Government has invested US$4 million (about K2 billion) in the newly established Malawi Airlines for 20 per cent of the shares it was expected to buy, Nyasa Times has learnt.
Maganizo Mazeze, the airline’s spokesperson, confirmed the development saying presently the rest of the shares are open for sale to all interested would-be shareholders.
“Government has pumped in US$4 million for 20% of the shares, and interested would-be shareholders will be expected to cough in US$6 million for 31% of the shares,” said Mazeze.
According an agreement signed between the Malawi government and Ethiopian Airlines, who are the co-owners of the business, 51 and 49 per cent of the shares, are owned by the former and the latter respectively.
But Jimmy Lipunga, Public Private Partnership CEO, said Malawian companies and individuals will be given a grace period of seven months to buy the 31 per cent of the shares.
“After seven months will pay for the remainder of the shares and thus own the whole 51 per cent,” said Lipunga.
Expected to contribute significantly to the country’s economy, Malawi Airlines will launch its first international flights this week. It replaced Air Malawi which was said to be a loss-making venture for the Malawi government.Follow and Subscribe Nyasa TV :