Malawi - Private Sector Development (formerly Financial Sector II)

Report No. PIC840 Project Name Malawi-Priv. Sect. Dev. (formerly Fin. Sector II) Region Africa Sector Lending Project ID MWPA1674 Full Project Name Malawi-Private Sector Development (formerly Financial Sector II) Implementing Agency Government Ministry of Finance P.O. Box 30049 Lilongwe, Malawi Contact: Secretary to the Treasury Tel: 265 782100 Fax: 265 781679 Date Prepared July 1994 Projected Board Date July 1995 Objectives 1. The key to the development of the Malawian economy lies in the promotion and stimulation of the private sector. While Government has already taken a number of important steps to develop the private sector, the proposed project would be the first project specifically targeted at the development of the private sector. Special emphasis would be placed on the further development of the manufacturing sector as an engine of growth and in particular, export promotion and the financing of investment in export-oriented activities. Attention would be paid to the deepening of the financial sector, in order to provide wider and improved financial services to the private sector. The development of small businesses would also be targeted, as the current institutional infrastructure for small businesses is weak. Description 2. Project components have not yet been identified. However, it is expected that components will include a line of credit to finance investments in productive sectors, and technical assistance aimed at developing and strengthening private sector support institutions (including small business support institutions, the Malawi Investment Promotion Agency (MIPA), the Malawi Export Promotion Council (MEPC)), and at further developing money and capital markets. Implementation 3. Design of the project and monitoring of implementation would be coordinated by the Ministry of Finance. Because of the private sector orientation, however, most of the implementation would be done at the private sector level (e.g., financial institutions). Cost and Financing  4. Total project costs are tentative, pending project identification. However, it is estimated that costs will be about US$38 million, with an IDA financing of about 80 percent of total costs, depending on availability of co-financing. Environmental Aspects 5. Environmental assessment of Category [C] has been requested. Areas to be reviewed would include possible environmental impact of projects financed. Contact Point Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. -2-