LILONGWE, Jan. 31 (Xinhua) -- The World Bank has projected Malawi's mining earnings at a total of 30 billion U.S. dollars between 2026 and 2040, but it has warned authorities to be on guard against tax avoidance by foreign companies to maximize government revenues.

Firas Raad, World Bank country manager for Malawi, made the projection in a statement Thursday during the launch of the Malawi Economic Monitor (MEM), a biannual World Bank report series, adding that the mining sector could help transform the southern African country's struggling economy.

According to the bank, annual mineral exports are projected to peak and stabilize at 3 billion U.S. dollars by 2034, with total revenues potentially reaching 43 billion dollars in the best-case scenario over 2025 to 2040.

Raad has since urged Malawi to invest heavily in energy and railway infrastructure to support the mining activities.

Ken Zikhale Ng'oma, Malawian minister of mining, said in a statement at the launch of the report that his ministry will ensure policies and efforts to fully exploit the mining sector and get the full benefits.

"Mining is an integral part of the Malawian government's ATM (Agriculture, Tourism, and Mining) Strategy, and the sector holds significant potential to address macroeconomic challenges by driving economic growth," the minister said.

Foreign companies are developing mines to produce rare earth, rutile, graphite, uranium, niobium, and heavy mineral sand in Malawi, while the country expects uranium exports in the third quarter of this year as a uranium mine, Kayerekera, resumes its operations in the northern part of the country.

The low-income country, which borders Mozambique, Zambia, and Tanzania, is currently experiencing a protracted economic crisis, battling food insecurity, forex shortage, and high inflation at an average of 32.2 percent in 2024, as reported by the National Statistical Office of Malawi. Enditem

Related

Go to Forum >>0 Comment(s)