Malawi Agricultural and Industrial Investment Corporation (MAIIC) is expected to be operational by October 2019 at a value of K35 billion, Minister of Finance, Economic Planning and Development, Joseph Mwanamvekha has said.
He disclosed this in Lilongwe on Thursday during the launch of the National Bank of Malawi (NBM) Development Bank.
Mwanamvekha said all issues to do with the operations of the fund such as hiring of staff, securing of offices and initial policies and procedures have been done and what remains is to operationalize the corporation.
“I’m pleased to announce that as we speak now all the procedures and processes have been concluded. Management of the corporation is already in place now what will happen shortly, preferably this month or beginning of next month, we will be announcing that the Bank has started,” he said.
President Peter Mutharika launched MAIIC, a government initiative but private sector led development finance, in Lilongwe in November,2018 which will empower agro business and industrial companies to acquire financial assistance, management and skills training as well as loans.
MAIC will not be a bank per se but a vehicle for spearheading private sector development in line with the Malawi Growth and Development Strategy (MGDS) III.
Mwanamvekha said it (MAIIC) is not going to be a threat to NBM Development Bank but rather offer complementary services.
“This bank is not going to compete with National Bank Development Bank. Actually it is going to complement as you are aware that the Small and Medium Enterprise sector is so huge and National Bank alone cannot afford to provide loans to all the SMEs.
“So what we are going to do, and that’s what our wish will be, is to complement and not to compete with other development banks including NBM Development Bank,” the Minister said.
Commercial Banks in the country have in the long term not been financing long term investment projects such as mining, agriculture and manufacturing among others which left farmers and some investors destitute.
The Minister said there is need to have more institutions such as the NMB Development Bank and MAIIC as one way of addressing capital needs of the private sector or SMEs.
“We want more development banks and also we want microfinance institutions. We want to make sure that we have more institutions and also reduce the cost of borrowing so that we increase access to loans by the SMEs,” he said.
During the launch, President Mutharika described the corporation as a game changer and a pathway to the country’s achievement and industrialization goal for social economic development which is part of government agenda.
Maiic proposed shareholding structure includes 41 percent stakes for public limited companies, private limited companies, banks financial institutions and funds incorporated or registered in Malawi and a 20 percent stake for government or its agencies.
In 2013, Government of Malawi commissioned a feasibility study which showed there was great need to develop financial institution in the country.
MAIIC shareholders include financial institutions, government departments, foreign investors as well as the public and will be listed on the Malawi Stock Exchange (MSE).
In the Corporation, government’s startup capital comprises K22 billion and another K13 billion from the sale of Malawi Savings Bank (MSB) and Inde Bank.Follow and Subscribe Nyasa TV :