Zimbabwe to give Malawi fuel for $23 million loan

The Zimbabwean Government will give Malawi fuel as repayment for at least $23 million maize loan which it got in 2007, Energy and Mines Minister Dr  Cassim Chilumpha disclosed.

Chilumpha said in an interview that the two governments have reached an agreement to settle the matter.

Chilumpha, who said he was not part of the delegation that went to Zimbabwe on Friday, said officials from Malawi returned on Tuesday.

 “The government of Zimbabwe has agreed to give us fuel and very soon they will dispatch trucks. We have accepted this arrangement because currently, we are in need of the fuel,” said Chilumpha.

Fuel worth $23 million is just short of reaching the monthly national requirement of $30 million.

In 2007, Malawi gave Zimbabwe a soft loan of $100 million for buying maize during a critical food shortage  in that country, which was worsened by economic sanctions imposed by Western donors in protest against Mugabe’s autocratic rule. Zimbabwe only repaid $76 million of the loan.

Zambia and South Africa have recently come to the rescue of Malawi, with Zambia giving Malawi fuel worth $5 million while South Africa already gave Malawi $35 million for the purchase of fuel.