Malawi’s mining industry could struggle to grow unless commercial banks open their doors to businesses seeking money to invest in the sector.
Mining Minister Thoko Tembo has challenged banks to finance mining operations, mineral processing and businesses supporting the industry.
Tembo said access to capital is critical if Malawi is to move beyond exporting raw minerals and instead build businesses that add value locally.
He said banks should look beyond mineral extraction and support enterprises involved in processing, transportation, equipment supply and technical services.
The minister said affordable and appropriate financing would help mining businesses expand, acquire equipment and create jobs across the mining value chain.
His call comes as government steps up efforts to attract private investment into Malawi’s mining sector and unlock the economic potential of its mineral resources.
Tembo said financial institutions should see mining as an emerging business opportunity rather than simply a high-risk sector.
He said stronger financing could also help increase mineral processing within Malawi, allowing the country to retain more value from its natural resources.
For mining businesses, access to finance will still depend on viable projects, proper documentation, credible business plans and the ability to manage operational risks.
Tembo’s challenge therefore puts banks at the centre of government’s push to turn Malawi’s mineral wealth into investment, businesses and jobs.
