Government says it will not own100 percent shares in the yet to be established development bank. Minister of Finance Goodall Gondwe said the bank will have a percentage of private sector shareholding.<\/p>\n
\u201cIt\u2019s not going to be a government bank. It is going to be a bank with a lot of private sector initiatives in it, that is why we can\u2019t do it quickly,\u201d said Gondwe<\/p>\n
<\/p>\n
However, the actual roll out of the bank remains uncertain as the finance minister did not set aside any funds for its establishment in the 2015\/2016 national budget.<\/p>\n
During his budget presentation, Gondwe said government expects the opening of the bank to help in filling financing gaps experienced mainly infrastructure and small scale agricultural development.<\/p>\n
\u201cSome development partners, particularly those interested in providing financing, have suggested that the government should instead consider establishing a development fund,\u201d said Gondwe in Parliament<\/p>\n
Renowned economic analyst Thomas Munthali commended government for its plan to establish the development bank and said government should ensure independent corporate governance in the running of the bank.<\/p>\n
\u201cIf we have government meddling in the affairs of the institution then it becomes a challenge, but having an independent executive board as an overseer of the bank\u2019s operations, will see it successful,\u201d he said<\/p>\n
Gondwe earlier said apart from the initial K1.5 billion, K10 billion more was disbursed to help in the completion of the processes related to first stages of its establishment.<\/p>\n
A feasibility study was conducted with financial assistance from the World Bank under the Financial Sector Technical Assistance project with approximately K62.4 million at the current exchange rate.<\/p>\n
Initial estimates showed that the bank required an initial capital injection of US$25 million (K12 billion) but could commence operations with US$6.75 milllion, (K3.24 billion).<\/p>\n","protected":false},"excerpt":{"rendered":"
Government says it will not own100 percent shares in the yet to be established development bank. Minister of Finance Goodall Gondwe said the bank will have a percentage of private sector shareholding. \u201cIt\u2019s not going to be a government bank. It is going to be a bank with a lot of private sector initiatives in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3615","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/3615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/comments?post=3615"}],"version-history":[{"count":0,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/posts\/3615\/revisions"}],"wp:attachment":[{"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/media?parent=3615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/categories?post=3615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/archive.times.mw\/index.php\/wp-json\/wp\/v2\/tags?post=3615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}