The Malawi Agricultural and Industrial Investment Corporation (Maiic) says it has received over 100 project proposals worth about $262 million (about K194 billion) in various sectors of the economy.
The 100 project proposals follow last year’s call for project proposals the institution advertised in the media for possible financing.
Maiic was launched last November following the signing of a memorandum of understanding between government and CDH Investment Bank (CDHIB). Government owns a 20 percent stake in the financial institution while the private sector under CDHIB portfolio has an 80 percent stake.
Government committed to inject K22 billion ($25 million) and another K13 billion realised from the sale of Malawi Savings Banks (MSB) and IndeBank as start–up capital that totalled K35 billion while CDH Investment Bank will be hunting for financiers to take up the 80 percent deficit.
CDH Investment Bank managing director Misheck Esau said in a written response to a questionnaire that the institution will fully be operational from next month and that so far, government has provided $15 million (about K10 billion) and the balance is expected before the operational
handover of the company.
He said once Maiic becomes fully operational, its management will finalise the process of reviewing and assessing the projects in detail to determine their viability before investment can be made.
Said Esau: “The call for projects exercise has vindicated the need for Maiic to spearhead private sector development in Malawi. There is high interest from most players in the private sector to partner with Maiic in their delivery of services.
“Consequently, Maiic will collaborate with the existing financial institutions, both local and international, to achieve its mandate”.
He said Maiic will engage in capital raising from the local and international investors to reach the targeted capitalisation of $1 billion (about K733 billion) for the next 10 years and that the first phase of private capital to be raised locally is targeting $85 million (about K62 billion)by April this year.
According to Esau, it is expected that Maiic will list on the Malawi Stock Exchange to raise more capital once it gets good business reputation in few years to come.
Minister of Finance, Economic Planning and Development Goodall Gondwe confirmed in an interview that Treasury paid Maiic the start–up capital and that government expects the institution to deliver once management is appointed by next month.
Maiic proposed shareholding structure includes 41 percent stakes for public limited companies, private limited companies, banks financial institutions and funds incorporated or registered in Malawi and a 20 percent stake for government or its agencies.
International financial institutions, corporations and investors registered outside Malawi have a 39 percent stake, individuals have a 10 percent stake and any investors will be incorporated as recommended by the Board of directors to members in a general meeting – with no voting rights. n