Government has established the Malawi Agricultural and Industrial Investment Corporation using the proceeds from the sale of its wholly-owned Malawi Savings Bank (MSB) and Indebank.
The development comes three years after the sale of MSB to FDH Financial Holding Limited at K9.5 billion and Indebank to the National Bank of Malawi at K6.7 billion in 2015.
The proceeds from the sale of the two banks were invested by Public Private Partnership Commission (PPPC) on behalf of the government, an issue which has been a bone of contention between government and players in the economic sector.
Minister of Finance, Economic Planning and Development, Goodal Gondwe disclosed that K13 billion from the proceeds has been invested in the government initiated but private sector led development finance entity.
Gondwe said in total government has made a capital investment of K22 billion capital in the corporation to enable the company to start a capital-raising programme to attract domestic and international funding.
Addressing the audience during the launch, President Peter Mutharika called upon the private sector in the country to recognize their important role in contributing to the country’s economic development.
President Mutharika said empowering Malawi’s farmers through financial means can help productivity and promote economic growth among the citizenry.