proceeds taxes.
“What is important now is for the country to be a member of EITI for international exposure on Malawi’s mineral and mines prospects. However, such a status can be evidently achieved through promotion of transparency and accountability of the entire industry particularly on how mining certificates license for extraction and explorations are given to prospective investors.
“This might also achieved through putting in place legal framework which will guide all interested parties in the sector while the general populace are provided with actual benefits from the cooperates’ proceeds through provision of social amenities including water, schools, road networks, health facilities among other”, urges Ambassador Gerrmann.
Later, the Maravi Post caught up with Bright Msaka the Minister of Natural Resources, Energy and Mining on measures put in place in a bid to enhance accountability and transparent for the nation to attain EITI membership.
“The geo-scientific data has come out at the right time when Malawi is striving to become member of the EITI hence numerous reforms lined a head to achieve that status including the reviewing of Mines and Minerals Act, the Mining Fiscal regime, establishing a mining cadastre system at Mines Department in order to increase efficiency and transparency in the allocation and management of mineral tenements.
“Through these measures put in place, the country expects more variable way of getting much needed taxes from proceeds. Therefore, I wish to take this opportunity to appeal to the private sector to fully utilize this modern data so as to help our nation in its efforts to realize a modern, efficient lucrative and beneficial mining industry.
“Thus, let me assure the whole nation that the Ministry will do everything possible to support investments in the mining sector so that Malawi becomes one of the best countries for mining investment. More importantly, to assure Malawians that My Ministry will ensure that citizen are the primary beneficiaries of our mineral wealth”, assures Msaka.
The European Union granted 4.1 million Euros while the World Bank has been financing the Mining Governance and Growth Support Project (MGGSP) with a loan amounting to US$25 million; of which US$ 5.7 Million has been spent in acquiring the airborne data.
Countries such as Mozambique, Tanzania, and Uganda have witnessed increase in foreign investment in the mining sector after conducting airborne geophysical survey and geological mapping which Malawi is also expect the same magic for its economic growth.
