New firm dangles shares, seeks 500 000 investors
Malawians have a rare opportunity to own part of Rural Development Investment Initiative Trust (Rudevit), a firm geared to spearhead economic development by exploiting the wealth potential of the rural areas through investments.
The firm’s offer presents a diversified investment portfolio to Malawians by offering members an opportunity to invest in untapped markets in a highly de-risked environment.
Unveiling the plans and prospects at its the first conference in Blantyre on Saturday, Rudevit interim board chairperson Hastings Bofomo Nyirenda said the firm is looking for 500 000 investors to make a one off contribution of K20 000, qualifying a member to get one share of K1 in the parent company.
He said Rudevit Holdings authorised capital is K10 billion, as such, members will be able to apply for any number of shares in Rudevit Holdings which will be allocated on availability from time to time.
“This is a Malawian entity by Malawians and we have seen to it that the company limited by guarantee takes control of 60 percent while the 40 percent will be taken over by the public and investing public. This has been done deliberately to ensure we achieve the main objective of the company by ensuring that company limited by guarantee takes control of the holding company,” he said.
The firm’s structure is made up of Rudevit Trust Company Limited, which will invest into the holding company, which will in turn invest in several subsidiaries in the investable economic sectors of the country such as agriculture, manufacturing and textiles, mining, tourism, energy and health and pharmaceuticals.
“For us to be guaranteed for our ability to raise sufficient capital, we have within the holding company a fund company named Rudevit Fund to mobilise capital to invest in the other subsidiaries,” said Nyirenda.
He said the company, which is expected to start operations by the end of this year, will ensure creation of employment at various income levels, provision of access to new markets, improving agricultural productivity by the local and rural farmers, development of infrastructure. It will also help to reduce poverty, eradicate hunger, provide good health and well being, achieve decent work and economic growth, among others positive outcomes.
Commenting on the development, Minority Shareholders Association secretary general Frank Harawa described the firm as a milestone for the Malawi economy.
Harawa, who has vast experience in investment in different entities in the country, said the initiative is one of the best projects ever thought of by indigenous Malawians.
“This project is answering and becoming a solution to most problems people have faced such as markets for our crops, energy woes, mining issues where people have complained of foreign companies coming to rip us off of our minerals. Should this firm roll out, it will definitely address these problems holistically,” he said.
Meanwhile, government has thrown its weight behind rural development where, through the Ministry of Trade, Industry and Tourism, it is set to roll out the National Rural Industrialisation Strategy to spur economic growth.
According to the ministry’s Principal Secretary Ken Ndala, the strategy seeks to provide a framework for a coordinated approach among government ministries, departments and agencies and non-State actors.
