Reserve Bank of Malawi (RBM) says it expects to earn about $78 million (K136.5 billion) from the disposal of 590 kilogrammes (kg) of gold stocks to bolster the country’s low foreign exchange reserves.
RBM spokesperson Boston Maliketi Banda confirmed in an interview on Sunday that the transaction is nearing conclusion with the agreement likely to be sealed within days.
However, he declined to disclose the buyers.
“This is the gold that the bank, through its subsidiary the Export Development Fund, has been buying from local miners. The country expects about $78 million from the sale,” Banda said.
Proceeds from the transaction are earmarked for imports, particularly strategic commodities such as medicines, fuel and fertiliser.
Minister of Information and Communications Technology Shadric Namalomba last week indicated that $30 million (about K52.5 billion) from gold proceeds would be channelled towards fuel imports, alongside a planned $120 million (about K210 billion) facility from Africa Export-Import Bank (Afreximbank) to stabilise supply of fuel on the local market.
Banda said following the sale, RBM will be left with 69kg of smelted gold in reserve, adding that the central bank will continue purchasing gold from artisanal miners under its local currency gold-buying programme to rebuild stocks.
The initiative is designed to formalise gold trade, curb smuggling and strengthen Malawi’s international reserves.
Authorities have long blamed informal cross-border sales for depriving the country of valuable export earnings.
But analysts have cautioned that liquidating gold reserves to plug forex gaps underscores a broader structural imbalance in the economy.
Economics Association of Malawi president Bertha Bangara Chikadza said in an interview that while such interventions may ease immediate pressures, they fall short of addressing the root causes of forex scarcity.
“Temporary measures cannot yield sustainable results,” she said, urging government to prioritise long-term reforms in the 2026/27 fiscal framework.
Bangara Chikadza, who teaches economics at the University of Malawi, said her association has proposed strengthening engagement with development partners to boost foreign inflows through official development assistance and foreign direct investment, alongside improving policy credibility and shifting towards export-led growth.
Malawi Economic Justice Network (Mejn) executive director Bertha Lipipa Phiri echoed the concerns, pointing to the country’s heavy reliance on imports and narrow export base.
“Our economy needs to promote local production, improve governance and explore alternative energy sources,” she said, highlighting the need for investment in renewable energy to reduce dependence on fuel imports.
Malawi’s trade deficit widened to $2.67 billion in 2025, driven by an import bill of approximately $3.6 billion against export earnings that fell to about $936 million.
Preliminary figures for early 2026 show a marginal improvement in the first quarter, with the trade gap expected to narrow slightly due to a temporary decline in imports. However, in February 2026, exports still covered only 23 percent of the value of imports.
Tobacco remains the primary foreign exchange earner, accounting for over 60 percent of top export commodities in early 2026, followed by pulses and tea.
