Malawi Agricultural and Industrial Investment Corporation (Maiic) is expected to roll out in October this year, with an initial investment of K35 billion, Minister of Finance, Economic Planning and Development Joseph Mwanamvekha has said.
In an interview in Lilongwe on Friday, the minister said all issues to do with the operationalisation of the development finance institution such as hiring of staff, securing of offices and initial policies and procedures have been finalised.
“Management of the corporation is already in place now and 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 institution, in November 2018 to empower agro businesses and industrial firms acquire financial assistance, management and skills training as well as loans.
Maiic will not be a bank, but a vehicle for spearheading private sector development in line with the Malawi Growth and Development Strategy (MGDS III).
The establishment of Maiic follows finding of a feasibility study conducted by independent consultants in 2013 and 2018 that government-led development finance institutioins were plagued by government hitches.
The study also found that the existing market financing gap hovers above K2.8 trillion in various sectors and the success of the development finance institution largely depends on it being controlled by a private sector and having a strong corporate governnance structure.
Commercial banks have all along been financing long-term investment projects in mining, agriculture and manufacturing, among others, leaving farmers and some small-scale investors destitute.
During the launch, Mutharika described the corporation as a game -changer and a pathway to the country’s achievement and industrialisation goal for socio-economic development.
Maiic shareholders include financial institutions, government departments, foreign investors as well as the public and will soon be listed on the Malawi Stock Exchange (MSE).
The Malawi Government has a 20 percent stake with others taking up 80 percent under the public private partnership (PPP) arrangement.
In Maiic, Malawi Government’s start-up capital comprises K22 billion and another K13 billion from the proceeds of the sale of Malawi Savings Bank and Indebank.