Malawi signs $20mn deal with Chinese firm to modernise Lake Malawi shipping

Malawi's government signed an agreement Monday with Chinese company Hongtai Investment Group to supply two marine vessels and upgrade a shipyard on Lake Malawi, in a project worth $20 million. The memorandum of understanding (MoU), signed in the capital Lilongwe, covers the delivery of a cargo vessel and a passenger vessel as well as the modernisation of the Monkey Bay Shipyard, officials said. It is the second such agreement Malawi has signed with a Chinese firm in six weeks, according to Bright Kumwembe, principal secretary in the Ministry of Transport and Public Works. 'We are also accepting this one so that we create a competitive market which will allow improved services on the lake,' Kumwembe told the signing ceremony. He described the deal as a 'milestone' in efforts to modernise Malawi's inland water transport sector and said it reflected 'growing investor confidence' in the country. 'Lake Malawi is an important national asset, and its full potential can be realised through investment, innovation, modernisation and partnerships,' he said. Hongtai Investment Group's managing director, identified only as Jianping, said the project was expected to take one and a half years to complete. Company chief executive Shan Jianping said the firm wanted to support Malawi's ambitions to turn the lake into 'a competitive transport and tourism corridor,' adding he was confident the partnership would 'yield fruitful results.' Under the agreement, the Chinese company is expected to build and rehabilitate vessels, upgrade port infrastructure, transfer skills and technology, and improve passenger and cargo services on the lake, according to the ministry. Government infrastructure on the lake is managed by state-run Malawi Lake Services Limited, which oversees port facilities as well as shipbuilding and repair operations at Monkey Bay. Kumwembe said any partnership with the company would be 'subject to applicable laws and operational requirements,' adding that the government would 'continue to promote a fair, transparent and competitive investment environment.' Lake Malawi, Africa's third-largest lake, is a key transport route for the movement of goods and people in the landlocked southern African nation, as well as a major draw for tourism. Follow and Subscribe Nyasa TV :