The Reserve Bank of Malawi (RBM) has granted approval to Rural Development Investment (Rudevit) Holdings plc to raise an initial K10 billion capital from the public for investment in rural enterprises.
In a statement yesterday, Rudevit Holdings plc chief executive officer Enwell Kadango said the money will be turned into equity to invest in different sectors of the country’s economy, which have the potential to revitalise rural development.
“Approval by the financial regulator, Reserve Bank of Malawi and granting of the licence marks an important milestone towards realising our dream to unleash Malawi’s rural development potential primarily through agriculture and agro-processing, manufacturing, tourism, transportation, energy, textiles, packaging, and healthcare,” he said.
Ruvedit Holdings plc is a local initiative with a diversified multi-sectoral portfolio of projects to build wealth, create jobs and stimulate rural development by exploiting the country’s vast rural economic potential.
Kadango said the integrated investments by Rudevit in the rural economy would lead to establishment of markets, industries and linkages to create sustainable value chains.
He said the initial K10 billion would initially be invested in agriculture and manufacturing, with specific interests in organic fertiliser, seed multiplication and production, value addition, farm mechanisation and food processing.
He said: “Our model applies entrepreneurial discipline to create sustainable entities.
“The company’s central belief, based on first-hand knowledge and experience, is that the key to Malawi’s and indeed Africa’s economic prosperity lies in finding effective ways to engage the rural population and design innovative solutions that address their unique problems.”
To ensure indigenous participation, Malawians can join Rudevit Limited at a fee of K20 000 and buy shares in Rudevit Holdings plc at K1 per share for a minimum of 20 000 shares.
Rudevit Limited Company will own 60 percent stake in Rudevit Holdings Company.
The balance of 40 percent in the holdings company is being offered to the public and members of Rudevit to participate through buying of shares.
On his part, Rudevit Holdings chairperson Hastings Bofomo Nyirenda said following RBM’s approval, the firm will embark on a national investment communication programme to raise awareness to drive the capital-raising activities.
He said: “We are confident of raising the required capital and more. Already, equity subscription into Rudevit is underway.
“However, to ensure national appeal and sector-wide participation, we are soon embarking on a sensitisation drive to raise awareness about the initiative and opportunities it represents for the general public to make informed investment choices.”
He said Rudevit’s offer is open to individuals, family businesses, small and medium enterprises, savings groups and village banks, life insurance funds, commercial banks, Malawians in the diaspora, corporate institutions and Malawian development finance institutions.