Blantyre - The United States Embassy says a deal to give Malawi $350-million in aid will not be signed this week as planned.
Benjamin Canavan, the US Embassy spokesperson in Malawi, said on Monday that talks to complete the Millennium Challenge Corporation agreement announced in July are under way. He would not say why the signing has been delayed, or when the deal would be finalised.
The Millennium Challenge Corporation is a programme from the Bush era that links foreign aid to good governance.
The delay comes after the German government announced it was decreasing aid to Malawi following Malawi's failure to repeal laws that criminalise homosexuality and its enactment of laws seen as restricting media freedoms.
Malawi is among the world's poorest countries. - Sapa-AP