EDF Sets Aside K400 Billion for Gold Purchases as Drive to Boost Forex Gains Momentum
The Export Development Fund (EDF) has earmarked K400 billion for gold purchases this year as part of an aggressive strategy to increase Malawi’s foreign exchange earnings and curb the illegal trade and externalisation of the precious mineral.
EDF Managing Director Frederick Chanza disclosed the figures when the Fund appeared before the Parliamentary Committee on Industry, Trade and Tourism, revealing that the institution has already bought 352 kilograms of gold in the past three months alone—surpassing the entire 245 kilograms purchased during the previous year.
The sharp increase in gold purchases signals growing activity in the sector and reflects efforts by the Fund to formalise gold trading and maximise the country’s benefits from its mineral resources.
Chanza attributed the growth largely to improved security measures and increased confidence among gold miners and traders to sell through formal channels.
“We have already purchased 352 kilograms of gold within three months, which is more than what we bought throughout last year. This demonstrates the growing potential of the sector and the impact of measures being implemented to improve operations,” he said.
Despite the progress, Chanza expressed concern over the continued presence of illegal gold buyers who are undermining government efforts by purchasing gold outside official channels and smuggling it out of the country.
He warned that illegal trading deprives Malawi of valuable foreign exchange earnings and tax revenues that could otherwise contribute to economic growth.
According to Chanza, EDF has committed more than K400 billion towards the gold purchase programme, while cumulative purchases between 2021 and 2025 reached at least 530 kilograms.
The Fund believes that strengthening formal gold trading systems will help Malawi increase mineral exports and improve the country’s foreign currency reserves at a time when businesses continue to struggle with forex shortages.
Beyond gold, EDF used its appearance before Parliament to push for greater investment in value addition across key sectors of the economy, including mining, gemstones and agriculture.
Chanza urged lawmakers to support policies and investments that promote local processing of raw materials, arguing that Malawi stands to earn significantly more by exporting finished or semi-finished products rather than unprocessed commodities.
He said industrialisation remains the most sustainable pathway to economic transformation and job creation, stressing that the country cannot rely solely on small and medium enterprises (SMEs) to drive long-term growth.
“Industrialisation is what will transform the economy. SMEs are important, but they must be complemented by large-scale industrial investments that create jobs, generate exports and attract capital,” he said.
As an example, Chanza pointed to plans to establish industrial parks across the country, describing them as strategic investments capable of stimulating manufacturing, attracting investors and boosting exports.
He also highlighted the emerging cannabis industry as a sector with enormous economic potential.
According to Chanza, commercial cannabis production could generate as much as US$100 million annually for Malawi if properly developed and regulated, providing a significant source of foreign exchange and helping to ease the country’s persistent forex challenges.
His remarks come as Malawi continues to explore new export sectors and value-addition opportunities in an effort to diversify the economy, strengthen foreign exchange reserves and reduce dependence on traditional agricultural exports.
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