The Malawi Agriculture and Industry Investment Corporation (Maiic) has indicated that it has mobilised funds in excess of K10.3 billion to help boost local businesses.
In a response to an emailed questionnaire, Maiic Chief Executive Officer, Taziona Chaponda, said the funds have come from resources from Maiic capital of K2.8 billion and funding from external partners, amounting to $10 million (about K7.4 billion).
He further indicated that the corporation had already disbursed K1.2 billion by the end of July 2020, to five businesses in ICT, tourism, seed production and education, for their capital expenditure and working capital requirements.
Chaponda added that seven additional investments are expected to be made by September 2020, in agro-processing, aquaculture, microfinance institutions, and light manufacturing.
“The ability to effectively package bankable projects for external investors is the key success driver. In addition, the World Bank has committed to provide a further $14 million (about K10.4 billion) to Maiic before end of the year, specifically to support Small and Medium Enterprises (SMEs).
“These investments will support creation of more than 500 jobs, increase the income of thousands of smallholder farmers, stimulate import substitution, generate tax revenues, and promote local community development,” Chaponda said.
Among the approved projects is Chikho Hotel in Mponela, Dowa District which got K530 million, Multi-Seeds Company Limited got K372 million, Edgeview Academy in Lilongwe got K300 million, Comsip Limited got K257 million and Micholess Creamery got K20 million.
Other projects that have been approved by Maiic board include Nsanama Cassava Producers, a cooperative producing cassava flour, a local fertiliser company, Mbora Rural Technology Hub and Lenziemill milling company.
Maiic was incorporated in November 2018 under the Companies Act of 2013 as a private company with start-up equity from the government of Malawi which holds 20 percent equity.
MCCCI Director Business Environment and Policy Advocacy, Madalitso Kazembe, said providing capital to the five companies is a good start especially in a country where access to long term capital continues to be one of the major challenges to doing business.
“The coming in of Maiic can bridge that gap. But there is still a long way to go. The government should consider empowering Maiic with more funding, especially during the first few years so that they are able meet the demand for long term capital which is much more,” Kazembe said.