Advertisement
Business

China warns on $60 billion package

Advertisement

Malawi is yet to sign an agreement with the Chinese Government on a $60 billion financial package for African countries.

Six months ago, China through the Forum on China Africa Cooperation (Focac) in Johannesburg, committed the fund to African countries.

Over 60 cooperation agreements worth over US$18 billion were signed on Friday in Beijing at a Focac coordinators conference involving ministers, government technocrats and business captains from 42 African countries.

Advertisement

This brings total worth of financing agreements to $50 billion for 250 bankable economic and commercial projects from over 30 African countries.

Malawi was represented by five Foreign Affairs and Finance Ministry officials led by Secretary to the Treasury, Ronald Mangani, during the signing ceremony.

Mangani said government is still processing some of the projects it proposed for the funding.

Advertisement

He cited the proposed 300 megawatts Kam’mwamba Coal Fired Power Plant as the most advanced project so far expected to be financed by Exim Bank of China.

“We have registered the Special Purpose Vehicle (a joint company) as one of the requirements of the funding and I held discussions with Exim Bank officials here and a feasibility study of the project was submitted for their review,” said Mangani.

He explained that part funding is required in some of the submitted projects and government is still sourcing the required funds.

However, Director of African Affairs in the Ministry of Foreign Affairs, Lin Songtian told the media on Sunday after the three, day Coordinators Conference and a tour of Suzhou Industrial Park that his government is concerned that while some countries are making much progress others are moving slowly.

“If some people will not catch the train the train will not wait for them,” said Lin who revealed that some countries are only showing more interest on grants, concessional loans and loan cancellation requests.

“About US$30 billion of (the US$50 billion) agreements are commercial loans and Foreign Direct Investments by Chinese Financial Institutions and investors. We’re paying more attention to industrialisation and agricultural modernisation so this requires private sector participation,” said Lin.

Apart from the power project, the government expects China to bankroll the Optic Fibre Cable for E-government and some road projects.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker