Leveraging Malawi’s Underground Wealth

Malawi’s rich endowment of energy transition minerals is fueling a resurgence of interest in the mining sector as a potential driver of future economic growth and broad-based development. The Malawian Government and its development partners are anticipating that this wealth of ‘green minerals’, if exploited properly, can help the country break out of its enduring poverty trap and accelerate its efforts to achieve middle-income country status.  

The optimism surrounding Malawi’s mining sector is driven by the expected rise in global demand for minerals essential to the low-carbon transition—such as rutile, niobium, graphite, and rare earths. These minerals are crucial components in clean energy technologies, including solar panels, wind turbines, battery storage, and electric vehicles. Due to surging global demand, production of these minerals is projected to increase by nearly 500 percent by 2050.

Malawi is well-positioned to capitalize on these shifting market dynamics. Alongside a mix of industrial minerals, the country possesses significant deposits of graphite, rutile, and rare earth elements. Notably, Malawi holds approximately 2 percent of the world’s rare earth elements, and its Kasiya mine boasts some of the largest known rutile and graphite deposits globally.

The transformative potential of Malawi’s mining sector was highlighted during the launch of the latest Malawi Economic Monitor (MEM) in January 2025. The report analyzed seven mines currently under development, all of which could be operational by 2031. Once fully functional, these mines could generate substantial revenues and boost much-needed foreign exchange inflows. By 2034, mining export revenues are estimated to reach around US$3 billion per year, a significant increase from the country’s current total annual exports of less than US$1 billion.

"Malawi has struggled to grow and transform its economy due to unaddressed macroeconomic imbalances and slow reform progress, which may hinder its significant medium-term growth potential. At the same time, the country is on the cusp of an unprecedented wave of investment projects, particularly in the mining sector. To fully capitalize on this opportunity, macroeconomic stabilization—along with a concerted effort to develop essential laws, institutions, and capabilities—is crucial to ensuring long-term benefits for its citizens.”

—Jakob Engel, Senior Country Economist

Figure 1: Impact of Mining Projects on Malawi’s Export Profile
 

The report’s analysis aligns with the World Bank’s renewed engagement in Malawi’s mining sector, spearheaded by the Energy and Extractives Global Practice. This engagement includes:  

1. A Mining Sector Diagnostic (MSD) assessing the sector’s legal framework, performance, and challenges.
2. Advisory services supporting a government-led Energy Transition Minerals (ETM) Roadmap, aimed at guiding the long-term development of Malawi’s mining industry. This Roadmap would focus on growing the mining sector, putting in place effective environmental and social regulations, and ensuring that mining revenues benefit the general population of the country.

“A striking feature of Malawi’s mineral endowment is that all industrial mining activity expected to come online in the next 5–6 years involves energy transition minerals. This presents a remarkable and potentially transformational opportunity—if managed effectively. Through the regional programmatic ASA on ‘green minerals’ in AFE, we are working across sectors, the World Bank Group, and the region to help Malawi maximize this opportunity while ensuring value addition, environmental protection, and community well-being.”

—Martin Lokanc, Senior Mining Specialist

While Malawi’s mining sector holds immense economic potential, the path to realizing this vision is not without obstacles. The timeline for operationalizing a mine spans 10-15 years, and the sector faces several challenges, including weak institutional capacity, inadequate access to energy and transportation infrastructure, human capital limitations, global price volatility, and a private-held perception of Malawi as an inexperienced mining jurisdiction.

If Malawi effectively addresses its challenges and fully leverages its mining sector, it can turn its underground mineral wealth into above-ground development. Strengthening institutions, enhancing infrastructure, and fostering local value addition will unlock long-term economic gains, translating mineral riches into skilled jobs, better public services, and a higher standard of living for all Malawians.