Minister of Agriculture Sam Dalitso Kawale has disclosed that Malawi stands to save US$498 million from the fertilizer deal the government has signed with a Romanian company – East Bridge.
Kawale made the sentiments in an interview with Nthanda Times on Saturday evening following public outbursts about the deal.
Apparently, some Malawians have raised concerns with a fertilizer procurement deal that government has secured with East Bridge to supply the inputs.
The company deals in agriculture, real estate, medicine, e-government and renewable energy.
Local weekend newspapers carried the story on their front pages in which concerned Malawians expressed fear that the Malawi Government could lose money to yet another bogus company.
But Kawale assured that the government carried due diligence when engaging the Romanian company.
“We cannot make a similar mistake. This is a genuine contract and the government will save US$498 million, which will be invested in other equally important projects across the country,” said the minister in a brief interview.
He described the commodity exchange deal as a great opportunity for Malawi to save foreign exchange and improve balance of payments.
Meanwhile, Nyasa Times understands that East Bridge has established a special company in Malawi called East Bridge Commodities and Logistics to demonstrate its seriousness and commitment to the deal it has signed with the Malawi Government.
The Malawian subsidiary, which will create 500 jobs, has been set to fast track the delivery of the 600,000 metric tonnes of fertilizer.