Chakwera secures K2.6 trillion from Afrexim Bank for mega farms, development projects

President Dr Lazarus McCarthy Chakwera arrives home from Ghana with US$2.6 billion (K2.6 trillion) which he has successfully secured from Afrexim Bank to finance construction of mega farms, industrial parks and special economic zones.

This follows the signing of memorandum of understanding (MoU) between the Government of Malawi and the bank which President Dr Chakwera witnessed on Monday in Accra, Ghana.

In an interview with the Malawi media on Monday evening, President Dr. Chakwera was over the moon, describing the signing of the MoU as a milestone which 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 Malawi2063.

President Dr. 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 Afrexim Bank for opening discussion talks on Malawi’s debt restructuring.

He said one of the conditions for the IMF granting Malawi an ECF 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.

“Afrexim Bank 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.