Announcement of IFC Makes First Investment in Malawi Six Million US Dollars Loan for Textile Project on March 16, 1976

I ntemationa! Finance Corporation ;.;-- 1818 H Street, N.W. • Washington. D C. 20433. U.S.A 202-393-6360 -;~: .• IFC Press Release No. 76/4 March 16, 1976 IFC Makes First Investment in Malawi $6 Million Loan for Textile Project The International Finance Corporation ( IFC) , an affiliate of the World Bank, is making its first investment in Malawi by joining British and Malawian interests in a $12. 4 million ex,pansion of a fully-integrated textile mill in Blantyre. The $6 million IFC loan is being made to David Whitehead and Sons (Malawi) Limited with the balance of the project financing being provided by a Commonwealth Development Corporation loan of approximately $2.7 million, an Investment and Development Bank of Malawi loan of $470,000, and by suppliers' • credits and cash generation. The Company's shareholders are David Whitehead (Technical Services) Limited (a subsidiary of the David Whitehead international textile group headquartered in the United Kingdom), the Malawi Development Corporation, and Press (Holdings) Limited, a Malawian company. The expansion consists of the installation of new spinning, weaving, printing and finishing equipment. It will increase the Company's output by 6 million linear yards to 30 million linear yards a year and permit it to produce a range of wider-width fabrics that are now imported. The project will utilize locally-grown cotton, provide direct employment for some 350 Malawians and is expected to result in net foreign exchange savings of over $500,000 a year. Th~ project supports the Government's aim of making Malawi more self- sufficient in textiles and complements World Bank-assisted agricultural projects which will increase cotton production. (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477-5770).