Iran gives cash-strapped Malawi $50m for mining

Iran has given Malawi some $50 million as development aid to the country's small mining sector.

“We have had very strong diplomatic relations and it is our obligation to support developing countries such as Malawi," Bahman Ahmadi, Iran's charge d' affairs in Malawi, was quoted in a statement issued by Malawi's ministry of development planning and cooperation.

Ahmadi, leading an Iranian delegation to Malawi, said the funds were committed to Malawi after the two countries inked a memorandum of understanding last year.

"In total, the Islamic Republic of Iran has committed US$400 million of development assistance to developing countries of which US$50 million will be given to Malawi,” Ahmadi said in the statement.

The funds will be used for capacity building, transfer of knowledge and technology.

Abbie Shawa, Malawi's minister of development planning and cooperation, said Iran's aid will help the
southern African nation to achieve its development objectives.

“For a long time, Malawi’s economy has relied heavily on agricultural production but our economy needs to diversify if we are to experience further sustained economic growth," he said.

The small mining industry, dominated by uranium mining in the north of the country,
contributes some five percent to the agriculture-powered economy.

“Challenges were being faced in areas of training of geological and mining experts, development of databases to store data and information that is crucial to mineral identification, exploration and processing,” Shawa said.

Malawi needs all the help it can get. This week, the United States announced it had put on hold a $350 million aid package to Malawi for the energy sector. The United States was unhappy with Malawi’s violent crackdown on anti-government demonstrations last week. At least 19 people were killed and dozens were wounded.

The protests were staged to highlight a high cost of living in Malawi. The country has been experiencing foreign exchange and fuel shortages. Britain, which used to Malawi’s main bilateral donor, announced recently it had stopped providing budget support to the country after its envoy, who had described Mutharika’s rule as autocratic, was expelled. Donors provide up to 40 percent of Malawi’s development budget.--maravipost

Source: Maravi Post