The Reserve Bank of Malawi (RBM) says plans by Nico Holdings plc to construct a hotel in Lilongwe Golf Club (LGC) precincts is an indication that if pension and insurance funds are properly used, they could spur infrastructural development.
RBM Governor Dalitso Kabambe said this in an interview on Friday in Lilongwe in reaction to the listed financial services group’s plans to invest $45 million (about K33 billion) of pension funds to build a hotel in the capital city.
He said: “It is true that Lilongwe will have a new hotel constructed by Nico Holdings at the Lilongwe Golf Club. The Reserve Bank of Malawi is helping in directing pension funds into investment projects that will assist the economy to rebound or sustain the macro-economic stability and growth the country has experienced.
“This hotel will not only help in creating jobs, but will also improve the tourism sector which government has identified as one of the priority areas.”
Nico Holdings managing director Vizenge Kumwenda said in an interview plans for the hotel project are at an advanced stage.
“By having this hotel near Lilongwe Golf Club, it will help in attracting more people to the establishment and will be one of the best in this region,” he said.
Kumwenda said LGC management is in support of the project.
LGC chairperson Patrick Kabambe said the project will start as soon as all the paperwork with Nico Holdings and Lilongwe City Council is finalised.
“All the members of the Lilongwe Golf Club are excited with this new project because it will change the face of Lilongwe.
“As soon as we complete the paperwork, construction will start anytime this year,” he said. n