LILONGWE, Apr 23 (THE AFRICAN PORTAL) – Malawi is seeking a $120 million loan from Afreximbank to finance fuel imports, as authorities move to contain a worsening energy shortage.
The request reflects growing pressure on foreign exchange reserves amid rising import costs and limited inflows of foreign currency.
Information minister Shadric Namalomba told local media that government has already taken emergency steps, including selling part of the country’s gold reserves.
He said proceeds from gold held by the Reserve Bank of Malawi helped raise about $30 million to pay suppliers and release fuel shipments currently held at ports.
Namalomba said the situation has been worsened by the Iran war, which has deepened Malawi’s foreign currency shortages.
Fuel suppliers are now demanding upfront cash payments, adding pressure on the government’s ability to maintain steady imports.
He said the government expects the Afreximbank facility to be released within a week, a move officials hope will help replenish stocks and stabilise supply.
The funding is seen as critical to easing disruptions affecting transport and other sectors.
Malawi has in recent years faced recurring fuel shortages linked to forex constraints and logistical challenges.
The shortages have disrupted businesses and daily life, with long queues at petrol stations becoming a common feature during crises.
Fuel scarcity was also a major issue during last year’s elections, highlighting broader economic pressures.
Although conditions had improved in recent months, the latest global shocks have reversed some of those gains.
Queues have since returned at filling stations across the country, underlining the urgency of securing fresh financing.
Authorities say the loan and emergency measures are aimed at restoring stability and preventing prolonged supply disruptions.
Credit: Malawi24
