Treasury says it has put on hold plans to turn the Malawi Enterprise Development Fund (Medf), formerly Malawi Rural Development Fund (Mardef), into a bank.
Against the background of its loss-making history, former Minister of Finance, Economic Planning and Development Goodall Gondwe last year announced that government would turn the fund into an agriculture bank.
But Ministry of Finance, Economic Planning and Development spokesperson Davis Sado told Business News on Monday that the issue has since been put on hold.
“As it is, Treasury has not had any discussion on the issue. We should, however, be able to communicate duly on the next step on the matter but for now we have nothing on the issue,” he said.
Medf’s poor performance has over time attracted criticism for sector of the economy who said turning it bank would be ideal.
In the 2017/18 financial year, the fund showned improvement and realised a profit after tax of K2.4 billion from a loss of K961.9 million in the previous year.
As at December 31 2018, Medf managed to realise a profit of K181.8 million and projects a profit of K799.8 million, which still depicts a downward performance.
On the other hand, liquidity of the fund improved to a current ratio of 8.2:1 as at midyear, implying that Medf was capable of meeting its current liabilities as they fall due with existing current assets.
Earlier, private sector lobby group Malawi Confederation of Chambers of Commerce and Industry (MCCCI) chief executive officer Chancellor Kaferapanjira told Business News that the country is missing opportunities to promote deserving enterprises which can add value to this economy.