Partnering to grow Malawi's transport and infrastructure sector

The Minister of Finance Honourable Sosten Gwengwe has hailed the role of Standard Bank Plc and Old Mutual in taking the lead to facilitate economic transformation through financial partnership with government and the private sector for the development of the country.

The Minister is speaking in Lilongwe at the official signing ceremony of the MWK 34.5 Billion Kenyatta drive and Mzimba street road rehabilitation project between the Roads Fund Administration (RFA) and Standard Bank Plc and Old Mutual who are the joint financiers of the deal and Continental Asset Management who are co-financiers thereof.

“Government would like to recognize Standard Bank and Old Mutual, in their respective rights as Joint financiers, for financing Malawi’s development agenda. The upgrade of the Kenyatta drive and Mzimba street is a fulfillment of one of the MW 2063.

Completion of the upgrades will lead to the decongesting of traffic and accelerate movement of people and goods in Malawi’s administrative capital, he said.

The financial agreement clears the way to accelerate substantive construction works for the road, which will become Malawi’s first six-lane highway. Preparatory and other ground-breaking works for the project begun in 2021.

As JLA, Standard Bank Malawi will raise MWK21 Billion.

Said Phillip Madinga, Standard Bank Plc CE: “Our capability to finance a project of this stature highlights Standard Bank’s commitment to contribute to economic growth in line with our purpose which is “Malawi is Our Home, We Drive her Growth. The bank has a desire to see the country achieve remarkable progress in key sectors such as roads and infrastructure”

Old Mutual will contribute KXX Billion and Nico Asset Manager will contribute K xxx Billion towards the project.

CEO Edith Jiya said; “Our involvement reflects the thorough understanding of local needs and the business environment we operate in. We take pride to be associated with strides to improve Malawi’s road networks, which has ripple effect on reducing poverty.”

RFA Chief Executive Officer Stuart Malata said the fund is committed to continuous improvement of the country’s road networks through raising funds from organic and other non-organic sources.

“The Kenyatta/Mzimba road project represents the fulfillment of our mandate and function to raise funds for building and improving Malawi’s road network using alternative sources of funding for as long as the same is sustainable,” he said.

The funds will be repaid over a 20-year period through a Promissory Note in respect of the principal, RFA.