A renowned economist has commended the Reserve Bank of Malawi (RBM) for introducing a structured market for gold in the country.

RBM announced through a statement that it will start buying gold in May this year as one way of supporting Artisanal and Small scale miners (ASM) involved in mining and trading of gold.

According to RBM, the structured markets will also empower the ASMs through capacity building and other forms of technical assistance that will be availed under the framework of the initiative to ensure that gold mining in a safe and environmentally sustainable manner.

Speaking to YFM online the economist Professor Betchani Tchereni said the move is likely to boost the country’s economy, but was quick to advise the bank to offer competitive prices which will benefit the gold traders.

“This is a good initiative, people should not just keep gold in their homes rather they should sell it and make money out of it,” said Tchereni.

He added: “RBM should set competitive prices to enable people benefit to the fullest when they sell their gold and also ensure that fake gold is not brought on the market.”

The gold buying initiative will be facilitated by the Exports Development Fund and it will work collaboratively with all the Government Ministries, Departments and Agencies.