High Commissioner Ritchie
* As part of helping to strengthen capacity of Government officials and institutions—British High Commissioner to Malawi, Fiona Ritchie
* During the opening of ‘Mining Delivery Lab’ at Bingu International Convection Centre (BICC) in Lilongwe today, May 6
* United Kingdom cares about Malawi’s future in economic growth, prosperity and development through mining
By Duncan Mlanjira, Maravi Express & Prisca Promise Mashushu, MANA
As part of helping to strengthen capacity of government officials and institutions — and caring about Malawi’s future in economic growth, prosperity and development through mining, the United Kingdom (UK) supported Malawi’s mining negotiating experts for an executive course on managing mining for national development at Oxford University last year.
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This said by British High Commissioner to Malawi, Fiona Ritchie during the opening of ‘Mining Delivery Lab’ at Bingu International Convection Centre (BICC) in Lilongwe today, May 6 — hosted by Minister of Mining, Ken Zikhale Ng’oma and graced by vice-president Michael Usi.
Having highlighted that “it goes without saying that the mining sector can be pivotal for Malawi’s [better economic] future”, High Commissioner Ritchie agreed with President Lazarus Chakwera’s sentiments during last week’s Malawi Mining Investment Forum, where the President called for more proactive public disclosure of the terms of mining agreements.
“Transparency is a critical ingredient of this good governance,” she said in reference to what Chakwera ordered that the Mining Ministry should not operate in secret when negotiating for mining development agreements.
“Although we mustn’t overstate the number of jobs the mining sector can create, there will be many opportunities for Malawians to benefit from gaining the skills the industry needs, and for local communities who can work in or and services to the mines.
“Given these substantial opportunities to transform Malawi’s economic prospects, the UK and development partners are keen to work with the Government of Malawi to make mining happen, and – crucially – to make it work to the benefit of all Malawians.
“These are Malawi’s natural resources after all. None of these outcomes are automatic. As I discussed with business leaders last month in Mangochi, the resource curse is real — the flow of mining revenues and their effective use requires good governance.”
She unraveled that, through the Malawi Trade and Investment Programme, the UK Government is supporting opportunities for dialogue, exchange and challenge —“provided that this continues to be a shared aspiration of Malawi Government and that discussions leads to better, and more efficient decision-making”.
“Our support over the last year has particularly focused on strengthening dialogue among and between DPs, the private sector and government. An important part of this has been to help reconcile the demand for support from both government and the private sector, with what DPs can offer both in the short and medium term, so all parties reach a common understanding of each other’s capabilities.
“These discussions have helped to surfaced numerous differences in opinion of who should have mandates and responsibilities for different activities – be it in financing infrastructure, managing laboratories or running certification programmes.”
The British High Commission has also supported this Mining Delivery Lab “to strengthen a common understanding of needs, be it for power, infrastructure, training or reducing red tape”.
Kangankunde rare earths mine in Balaka being developed by Australian company Lindian Resources
Kayelekera uranium mine in Karonga
The UK is also backing three additional initiatives to improve public-private dialogue, through the Malawi Value Chains project team; which include supporting the mining negotiating experts for the executive course at Oxford University last year.
It is also helping mining companies speak with one voice, as the programme “is supporting the Chamber of Mines in setting its strategy and collaborating with Government on issues of common interest”.
She added that this year, the UK is supporting the Government & 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 applauded that the Presidential Delivery Unit’s ‘Mining Delivery Lab is appropriate, saying in her recent engagements she’s had quite a mining theme, saying: “Two weeks ago, I was standing on a rare earth deposit in Phalombe with Mkango Resources.
“Later that week I was talking about mining’s potential at the MCCCI Business Leaders’ summit, and then last week I attended the opening session of the Mining Investment Forum.
Malawi Mining Investment Forum held last week
“It’s a good sign I think — it means that the sector is moving forwards and that’s exciting. Last year’s Labs played a big role in smoothing the glidepath for the Mining Development Agreements that were subsequently signed between the Government and two mining companies.
“So it’s reassuring to see this approach being repeated this year, to tackle the next set of challenges. As we all know, it isn’t the process of holding meetings that matters, but rather the commitment to genuine consultation, to negotiate in good faith, and to achieve results.
“This is what drives progress and it’s my hope that all stakeholders have brought these same impulses back to the table for this week’s discussions.”
On his part, Vice-President Michael Usi says mining is the golden key that will unlock double-digit economic growth for Malawi come 2030, emphasising that mining alone has the power to lift Malawi into the middle-income bracket in line with President Chakwera’s vision.
He emphasised on the need for stakeholders to work together to utilise the availability of minerals in the country: “I urge everyone to participate fully by bringing the best ideas because Malawi needs everyone now more than ever to ignite our economy and give our people the hope they deserve.
“Let us make mining the engine that powers our rise. Let us move with unity, with urgency, and with transparency. And above all, let us deliver — because our people are watching, and they are counting on us,” Usi said.
Minister of Mining, Ken Zikhale Ng’oma explained that mining is a game changer to economic development as it plays a crucial role in various sectors of the government — adding that mining holds enormous potential as the sector is a game changer for Malawi’s economy which can contribute 30% of the Gross Domestic Product (GDP) from the current 1% within the next two years.
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“It is, therefore, a must to involve the strategic and meaningful participation of our youth and women in this robust mining sector where we anticipate serious job creation and the attraction of genuine investors who will make our economy move from the usual growth and sustainable economy to a robust money economy —repositioning Malawi from a subsistence economy to a vibrant, industrialised, and middle income economy,” he said.
On pivotal economic transformation Malawi is set to get from the mining business, High Commissioner Ritchie also attested to that the sector presents huge opportunities to contribute towards development through “increasing exports to improve the country’s forex position and increasing public revenue, which is much needed to meet service delivery and investment needs, especially in a time of declining aid levels”.
“We look forward to equally fruitful collaboration with the Malawi Government, private sector, civil society, communities, and other stakeholders in Malawi’s mining sector.”
