Business and Finance

Metal recycling firm to bring $1.5m per month

Metal recycling firm to bring $1.5m per month

New firm in the aluminum and copper recycling sector, Metalo Trading Limited, has outlined an ambitious target of pumping approximately $1.5 million monthly towards procuring and recycling scrap metals in the country.

While metal recycling operations have commenced at the firm’s factory in Limbe, the company says it intends to establish an aluminium pot making factory by mid next year.

This was said on Thursday when Minister of Trade and Industry Sosten Gwengwe opened the factory.

A senior manager at Metalo Trading Limited Shivam Mittal said the company aims to recycle a wide range of materials including steel, aluminum, copper, brass and zinc.

“We have realised that Malawi is an ideal place to recycle scrap metals and manufacture products, similar to our operations in Mozambique. Our goal is not just to clean the city and country but to transform scrap into semi-finished and finished products.

“The initial investment in the project stands at approximately $500,000, with plans to significantly ramp up operations. We will be investing around $1.5 million every month just to procure scraps,” Mittal said.

He said the firm intends to commence copper cables manufacturing next year, which will help Malawi reduce its dependence on imports.

In his remarks, Gwengwe said the project has potential to impact the country’s economy.

He said the government is committed to supporting such initiatives as part of a broader strategy to improve Malawi’s trade balance.

“This is a good import substitution that will save us a lot of forex, create jobs for our young people, and promote local manufacturing. Our trade balance has always been on the negative side. We’re trying to reverse this trend by expanding exports and reducing imports,” Gwengwe said.

Provisional figures on Malawi’s international merchandise trade released by the National Statistical Office show that total imports increased to K549.65 billion in August.

This represents a 60 percent increase when compared to the K344.07 billion recorded in the same month last year and a 4.1 percent jump from the K527.9 billion imports in July 2024.

Exports also surged to K321.99 billion, 133 percent higher than the K137.99 billion recorded in August 2023, and 119 percent above K146.6 billion recorded in July.