Roy Howa
Malawi is losing up to USD700 million annually due to gold smuggling, an expert has said.
Professor Leonard Kalindekafe, the CEO of the Malawi Mining Investment Company (MAMICO), shared alarming news to the Minister of Mining, Thoko Tembo.
Kalindekafe told the minister during his inspection of the company that it was important to have formal trading gold arrangements which should .help Malawi retain more value from its minerals.
He said MAMICO was ready to start purchasing gold but was awaiting documentation from the Reserve Bank of Malawi (RBM) before commencing operations.
“We have not started because of that one stage where the Reserve Bank has to give us that documentation,” Kalindekafe said.
He disclosed that the company had secured initial financing commitments from NBS Bank and FDH Bank to support its planned gold purchases.
Kalindekafe estimated that MAMICO would require approximately MK300 billion to purchase gold over a full year.
He said the company was preparing to enter the market once the outstanding documentation with the central bank was secured.
He said the establishment of formal gold trading arrangements by creating opportunities for miners to sell their produce through recognised channels, potentially reducing smuggling and improving the economic benefits Malawi derives from gold mining.