Malawi secures over K2 trillion from AfreximBank


Malawi Government has secured US$2.6 billion (about K2.7 trillion) from the AfreximBank to finance construction of mega farms, industrial parks and special economic zones.

President Lazarus Chakwera witnessed the signing of the Memorandum of Understanding (MoU) for the funds during the 30th AfreximBank Annual Meeting in Accra, Ghana.

In an interview with the Malawi media on Monday evening, President Chakwera said the signing of the MoU will help transform lives of Malawians.

Chakwera described the deals as important to Malawi saying the mega farms will contribute to food security which is at the heart of the Malawi 2063.

President Chakwera, on Sunday, had a closed meeting with the President of AfreximBank, Benedict Oramah where, among other things, they discussed debt restructuring for Malawi.

“We had an interesting and candid discussion with the bank which has shown solidarity in many ways. We have been assured that the talks will continue. This is important as, through it, Malawi will have an Extended Credit Facility (ECF) with the International Monetary Fund (IMF),” he said.

Minister of Finance, Sosten Gwengwe expressed gratitude to AfreximBank for opening discussion talks on Malawi’s debt restructuring.

He said one of the conditions for the IMF granting Malawi an Extended Credit Facility program is the country’s ability to work on its liabilities so that when it receives the money it will not be used in servicing its loans.

Gwengwe said the country has a huge loan with the bank hence the need for the two to renegotiate a repayment plan.

He said by getting Malawi a debt restructuring plan the bank will also be able to avoid being downgraded.

“A debt restructuring plan is a win-win situation for both the bank and the country as the country will have resources it needs. AfreximBank has assisted us a lot and apart from opening discussions on debt restructuring they have also granted us funds for big projects that will help in developing the country,” said Gwengwe.

Reported by Mercy Makuwira in Accra, Ghana

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