‘Use MSB, Indebank cash to start agricultural bank’
The Economics Association of Malawi (Ecama) has asked the Malawi government to use proceeds realized from the sale of government shares in Malawi Savings Bank and Indebank to set up an agricultural development bank.
However, Minister of Finance Goodall Gondwe says the K10 billion earned from the sale of the two banks is not enough to start the agriculture bank which requires K50 billion in initial capital.
Speaking during the 2016/17 pre-budget consultation meeting hosted by the Ministry of Finance in Blantyre on Thursday, Ecama president Henry Kachaje said the proceeds from MSB and Indebank could be best used to set a bank that could bankroll the agriculture and help up drive Malawi’s growth.
“Let’s use these resources to support farmers in the country,” suggested Kachaje.
But Gondwe said in an interview that proceeds of the sale of the two banks were not enough to finance the agriculture bank but said the government is talking to the African Development Bank to finance capitalization of the proposed bank.
