ADB Promises Support to Investors In Malawi

Delegates for MIF 2015

The African Development Bank (ADB) has assured financial support to existing and potential investors gathered to seize investment opportunities in Malawi at this years second Malawi Investment Forum.

Speaking at the opening of the two day forum organised by Malawi Government aiming at wooing investors into the country, Regional Director for Southern Africa Dr. Kennedy Mbekeani said the bank is building solid partnership to implement its industrialisation strategy where the bank together with United Nations Industrial Development Organisation and United Nations Economic Commission for Africa have agreed to work together to help Africa deliver the industrialisation agenda.

He therefore said through this agenda, the Private Sector is at the core of Bank’s development mandate hence ready to support private sector in Malawi.

“The Bank is ready to support the private sector in Malawi through direct lending, through various financing instruments including guarantees, lines of credit to commercial banks and development banks, core financing and syndication, project finance and equity finance.” He promised

He continued to promise investors at the forum that further support will be provided through the financing of infrastructure, studies, institutional building and advisory services to improve the investment climate.

Mbekeani also pointed out that “Malawi has large growth potential” in number of sectors including existence of the large regional market within SADC and COMESA. He therefore encouraged investors to unlock this potential and reminded them that private sector has a key role to play in transforming the economy to achieve sustainable growth.

But he stressed that “For the private sector to play its role effectively”, the public sector “has to create an enabling environment” to get rid of unnecessary tariffs and reduce the cost of doing business.

“But also the private sector has a role to play and that role is to tell the good story of the reforms that are taking place. In a number of instances we get obsessed in articulating the problems and yet we forget to tell the good story” He added

Turning to programes and projects the bank is doing in Malawi, Mbekeani assured investors that the relationship between Malawi and ADB is good and will continue to be strengthened.

He said because of this good relationship, the bank has prioritised implementation of infrastructure, private investment and trade in the country.

He mentioned that the bank has already engaged with Malawi in efforts to develop entrepreneurship and enhance competitiveness through job creation project. Currently, he added that ADB is also supporting the country with public infrastructure projects that will help to reduce cost of doing business like roads and railway projects.

He continued to emphasise the banks commitment to scaling up support for private sector development in Malawi with mention that in 2017, the bank has programme for financing investment promotion and competitiveness support programme. He explained that this programme will support building and strengthen capacity investment promotion and facilitation in key sectors such as tourism energy and mining.

The ADB Regional Director, Mbekeani also said the bank is following up proposals received from private sector regarding direct private sector lending from areas such as trade, financing, agri-business and energy sector.

He further said the bank is promoting innovative green investment by the private sector for climate change mitigation and adaptation through various climate change financing facilities. He said Malawi will benefit from the scaling up renewable energy project worth US$50 million to promote low carbon development.

“The bank has also broaden its financing instruments and products to promote more effectively and catalyse private financing for investment. The range of innovate instruments include risk management products and guarantee products that will help crowd in investment into the country especially in energy sector.” Said Mbekeani while mentioning that one such key project in energy sector is Partial Risk Guarantee designed to target independent power producers to enable them raise private finance for their generation of investment projects.

He then commended Malawi Government for strong commitment to improve the environment for business and reiterated to pledge that the bank stands ready to support both Government and Private sector in mission of transforming Malawi into an attractive destination for private investment.