Malawi is home to Africa’s third-largest freshwater lake, Lake Malawi, which covers 20% of the country and supports hundreds of unique fish species.
The country’s natural resources include forests (36% land coverage), fertile agricultural land, minerals like uranium, bauxite, gemstones, and diverse wildlife.
Agriculture drives the economy, with exports such as tobacco, tea, sugar, and groundnuts playing a significant part. Fishing in Lake Malawi supports both food security and the economy. Recent oil and zircon gemstone discoveries point to untapped mining potential.
Malawi’s Natural Resources And Their Locations
Here are resources that have been discovered in Malawi, including their locations:
| Natural Resources | Locations |
|---|---|
| Bauxite | Mulanje |
| Uranium | Kayelekera |
| Gold, Copper, Gypsum, Diamond, Nickel, Niobium | Balaka, Kasungu, Lilongwe, Mangochi, Ntcheu, Mzimba |
| Monazite/Strontianite | Kangankunde |
| Rutile | Kasiya (Lilongwe) |
| Corundum | Chimwadzulu (Ntcheu) |
| Graphite | Katengeza (Dowa) |
| Limestone | Malowa Hill (Bwanje), Chenkumbi (Balaka), Chikoa (Kasungu) |
| Titanium and Heavy Mineral Sands | Nkhotakota-Salima, Mangochi, Halala (Lake Chirwa) |
| Vermiculite | Feremu (Mwanza) |
| Coal | Mwabvi (Nsanje), Ngana (Karonga), Mchenga |
| Phosphate | Tundulu (Phalombe) |
| Pyrite | Chisepo (Dowa), Malingunde (Lilongwe) |
| Glass Sands | Mchinji Dambos |
| Dimension Stone | Chitipa, Mzimba, Mangochi, Mchinji |
| Gemstones | Mzimba, Nsanje, Chitipa, Chikwawa, Rumphi, Ntcheu |
| Oil Deposits | Lake Malawi |
Malawi’s Natural Resources Discoveries
In 1859, Scottish missionary and explorer David Livingstone reached Lake Malawi. That was the first documented European exploration of the area. His observations emphasized the lake’s rich fish resources and potential for trade and settlement.
British authorities initiated geological surveys during the colonial period to assess mineral prospects. These efforts uncovered coal in Livingstonia and Rumphi, while limestone quarrying for cement production began.
Following independence in 1964, Malawi launched systematic resource assessments. In 1968, bauxite on Mulanje Mountain and uranium at Kayelekera were found.
The 1970s brought a renewed focus on agriculture, with tobacco, tea, and sugar emerging as key exports. Between 1981 and 1985, Duke University conducted the first major hydrocarbon survey over Lake Malawi, suggesting potential oil and gas reserves.
The 1990s witnessed a rise in artisanal mining, leading to the discovery of gemstones like agate, aquamarine, amethyst, garnet, rubies, and sapphires in areas such as Mzimba, Ntcheu, and Chikwawa.
These were found through labor-intensive methods using limited tools. In 2000, geological mapping at Mount Kangankunde identified rare earth minerals, including monazite and strontianite. Graphite deposits in Katengeza were later confirmed in 2005 by international consultants.
Uranium production at Kayelekera began in 2009 under Paladin Energy. Commercial operations officially started in 2010, but the mine was under care and maintenance in 2014 due to declining global uranium prices after the Fukushima disaster.
Starting in 2013, the Geological Survey Department implemented high-resolution airborne surveys. These used advanced magnetic and radiometric technologies, revealing zircon near Lake Chirwa, heavy mineral sands along the lakeshore, and phosphate in Tundulu.
Viability Of Malawi’s Natural Resources
Agriculture is central to Malawi’s economy, contributing 29.4% to GDP. High demand for export crops like tobacco, tea, and sugar supports its viability; tobacco alone generated $235 million in 2020.
However, soil degradation and climate change threaten long-term productivity. Soil erosion costs the sector around 4% of its agricultural GDP annually.
Still, opportunities exist through diversification into high-value crops and sustainable initiatives like the Green Belt Initiative.
Forestry contributes 1.8% to the GDP, though unrecorded benefits from charcoal and firewood use make its value higher.
Demand for wood products is strong due to urbanization and energy needs. Yet unsustainable harvesting and deforestation, estimated at 2.6% annual forest loss, undermine long-term viability.
Fisheries contribute around 4% to the GDP and support food security. Domestic demand for fish is high, with limited regional exports.
However, overfishing and pollution are costing the economy an estimated $191 million each year. Aquaculture and fishing regulations, including gear restrictions and protected breeding zones, present viable solutions.
Malawi’s mineral sector currently adds less than 1% to the GDP but shows strong potential. Global demand for minerals like uranium and rare earths supports future growth. Water resources are essential for hydropower and irrigation, directly supporting agriculture and industry.
Export Potential Of Malawi’s Natural Resources
| Export Product | Export Value | Key Market |
|---|---|---|
| Raw Tobacco | $434M | Germany ($99.1M), Zimbabwe ($52.4M) |
| Tea | $76.1M | India ($67.2M), the United States ($47.5M) |
| Dried Legumes | $75.3M | South Africa ($48.2M), Zimbabwe ($52.4M) |
| Soybean Meal | $40.2M | Regional markets (Zimbabwe, Mozambique) |
| Raw Sugar | $34.9M | South Africa, United States |
| Oil Seeds and Fruits | $102.53M | Various regional destinations |
| Edible Vegetables and Tubers | $100.18M | Regional and international markets |
| Coffee, Tea, Mate, and Spices | $72.91M | India, Europe |
1. Agricultural Exports
Agriculture tops Malawi’s export economy, driven by key commodities like tobacco, tea, dried legumes, soybean meal, and raw sugar.
In 2023, raw tobacco led exports at approximately $434 million, with Germany as a major buyer. Tea followed at $76.1 million, largely driven by demand from India, which imported $67.2 million worth.
Dried legumes, including beans and peas, reached $75.3 million, mainly targeting regional markets in the SADC bloc. Soybean meal exports stood at $40.2 million, supported by strong demand from Zimbabwe and Mozambique.
Raw sugar exports totaled $34.9 million, with South Africa and the U.S. as key destinations. Germany is a top destination for tobacco exports, valued at $99.1 million in 2023. India played a similar part for tea, importing $67.2 million worth.
Zimbabwe, a key regional partner, accounted for $52.4 million in total imports from Malawi. However, agricultural exports face several obstacles, including climate variability, soil degradation, and water scarcity.
Market price fluctuations also affect stability. Yet, there is a growing opportunity in diversifying toward high-value crops and agro-processing.
Government programs such as the Green Belt Initiative are promoting sustainable agriculture and boosting productivity.
2. Mineral Exports
Though less dominant, mineral exports have growth potential. Uranium, once a major export from the now-inactive Kayelekera mine, contributed significantly between 2009 and 2014.
Rare earth deposits at Mount Kangankunde offer future promise but are limited by infrastructure and policy issues. Graphite and Rutile also show export potential but face similar constraints. With increased investment, mining could account for up to 12% of the GDP by 2027.
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Economic Impact Of Malawi’s Natural Resources
Malawi’s natural resources, particularly its agricultural products and minerals, support economic growth, generate export earnings, reduce poverty, and support food security.
1. Contribution To GDP
In 2023, agriculture contributed 30.38% to the GDP, with tobacco accounting for 40% of export earnings. The mining sector currently adds less than 1% to the GDP, but with rising demand for energy transition minerals like graphite, titanium, and rare earths, its share could rise to 10–12% by 2063. Services make up about 47.53% of the GDP, while industry contributes 15.32%.
2. Employment
Natural resources support livelihoods across the country. Around 76% of the population depends on agriculture. Mining, while underdeveloped, employs fewer people but has the potential for skilled employment if exploration and extraction expand.
In rural zones, subsistence farming is essential for income and food, although poor infrastructure limits access to broader markets and public services.
3. Export Earnings
Agricultural exports are Malawi’s primary source of foreign exchange. In 2023, tobacco exports brought in approximately $434 million, making it the top export.
Tea exports totaled $76.1 million, with India as a major buyer. Dried legumes added $75.3 million, showing potential in regional trade with Zimbabwe and South Africa.
Although uranium production at Kayelekera has stalled, rare earths at Mount Kangankunde and untapped graphite reserves could drive future export growth.
4. Poverty Reduction And Food Security
Natural resources directly impact poverty and food security. Earnings from agriculture help reduce poverty, but dependence on rain-fed systems exposes farmers to climate risks.
Between October 2024 and March 2025, 28% of the population faced crisis-level food insecurity due to poor harvests and fertilizer shortages.