The mining sector is expected to increase by 20 percent the country’s gross domestic product (GDP) by the year 2016 when Malawi adopts mining as a complementary forex earner.
This was revealed during the inauguration of a K3 million ZS-RZM helicopter, Airborne Geophysical Survey to be undertaken by an Australian company called NU Energy.
The helicopter is meant to identify viable mineral beams in the country starting with chapananga in Chikhwawa and Nsanje.
Speaking at the inaugural ceremony at Chileka International Airport in Blantyre on Monday Vice President Khumbo Kachali said government is committed to ensuring that the mining sector contributes significantly to GDP and foreign reserves.
He said due to various mining policies which were being put in place in the previous years, mining contribution to GDP was low.
“In 2009, the mining sector contributed 3 percent to GDP, and it rose to 10 percent because of the Kayelekela project,” said Kachali.
He said with the steps the current government has taken among them being the launch of the mining exploration project, Malawi’s economy is expected to turn around with an increase of 20 percent to the country’s GDP in the next three years.
For the country to achieve the goal, Kachali said the current government is working in collaboration with foreign and local investors in the exploration and processing of minerals.
“The involvement of NU Energy, Australian companies and local investors in the project signifies that the government plans have started bearing fruits,” said Kachali.
The project which shall lead to the discovery of commercial resources which among them will be the production of gas shall be used for the generation of electricity hence reducing the country’s overdependence on hydroelectric power.
The mining sector which is in line with the Economic Recovery Plan is also expected to create a conducive environment for the establishment of potential companies.
“The product of the exploration shall give opportunities for the development of various industries thereby promoting job creation which shall lead to poverty reduction,” said the Vice President.
On his part, a representative of NU Energy, Jonathan Warrand said his country is determined to ensure that Malawi attains energy independence so that it can produce gases for both domestic and commercial purposes thereby promoting socio economic development.
Malawi was considered to be an agro based country because of the policies which were being followed as such there was lack of mining culture, however, with the launch of the mining exploration project, the economic status of the country is expected to boost.–Malawi News AgencyFollow and Subscribe Nyasa TV :