Malawi has imposed a temporary ban on the export of gemstones and precious minerals in order to reform its mining industry’s management. This decision comes among the country’s concerns over unpaid taxes and royalties owed by foreign companies operating in it.
The government of Malawi announced that all exports of gemstones and precious minerals have been suspended effective immediately. This means mineral export licenses will no longer be issued during this period until further notice. According to Joseph Mkandawire, the mining minister, the ban is intended to “sanitise” the mining sector and introduce much-needed reforms to enhance both efficiency and transparency in the administration of mineral rights.
Malawi’s wealth ranges from Uranium and Rubies to Sapphires. This decision reflects its desire to ensure that these minerals are effectively utilised for national development. Compared to its neighbouring countries, like Zambia and Mozambique, the southern African nation has struggled to fully capitalise on its natural resources.
Unpaid Taxes and Royalties: Malawi’s Primary Concern
In fact, the issue of unpaid taxes and royalties is the major driver behind the export freeze. Recently, Malawi has sought billions of dollars in outstanding payments from foreign mining firms. Since 2022, over $309 billion has been demanded from Columbia Gem House by the government. In order to maintain underpaying taxes on Ruby exports over the past decade.
In spite of the projected revenues of $24 billion from its operations in Malawi, the subsidiary of Colombia Gem House, Nyala Mines Limited, paid only $600 in taxes. This highlights the urgent need for stricter oversight and accountability within the mining industry. The amount claimed from the U.S. company far exceeds Malawi’s GDP, underscoring the financial strain facing the debt-laden nation.
