Malawi Financial Mirror

Our Comment on Mining

About the only institutions that seem to be concerned about mining in Malawi are NGOs and mining firms themselves. We hear virtually nothing from labour and local business associations. Our media has yet to acquire the confidence of covering economic affairs, let alone the mining industry which is new to Malawi. And most of what the media reports draw from press releases from the two institutions - the NGOs and mining firms. Understandably, the press releases from the mining companies are basically public relations stuff and often they evolve around the progress of their projects and some corporate social responsibility activities. The NGOs concern are very narrowly focused around poverty issues.  They evolve around gains accruing to local communities and the environmental implications of planned mining activities.  

Important though the NGOs concerns are,  they are too narrow to address the central developmental issues that the government and society as a whole must grapple with. These relate to the developmental implications of mining and its relationship to the large social and economic concerns. First and foremost is the question of ownership. How much will Malawi, through its organs of the state, own in terms of shares in the mining enterprises? What will be the rate of taxation and how is the government giving away in the form of incentives?

The second set of concerns is around the linkage between mining and other sectors of the economy. Is the government holding any discussions with the mining sector and local business and labour on these issues? And even more pertinent is it putting in place any legislation that speaks to these issues?

Finally, there is the question of Malawi’s increasing mastery of the industry. What are the demands on the mining companies in terms of training of Malawians and indigenisation of skilled labour?

We should recall that many of the mining companies are using South Africa as their base and, as we saw in the case of Paladin, they bring with him the South Africa historical underevaluation of black labour. And unless our labour laws are firm on indigenisation and equitable treatment of labour, we will have the absurd situation we had in Kayelekera where semi-skilled expatriates were highly paid.