Malawi’s Rural Development Investment (Rudevit) Holdings Plc has received a license from the financial regulator Reserve Bank of Malawi authorizing it to raiseK10 billion (approx. U$13 million) capital for investment in agriculturaly-linked rural enterprises.
CEO of the indigenous investment group Enwell Kadango said the Registarar has granted the approval under the under the Financial Services Act 2010 and Securities Act 2010.
“Approval by the financial regulator, Reserve Bank of Malawi and granting of the licence marks an important milestone towards realizing our dream to unleash Malawi’s rural development potential in all economic sectors primarily through agriculture and agro-processing, manufacturing, tourism, transportation, energy, textiles, packaging, and healthcare,” he said.
Rudevit Holdings Plc is a local initiative with a diversified multi-sectoral portfolio of projects aiming to build wealth, create jobs and stimulate rural development by exploiting Malawi’s rural and agriculturally-driven economic potential. The unlisted Rudevit Holdings Plc is 60% owned by Rudevit Ltd, a company limited by guarantee, while the 40% is available for investment by the general public.
“To ensure indigenous participation, Malawians are invited to join RUDEVIT Holdings Plc in the first instance by making a once-off contribution of K20,000 to RUDEVIT Limited and buy shares in RUDEVIT Holdings Plc presently at K1 per share on the first call. The minimum number of shares is 20,000,” said Kadango.
He said the integrated investments by RUDEVIT in the rural economy would lead to establishment of markets, industries and linkages that will create sustainable value chains.
Kadango said the K10 billion (U$13 million) would initially be invested in agriculture and manufacturing with specific interests in organic fertilizer, seed multiplication and production, value addition, farm mechanization and food processing.
“Our model applies entrepreneurial discipline to create sustainable entities. The company’s central belief, based on first-hand knowledge and experience, is that the key to Malawi’s and indeed Africa’s economic prosperity lies in finding effective ways to engage the rural population and design innovative solutions that address their unique problems,” Kadango said.
‘Confident of attracting more investors’
Chairman of RUDEVIT, Hastings Bofomo Nyirenda said following the regulatory approval, Rudevit would soon embark on a national investment road show aiming to raise awareness to drive the capital-raising activities.
“We are confident of raising the required capital and even more. Already, equity subscription into RUDEVIT is underway. However, to ensure national appeal and sector-wide participation we required regulatory approvals, which we now have,” he said.
Nyirenda said RUDEVIT’s offer is open to the general public to individuals, family businesses, SMEs, Savings groups and Village banks, life insurance funds, commercial banks, Malawians in the diaspora, corporate institutions and Malawian development finance institutions provided they meet the requirements.
“We believe in the old adage that says “when you want to go fast go it alone but when you want to reach far go together”. This says it all. Together we will make strides for our economy, stakeholders and shareholders, who are Malawians,” he said.
Nyirenda further said RUDEVIT would localize the production of some key commodities like fertilizer, which will also help minimize foreign exchange pressure to the country’s hard- earned forex.
“RUDEVIT will create jobs for people at various levels and make Malawi self-sufficient in various commodities. Our agro-processing plants will utilize the produce mostly abundant already for which markets have been an issue. Malawians will own this conglomerate thus creating worth that will spur the nation into middle-income spectrum over time,” he touted.
In the round, Malawians can join Rudevit Limited at a fee of K20 000 and buy shares in Rudevit Holdings plc at K1 per share for a minimum of 20 000 shares.Follow and Subscribe Nyasa TV :