Malawi’s central bank has clarified that gold used to finance recent fuel imports was sourced from local small-scale miners, not drawn from the country’s official reserves, CNBC Africa reported. The statement, issued in April 2026, comes amid growing public concern that the government was depleting strategic reserve assets to manage a worsening fuel shortage.
Authorities said the gold was purchased through a formal programme designed to support artisanal mining while boosting foreign exchange availability. Officials stressed that the transactions were part of routine market operations and did not involve selling off the country’s reserve holdings.
The clarification follows earlier reports suggesting Malawi had turned to gold sales to raise hard currency for fuel imports, highlighting the severity of its foreign exchange constraints. The country has been grappling with fuel shortages as global supply pressures and limited reserves strain its import capacity.
Malawi’s reliance on gold purchases from small-scale miners reflects a broader trend across African economies, where governments are increasingly tapping informal or artisanal mining sectors to support currency stability and external payments. Analysts say while the approach can provide short-term relief, it also underscores deeper structural challenges in foreign exchange generation and energy financing.
