In response to the request from the Government of Malawi for assistance, the Government of Botswana is considering extending a soft loan to the Government of Malawi amounting to the Pula equivalent of US$10 million. This is a loan which is to be repaid over a period 10 years with interest and not a donation or a gift.
According to the Ministry of Finance and Development Planning, the intention is to help a fellow low income African country, which is in a similar position as Botswana was at the time of its Independence.
“It is important to note that the proceeds of the Loan will be used to purchase goods from Botswana. The goods to be purchased cover, among others, livestock vaccines, fuel and cattle. The Loan Agreement is yet to be negotiated by the two countries,” the ministry said in a press statement.
It added that additionally, a Line of Credit is also being considered to finance Joint Venture investments by Botswana businesses in Malawi covering the agricultural, trade and tourism sectors.
“This will benefit both local and Malawi business enterprises and facilitate expansion of trade and thereby grow economies of both countries. The funding for the Line of Credit will be negotiated with the local commercial banks.”
The Press Statement is being released to provide the correct background information in response to misinformation by some media houses.
