LILONGWE-(MaraviPost)-Malawi’s mining sector is being significantly affected by foreign illegal miners leading to loss of millions of kwacha in mineral revenue.

Deputy Secretary to the President and Cabinet and also Head of the Presidential Delivery Unit Janet Banda disclosed this during a mining pre-lab meeting in Lilongwe.

Banda noted that illegal mining is stunting the growth of the sector, with Malawians often being complicit as they facilitate smuggling operations for minimal compensation, while foreigners reap substantial profits from the country’s minerals.

Banda therefore lauded the impact of the Reserve Bank of Malawi (RBM)’s Exchange Development Fund’s strategy in purchasing minerals, which has helped the country gain MK21.2 billion.

She however pointed out that many mining companies are non-compliant with Malawi’s laws, seeking special provisions that align with their interests, further hindering sector growth.

Principal Secretary in the Ministry of Mining, Dr. Joseph Mkandawire, stated that the pre-lab meeting aimed to address issues affecting the mining industry by bringing together all relevant stakeholders.

He mentioned that the government has established 17 cooperatives to facilitate the domestic purchase of minerals.

“The pre-lab is intended to conduct an in-depth analysis of the factors impeding timely mining delivery,” said Mkandawire.

Malawi’s mining sector was established in 2020 and officially registered in 2024, with the goal of overseeing mining activities within the country.