MALAWI: NASCENT MINING SECTOR INVESTMENT GIVES RESPITE AMID ECONOMIC WOES

   Fri, 14 February 2025

Malawi’s overall fiscal position will be impacted by the US government’s decision to cut down on foreign aid. With US development assistance constituting a substantial portion of government revenue, a potential drawdown will widen the fiscal gap as the country continues to grapple with worsening inflation, foreign exchange shortages, and high debt payments. On the contrary, improving regulatory conditions will complement growing investor interest in Malawi’s mining sector as global demand for rare earths and other critical minerals grows.

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