In his remarks, Goodall Gondwe hailed the Chinese government for the concessional loan saying the national fiber backbone would help improve connectivity for government systems.

Gondwe said as a country, Malawi was lagging behind in automating her systems due to poor internet connectivity and that a large part of the country's population remained unreached by internet services.

"The project will connect 24 districts (out of the country's total 28 districts) with drop points at the Capital Hill in Lilongwe, Blantyre Government Office Complex and Zomba Government's Offices at the District Commissioner's Office," explained Gondwe.

He said the private sector like banks and mobile phone operators would be connected to the fibre network and that government would generate revenue through the connection.

The loan will be concessional at 2 percent interest rate with 5 years grace period and a repayment period of up to 15 years, according to the minister.

The national fibre backbone will be constructed by the Chinese company Huawei, which is one of the leading companies in technology solutions in China and the world at large.

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