MALAWI – The newly established Malawi Agricultural and Industrial Investment Corporation (MAIIC) is now in full force to drive private sector led economic development in the country.

MAIIC chief executive officer, Taziona Chaponda said during the event that robust private sector is vital for the development of any country.

He said the institution, operating under a Public Private Partnership (PPP) model, will work closely with businesses to build their capacity to better articulate their business plans, will work with the commercial banks in ensuring economic gains.

“The establishment of MAIIC is a ground-breaking partnership between government, private sector and international investors to play a leading role as a catalyst for socio economic development job and wealth creation in Malawi,” he said.

Chaponda said MAIIC will work tirelessly in achieving its goals which is to drive private sector led economic development through the mobilization of finance skills and technology for sustainable wealth creation.

MAIIC plans to partner microfinance institutions (MFIs) as one of its unique products offering to bolster their lending activities to small-scale businesses, farmers and start-ups.

“This unique offering comes from the understanding that rural entrepreneurship is a critical path for growing Malawi’s economy and, when supported, will drive productivity, innovation and job creation,” said Chaponda.

Speaking during the function, Reserve Bank Governor, Dalitso Kabambe said Malawi economy has stabilised since 2017 adding that going forward is not about stabilising the economy but to grow the economy.

“It’s time to create jobs which our youth are demanding,” Kabambe has since urged private sector to support this new venture.

The establishment of MAIIC follows findings of a study in 2013 and 2018 that found that government-led development finance institutions were plagued by numerouns government hitches.

MAIIC’s shareholding structure consists of Malawi Government’s stake at 20 percent and 80 percent to come from the private sector, the public and foreign investors.

The government has already provided the initial seed capital of US$25 million (about K18.5 billion) and that MAIIC is engaging local financial institutions, the private sector and international development finance institutions to raise the rest of the capital.

MAIIC therefore opens its doors to people, businesses, companies, agricultural cooperatives with bankable business projects seeking finance and technical skills to kick start or expand their businesses.