Currently
the mining sector contributes 10% of Malawi’s GDP and when all the upcoming
mining projects are in full operation including proper regulations in ASM, government’s
projection is that the contribution of the sector to GDP will move up to 20%.
Minister
The Minister of Natural Resources, Mining and Energy Hon. Atupele Muluzi said
this on Tuesday in Lilongwe when opening ASM Policy Consultation Symposium held
under the theme ‘Unlocking ASM Opportunities for Socio-Economic Development in
Malawi’. The meeting wants formulate proper regulations and organize the
subsector so that its operators currently being estimated at not less than 20
thousand should be recognized and able to access to financial, market and
capacity building support.
Addressing
the conference Honorable Muluzi said the ASM can support the economy of Malawi
if the conference will critically consider putting in place regulations
requiring all operators to get Licensed, regular monitoring, encourage value
addition to gemstones and curb illegal ASM operations as well as smuggling of
precious stones.
“The
Mining sector is key to our strategic vision and offers an opportunity to
reduce Malawi’s dependence on Agriculture. Currently the mining sector is
contributing 10% to our GDP. It is our hope that once fully developed the
mining sector should contribute in excess of 20% to the GDP.”
“The
Artisanal and Small Scale Mining subsector has great potential to make its
robust contribution to our revenues, create jobs for the rural communities,
spur rural development and thereby help to alleviate poverty.” Said the minister
and noted that “But a lot of work has to be carried out to addressed many
challenges facing the sub-sector and share prevailing good practices” he said.
The
minister therefore considered that there is need to transform the ASM
sub-sector from an informal to a formal footing
“All
operators in this sector should be licensed and mining activities should be
regularly monitored and inspected. We should endevour to organize a formal
market for the ASM, especially for gemstones. We need to begin to add value to
our gemstones through polishing and cutting here in Malawi” said Muluzi adding “In
this way, we will be able to realize optional benefits from the ASM.”
The
minister also stressed that Artisanal and Small Mining operations should be
conducted in accordance with applicable safety and security requirements and
should safeguard the well being of the environment.
He
went on “We should also endevour to curb illegal ASM operations and smuggling
of our precious stones, which robs us of revenue and jobs for our people. All
operations in this sub-sector should be held to the highest standards of
transparency and accountability. Those who fail to comply should have their
licenses revoked.”
Hon.
Atupele Muluzi before addressing the conference visited some of the pavilions
showcasing some of the works that artisanal and miners are doing. The minister
said he was encouraged to see that a lot of women are actively involved in the
ASM “…Direct involvement of women will go a long way in transforming the ASM
into a vehicle for poverty alleviation among the rural communities” he said urged
the private sector to collaborate with his ministry of Natural Resources,
Energy and Mining in supporting the ASM in capacity building and provision of
equipment for cutting and polishing gemstones.
The
FDH bank is the main private sector championing this two day ASM conference. According
to Philip Madinga the FDH Managing Director the bank is rendering support to ASM
activities as one way of living up to its values particularly that of giving support
to both big and small businesses.
In
the ASM sector the FDH bank would like to enhance and develop ASM’s with various
opportunities including access to finance and finance literacy, exposing the artisanal
and miners to outside indabas and to support in stakeholder cooperation like
the ongoing review of ASM policy.
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