Malawi Government has hailed Standard Bank of Malawi Plc for partnering with it towards improvement of Lilongwe’s transport network after signing a K34.5 billion investment towards rehabilitation of Kenyatta and Mzimba road network
This is the largest local-currency financed arrangement with government to turn the Kenyatta-Mzimba road into Malawi’s first ever 6-lane highway.
The deal was signed on Thursday in Lilongwe by Standard Bank and Minister of Finance, Sosten Gwengwe, who hailed Standard Bank for leading the private sector to facilitate economic transformation through financing of Malawi’s transport and infrastructure.
“The upgrade of the Kenyatta Drive and Mzimba Street is a fulfilment of the MW2063 Pillars 9 and 2, which state that Malawi will build resilient infrastructure, promote sustainable industrialisation, 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,” Gwengwe 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 the Minister.
As joint lead arranger, Standard Bank Malawi raised K21 billion for the road construction and Chief Executive Officer, Phillip Madinga 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.”