Malawi has one of the largest reserves of unexploited coal. Where does the coal go and what is it used for the litte that is being mined? The availbility of coal is a blessing that is not being used to bless Malawi.

Eletricity generation:
Currently Malawian households and businesses suffer from blackouts. As a result of blackouts it Malawi an expensive business destination as companies end up using generators for power. As we turn 50 years of self-rule Escom should by now have consturcted atleast three coal powered thermal stations.  One in Blantyre for the Southren region, one in Lilongwe for the Central region and one in Mzuzu for the Northren region. With the power deficit in the SADC region Malawi could have been exporting power and widen her forex inflow base.

Road consturction:
In the construction industry coal can be used to make tar mainly for road construction. In recent years Malawi has witnessed alot of road development, but in most cases almost 96% of the tar is being imported from Hwange, Zimbabwe which makes it expense to construct roads in Malawi. You  look at the cost of  importing tar its also a drian of forex in the economy.

Forex inflow
Coal can also be a source of forex inflow for Malawi. Coal is on high demand in china, India, Brazil and other emerging markets. Its a  Ready market for Malawian coal.

The mining of coal in Malawi should be done for the benefit of the nation. Mining is capital intensive government should find reputable international partners to mine coal in Malawi.

Suzgo chingati is a trained entrepreuner. He writes in his personal capacity.

1 Comment

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s