The Chinese government has promised Malawi to double investment in the cotton industry if Lilongwe expands production of the crop.
Chinese Ambassador to Malawi Pan Huejin told a news conference in Lilongwe on Monday that Malawi needs to enhance its cotton industry by producing more cotton which will in turn help the country to generate more foreign exchange earnings.
“The current figures of Malawiâ€™s cotton production are on a lower side to lure investors, especially those who process it into fabrics before it is exported. The country stands to make a lot of money in terms of exports from that value addition,” said Pan.
Balaka Ginning Factory is one of Chinese investments encouraging cotton production in the country by providing farmers with cotton seeds.
The company exports lint, processes cooking oil from cotton seeds and residues are sold to South Africa as cotton seed cake.
Malawi produces only 80 000 tonnes of cotton annually which Pan said is not enough to entice investors in fabrics manufacturing.