Khato Civils group finance director Pride Phiri says foreign exchange supply challenges continue to choke the progress of Lilongwe-Salima Water Project. Speaking on Tuesday when Minister of Agriculture, Irrigation and Water Development Roza Mbilizi toured the project site in Lifuwu, Salima, he said since they import equipment, inadequate foreign exchange is affecting the project. He said: “This affects our speed and timelines because we need to order materials from outside the country.
We have already engaged government to prioritise the project when allocating foreign exchange.” But Phiri said the project has surpassed the 40 percent threshold and they project it to end in the first quarter of 2027, if forex challenges are resolved and the final financing of the project is done in time. In her response, Mbilizi acknowledged the foreign exchange challenges and emphasised government’s commitment to finish the project to enable people access potable water. “We are aware of the forex challenges and we are working hard to resolve them to ensure progress on this project because water is life,” he said.
Reserve Bank of Malawi spokesperson Boston Maliketi Banda said foreign exchange challenges will affect some projects in the country; hence, the need for collective efforts to deal with it. “We need to enhance more exports for easy financing of projects,” he said. Lilongwe-Salima Water Project commenced in January 2025 at a cost of $315 million (about K545 billion). Currently, six tanks, three pumping stations and pipe works have commenced on the stretch between Lifuwu and Katengeza.
