MALAWI: US$215 million line of credit from Exim Bank of India for drinking water

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MALAWI: US$215 million line of credit from Exim Bank of India for drinking water ©Andrea Slatter/ Shutterstock

A US$215.68 million (over 158.45 billion Malawian kwachas) financing agreement has recently been signed between Exim Bank of India and the Government of Malawi. This agreement concerns the financing of several drinking water supply projects in the south of the country.

The Malawian government wants to improve the supply of drinking water to the populations of the southern region of Malawi. To this end, the country signed a financing agreement with Exim Bank of India on June 12, 2020, for the realisation of several water supply projects. The Indian bank thus decided to open a line of credit of 215.68 million dollars, the equivalent of more than 158.45 billion Malawian kwachas, to ensure the financing of all the projects.

Drinking water supply projects

Among the drinking water projects benefiting from the Indian bank’s line of credit is the construction of a new water supply system from the Likhubula River in Mulanje, southern Malawi, to supply the regional capital Blantyre. In this city in particular, it is planned to set up and extend the water supply system in the areas under the authority of the Blantyre Water Board. The construction of the associated infrastructures, as well as the installation of a 30 MW solar power plant for pumping water, are also included in the Malawian government’s specifications.

“This agreement with Exim Bank of India is very timely. Currently, Blantyre and Zomba, two growing cities, are facing many challenges in providing clean drinking water,” says George Mkondiwa, Malawi’s ambassador to India. “Once fully implemented, the projects will help address the increasing shortage of safe drinking water in Blantyre and Zomba and surrounding areas,” he added.

The concessional loan from Exim Bank of India will also provide an irrigation network for farmers in the southern region of Malawi. Exim Bank of India has extended five lines of credit to the Government of Malawi, bringing the total value of the loans to US$395.68 million (over 291 billion Malawian kwachas).

Inès Magoum

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