The Export Development Fund, a Reserve Bank of Malawi subsidiary, has partnered with FDH Bank plc to expand its gold-buying services across the country. The partnership aims to capture more of Malawi's gold through formal channels and increase purchases from small-scale miners and traders. The expansion will see the establishment of new gold-buying centres at FDH Bank branches in Karonga, Jenda in Mzimba, and Mangochi, in addition to the existing centres in Lilongwe and Liwonde.
The new centres will bring formal gold-buying services closer to miners and traders, increasing volumes flowing through the structured market. According to EDF acting managing director Inglis Nyamilandu, the expansion is part of efforts to reach more people and increase purchases. Currently, EDF only buys gold from two locations, Lilongwe and Liwonde, despite having gold traders across the country. The move is expected to improve supply consistency and traceability.
The partnership has significant implications for Malawi's economy, particularly in terms of foreign exchange generation. Gold purchased locally is already being used to generate foreign exchange, which is crucial for the country given its ongoing forex liquidity pressures. The Reserve Bank of Malawi has disclosed that it has started converting accumulated gold into foreign-exchange liquidity.
Since the establishment of the formal gold market in 2021, EDF has bought 1.6 million grammes, equivalent to about 1.63 tonnes of gold. The significance of increasing formal purchases was highlighted recently when the Reserve Bank of Malawi told Parliament's Government Assurances and Public Sector Reforms Committee that it had exported 589.95 kilogrammes of doré gold on April 29, 2026, for $75.09 million.
The Reserve Bank of Malawi considered either selling the doré gold outright or monetising it while retaining ownership before opting for an outright sale to generate immediate foreign exchange liquidity. The central bank is also establishing a reserves mobilisation division to coordinate reserve mobilisation activities, including gold operations. This move is expected to strengthen confidence in the structured market.
FDH Bank plc managing director Noel Nkulichi said the partnership aligns with the bank's growing focus on supporting mining and development of the country's mineral value chain. The bank sees an opportunity to use its existing infrastructure to help bring these services closer to communities. The Malawi Government established the formal gold market in 2021 to curb losses of gold and gemstones through informal trading and smuggling.
The gold purchase programme is owned by the Reserve Bank of Malawi and implemented by the Export Development Fund, a development finance institution wholly-owned by the central bank. The programme aims to formalise the domestic gold trade and increase foreign exchange earnings. With the expansion of gold-buying centres, the programme is expected to reach more traders and increase purchases, ultimately contributing to Malawi's economic growth.
Key points
- The Export Development Fund has bought 1.6 million grammes of gold since the establishment of the formal gold market in 2021.
- The Reserve Bank of Malawi exported 589.95 kilogrammes of doré gold on April 29, 2026, for $75.09 million.
- The partnership aims to bring formal gold-buying services closer to miners and traders, increasing volumes flowing through the structured market.
