Clement Kumbemba, CEO-MITCThe Malawi Investment and Trade Centre says the initiative by government to establish a development financing entity has come at a right time when the country is struggling to implement some of its projects due to among other factors, lack of financing.
Chief Executive Officer for MITC, Clement Kumbemba, said this in Blantyre during a press briefing announcing the launch of a new development financing entity called the Malawi Agricultural and Industrial Investment Corporation (MAIIC).
‘The creation of MAIIC would fast-track implementation of various bankable projects requiring long term financing. We have a lot of projects in our two compendiums that are failing to take off due to financing. The coming in of MAIIC will fill that gap.’ Explained Kumbemba.
CDH Investment Bank (CDHIB) which is overseeing the setting up of the new institution says MAIIC is a vehicle that will spearheading private sector development in Malawi.
CDHIB Managing Director, Misheck Esau said the institution, which is not a bank, would have a seed capital of $25 million.
Esau said the formation of MAIIC follows two feasibility studies done by consultants in 2013 and 2018. They revealed that previous government-led development finance institutions had been beset by governance problems.
‘MAIIC will work in collaboration with existing banks and financial institutions and will be a source of capital for the underserved sectors of the economy, thereby accelerating the country’s economic growth and development,’ Esau Said
MAIIC will play a leading role in partnership with the government, the private sector and international investors as a catalyst for socio-economic development, job creation and wealth creation in Malawi.
The institution has eight strategic themes which include mobilizing financial and other resources for investment in commercially viable projects, businesses, agriculture and industries (existing and new) aligned with national development priorities.