Malawi’s mining sector could become a foundation for industrial transformation if the country invests heavily therein and harnesses existing export markets, local analysts have warned.
This comes as the European Union implements its Critical Raw Materials Act (CRMA)—a policy aimed at securing stable mineral supply chains for Europe’s green transition, digital economy and industrial security.
It also coincides with the increasing global competition for minerals such as graphite, lithium, rutile and rare earth elements, which are essential in the production of electric vehicles, batteries, renewable energy systems and advanced technologies.
In an interview, mining policy expert Paul Mvula said Europe’s transition toward green energy has significantly increased global demand for strategic minerals found across Africa, including Malawi.
“We need to move beyond extractive dependency and move toward value addition, beneficiation and industrialisation,” he said.
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He argued that Malawi should invest in local processing, manufacturing, infrastructure and skills development linked to mineral value chains.
Malawi possesses significant deposits of graphite, uranium and rare earth minerals, resources increasingly viewed as strategic in the global shift toward green technologies with the World Bank estimating that the country’s mining exports could generate up to $30 billion between 2026 and 2040, once fully operational.
However, despite this potential, mining continues to contribute less than one percent to the country’s Gross Domestic Product (GDP).
Mvula added that the country must strengthen transparency, accountability and governance within the sector to ensure mining agreements protect national interests and allow citizens to track how mining revenues are collected and utilised.
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Economist Marvin Banda said Europe’s push toward green energy and industrial security has effectively made Africa strategically important again in the global economy.
But he cautioned that the key question is whether countries such as Malawi are positioning themselves to benefit meaningfully or preparing to become another extraction zone for global powers.
“We need stronger and smarter mining contracts. Malawi must protect investor confidence without surrendering national interests,” he said.
During a recent media workshop organized by the taz Panter Foundation, German civil society organization PowerShift argued that Europe’s growing interest for critical minerals risks reproducing old extractive relationships unless accompanied by stronger human rights protections, reduced consumption, fair benefit sharing and local industrial development.
PowerShift’s raw materials policy consultant Michael Reckordt noted that while the European Union accounts for only six percent of the global population, it consumes between 25 and 30 percent of global metal production.
“We want to see a reduced demand for critical raw materials in the northern hemisphere and Europe, because the current high consumption is unfair. We also need to see a stop in human right violence, workers’ rights violation and environmental distraction, as well as ensuring benefit sharing and local well-being in the mining areas,” Reckordt said.
This year’s media workshop organized by the taz Panter Foundation is happening under the theme “Global Powers, Local Realities – Africa’s Future Amid Global Power plays and the Fight for Self Rule” and has brought together 16 journalists from across Africa.