OPINION | GUEST ESSAY | Nkhondo Lungu

It is widely accepted that a country’s development hinges largely on its ability to generate internal revenue. Sustainable progress depends on how effectively a nation mobilises domestic resources by identifying sectors with the highest potential to drive income and improve living standards.

For countries endowed with abundant natural and mineral resources, the path to revenue generation often appears straightforward. Strategic exploitation of these assets — supported by sound policies — can yield substantial returns. At the same time, tax collection from individuals and businesses remains a critical pillar of national income, enabling governments to operate efficiently.

Some nations, lacking significant mineral wealth, rely heavily on taxation and agriculture. Others are fortunate to benefit from a combination of revenue streams — agriculture, mining and taxation — creating more resilient economies.

Malawi falls into the latter category. Historically dependent on agriculture, the country has in recent years discovered a range of mineral resources, including uranium, bauxite, niobium, rutile, graphite, heavy mineral sands, tantalum and gemstones. With proper management, transparent extraction policies and credible buyers, these resources could significantly boost national revenue. Strong legal safeguards are equally essential to prevent corruption and ensure that the benefits reach the broader population.

Beyond mining and taxation, agriculture remains a cornerstone of Malawi’s economy. A wide variety of crops — coffee, tea, tobacco, cotton, maize, legumes, sugarcane, fruits and vegetables — continue to generate income and sustain livelihoods. However, one high-value crop has not been fully leveraged: cannabis.

Globally, cannabis has evolved into a multi-billion-dollar industry, driven by demand for medical, recreational and industrial uses. Countries such as Canada and Uruguay have built structured, regulated markets that attract investment and generate significant tax revenue. Closer to home, South Africa is expanding its legal cannabis framework, while Morocco has moved to formalise production for medical and industrial purposes. In Asia, Thailand has rapidly positioned itself as a regional leader.

Malawi, meanwhile, possesses a natural competitive advantage. Thanks to its unique soil and climate, the country produces some of the world’s most renowned cannabis strains, including the highly sought-after “Malawi Gold.” International assessments, including from institutions such as the World Bank, have acknowledged the exceptional quality of Malawian cannabis.

Yet despite this advantage, the industry has struggled to take off. Regulatory bottlenecks, limited investment, high licensing costs and lack of clear market structures have slowed progress. Instead of capitalising on global demand, Malawi risks falling behind countries that have moved faster to formalise and commercialise the sector.

A more deliberate focus on cannabis, supported by investor-friendly policies, accessible licensing and strong oversight, could transform the sector into a major foreign exchange earner. Increased exports would ease forex shortages and inject much-needed liquidity into the economy.

The stigma surrounding cannabis also needs to be addressed through public education and policy reform. Around the world, perceptions are shifting as governments recognise its economic and medical value. Ignoring this reality risks leaving Malawi on the sidelines of a rapidly expanding global market.

If properly harnessed, cannabis could become a game-changer for Malawi, complementing existing agricultural and mineral revenues. The opportunity is clear: with the right strategy, the country can turn its “green gold” into a powerful engine for growth and development.

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