Government is in the process of reviewing the Mines and Minerals Act of 1981 and the Petroleum Act of 1983 in order to improve the legal environment of the mining industry.
The review of the Act is part of the Malawi Mining Governance and Growth Support Project which is being supported by the European Union with a loan from the World Bank.
President Prof Peter Mutharika disclosed this in Lilongwe on Friday during the opening of the 3rd Meeting in the 47th Session of Parliament and 2018/19 Budget Meeting.
In his State of the Nation Address titled “Delivering Sustainable Development”, the president said government intends to enhance development of the mining sector and increase its benefits to the people.
“In recognition of the huge potential the mining sector has on the country’s economic growth and development, government is implementing a number of activities aimed at increasing investments in the sector,” Mutharika said.
Some of the implemented activities include capacity building in mining contract negotiation and development of modern mining agreements.
The president said the capacity building is meant to ensure that the country enters into mining agreements that are balanced, equitable, fair and beneficial to the people.
Furthermore, Malawi government has adopted a regionally competitive Mining Fiscal Regime.
“The mining regime that we have adopted will ensure investors’ confidence in the sector. This will result in increased investment resulting in job creation and more revenue generation for social and economic growth,” the president said.
In the 2017/18 budget statement, Minister of Finance Goodall Gondwe announced of the Mining Fiscal Regime saying it will lay bare all tax incentives, details for claiming depreciation allowances and determination of assessable income thereby promoting transparency and accountability.
The bills that would see the review of the Acts are expected to be tabled in this sitting of parliament.
In July, 2015 Malawi government through the Ministry of Natural Resources, Energy and Mining announced consultative meetings to solicit views towards the reformation of the minerals legislations which is outdated.
Apart from mining, President Mutharika outlined a number of plans and activities that his government intends to implement in the 2018/19 financial year and has already implemented in the past years.
The plans and activities include tourism, wildlife and culture; integrated rural development; public health; gender, women and development; child protection and development and social protection programmes.Follow and Subscribe Nyasa TV :