Overview

ICBC provides $44.2 million loan in Phase I Malawi Cotton Project in 2018 (Linked to Record ID#88326)

Commitments (Constant USD, 2023)$44,880,815

Commitment Year•2018Country of Activity•MalawiDirect Recipient Country of Incorporation•MalawiSector•Agriculture, Forestry, FishingFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2018

Start (actual): Mar 19, 2018

Geospatial footprint

Map overview

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The purpose of this project is to provide loan in Phase I Malawi Cotton Project, located in Central Salima district, about 93 km from the capital Lilongwe Additional locational information can be found at: https://www.openstreetmap.org/relation/7345525

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

China-Africa Cotton Malawi Limited

Implementing agencies

State-owned companies

Tianjin Textiles Company

Insurance providers

State-owned companies

China Export & Credit Insurance Corporation (Sinosure)

Loan desecription

ICBC provides $44.2 million loan in Phase I Malawi Cotton Project in 2018

Interest type•Unknown

Narrative

Full Description

Project narrative

On March 19, 2018, the Chinese Ambassador to Malawi announced the groundbreaking ceremony of China-Africa Malawi Textiles Comny was held and witnessed by both the Chinese and Malawian officials. The China-Africa Malawi Textiles Company is a joint venture between China-Africa Cotton and Tianjin Tianfang Textiles (天津天纺棉业). The project is divided into two phases. For Phase I of the project, it is reported that ICBC provided $44.2 million to build a modern textile factory, aiming for an annual production of over 12 thousand tons while Sinosure provides the insurance coverage for this project. The first phase is expected to be completed in June 2019. Phase II of the project is funded by a $36 Million loan from ICBC (captured in Record ID#88326). Based on recent news regarding cotton shortages that affect textile production in 2020 (Source 148875), we can safely infer that the project has been completed by Nov. 2020. However there were no exact dates of the completion.

Staff comments

It is only reported that ICBC provided the loan for the investment, but no documents from ICBC itself were found. At the same time, 2018 was coded as the estimated commitment year as at that time, construction had already started. It is unclear whether it is finished yet.