President Professor Arthur Peter Mutharika has warned against one-sided mining agreements, urging newly appointed Minister of Mining Thoko Tembo to ensure Malawi secures fair deals that maximise benefits from the country’s mineral resources.
Speaking during Tembo’s swearing-in ceremony at Kamuzu Palace on Tuesday, Mutharika said the success of the mining sector will depend on the country’s ability to negotiate agreements that place the interests of Malawians first.
The President said Malawi has historically lost out on the full value of its mineral wealth because of weak negotiating capacity, resulting in agreements that offered limited benefits to the country.
“I will ensure that your ministry is supported by experts who can assist in negotiating mineral agreements that are in the best interests of the Malawian people,” Mutharika said.
He stressed the need to invest in skills development and technical expertise to strengthen the country’s position during negotiations with mining investors.
While acknowledging that investors are entitled to make profits, Mutharika said Malawi must also receive a fair share of the returns from its natural resources.
The President also issued a stern warning to individuals and cartels involved in the illegal smuggling of minerals, describing them as traitors undermining the country’s economic future and vowing that the government would pursue those responsible.
Tembo, who was appointed after the Ministry of Energy and Mining was split into two separate ministries, accepted the President’s challenge and pledged to negotiate mining agreements that will advance Malawi’s development while safeguarding national interests.
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