Lilongwe (Malawi), Sep 11 (IANS): A cotton ginning unit, constructed with Indian aid, was inaugurated in Ngabu in Malawi, a landlocked country in southeast Africa that exports raw cotton.

Malawi President Joyce Banda inaugurated the ginnery at Ngabu, that cost $20 million, on Aug 27. It was part of the $50 million Line of Credit granted by India to Malawi that has a population of about 16 million.

The event was attended by Indian High Commissioner Vanlalhuma. Among other dignitaries present were Malawi Vice President Khumbo Kachali, Finance Minister Ken Lipenga, Industry and Trade Minister Sosten Gwengwe, Minister of Transport and Public Works Mohammed Sidik Mia alongwith several senior officials, in an indication of the importance attached to the event, said a statement from the Indian High Commission Wednesday.

The ginning unit was constructed by Apollo International Ltd. Ngabu is located in the south of the country, some 120 km south of the city of Blantyre.

Two other cotton ginning units have also been constructed, at Balaka and Ngara, under the same Line of Credit.

Addressing the event, President Banda thanked the Indian government, the Indian High Commission and Apollo International Ltd. for making it possible to set up the ginnery. She said such collaborations showed that Malawi has close relationship with other countries far and near.

The Ngabu ginnery, once operated at its full capacity is expected to add three times to the value of raw cotton, which is being exported from Malawi at present. The export of raw cotton is also expected to earn the country foreign exchange to the tune of $ 20 million per annum and provide employment opportunity to about 200 people directly, and several hundreds more indirectly, the statement said.