The Malawi Agricultural and Industrial Investment Corporation (MAIIC) reveals some companies defaulted on payment of loans due to the advent of the covid19 in the country.
Chairperson for the institution Donbell Mandala made the revelations during his institution’s engagement with the parliamentary industry and trade committee in Lilongwe.
According to Mandala, MAIIC has invested over 9 Billion Kwacha in some bankable projects in some companies since its inception in 2019, but the advent of the pandemic resulted into failure by some to repay on time due to loss of business.
However, speaking in an interview with Capital FM, Mandala could not reveal the volume of the non-performing loans at the peak of the pandemic.
Mandala has highlighted that defaulters were given extra time work on repayment of the loans.
“At the peak of the pandemic those in the hospitality industry and food production were the most affected companies but we understood that it wasn’t their fault, hence the extension,” Mandala said.
Meanwhile, the institution is appealing for more resources to support companies looking for bigger investments, as it only has about K2 Billion which will be disbursed when all necessary processes are done.
Mandala has observed that heavy investments would dilute their capital and will fail to invest in Small and medium scale companies.