Malawi to establish gold trading centres to boost forex

Malawi is establishing formal gold trading centres to increase foreign exchange earnings, create jobs, and combat gold smuggling. The initiative aims to provide artisanal and small-scale miners with access to legitimate markets, preventing them from selling to illegal networks due to a lack of reliable options.

The Malawi Mining Investment Company (Mamico) plans to begin mining and processing gold next year. Executive Director Grey Kalindekafe reported that geological investigations have identified seven primary gold-bearing deposits across the country. Mamico is currently studying mining and processing models used in Zimbabwe and South Africa to prepare for these operations.

Government officials estimate that Malawi loses approximately $700 million annually in gold proceeds to illicit trade. While artisanal mining activities have been identified at more than 100 sites across 26 districts, fewer than five currently sell to the government through the Reserve Bank of Malawi. The new trading centres are intended to capture this revenue to help fund essential imports such as fuel and fertiliser.