Export Development Fund (EDF), a subsidiary of the Reserve Bank of Malawi (RBM), has moved to take the gold market closer to artisanal miners by opening four new outlets.
The fund is set to open gold buying centres in Karonga, Mzimba, Mangochi and Blantyre, some of the places close to artisanal mines.
RBM spokesperson Boston Maliketi Banda said in a written response yesterday that EDF will require sellers to produce a national identity card for Know Your Customer (KYC) vetting before purchasing their gold.
He said: “It is encouraging to note an increase in people selling gold to EDF. Proceeds from export sales of this gold are helping ease the current pressures on the country’s foreign exchange needs.”
Pressed to disclose the value of the gold purchased, Banda said it depends on “purity levels and market conditions”.
But geologist Paul Mvula said there is a need for the country to have more structured markets for more Malawians to access them.
Similarly, mining and environmental advocate Kossam Munthali said opening more markets is a long-awaited solution that can mitigate smuggling.
In January this year, Malawi Mining Investment Company established that the country loses potential revenue in excess of $700 million (K1.2 trillion) annually through gold smuggling.
Despite not disclosing the value of the gold at this point, in November last year RBM had 540 kg valued at $70 million (about K123 billion).
In Malawi, gold deposits are found in different districts such as Neno, Mzimba, Lilongwe, Mangochi, Ntcheu, Nkhotakota, Karonga and Kasungu.
Mining is expected to grow by 5.6 percent and 8.5 percent in 2025 and 2026, respectively from 4.8 percent in 2024.
