The World Bank says mining revenues can provide a moderate boost to Malawi’s public finances, but are unlikely to be transformative.
In its Public Finance Review released on Tuesday in Lilongwe, the multilateral bank observed that even if all current and prospective mines are developed, annual revenues are projected to reach $500 million (about K876 billion) by 2030, depending on project completion and fiscal terms.
However, revenues are likely to fall short due to weaknesses in the fiscal framework and mining development agreement (MDAs) terms, limited administrative capacity, profit-shifting risks and the possibility that some projects may not materialise.
Reads the report in part: “Most of the export earnings will go to pay for capital and operational costs and the a significant part of the remainder will be remitted to foreign investors.”
World Bank data show that globally, the average lead time from discovery to production is 18 years, covering exploration, feasibility, impact assessments and MDAs negotiations while in Malawi, the average is 27 years.
Meanwhile, Ministry of Finance, Economic Planning and Decentralisation has said government will undertake a comprehensive review of all exploration and mining contracts to ensure that they fully advance the national interest.
In its 2026 Fiscal and Economic Policy published this week, the ministry said this exercise will strengthen transparency and accountability by scrutinising royalty provisions to secure fair and timely compensation.
In October, President Peter Mutharika issued an Executive Order prohibiting the export of raw and unprocessed minerals.
operations restarted on August 12 this year. | KUM
