The government’s efforts to formalise artisanal and small-scale mining (ASM) are being hampered by a moratorium on issuing new mining licences, the Ministry of Mining has said.
Principal Secretary Rodwell Mzonde said the ministry, in collaboration with the Ministry of Industrialisation, Business, Trade and Tourism, had embarked on a nationwide campaign to sensitise and organise ASM operators.
He said 29 ASM groups had been sensitised, while 10 cooperatives had been registered this year, with others at an advanced stage.
According to Mzonde, the initiative has helped improve organisation and safety among miners while creating a database to support licensing and future access to finance and equipment.
“Registration as a cooperative is the primary prerequisite for an artisanal and small-scale mining licence and a key requirement for any future government or donor support programmes on equipment, finance and access to formal markets,” he said.
However, he said licensing of new ASM cooperatives was currently on hold because of the Presidential Moratorium on new mining licences.
“This is not because the Ministry or Mining and Minerals Regulatory Authority (MMRA) is unwilling, but because there is a prevailing Presidential Moratorium on issuance of new mining licences,” Mzonde said.
President Peter Mutharika instituted the moratorium as part of measures to audit and reorganise the mining sector and promote transparency and local benefit from mineral resources.
Geoscience expert Ignatius Kamwanje commended the government’s mobilisation efforts but said delays in licensing were undermining formalisation.
“People are willing to apply and have kept application forms,” he said.
Kamwanje urged the government to expedite licensing, warning that illegal mining remains widespread, particularly in gold-producing areas.
“Illegal mining is continuing, especially in gold deposits, because people scramble for it,” he said.
Meanwhile, FDH Bank plc has identified mining as a key area under its 2026 growth strategy, including plans to formalise gold trading and increase foreign exchange inflows.
The bank said it would work with the State-owned Malawi Mining Investment Company to establish structured gold marketing systems, with small-scale miners organised into cooperatives and able to sell gold through FDH Bank branches.
Mining contributes about one percent to Malawi’s gross domestic product, according to the 2026 Malawi Government Annual Economic Report.
