Funding challenges cripple extractive industry—official

The Malawi Extractive Industries and Transparency Initiative (Mweiti) says most of its operations, including the recruitment of staff, are crippled by poor funding and has since called for private sector investment.

Mweiti secretariat manager Leonard Mushani said this on Tuesday in Lilongwe on the sidelines of a two-day mining workshop.

He said the secretariat fails to disseminate its annual reports and necessary information due to financing challenges, as such, people have little information about the extractive industry.

“People need to know what is happening in the industry, but that is difficult because we don’t have adequate staff and funding is also not enough, but all the same the government is trying its best to improve,” said Mushani.

Mining is one of the three major priority sectors along with agriculture and tourism on which the government banks its hopes for economic recovery and speedy development in line with the Malawi 2063, the country’s long-term development strategy.

The workshop was organised by the Centre for Environmental Policy and Advocacy (Cepa), which is implementing a two-year Publish What You Pay project funded by the Southern Africa Trust (SAT).

Cepa executive director Herbert Mwalukomo said the project aims at strengthening the capacity of civil society organisations to participate in the mining governance oversight.

He said: “Our objectives are to build and enhance the capacity of civil socierty organisations in mining governance in Malawi, increase knowledge of communities on mine development processes, raise national awareness on Mweiti and advocate for increased stakeholder involvement in the implementation of the Mweiti action plan.”

The workshop focused on issues of beneficial ownership disclosures, Extractive Industries Transparency Initiative regulatory framework and tax justice which all point to illicit financial flows which drain resources generated by the industry.

SAT communications and research associate Moyna Mwenye said the outcome of the workshop will create a strategy for safeguarding the rights of people and ensure that they get the desired returns from mining activities.