As the government is trying to recover from the recent economic woes by privatizing Malawi Savings Bank (MSB) and Inde Bank, a Kenyan firm and five other local firms have expressed interest to re-capitalize the institutions.
Information gathered by FaceofMalawi show that National Bank of Malawi, FMB, Mulli Brothers Holdings Limited, Prudential Holdings Limited and Commercial Bank Africa Group from Kenya placed bids to take over Inde Bank while FDH is the only bidder for MSB.
Making the remarks at the public opening of the bids on Monday, Public Private Partnership-PPP Chief Executive Officer Jimmy Lipunga revealed that the successful bidder would be announced within three weeks after the evaluation of the bids based on their technical and financial ability to take over the two government-run banks.
“The way to re-capitalize these institutions is through private sector participation instead of government pumping in more resources. We are therefore inviting the private sector to come in as it did with previous government entities,” Lipunga said.
He said the decision by government to privatize the institutions would also give other players in the banking sector a level playing field through fair competition.
He also assured that the selection process of the two institutions would be done in a transparent manner having engaged independent auditors Delloitte as advisors.
Commenting on the position of MSB in the wake of some Members of Parliament objecting to the privatization Lipunga said they government still went ahead with the bidding process after making further consultation.
“This is a process that has been guided by professional input and independent experts have done due diligence reviews of these entities. Their recommendation in terms of how we proceed has taken into account so many interests,” he said.
Lipunga said that government continues to privatize various institutions in order to promote and foster economic efficiency through the reduction of monopoly and also to ensure that there’s Malawian participation in the economy.