China forgives Malawi K5.5 billion loan

President Chakwera with China’s ambassador to Malawi

The Chinese government has relieved the Malawi Government from paying back K5.5 billion loan which Malawi took eleven years ago under late Bingu Wa Mutharika regime.

The loan was taken in 2011 and it was meant for the repair works of Karonga – Chitipa road and another sum of the money was for the procurement of some Malawi Revenue Authority scanners.

Making the announcement was
Chinese Foreign Minister, Wang Yi who was speaking during the Forum on China-Africa Cooperation last week.

Minister Yi said apart from Malawi, the Chinese government has also written off 23 interest-free loans for 17 African countries.

He further indicated that the cancelation is part China’s commitment towards cementing the working relationship with African countries.

“Over $3 billion has been delivered out of the $10 billion in credit facility China pledged to African financial institutions, and nearly $2.5 billion in loans were channeled to Africa’s priority programmes.

“All this is a demonstration of how the Chinese government backs up it’s words on African development with concrete action,” said Yi.

Meanwhile, Malawi’s Minister of Finance and Economic Affairs Sosten Gwengwe, has told the local media that this is the great news every Malawian would love to hear in as far as development is concerned.

Gwengwe said the cancellation of the loan will help the country address some of its immediate needs, specifically budget financing.

Follow us on Twitter: