ACKNOWLEDGEMENTS AND VALIDITY This report is the result of the Malawi Mining Sector Diagnostic carried out from Q1 2024to Q2 2025 by a technical team led by Martin Lokanc (TTL) and Tsolmon Adiya (co-TTL) andcomprised of the following members: Charles Douglas-Hamilton (Lead Consultant and mainauthor), Elton Jangale (Consultant for de jure Assessment and for carrying out interviewsand aggregating survey data), and Helga Treichel (Consultant). In the preparation of thisreport, the team interviewed a wide range of mining sector stakeholders. The World Bankwishes to thank all the interviewees for their time and valuable contributions. This report isbased on mining investment and governance data and indicators effective as of May 2025. TheMSD report was prepared with funding support from the Extractive GlobalProgrammatic Support (EGPS) trust fund, administered by the World Bank. The authorsgratefully acknowledge the contribution of EGPS in supporting the research, consultation,and production of this report. MINING SECTORDIAGNOSTIC - MALAWIREPORTMAY 2025 © 2025 The World Bank1818 H Street NW, Washington DC 20433Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of The World Bank. The findings, interpretations, and conclusions expressedin this work do not necessarily reflect the views of the Executive Directors of The World Bank or thegovernments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data includedin this work and does not assume responsibility for any errors, omissions, or discrepancies inthe information, or liability with respect to the use of or failure to use the information, methods,processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes andother information shown in this work do not imply any judgment on the part of The World Bankconcerning the legal status of any territory or the endorsement or acceptance of such boundaries.The citation of works authored by others does not mean the World Bank endorses the viewsexpressed by those authors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver ofthe privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages disseminationof its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes aslong as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2025. Malawi Mining Sector Diagnostic.© World Bank.” Any queries on rights and licenses, including subsidiary rights, should be addressed to World BankPublications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625;email: pubrights@worldbank.org. Cover photo:© Mineral processing facilities at the Kayelekera mine in Malawi. Used with thepermission from Lotus Resources. Further permission required for reuse. CONTENTS Acronyms and Abbreviations.....................................................................................................7Executive Summary.....................................................................................................................9I.Introduction.......................................................................................................................15II. Malawi’s Mining Sector....................................................................................................18II.1 Mining Sector Importance............................................................................................18II.2 Mining Sector Management.........................................................................................22II.3 Legal Framework...........................................................................................................22III. MSD Results Dashboard.................................................................................................24IV. Assessment of the Sector Management Framework..................................................27V. Performance along the Extractive Industries Value Chain.........................................37V.1Contracts, Licenses and Exploration...........................................................................37V.2Mining Operations.........................................................................................................44V.3Taxation..........................................................................................................................56V.4Revenue Distribution and Management.....................................................................61V.5Local Impact...................................................................................................................64VI. Stakeholder Priorities................