Mzuzu City shopping mall to cost K20bn

The much-anticipated Mzuzu City Council (MCC) shopping mall project, expected to start in August this year, will cost K20 billion despite being reduced from a five floor structure to three.
The city council last year unveiled plans to build a state-of-the-art shopping mall to boost revenue generation.
The mall, initially designed as a five-floor building sitting on one hectare covering Mataifa Market and an open ground across the market, was supposed to take shape by June 2015.
MCC chief executive officer Thomas Chirwa said plans were at an advanced stage and that the council had already developed designs for the structure.

“This is a modern shopping mall we are talking of. It is an upstairs building that will house as many businesses as possible,” he said.
However, there are no signs that the project will start any time soon as vendors are still plying their trade at Mataifa Market.
Asked on the progress of the project, MCC director of finance Khumbo Masankhula Thursday said the initial design would have cost the council K25 billion and financial institutions were not comfortable with the loan repayment period.
He said the size of the project had to be changed as the council could not raise the money on its own, adding that they are banking on the private sector and other stakeholders to raise the money.
“We are exploring more options for funding and we will soon be holding a meeting with stakeholders to discuss the project,” said Masankhula.
Mzuzu City mayor William Mkandawire said the council is committed to having the mall constructed as it will boost revenue generation and improve service delivery.
He said the project has delayed because of lack of funds, but said National Bank of Malawi (NBM) and other stakeholders were interested in the project.
“Honestly, we have no money to have the project commence next month. However, this is a project that we are prioritising,” said Mkandawire.
He said if there are no local financiers, the council will engage international banks, but said for them to do that, it will need involvement of the Ministry of Finance, Economic Planning and Development.
The ministry’s spokesperson Nations Msowoya said the council’s proposal will be considered if it is submitted with a good business case.
He welcomed the mall project, arguing it will transform operations of the council, saying local authorities should move towards having such investments as is the case in other countries.
“If you go to South Africa and Europe, it is the councils that own such projects. So, this is a commendable idea and it will help improve operations of the council if well implemented,” said Msowoya.