Malawians are being called upon to confront tough questions about how the country is managing its mineral wealth, as concerns grow over why significant gold reserves are being held while the nation struggles with a persistent foreign exchange crisis.
The Centre for Democracy and Economic Development Initiatives (CDEDI) has challenged authorities, particularly the Reserve Bank of Malawi (RBM), to explain the rationale behind maintaining gold stockpiles instead of leveraging them to ease forex shortages that continue to affect businesses and everyday livelihoods.
Speaking during a press briefing in Lilongwe on Friday, CDEDI Executive Director Sylvester Namiwa said the situation demands an open and honest national conversation.
“We call on all well-meaning Malawians to engage in an open and candid national debate on the Reserve Bank of Malawi’s (RBM) decision to allow the country sit on substantial gold reserves in their coffers amid a persistent foreign exchange crisis,” said Namiwa.
Namiwa observed that nearly all foreign exchange generated through various initiatives is currently being spent on fuel imports and logistics, leaving little room to stabilise the economy. He further highlighted Malawi’s vast untapped mineral potential.
“Apart from gold, Malawi is also sitting on the largest, if not the second-largest rutile deposits in the world, in Kasiya, Lilongwe; 26 types of gemstones that include rubies, diamonds and sapphies, with Chimwadzulu mine in Ntcheu having the largest deposits in Africa. Then there is uranium at Kayelekera in Karonga, niobium at Kanyika in Mzimba, and rare earths in Phalombe and Balaka,” he added.
CDEDI noted that the RBM, through its subsidiary Export Development Fund (EDF), began purchasing gold in 2021 and expanded into gemstones two years later.
According to figures from the Mining and Minerals Regulatory Authority (MMRA), EDF bought over 376,000 grammes of gold between 2024 and 2025.
However, the organisation has raised transparency concerns, and demand disclosure of some crucial information.
“CDEDI is demanding EDF to, among other things, make public disclosures on the suppliers’ list, total investment and profit made so far from both gold and gemstone, and also account for the alleged 70 kilogrammes of counterfeit gold bought in the course of the business,” he added.
The group has also taken issue with the Ministry of Mining and the Malawi Defence Force (MDF) over an operation targeting artisanal miners, which it claims has resulted in injuries, arrests, and destruction of property.
While acknowledging the need for order in the sector, Namiwa said authorities must respect the rights of citizens and ensure due process, stressing that suspects should be presumed innocent until proven guilty.
He added that the alleged actions, carried out under an operation dubbed “Teteza mgodi”, have raised concerns about lack of communication and engagement with affected communities, many of whom rely on small-scale mining for survival.
CDEDI argues that the developments point to deeper structural challenges, including weak transparency and accountability systems that benefit a few politically connected individuals at the expense of ordinary Malawians.
The organisation has since called for urgent dialogue between government and affected communities to find lasting solutions, while also demanding the revocation of quarry mining licences granted to Chinese nationals and a review of exploration licences exceeding three years.
