Treasury says it has raised K500 million in mining revenue within nine months—July 2017 and April 2018—through royalties, licence processing and ground fees.
This represents a 25 percent increase over the same period last year when K400 million was raised, according to figures published in the Malawi Government Annual Economic Report 2018.
The report, which is published by the Ministry of Finance, Economic Planning and Development as part of budget documents, shows that exports of minerals in 2017/18 fiscal year by different mine operators continued to be dominated by coal, ornamental/dimension stones and gemstones.
Before 2014, mining used to contribute about 10 percent to the gross domestic product (GDP) when Paladin (Africa) Limited-owned Kayelekera Uranium Mine in Karonga was operational.
But since the mine was put on care and maintenance in February 2014 due to tumbling prices of uranium on the global market, the mining sector’s contribution to GDP has dropped to below one percent, according to the report
In terms of employment opportunities, the report shows that the number of jobs increased by a paltry 2.6 percent to 16 458 people from the previous year’s 16 029.
This year, there are prospects that more jobs will be created in the sector due to the increased economic activities, since the mining investment climate looks promising than in 2017.
Reads the report in part: “Government realises that to make mining one of the significant contributors to the national economy, there is need to cultivate and maintain a good investment climate, create and sustain a stable regulatory environment that provides for transparent and equitable treatment of investors and provide a secure, competitive and fair mining fiscal regime.
Minister of Finance, Economic Planning and Development Goodall Gondwe said in the 2018/19 National Budget Statement that to encourage mineral exploration in the country, value added tax (VAT) Act will be amended to allow mining companies in the exploration phase to register for VAT.