By Suleman Chitera, Lilongwe, Malawi

The Government of China has cancelled two of Malawi’s debts amounting to approximately $20 million, a move aimed at easing Malawi’s economic burden and strengthening cooperation between the two nations.

Chinese Ambassador to Malawi, Lu Xu, made the announcement in Lilongwe on Monday during the orientation meeting for newly elected Members of Parliament.

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Ambassador Xu said the debt cancellation demonstrates China’s continued commitment to supporting Malawi’s social and economic development. He further revealed that China is reviewing other outstanding debts owed by Malawi to consider extending their repayment periods.

“The cancellation of these two debts is a symbol of friendship and cooperation between our two countries. China remains committed to working closely with Malawi to promote development in key sectors such as agriculture, infrastructure, health, and education,” said Xu.

The development comes as Malawi continues to face fiscal challenges caused by global economic pressures, food insecurity, and currency fluctuations. Analysts say China’s gesture will provide short-term relief to Malawi’s balance sheet and could encourage more foreign investment.

The partnership between Malawi and China has grown over the years through several infrastructure and development projects, including road construction, hospital rehabilitation, and agricultural support programs.

Observers believe this move by China will further cement the long-standing diplomatic relations established between the two nations.