An Extractive Affair

Abstract

An Extractive Affair investigates how tax policies and international treaties have enabled large multinational corporations, particularly in the extractive sector, to avoid paying fair taxes in Malawi, one of the world's poorest countries. It highlights the significant revenue loss—amounting to over US$43 million—due to harmful tax incentives and treaty shopping practices by companies like Paladin, illustrating the broader implications for public services and development. The report also offers recommendations for Malawi and other stakeholders to improve tax transparency, reform treaties, and ensure that the benefits from resource extraction support sustainable development and poverty alleviation.