The Chinese Ambassador to Malawi, Lu Xu, has announced that the People’s Republic of China has completed debt restructuring with Malawi, extending repayment of borrowed funds and interest over a 48-year period.
Ambassador Xu said the move is aimed at giving the Malawi government more time and space to mobilize resources for full repayment.
She further revealed that China has granted Malawi debt relief on two programs that were due for repayment in 2024, waiving a total of 20 million US dollars.
Xu noted that China recognizes Malawi’s current economic challenges, including shortages of food, foreign exchange, fuel, fertilizer, and medicine.
To help address food security concerns, China will also offer Malawi preferential prices on fertilizer imports.
She made the remarks in Lilongwe during the orientation of 224 Members of Parliament-elect, where she reaffirmed China’s commitment to supporting Malawi’s economic recovery and easing forex pressures through debt relief initiatives.
As of September 2024, public debt stood at K16.19 trillion, representing 86.4 percent of GDP, of which total external debt reached K7.39 trillion, while domestic debt amounted to K8.79 trillion.