China writes off meagre MK5.5bn debt for Malawi

The People’s Republic of China has written off a K5.5 billion debt which the government of Malawi took as loan to construct the Karonga-Chitipa road.
This follows an announcement this week that China was forgiving 23 interest free loans for 17 African countries in a bid to expand what they said was win-win trade and infrastructure development on the African continent.

Finance Minister Sosten Gwengwe
Development experts say this shows that development partners have much confidence in the Chakwera administration that it will use the K5.5 billion prudently for the benefit of ordinary Malawians.
According to Malawi government officials, the K5.5 billion was meant for the Karonga- Chitipa road and procurement of some Malawi Revenue Authority scanners.
Finance Minister Sosten Gwengwe has welcomed the cancellation of the loan, describing it as milestone.
He said the government will use the savings for budgetary support in various other needs.
The Karonga-Chitipa road just like the Parliament building in Lilongwe are signature development projects financed by China through loans and grants.
These were some of the first development projects which Bingu wa Mutharika got from the People’s Republic of China after Malawi unceremoniously cut ties with Taiwan.

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