By Suleman Chitera

Malawi’s mining industry could receive a major financing boost following discussions between the Ministry of Mining and FDH Bank aimed at unlocking capital for mineral extraction, processing and value addition.

Minister of Mining Thoko Tembo, MP, held talks with FDH Bank on Thursday as government intensifies efforts to attract investment and build the financial infrastructure needed to turn Malawi’s mineral wealth into a stronger contributor to the national economy.

The discussions come at a time when Malawi is seeking to position mining as one of the key drivers of economic transformation, following the identification and discovery of minerals such as rare earth elements, granite and gold.

Tembo said the country had entered a new chapter in mineral development, but warned that access to appropriate and structured financing remained a major obstacle for companies seeking to develop mining projects.

According to the Minister, some mining companies have been forced to look outside Malawi for capital, limiting the country’s ability to develop its mineral resources locally and establish industries around mineral processing.

“In order to advance the mining sector, we are strategically discussing partnerships with financial institutions like FDH so that we can work together to finance mining companies, not only for mining operations but also for industrialisation,” Tembo said.

The government’s approach signals an attempt to move beyond the traditional model of exporting raw minerals by encouraging investment in processing and other value-added activities within Malawi.

Such an approach could create opportunities across the mining value chain, including mineral processing, manufacturing, transportation, construction and related services.

FDH signals readiness to finance mining opportunities

FDH Group Chief Executive Officer William Mpinganjira said the bank was already familiar with the financing needs of the mining sector, having previously supported various projects.

He cited the bank’s support to the Export Development Fund (EDF) in its gold-buying initiative as one example of FDH’s involvement in the sector.

Mpinganjira said FDH was prepared to work with the Ministry of Mining, particularly in addressing some of the financing and market challenges faced by artisanal and small-scale miners.

Artisanal and small-scale mining remains an important source of livelihoods in Malawi, particularly in gold-producing communities, but operators often face difficulties accessing formal finance, reliable markets and competitive prices.

Mpinganjira said closer cooperation between financial institutions and government could help create a more organised environment for small-scale miners while improving their access to legitimate markets.

He also said the banking sector was looking for viable investment opportunities capable of generating returns while contributing to the wider economy.

Mining seen as gateway to industrialisation

The engagement between government and FDH comes as Malawi seeks to diversify its economy and reduce dependence on traditional sectors.

Tembo’s emphasis on financing not only mining operations but also industrialisation points to a broader ambition to ensure that minerals extracted in Malawi generate greater economic value before leaving the country.

If successfully implemented, increased investment could support the development of processing plants and other industries linked to minerals, creating jobs and expanding opportunities for local businesses.

Mpinganjira identified mining, manufacturing, construction and trade among sectors capable of generating income for financial institutions while simultaneously contributing to government revenue and economic growth.

The discussions therefore place financing at the centre of Malawi’s mineral development strategy, with government and financial institutions expected to play complementary roles in turning mineral discoveries into commercially viable projects.

For Malawi, the challenge will now be to translate these discussions into accessible financing products, bankable mining projects and investments that deliver measurable benefits to communities and the wider economy.