Institute for Chartered Accountants in Malawi (Icam) has asked the government to cons ide introducing a State-controlled development bank as a way of attracting investors to propel grow of the economy.
The call was part of Icam’s proposals to the 2023-24 national budget at the pre-budget consultation meeting in Blantyre on Monday.
Icam acting Chief Executive Officer Charles Chimpeni indicated that development partners an international finance institutions find it easier to lend to development banks where an anchor shareholder is able to provide guarantees.
He added that in the past institutions that were operating like development banks such as the Malawi Development Corporation (MDC) were venturing into sectors that no one has gone into, thereby opening the way for others.
“The government needs to off r a guarantee because there are other investors that can come in and then the private sector can access the funds for the development of the economy,” Chimpeni said.
Speaking earlier, Minister of Finance and Economic Affairs Sosten Gwengwe emphasised the need to have entities such as MDC revamped for the growth of the economy.
He added that such entities will help carry equity into different sectors and the private sector will join and develop such sectors knowing that they are profitable.
“We are thinking, as government, of bringing in an entity such as MDC so that it can be a carrier of equity into companies that if we need to intervene, government must be able to intervene, especially when our people are in an awkward situation,” Gwengwe said.
Justin Mkweu is a fast growing reporter who currently works with Times Group on the business desk.
He is however flexible as he also writes about current affairs and national issues.