Malawi’s ambition to attract mining investment could be undermined by growing concerns over policy and regulatory uncertainty, with investors citing weak stakeholder consultations and unpredictable rule changes as key risks.
This is according to the June 2026 World Bank Malawi Private Sector Diagnostic assesment.
Beyond policy concerns, unreliable electricity supply, frequent load shedding and high diesel costs continue to threaten the commercial viability of mining operations that require uninterrupted power.
Mining companies are often forced to budget for dedicated transmission lines and substations, increasing both capital and operating costs.
Reads the assessment in part: “Energy represents a large portion of mining operating costs, often about 30 percent, so the choice between self-generation and grid supply has a direct effect on project costs and margins.
“The Malawi Bureau of Standards lacks a national accreditation program for minerals, and the existing laboratory at the Department of Geological Survey is underfunded, unaccredited, and underequipped. As a result, companies often need to send samples to international laboratories or establish their own facilities for initial screening.”
The bank said rutile bulk samples, for instance, can be as large as 500 tons, requiring around 10 trucks to transport with the resulting exchanges between government agencies and investors creating delays and adding to the cost of doing business.
Ironically, in October 2025, the new administration issued an executive order prohibiting the export of raw and unprocessed minerals. The stated purpose of Executive Order No. 02 was to prohibit the export of raw minerals, promote local value-addition, and ensure mineral resources contribute to economic development and prosperity.
“Although the order is not expected to have a significant effect on large-scale commercial mining of graphite and rutile, as both require processing to produce concentrates of natural flake graphite and rutile, it may add to uncertainty regarding the regulatory environment and increase the perceived risk of investment,” said the bank.
Last month, the African Sovereign Debt Justice Network (ASDJN) suggested that Malawi’s ban on raw mineral exports could transform the sector from an isolated enclave into a primary driver of inclusive growth, arguing that by temporarily halting new licences, the government is asserting regulatory control over the sector’s expansion rather than leaving its trajectory to market forces alone.
According to recent data, several African nations have adopted policies to restrict raw mineral exports in favour of domestic processing. In June 2023, Namibia banned the export of unprocessed lithium and critical minerals.
By May 2025, Guinea tightened sector oversight by revoking 46 mining licences.
Similarly, in June 2025, Zimbabwe announced a 2027 ban on raw mineral exports to promote value addition, while Tanzania mandated in-country gold processing.
Ghana followed suit in February 2026, introducing policies to strengthen local content and downstream operations.
Ironically, following these restrictions, Malawi’s Department of Mining collected a paltry K70 million in revenue during the 2025/26 fiscal year, an 89 percent drop from the projected K665.45 million, as detailed in the 2026 Annual Economic Report.
Despite shrinking revenues, the mining industry grew by 5.3 percent in 2025, bolstered by high demand for rock aggregates for construction projects.
Minister of Energy and Mining Jean Mathanga noted that these policies aim to ensure the sector, which currently contributes roughly one percent to Gross Domestic Product, “fully contributes to the country’s economic growth”.
Under the Malawi 2063 development strategy, mining is prioritised as a primary driver to propel the nation toward upper-middle-income status.
