Reserve Bank of Malawi (RBM) has projected that the mining sector will this year grow by 2.2 percent after it massively contracted in 2014.
A 2.2 percent growth comes on a backdrop of a 7.8 percent contraction, which the booming sector experienced on account of suspension of uranium production at Kayelekera Uranium Mine (KUM) in Karonga by Paladin (Africa) Limited, a subsidiary of dual-listed Paladin Energy Limited.
The mine, however, is on “care and maintenance” as the Australian company believes spot price for uranium is still way below the desired threshold of between $70 and $75 per pound.
RBM, in its financial and economic review for third quarter (July to September) of 2014 released on Wednesday, said the expected growth is a result of moderate growth in traditional mineral outputs, including rock quarry aggregate, agricultural lime, coal and gemstones.
In 2013, the sector grew by 7.6 percent.
The central bank said in 2014, all industries in the economy are estimated to have registered positive growth except for the mining sector.
Commenting on the performance of other sectors, RBM said the manufacturing sector is estimated to have grown by 5.5 percent in 2014 on account of an increase in agro-processing of commodities such as tobacco, tea and sugar.
It said the construction sector grew by 5.6 percent in 2014, slightly higher than 5.5 percent in 2013.
In 2015, the central bank said the sector is projected to grow by six percent on the assumption of resumption of donor support towards construction projects.
“The growth will be driven by major construction works such as Vale railway project in the Southern Region of the country and the national football stadium and housing projects in Lilongwe,” said the RBM.
Overall, it reiterates that gross domestic product (GDP) in 2014 is estimated to have grown by 6.3 percent compared to 6.1 percent growth in 2013.n
