Malawi - Investment and Development Bank (INDEBANK) First Line of Credit


Project Summary

Approval Date 12 Dec 1996
Signature Date 08 Jan 1998
Planned Completion Date 31 Dec 2004
Last Disbursement Planned Date 30 Jun 2004
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 1,346,291.02
Status Completion

Project General Description

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.

Project Objectives

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.

Beneficiaries

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.

Participating Organization

Funding
African Development Fund
Implementing
Investment Bank of Malawi

Information

IATI identifier 46002-P-MW-HA0-002
Last Update 31 Oct 2019

Export

Contact Details

Geographic Location

Country Malawi