Malawi Mining Investment Forum 2025 theme is ‘Advancing Malawi’s mining agenda in an evolving global industry’

Mining Minister Zikhale Ng’oma during the press briefing yesterday in Lilongwe

* It highlights Mining Ministry’s commitment to attracting investment and supporting the artisanal and small-scale mining sub-sector

* It brings together stakeholders from various sectors to develop actionable solutions for the growth and sustainability of the mining sector

By Patience Longwe, MANA

The Ministry of Mining is set to host its second Malawi Mining Investment Forum (MMIF2025) at the Bingu International Convention Centre (BICC) in Lilongwe on April 28-29, whose theme is ‘Advancing Malawi’s mining agenda in an evolving global industry’.

At press briefing yesterday, Minister of Mining, Kenneth Zikhale Ng’oma said the MMIF2025 builds on the momentum and successes of the previous year’s forum, which brought together key players in the industry to discuss opportunities, challenges and innovations.

“The theme for this year highlights the Ministry’s commitment to attracting investment and supporting the artisanal and small-scale mining sub-sector,” he said, adding that it is also set to focus on youth participation and community engagement in addressing issues affecting the Mining sector.

Ng’oma further said the forum aims to promote collaboration whereby it will bring together stakeholders from various sectors to develop actionable solutions for the growth and sustainability of the mining sector.

At the event, NICO Group — which includes NBS Bank and ERIS Properties — present a symbolic cheque of K50 million as lead sponsor towards the success hosting of the MMIF2025.

The Minister profoundly appreciated the support from NICO Group and also expressed gratitude to other sponsors and exhibitors for their corroboration.

He encouraged stakeholders to participate in the MMIF2025, engage in discussions and contribute to the development of the mining sector in Malawi.

“With a robust participation, the forum promises to be a cutting-edge and dynamic event that will further promote Malawi’s mining sector and advance national development priorities” he said.

NICO Group Business Executive, Zizwani Khonje, emphasised the significant role the mining sector plays in driving Malawi’s economic growth.

“The donation reflects NICO Group’s confidence in the sector’s potential and its willingness to contribute to its development” he said adding that they expect the K50 million investment to support the forum’s activities — enabling it to achieve its objectives of promoting the growth and sustainability of Malawi’s mining sector.

“The Malawi Mining Investment Forum is expected to attract a diverse range of participants, including industry leaders, government representatives and development partners.

“With NICO Group’s support, the event is poised to be a significant milestone in the Country’s efforts to advance its mining agenda” he said.

Mining has been one of the main topics under discussion by various key stakeholders in the industry, including Parliament where MP Mark Botomani asked Minister Zikhale Ng’oma on what Malawi is benefiting from its vast minerals — which is top of agenda for the current government administration in the economic recovery of the country through the agriculture, tourism and mining (ATM) strategy.

In turn the Minister confessed that the government had been making mistakes in the mining development agreements with foreign company investors by signing deals without adequate due diligence.

The Minister also admitted that despite having vast mineral resources, the country has seen minimal benefits because of poor decision-making, poor policies and rushed mining development.

He added that mining would have take Malawi far by now but outsiders have benefited more from the minerals they have been extracting, saying: “Malawi is where it is now with the mining sector because of the mistakes we have made.

“We have made strategic mistakes, we have made economic mistake, contract signing mistakes, poor funding to the Ministry of Mining, security, policy and geological mistakes. These mistakes have led to Malawi being poorer and poorer and those benefiting are from outside.”

He alluded that the foreign companies have been exploiting Malawi’s legal loopholes and weak regulatory framework, rushed nature of past agreements, saying crucial details were overlooked, resulting in unfavourable terms for the country, which allowed foreign companies to maximise profits leaving the country with little benefits.

He, however, said the government is now working on strategies to clean the mining sector by revisiting past strategies to rectify the mistakes, which was kick-started in February by suspending issuance of new mining licences while banning the export of minerals until further notices.

Thus the need for stakeholders to participate in the MMIF2025, engage in discussions and contribute to the development of the mining sector in Malawi to honour Minister Zikhale Ng’oma plea that “with a robust participation, the forum promises to be a cutting-edge and dynamic event that will further promote Malawi’s mining sector and advance national development priorities”.

Delegates should also seriously take note of the report done by ActionAid Malawi in June 2015 made based on former investor for Karonga’s Kayelekerakera uranium mine, Paladin (Africa) Limited, which condemn tax breaks offered to foreign multinational mining companies.

In the report, ActionAid Malawi exposed that Malawi, the poorest country in the world, lost out on US$43 million in revenue in six years up to 2015 from a single company, Paladin from Australia.

It indicated that the funds were lost through a combination of harmful tax incentives from the Malawian government, and tax planning using treaty shopping by Paladin.

ActionAid Malawi took note that though what happened was not illegal but tax matters as it “pays for public services such as education, health care and social services, crucial for women, who often end up as the unpaid providers in the absence of decent public services”.

“It also pays for infrastructure to provide clean water, functioning roads and communication systems, all of which are essential for a country to develop and for business to operate.”

To end harmful discretionary tax incentives, ActionAid Malawi made recommendations to the government — which include ensuring that any tax incentives should be subject to Parliamentary and public scrutiny before being signed, and that they are made publicly available immediately upon signature.

Also not to reduce royalty rates as a tax incentive to multinational companies; not to allow for capitalisation to be thinner than the government’s guideline; and to ensure that future incentives negotiated with international companies — particularly in the extractives sector — should be subject to rigorous studies regarding their potential costs and benefits.

It added that such studies are made public; and that the cost/benefit analysis is periodically updated and that such updates inform tax incentives policies; and that the government should measure and publicly disclose revenue foregone through all tax incentives to multinational companies annually.

The government was also advised to consider following Zambia’s example and removing stability clauses that are not in Malawi’s interests.—Additional reporting by Duncan Mlanjira, Maravi Express