The minister of Transport and Public Works Jacob Hara is optimistic of the quick completion of Kenyatta drive and Mzimba streets projects after Standard Bank Plc has led the private sector to facilitate economic transformation through financing the projects.
Hara was speaking in Lilongwe on Thursday after the official signing ceremony of the MWK34.5 billion Kenyatta Drive and Mzimba Street Road rehabilitation project.
The Agreement binds the Roads Fund Administration (RFA) as project implementor and Standard Bank Plc as the lead financier and Joint arranger, Old Mutual as co-financier and joint arranger and Continental Asset Management as co-financier.
“To us this means work and more work because we have been crying for financing when we started these projects and finally financing is here, this excites us we know people have been waiting for a very long time to see progress for these projects so now we know we can move faster and quicker towards the completion of the projects” said Hara
Minister of Finance Sosten Gwengwe who was the guest of honour hailed Standard Bank Plc for leading the private sector to facilitate economic transformation through financing of Malawi’s transport and infrastructure.
“The Government of Malawi would like to recognize Standard Bank, Old Mutual and Continental Asset Management, in their respective rights as co-financiers, for financing Malawi’s development agenda. The upgrade of the Kenyatta Drive and Mzimba Street is a fulfillment of the MW 2063 Pillars 9 and 2 , which state that Malawi will build resilient infrastructure, promote sustainable industrialisaton, promote innovation as well as develop low cost and competitive transport systems across all modes. Completion of the upgrades will lead to the decongesting of traffic and accelerate movement of people and goods in Malawi’s administrative capital,” he said.
The financial agreement clears the way to accelerate substantive construction works for the road, which will become Malawi’s first six-lane road. Preparatory and other ground-breaking works for the project begun in 2021.
“As government, we value the role private sector plays in this economy and we will therefore continue to create an enabling environment to ensure that our private sector fully engages itself in the economic development of the country. This financing partnership between the RFA and the consortium of financiers, would not have materialized if the environment was not enabling enough for the private sector to participate. Let me encourage other private sector players to emulate what the consortium of financiers have done,” said Gwengwe.
As Joint Lead Arranger, Standard Bank Malawi raised MWK21 billion for the road construction.
Phillip Madinga, Standard Bank Plc Chief Executive said: “Our capability to finance a project of this stature highlights Standard Bank’s commitment to contribute to economic growth in line with our purpose which is “Malawi is Our Home, We Drive her Growth. The Bank has a desire to see the country achieve remarkable progress in key sectors such as roads and infrastructure.”
Old Mutual will contribute MWK11 billion and Continental Asset Management will contribute MWK2.5 billion towards the project.
