Malawi is tightening its belt under relentless fiscal pressure--yet beneath its soil lies an economic lifeline capable of transforming the nation's fortunes. With untapped mineral wealth estimated to generate over US$1.8 billion annually, experts are questioning why the national budget remains strained while such immense opportunity lies dormant.
The contradiction is stark: a country struggling to fund wages, pensions, and development priorities, while sitting atop mineral resources that could redefine its economic trajectory.
"A country dying of thirst while standing in water"
Dr. Chiwona, a seasoned geologist and Chief Geologist in the Ministry of Mining, believes Malawi's predicament is self-inflicted.
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In an exclusive interview, he described the situation using a powerful metaphor rooted in local wisdom:
"Malawi ali ngati munthu amene akufa ndi ludzu chonsecho miyendo yake ili m'madzi" -- a country dying of thirst while standing in water.
A Fellow of the Geological Society of London and the UK's Higher Education Academy, Dr. Chiwona is internationally recognised for his contributions to geological sciences and mineral research. He argues that Malawi's mineral endowment, if properly managed, could propel the country into middle-income status.
"With the right policies and investment, just eight mining projects could generate over US$1.8 billion annually in government revenue alone," he said. "That excludes jobs, infrastructure, skills development, and industrial growth."
Flagship mining projects with transformative power
According to Dr. Chiwona, eight major mining projects represent Malawi's most immediate opportunity to ease fiscal pressure:
Kasiya Rutile (Sovereign Metals) - US$625 million post-tax over 25 years from a 1.809 million-tonne deposit
Kayelekera Uranium (Lotus Resources) - US$301 million annually for 10 years from a 51 million-tonne reserve
Kanyika Niobium (Globe Metals) - US$245 million per year over 23 years from 68.3 million tonnes
Kangankunde Rare Earths (Lindian Resources) - US$114 million annually over 40 years
Songwe Hill Rare Earths (Mkango Resources) - US$120 million per year post-tax for 23 years
Makanjira Ore (Maweii Company) - US$29 million annually over 23 years from 354 million tonnes
Chambe Bauxite (Akatswiri) - US$215 million annually from a 25.6 million-tonne reserve
Malingunde Graphite (NGX) - US$200 million annually post-tax over 16 years
"These projects alone could significantly stabilise Malawi's budget if operationalised," Dr. Chiwona said. "Instead, they remain largely theoretical."
Budget strain persists
Minister of Finance and Economic Planning Joseph Mwanamvekha has acknowledged that the national budget is under severe strain, weighed down by statutory obligations such as wages, pensions, and interest payments.
But economist Dr. Ben Dzolowere argues that this explanation is incomplete.
"The Treasury needs a revenue cushion, and mining can provide it," Dzolowere said. "The Finance Minister should be at the forefront of driving mining reforms. Waiting is no longer an option."
Malawi 2063: Promise versus reality
Launched in January 2021, the Malawi 2063 Agenda envisions a wealthy, self-reliant, and industrialised upper-middle-income nation. Mining is identified as one of its key growth drivers.
Yet today, mining contributes less than 1% to national income. The sector remains weakly regulated, dominated by raw mineral exports, minimal value addition, and widespread illegal trade.
Malawi 2063 calls for mineral resource mapping, Public-Private Partnerships, strict regulation, and a ban on exporting unprocessed minerals--alongside skills development targeting youth and women.
"We must stop exporting raw minerals," Dr. Chiwona stressed. "Local processing and beneficiation are the only way to create real wealth and sustainable jobs."
Institutions such as the Malawi Mining and Investment Company and the Mining Regulatory Authority have been established to support this transformation, but progress remains slow.
Presidential ban on raw mineral exports
In line with Malawi 2063, President Arthur Peter Mutharika issued a directive banning the export of unprocessed minerals. Experts say enforcement of this policy could be a turning point.
"If these flagship companies were mining today, government revenue alone would exceed US$1.8 billion annually," Dr. Chiwona said. "That's before counting jobs, infrastructure, and industrialisation."
Beyond mining: fertiliser self-sufficiency
Dr. Chiwona, who holds a PhD in geology specialising in alternative fertiliser production, believes Malawi can also reduce its dependence on imported fertiliser.
He points to locally available agrominerals and abundant water resources that could support ammonia production--a key input in nitrogen fertiliser.
"We can produce crop- and area-specific fertilisers locally," he said. "This would strengthen food security and save foreign exchange."
Persistent bottlenecks
Despite favourable policies and stated political will, major challenges remain. These include public scepticism, limited technical skills, and the absence of accredited mineral testing laboratories.
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Dr. Chiwona called for greater investment in mining education and training, particularly for youth and women, and urged strategic joint ventures with experienced international firms to ensure local beneficiation.
Calls for legal and governance reform
Renowned mining expert Kossam Munthali agrees that Malawi's biggest weakness lies in governance.
"Our mining laws are outdated. Monitoring of mining activities and revenue collection is ineffective. We need a complete overhaul," Munthali said.
He also emphasised the urgency of enforcing the ban on raw mineral exports.
"If properly implemented, this policy could unlock enormous value and generate the revenue Malawi desperately needs."
A defining choice
Experts are united on one point: Malawi's mining potential will not unlock itself. It will require decisive leadership, modern laws, skilled institutions, and collaboration between government, investors, regulators, and communities.
"The President's directive is a step in the right direction," Munthali said. "But without comprehensive reform and coordinated action, Malawi will continue to die of thirst--while standing in water."
