IFC in K825 Billion private investment
The International Finance Corporation (IFC), the private sector financing arm of the World Bank, says it will in the next five years invest $1 billion (about K825 billion) in the country’s energy and agriculture sectors.
In an exclusive interview on Monday in Lilongwe, IFC regional director for Eastern Africa Jumoke Jagun-Dokunmu said this in the wake of her visit to Malawi for private sector investment engagements.
While in the country, she met private sector representatives, Minister of Finance and Economic Affairs Sosten Gwengwe and Minister of Energy Ibrahim Matola.
Jagun-Dokunmu said she urged government to undertake rigorous reforms to attract more private sector investment.
She said IFC is looking forward to the macroeconomic policies government will undertake in the 2022/23 fiscal year to foster improvement in the country’s macroeconomic dimensions.
Jagun-Dokunmu said: “If I look at Mpatamanga project, if we look at investments in agriculture sector that are coming up, including other sectors, I foresee that over the next five years, we could have up to $1 billion investment in Malawi.
“We have seen government taking right approaches to spur investment and we are confident that the plans will work out.”
She said in her engagements with government officials, she was told priority areas of expanding large commercial agriculture.
She cited the $5 million (about K4 billion) financing to Sable Farms for macadamia production, adding that they are looking forward to financing more.
Jagun-Dokunmu said Mpatamanga hydro power project is one key project that will help translate President Lazarus Chakwera’s vision of 1 000 megawatts in the near future, which will be a catalyst for economic transformation.
Malawi Confederation of Chambers of Commerce and Industry president James Chimwaza said in an interview on Tuesday they had fruitful discussions with the IFC representative.
He said the private sector was challenged to come up with programmes that will tap into IFC financing opportunities.
“This is an opportunity to achieve desired results on industrialisation in line with the 10-year implementation plan of the Malawi 2063,” said Chimwaza.
He said the $1 billion worth of projects will transform the economy and improve lives of Malawians through new jobs and businesses.
Chimwaza said the projects will help the country to compete in regional markets, including African Continental Free Trade Area and also achieve import substitution.
Already, IFC is supporting the Mpatamanga hydro power project development in partnership with Government of Malawi to the tune of $150 million (about K 124 billion).
This is an investment fund of the World Bank Group and IFC will be responsible for all decisions relating to the development of the hydroelectric project to ensure realisation of Malawi’s economic transformation.
