Reserve Bank of Malawi (RBM) has bought 293 kilogrammes (kg) of gold, which could be valued at $27 million (about K47 billion), according to current world market prices.
The 2025 Government Annual Economic Report shows that the RBM, through its subsidiary Export Development Trading (EDF), has accumulated this amount of gold since it started buying in 2021 at a price of K34 billion, but it is yet to start its exports.
According to the report, the price of gold, at world markets is around $92.04 per gramme, makes up a potential expiry value of $27 million (about K47.2 billion).
Reads part of the report: “Gold is a high-value precious metal, with one gramme fetching as high as $92.04 on world markets.
“According to the data EDF presented to the Ministry of Mining, as of December 2024, total purchase of gold from ASMs and other licensed traders were 293 kilogrammes, at a total purchase cost of K34 billion.”
Meanwhile, according to the report, gold exports have not yet started with data showing that export sales in 2024 were dominated by gemstones, precious stones, and rock samples with main destinations being Asia (China, India, Thailand), Europe (UK, Italy, Switzerland), and the United States.
Reads the report: “Gemstones continued to be exported primarily to Asia [India, China, Thailand, Sri Lanka, Hong Kong], the United States, England, Italy, and South Africa. Additional exports were made to Poland, the Netherlands, and Switzerland.
“Lime products, such as hydrated lime and poultry grit, were exported to Mozambique and South Africa for agricultural use. However, lime exports declined in 2024, with only 150 tonnes exported compared to 478 tonnes in 2023.”
In an interview on Monday, mining expert Ignatius Kamwanje said although the delayed sale of gold by RBM is not surprising, considering that gold is often used as a hedging to inflation, selling it could ease the current foreign exchange challenges facing the country.
“Not sure why the government is delaying in the sale. However, in economic terms under normal circumstances and operations, gold buying acts as a hedging to inflation. Central banks buy gold to protect the reserves.
“But since Malawi lacks forex, this was the right time to sale at the pretext of generating forex,” Kamwanje said.
RBM spokesperson Boston Maliketi Banda asked for more time to verify the purchased gold from EDF but he recently said the bank is set to hire independent assessors to review the authenticity of the gemstones and gold under its reserves.
According to the terms of reference, assessors will determine purity levels, identify different types of gemstones and gold, and provide expert guidance on market dynamics.
Banda said the central bank is taking precautions to ensure that they have accurate and updated records on the value and quality of the gemstones at disposal.
“Representatives from our subsidiary recently went to a trade fair in China and we got positive reports on our gemstones. This is positive because there are concerns that there are agents out there selling synthetic gemstones.
“But we still felt we should ramp up efforts to understand the real value of our gold and gemstone reserves,” he said.
Alluvial gold deposits exist in the country, notably in Balaka/Neno (Lisungwi), Machinga (Nsanama), Mangochi (Makanjira), Kasungu (Matongwe), Nkhata Bay (Tukombo), and Nkhotakota (Bowa, Dwangwa and surrounding areas). Some deposits were also reported in Ngabu between Chikwawa and Nsanje.
No significant discoveries have been made to date; hence, there are no medium to large-scale gold mining operations in the country; instead, alluvial gold is entirely mined by Artisanal and Small Miners.
