British High Commissioner Fiona Ritchie has tipped Malawi on the need to prepare for effective management of mining proceeds at a time development aid is dropping.
Speaking on Tuesday at the Mining Delivery Lab in Lilongwe where the Presidential Delivery Unit (PDU) is engaging stakeholders on mining sector progress and existing obstacles, the envoy said her embassy has already been working on empowering local institutions in managing mining for national development.
She, however, stressed that effective mining revenue management will be key for the country to benefit from the booming sector that could support economic growth and broader development gains.
Said Ritchie: “This year, we are supporting the Government and Open Government Partnership’s plans to conduct a feasibility study on mechanisms for public revenue management from mining proceeds, helping Malawi decide whether to set up a Sovereign Wealth Fund, or other workable options, that will assist with effective management of these proceeds for the development of the mining sector and of the country.”
She observed that the mining sector can contribute to Malawi’s development through increasing exports to improve the country’s forex position and increasing public revenue service delivery and public investment, especially at a time of declining aid levels.
Her advice comes when the country is expected to earn $141 million (about K247 billion) annually from Mkango Resources’ Songwe Hill rare earth element in Phalombe and Lotus Resources’ Kayelekera Uranium Mine in Karonga.
In his speech, Vice-President Michael Usi, who presided over the opening, said the mining sector alone can propel Malawi to double-digit annual growth and help achieve lower middle income status by 2030 if properly managed.
He criticised bureaucratic delays by certain officials within the system, but emphasised the government’s commitment to resolving obstacles swiftly to propel the sector to support the country’s long-term goals, including attaining an upper middle-income status by 2063.
In her remarks, head of the Presidential Delivery Unit (DPU) Janet Banda said the PDU technical team for the three-day Mining Delivery Lab includes all key stakeholders to facilitate quick decision-making on mining obstacles.
