BADEA gives US$10m loan to Malawi

Lilongwe, Malawi (PANA) - The Arab Bank for Economic Development in Africa (BADEA) has signed a US$10 million loan agreement with Malawi to finance Small Farms Irrigation Project in the region of Lake Malawi littoral - Phase II.

The loan is repayable in 30 years, with a grace period of 10 years and an annual interest rate of 1%, the bank said in a statement made available to PANA.

The project falls within the framework of the agricultural sector programme set by the government for the period 2011-2015, which aims to raise agricultural production, improve food security in the country in general and in the project area in particular.

The project also aims to save foreign currency earnings by reducing importation of food, and to create additional job opportunities in the project area, especially for women.

The agreement was signed by BADEA Director-General Abdelaziz Khelef and Dr. Ken Lipenga, Malawi's Minister of Finance.

By the end of June 2012, BADEA’s total financial commitments to Malawi stood at US$92.5 million covering 20 development projects.
-0- PANA SEG 16July2012

16 july 2012 12:14:21




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