In 2025, the Malawi Government laid a strong foundation for mining sector growth, which was projected to have surged by 6.3 percent and improved its contribution to the country’s gross domestic product (GDP) from less than one percent.
Before February 2014 when Kayelekera Uranium Mine in Karonga District was put on “care and maintenance”, the sector’s contribution to GDP was at about 10 percent, but since then the share dropped to less than one percent and was recorded at 0.7 percent in 2024, according to the Malawi Government Annual Economic Report 2025.
But with increased construction activities, including in mining projects at development stages, the restart of Kayelekera Mine in August 2025 and efforts to strengthen policy oversight were expected to expand the sector despite existing bottlenecks.
Reads in part the annual economic report: “The sector is expected to expand to 6.3 percent in 2025 from 4.8 percent in 2024.
“Growth will be supported by strong demand for rock aggregate for construction as well as renewed activity in large-scale mining.
The report further said the establishment of the Mines and Minerals Regulatory Authority and the Malawi Mining Investment Company enhanced the sector’s performance.
Going forward, the government expected the mining sector output to rise further to 7.2 percent in 2026, reinforcing expectations that the sector could become a key contributor to the overall economic output.
throughout the year. | Nation
The return to large-scale mining
The first yellow cake production achieved at Kayelekera Mine in early September marked a significant turnaround of the mining sector, which for the first time in a decade has seen a consignment of large-scale mineral exports dispatched.
This milestone prompted the Malawi Chamber of Mines and Energy to project that the mine’s restart, coupled with progress in other large-scale mining projects, will drive the sector’s contribution to GDP to between four and seven percent.
Malawi Chamber of Mines and Energy national coordinator Grain Malunga said apart from Kayelekera Mine, the estimate is in line with significant progress registered at Kanyika Niobium Mine in Mzimba and Kangankunde Rare Earth Project in Balaka, which are expected to roll out within two years.
“With Lotus Resources already in full action at Kayelekera Mine, Global Metals is expecting first production in early 2026 and Lindian’s Kangankunde Rare Earth Project is progressing well, we anticipate the sector to contribute 12 percent to GDP by 2027,” he said.
Apart from these three projects, two other large-scale mining projects registered progress in the year with Mkango Resources Limited and Sovereign Metals securing funding for mine construction and finalising the bankable feasibility study respectively.
“The US Government-owned International Development Finance Corporation is also evaluating a potential $100 million [K175 billion] direct loan, which would represent a significant step toward enabling full project development financing,” reads Mkango Resources Limited quarterly report.
National Planning Commission communications specialist Thom Khanje said before its closure in 2014, Kayerekera Mine single handedly drove the sector to contribute about 10 percent to GDP.
“This will go a long way in ensuring that Malawi is on track to meet its target of graduating into a lower middle income economy by 2030,” he said, referring to government’s objective of achieving mining contribution to GDP of 15 percent by 2030, mid-way through the implementation of Malawi 2063, the country’s long-term development plan.
Sectoral oversight
The operationalisation of the Mines and Minerals Company and the strengthening of the Mines and Minerals Regulatory Authority as well as political will to ensure improved policy framework in 2025 were inspiring at a time numerous investors flock into the country to enquire about investment opportunities.
This is critical because for many years, exploitation in the mining sector has been attributed to lack of oversight, regulations and expertise, which give room for players to bypass the system and behave in a manner that only benefits their financial interests.
“To counter this, we are implementing transparent licensing processes, establishing legal frameworks that enforce fair partnerships and strengthening institutional capacity through the Malawi Mining Regulatory Authority.
“The involvement of the Malawi Development Corporation ensures that every ton of mineral extracted is properly evaluated and accounted for, with benefits directly flowing into our economy,” said former Minister of Finance and Economic Affairs Simplex Chithyola-Banda during the opening of the Malawi Mining Investment Forum.
However, geologist and mining consultant Grain Malunga said while some targets to strengthen regulatory and local capacity are being met, a lot of work is outstanding, including installation of lab equipment at the Mines Department, adding that the online geological database is not functional.
Bottlenecks
Despite registering growth and positioning Malawi as the next African mining hub with valuable mineral deposits, outstanding governance issues, infrastructure, energy and technical skills deficiencies, have become urgent and growing concerns.
“Petroleum Policy is being finalised and the petroleum legislation is being reviewed and this needs to be fast-tracked.
“There is need to facilitate the introduction of mining-related courses at institutions of higher learning,” said Leonard Kalindekafe, chief executive officer of Malawi Mining Company.
“Also critical is the provision of support towards infrastructure development to facilitate access road construction and enhancing energy generation,” he said.
Kalindekafe said there is need to facilitate the rehabilitation and re-equipping of mineral laboratories to enhance mineral research, exploration and mining.
Outlook
The Department of Mining data show that Malawi has numerous heavy minerals and other precious stones that can earn the mining sector in excess of $30 billion in 10 years.
But to fully unlock its potential, further policy reforms are necessary, including streamlining the legal and regulatory framework, optimising administrative procedures, enhancing oversight capabilities and fostering local participation.
As at the end of 2025, local participation had remained weak in large-scale mining with all the companies either at exploration, development and production stages being foreign-owned .
