The People’s Republic of China has given Malawi government a grant of $16 million (K7.5 billion at the current exchange rate) to be used to renovate technical colleges and expanding Thyolo Secondary School, among others.
Apart from the grant, the two governments have also signed an agreement to enable China to give Malawi an interest free loan amounting to $8 million (K3.8 billion).
Malawi’s Minister of Finance, Economic Planning and Development Goodall Gondwe, speaking after signing the agreements, said the money will be used on projects to be jointly agreed by the two governments.
“We are already in discussion with the Chinese government, through the Economic Counsellor’s office, on a number of projects for possible financing and among them are the renovation of youth centres across the country and the expansion of Thyolo Secondary School among others,” he said.
Gondwe said the money will also be used to drill boreholes in some districts in the country, provision of technical cooperation for the Bingu National Stadium as well maintenance of Parliament building.
In his remarks, Chinese ambassador Zhang Qingyang said projects to be funded by the money will help to grow the country’s economy and improve the well being of the people of Malawi.
“Since the establishment of diplomatic ties seven years ago, China and Malawi have always been a community of shared destinies, common development tasks and shared strategic interests, which have bound us together,” he said.
Recently, the two governments also signed an agreement through which Malawi would get mobile solar systems worth $10 million (K4.6 billion).