Government says it is aware that the extractive industry could contribute better to the economy and will continue with efforts to increase the sector’s contribution to gross domestic product (GDP) from the current one percent to around 10 percent.
The sentiments follow a Malawi Extractive Industry Transparency Initiative (Mweiti) report released last week which revealed that the sector raised K5.94 billion ($13.6 million) between July 2014 and June 2015, representing 0.9 percent of GDP, 1.1 percent of government revenue and 0.69 percent of total exports for the period under review.
But in an interview with Business News, Ministry of Natural Resources, Energy and Mines spokesperson Ayam Maeresa said government is aware of the problems in the industry specifically the mining sector and will continue in its efforts to increase the sectors exports and contribution to GDP.
Maeresa said government is currently reviewing the mines and minerals act which will improve the governance of the sector and improve investor confidence. He added that government’s efforts to intensify power generation will also promote the sector as mining in particular is very power intensive.
He said: “Government is also pursuing other existing mine projects including the Kanyika nobium mine and the Kayelekera mine which is currently under care and maintenance to see if they can be revived together with investors that have shown interest.”
Maeresa added that the provision of the digital geophysical database has made it easier for investors to know what mineral potential the country has.
Recently, mining expert and former Energy and Mining Minister Grain Malunga said the mining sector is still at the grass root level of exploration where companies are rather looking for minerals and not doing the actual mining.
He said there is need for the country to attract more investors to extract precious metals which could generate the much-needed revenue.