Country selling national leverage to fund fuel imports as Iran war bites — with no transparency on who is buying
Malawi has confirmed it is selling off its gold reserves to raise foreign exchange for fuel imports, a move that has alarmed commentators who say the country is surrendering its last remaining financial leverage while simultaneously going cap in hand to donors.
Minister of Information Shadric Namalomba confirmed the sale, telling the Nation that government had already sold gold held by the Reserve Bank of Malawi to raise $30 million for fuel purchases.
“We have sold some of the gold that RBM stocked and taken the portion of the forex from the sale of gold to pay $30 million so that we have fuel collected from the ports,” Namalomba was quoted as saying by the Nation newspaper on Wednesday.
Critically, government has not disclosed who is buying the gold, how the transaction is being structured, or whether an independent valuation was conducted. The absence of any public procurement process for an asset of this magnitude, raising immediate concerns about a corruption risk, with no visible safeguards around who benefits from the sale.
The secrecy surrounding the transaction comes against a backdrop of previous allegations linking Malawian officials to gold smuggling networks. Investigations have pointed to the involvement of some government officials, including ministers, in facilitating gold exports to Dubai. Some parastatal board chairs and members have stakes in companies named in Al Jazeera’s Gold Mafia exposé, which raised concerns over money laundering and illicit financial flows, with some of these individuals reportedly attending State House events.
Meanwhile, despite selling its gold, the Malawi government is also seeking $120 million from the Africa Export and Import Bank (Afreximbank) and looking to the World Bank for further support. It is not yet clear, whether the World Bank and IMF forced Malawi to sell its gold as part of any conditions attached to future support has not been disclosed.
Commentators say the combination of selling gold and seeking donor support is a damaging signal for an already import heavy economy whose imports of $3 billion dwarf its exports of $1 billion.
“Gold reserves are Malawi’s collateral, its buffer against currency collapse and its negotiating weight in international markets. Once sold, that leverage is gone.” one commentator told Malawi24.
The country’s national budget, billed at K10.978 trillion for the 2026/27 financial year, is already burdened by heavy borrowing both locally and externally.
Malawi has historically relied on tobacco as its primary foreign exchange earner. However, declining competitiveness on the global market has weakened its contribution. In recent years, the leaf has been sold to local companies such as Nyasa Manufacturing in local currency, limiting its impact on foreign exchange reserves and further tightening the country’s forex position.
Key facts
Gold sold: RBM gold reserves sold to raise $30 million for fuel
Buyer: Not publicly disclosed
Additional borrowing: $120 million sought from Afreximbank
Trigger: Iran war disrupting global oil supply, suppliers demanding cash
Black market price: K16,000 per litre against official K6,672
