The Project Sponsor is Malawi Property Investment Company Limited (“MPICO”). MPICO together with its main shareholder, Old Mutual Life Assurance Company (Malawi) Ltd (“Old Mutual Malawi”), will maintain a majority ownership in the Project. MPICO is the largest property company in Malawi and is the only listed property group on the Malawi Stock Exchange. It has a portfolio of 35 properties, predominantly commercial offices, but also residential, retail and industrial properties, in Lilongwe and Blantyre. MPICO is owned 55% by Old Mutual Malawi, 11.5% by Lincoln Investments and the balance is held by the public. Old Mutual Malawi is owned 100% by Old Mutual Plc which is listed on the London Stock Exchange. Old Mutual Plc has a market capitalization of about US$9 billion. The principal activity of Old Mutual Malawi is the transaction of all classes of life assurance savings and retirement funding business.

The project cost is US$37 million. IFC is considering an investment of up to US$12 million comprising of an A loan of up to US$10 million and a C loan of up to US$2 million. The balance of the funding will come from the Project Sponsors and institutional investors in Malawi and South Africa.

9.64 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	9.64
Equity

* These investment figures are indicative

Gateway Mall is situated in a prime location on the western side of Lilongwe at the intersection of the new Western Bypass to be constructed and the east-west highway linking Lilongwe with Zambia’s Eastern Province.

Key development impacts of the Project include: ???Provision of high quality retail infrastructure: Currently there is no shopping mall in Lilongwe, the capital city of Malawi. The Project will support the development of high quality retail that meets international standards. With strong international anchor tenants and a range of retailers including smaller local companies, the shopping mall will bring quality retail services closer to the community, thus minimizing costs to consumers and helping to establish a strong retail destination; ???Job Creation: The Project will create jobs both directly and indirectly during construction and operational stages; ???Enhanced local supply linkages: The Project will increase business opportunities to local suppliers of goods services; and ???Formalization of the retail sector: The Project will enhance the formalization of the retail sector in the country, which is currently mostly informal. This will help increase the tax revenue to the government.

1. Advice to enhance environmental and social standards; 2. Assistance with energy efficiency and green building elements; and 3. Provision of long-term financing which is not readily available in Malawi.

The shopping centre will be located on a vacant portion of land in an area that is largely undeveloped. The Project Sponsors are both prominent organizations in Malawi and have engaged reputable companies to design and construct the centre. All the design parameters are based on recognized South African standards, and the relevant local and national government departments have been engaged on the project. The local municipality will provide the requisite services for the project, and the road network in the vicinity of the centre will be upgraded to accommodate the development. Specific actions have been defined in the project Environmental and Social Action Plan (ESAP) to enhance environmental and social performance, and the project Sponsor’s have the capacity to ensure compliance.

Thus this is a Category B project according to IFC’s Environmental and Social Review Procedure because of the limited number of specific impacts that may occur are site specific, and those impacts can be avoided or mitigated by adhering to generally recognized performance standards, procedures, guidelines or design criteria.