|Approval Date||12 Dec 1996|
|Signature Date||08 Jan 1998|
|Planned Completion Date||30 Jun 2004|
|Last Disbursement Planned Date||31 Dec 2004|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||24030|
The Investment and Development Bank (INDEBANK) First Line of Credit (LOC) was conceived within the context of the macroeconomic and financial sector reforms embarked upon by the Government of Malawi from the late 1980s and early 1990s. The LOC is intended to support the Malawi Government’s resource mobilization efforts, and thereby assist in sustaining the reform programs. It will assist INDEBANK to finance part of its medium-term operational program. Established in 1972 as a development financing institution, INDEBANK is one of the institutions entrusted with the responsibility of promoting private sector investment and initiatives in Malawi. Given the concessional terms of the LOC, INDEBANK was also required to utilize a portion of its interest margin to establish a fund for supporting micro-enterprises in Malawi. The project’s results involves the following areas: i) development of sub-projects; ii) disbursement of the proceeds of the lines of credit and; iii) operational and financial performance of INDEBANK.
The objective of the line of credit was to provide financial support to INDEBANK to enable the institution to extend term lending to private sector borrowers. The project also aimed to create a Fund that will provide resources to intermediaries that promote micro-enterprises in Malawi.
The Line of Credit (LOC) will permit the establishment of new small and medium-sized enterprises, as well as the expansion of existing enterprises, in areas of industry, agro-industry, tourism and related services. About 10 SMEs were expected to be established or modernized from the resources of the LOC.
African Development Fund
Investment Bank of Malawi
|Last Update||09 Dec 2022|
|Name||ADENIJI Taiwo Olasupo|