Malawi Chamber of Mines has projected that the mining sector’s contribution to gross domestic product (GDP) will hit 12 percent by 2027 boosted by three mining projects.
Up until 2014 before Kayelekera Uranium Mine in Karonga was put on care and maintenance, mining sector contribution to GDP was at 10 percent, but since then the contribution has dropped to one percent as of last year, according to the Malawi Government Annual Economic Report 2024.
In an interview on Tuesday, the chamber’s national coordinator Grain Malunga said the estimate is in line with significant progress registered at Kayelekera Uranium Mine in Karonga, Kanyika Nioubium Mine in Mzimba and Kangankunde Rare Earth Project in Balaka, which are expected to roll out within two years.
His sentiments come at a time Lotus Resources Limited, new owners of Kayelekera Mine, said it will restart in third quarter of 2025 while Global Metals and Mining, which owns Kanyika Niobium Mine, expects to roll out in the first quarter of 2026.
Said Malunga: “With Global Metals expecting first production in early 2026, Lotus keen on Kayerekera restart in 2025 and Lindian’s Kangankunde Rare Earth Project progressing well, we anticipate the sector to contribute 12 percent to GDP by 2027.
“This is good news to Malawi whose critical mineral deposits are now set to start benefiting the country economically.”
The projection by Chamber of Mines, a group of companies and individuals operating in the minerals industry, is in line with National Planning Commission estimates, according to its communication specialist Thom Khanje.
“That is in line with our projections as well and 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.
Khanje said the commission is optimistic that the sector would achieve its target of contributing 15 percent to GDP by 2030, adding that even a single mine can make huge contribution to the broader economic measure.
Geologist Ignatius Kamwanje said in an interview on Tuesday that the mining sector is on course to meet its 2030 and 2063 targets because of the interest investors are showing to fast-track commencement of extraction.
“Of late, we have seen companies able to find off-takers as well as financing,” he said.
In an earlier interview, Ministry of Mining acting director of mines and minerals Mphatso Chikoti said the establishment of the Mines and Minerals Regulatory Authority will help to streamline the sector to push the country into a lower middle-income economy by 2030.
Mining alongside agriculture and tourism are part of the ATM strategy touted as key to stimulate economic growth.
