Malawi Suspends Exports on Precious Minerals, Gemstones to Reform Mining Sector

Malawi has temporarily banned the export of gemstones and precious minerals as part of a sweeping reform to improve transparency and efficiency in its mining sector, the government announced Wednesday. The export freeze, effective immediately, will remain in place until further notice.

Mining Minister Joseph Mkandawire stated that the move is aimed at “sanitizing the mining sector” as authorities review existing policies. This decision aligns with a broader initiative to ensure fair mining contracts and recover lost revenues from foreign firms.

Despite being rich in uranium, rubies, and sapphires, Malawi has struggled to fully capitalize on its mineral wealth. The export suspension follows a directive from the vice president to review all mining contracts within 21 days.

The country has been engaged in legal battles to reclaim unpaid taxes and royalties from international mining companies. Since mid-2022, the government has sought over US$309 billion from Columbia Gem House, a U.S.-based gemstone firm, for alleged underpayment on ruby exports over the past decade.

Authorities claim its subsidiary, Nyala Mines Limited, paid only US$600 in taxes despite generating an estimated US$24 billion in revenue.

Malawi’s mining sector contributed just 3.5 percent to GDP in 2023, according to the World Bank. However, experts believe better regulation and investment could unlock significant economic potential.

A recent World Bank report estimates that between 2026 and 2040, Malawi’s mineral exports – particularly “green minerals” like graphite and titanium – could generate up to US$30 billion in revenue, driven by global demand for renewable energy technologies.

With nearly 75 percent of its 24 million people living in extreme poverty, strengthening oversight and securing fair contracts are critical to making mining a key driver of economic growth. The government’s ongoing reforms aim to ensure Malawi benefits fully from its natural resources.