Three years after its incorporation as a public limited company, the Malawi Agricultural and Industrial Investment Corporation (MAIIC), an institution that has stirred excitement among local farmers and entrepreneurs, has posted MK280 million in net profits for the year ending December 31, 2020 after registering a loss of K431 million in 2019.
MAIIC is a local development finance Institution aimed at providing financing solutions in infrastructure development, agriculture and the development of Small and Medium Enterprises to ensure that commercially-oriented and financially sustainable projects promote economic development and job creation.
In agriculture alone, according to the Alliance for Green Revolution in Africa (Agra), Malawi requires about $6 billion annually to realise quick agricultural transformation for economic growth.
MAIIC Chief Executive Officer, Taziona Chaponda is confident that the presence of his company, NBM Investment Bank and the Export Development Fund reduces the lack of favourable financing mechanisms as a constraint to investment in Malawi.
He urged entrepreneurs to develop technical expertise in drawing bankable project proposals that can attract funding.
Malawi is keen to transform the agriculture sector in line with a pillar on agricultural commercialisation contained in Malawi 2063 (MW2063), the country’s long-term development plan.
Malawi’s vice president, Dr. Saulosi Chilima expressed satisfaction with MAIIC for the impact it has made in creating 530 jobs in various sectors in just the first 11 months of its establishment. Of the 530 jobs, 102 were created through financing Multiseed Company Ltd alone.
The company has so far made inroads in providing financing in the sectors of agro-processing, mining, energy, real estate and information and communication technologies.
MAIIC aspires to be the leading financier of high impact economic development in Malawi, where interest rates are deemed relatively higher than in most regional counterparts.