Announcement of World Bank Lends Three Million Dollars for Industrial Development in Malawi on July 10, 1978

FOR IMMEDIATE RELEASE . 0 •World Bank ·1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 79/3 July 10, 1978 WORLD BANK LENDS $3 MILLION FOR INDUSTRIAL DEVELOPMENT IN MALAWI Malawi 1 s efforts to promote industrial development will be assisted by a $3 million loan announced today by the World Bank. The loan to the Investment and Development Bank of Malawi (INDEBANK) will assist the growth 0f large and medium-scale enterprises by financing the foreign exchange costs of industrial projects. The International Finance Corporation (IFC) an affiliate of the World Bank, wtil also invest about $562,000 in the share capital of INDEBANK. tNDEBANK was established in December 1972 as a private limited company to promote projects in industry, agriculture and commerce, through medium-and long term finance and equity investments. In its lending programs, INDEBANK gives • preference to projects sponsored and financed by Malawian interests, and encour- ages foreign investors to find local partners. The projects it has so far helped to finance are profitable, relatively labor-intensive and primarily based on local raw materials. The World Bank loan, the first to INDEBANK, will enable the institution to achieve its planned higher investment level. The loan will help finance invest- ments in projects in industry, agro-industry and tourism, totalling about $18.9 mill ion. These projects are expected to create about 1,100 jobs. Through its investment of $562,000, the IFC will provide both financial Qssistance to support INDEBANK's operations as well as technical assistance to its management by being represented on lNDEBANK 1 s Board of Directors~ The investment will also meet the IFC's objectives of supporti~g the private s~ctor in the smaller and poorer countries through·~stablishing closer links with local development finance companies. The $3 million World Bank loan to INDEBANK, guaranteed by the Republic of Malawi, will have a repayment period of 17 years, and carry an interest rate of 7.5% per annum . .~ NOTE: Money figures are expressed in U.S. dollar equivalents.