Malawi announces plans to establish Sovereign Wealth Fund

Malawi has announced plans to establish a Sovereign Wealth Fund to ensure that Malawians benefit from mineral proceeds.

Delivering his State of the Nation Address over the weekend, President Peter Mutharika said plans are also underway to strengthen the Malawi Mining Investment Company (MAMICO).

According to the government, the reforms form part of broader efforts to promote value addition and accountability in the mining sector.

President Mutharika also announced that the Malawi Government has suspended the issuance of new mining licences as part of efforts to overhaul activities in the sector.

In line with this, the country has initiated a nationwide audit of the sector and banned the export of raw minerals pending a legal review.

“Mr. Speaker, mining is key to Malawi’s economic growth. However, the sector faces numerous challenges, including inadequate mineral exploration, weak legal and regulatory frameworks, and limited capacity to negotiate Mining Development Agreements.

“To address these challenges, the Government has suspended the issuance of all types of licences, initiated an audit of the licence registry, and banned the export of raw minerals pending a review of the legal and regulatory framework.

“Mr. Speaker, Sir, in addition, I have directed the Minister of Finance and the Minister responsible for Mining to enhance Malawi’s capacity to negotiate Mining Development Agreements,” he said.