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IFC TO INVEST IN MALAWI'S FIRST STOCKBROKING COMPANY AND HELP ESTABLISH MALAWI STOCK MARKET


Asimina Caminis
(202) 473-9737


WASHINGTON, D.C., Nov. 10 -- The International Finance Corporation has approved an equity investment of US$112,500 equivalent in Stockbrokers Malawi Limited (SML), representing a shareholding of 22.5 percent. SML will be the first stockbroking company incorporated in Malawi. It will be regulated by an independent committee with members appointed from the private sector. IFC has provided technical assistance to the Government of Malawi on the establishment of a stock market. The Malawi Stock Market will be modeled on Botswana's stock exchange, for which IFC provided a feasibility study. A number of blue-chip companies are currently being considered for listing, and long-term government bonds are expected to be traded on the market. Edwards and Company (Private) Limited, Zimbabwe's leading stockbrokerage, will be the technical partner and project manager under a three-year management agreement and will also take an equity stake in SML. SML's other shareholders are Malawi Development Corporation, the Investment
and Development Bank of Malawi Limited, and Nederlands Financierings-Maatschug Voor Ontwikkelingslanden (FMO), the Netherlands' development agency. IFC's investment will be made through the Africa Enterprise Fund (AEF), a vehicle for financing small and medium-sized projects with costs between US$250,000 and US$5 million. IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector projects in developing countries.