The Malawi Government has successfully reached a consensus with the residents of Ng’onga Village in Balaka District regarding land compensation disputes, paving the way for Portland Cement Limited to proceed with their operations in the area.
Speaking on Thursday after a consultative meeting with relevant stakeholders, Principal Secretary in the Ministry of Lands, Davie Chilonga, confirmed that all outstanding issues concerning compensation have been amicably resolved.
“Our team conducted compensation assessments last year covering approximately 50 hectares earmarked for the factory and 190 hectares for mining.
There were initial objections regarding the valuation figures,” Chilonga explained.
“Civil society organisations raised concerns about the integrity of the valuation report and requested an upward revision, citing delays in compensation payments and the effects of currency devaluation.”
He further stated that the Ministry engaged Portland Cement on the matter, and the company agreed to revise the compensation values.
The visit to Balaka was to officially communicate this agreement to the affected communities.
The Centre for Democracy and Economic Development (CDEDI), which had been representing the concerned villagers, was taken through the valuation process and participated in a spot-check exercise.
Following the verification, CDEDI confirmed that the Ministry’s assessments were accurate.
Chilonga announced that a 10% adjustment will be made for land assessed at the end of 2024, while land evaluated earlier will receive a 30% increase in compensation.
He reassured the Project Affected People (PAPs) that the Ministry of Lands operates within the legal framework, and individuals are free to engage private valuers at their own expense if they wish to challenge the government’s valuation.
Violet Vilili, Head of Marketing and Corporate Affairs at Portland Cement Limited, expressed excitement over the breakthrough. She noted that the company is now geared to proceed with construction, and all things being equal, the company expects to commission the plant by September 2025, which will significantly boost local cement supply.
“This is a milestone because we have been anticipating the settlement of this dispute so that we can proceed to extend our project timeline,” Vilili said.
She added: “Upon commissioning, we will ramp up production by 8,000 metric tons annually. This will not only satisfy local demand and reduce the need for imports, but also open up export opportunities.”
Senior Chief Nsamala of Balaka, under whose jurisdiction the project falls, welcomed the agreement, especially the revised compensation figures. He expressed hope that the cement plant will bring employment opportunities and attract additional development and infrastructure to the area.
CDEDI Executive Director, Sylvester Namiwa, applauded the Ministry of Lands for listening to community concerns and maintaining an open dialogue with the people throughout the process.
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