Namiwa Calls for Direct Gold Buying System to Tackle Smuggling

By Peter Magawa……..

Executive Director of the Centre for Democracy and Economic Development Initiatives (CDEDI), , has proposed the introduction of a community-based gold buying system to enhance transparency and curb gold smuggling in Malawi.

Speaking during a press briefing in , Namiwa said the current gold marketing system is ineffective and continues to fuel illegal trade.

He suggested that the government should partner with commercial banks and other financial institutions to serve as agents for purchasing gold directly from artisanal miners at mining sites.

Namiwa said such an arrangement would ensure miners sell their gold through formal channels, reducing smuggling while strengthening government oversight of mineral resources.

He added that the system would also enable authorities to collect accurate data on gold production and boost revenue through proper taxation and regulated trade.

According to Namiwa, artisanal miners are currently operating under difficult conditions, and a structured buying system would help stabilise the sector.

He emphasised that providing miners with accessible and legal markets at the source would discourage involvement in illegal trading networks.

Namiwa further noted that involving banks in gold transactions would enhance accountability, minimise corruption risks, and improve financial monitoring within the mining sector.

He warned that Malawi continues to lose significant foreign exchange due to gold smuggling, but said this could be addressed through a well-organised and transparent buying system.

Namiwa maintained that if properly implemented, the proposed model would benefit both the government and local miners by creating a more efficient and accountable gold value chain.