Economy FDI Finance Government Infrastructure Malawi North-South Corridor

Malawi to borrow $40m from IDA to rehabilitate North-South Corridor

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Malawi’s Minister of Finance and Economic Development Goodall Gondwe on Tuesday requested parliament to authorize government to borrow MK16billion ($40million) from the International Development Association (IDA) to rehabilitate the North-South Corridor. He told Parliament that the funds will enable government rehabilitate 40 kilometers between Songwe border to Karonga, Bwengu and Chiweta a stretch of 60 kilometers and a 150 kilometer stretch from Kasungu to Lilongwe.

“Apart from rehabilitating the road sections, the other funds will be used to buy road safety equipment like breathalyzers and upgrading border facilities among others,” he said.

The North-South Corridor starts from Songwe a border with Tanzania in northern Malawi to Mwanza a border with Mozambique in southern Malawi.

However, the minister said, the loan has a 0.75 per cent service charge per year and would be repaid over a period of 40 years with a 10 year grace period.

Source: StarAfrica

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