The Challenge
MSMEs in Malawi are faced with a lot of challenges, including: low access to finance, lack of proper financial infrastructure which contribute to high cost of wholesale funding available for Micro Finance Institutions and smaller banks which they pass on to their borrowers, lack of capacity among firms, lack of appropriate technological infrastructure and awareness, which contribute further to the perception of high risk of MSMEs and consequently their high cost of borrowing and also challenges occasioned ;by the Covid-19 implications.
The Solution
Financial Inclusion and Entrepreneurship Scaling (FInES) Project is a five-year Government of Malawi project being implemented by the Reserve Bank of Malawi under the Project Implementation Unit (PIU) with support from the World Bank. The project is aimed at increasing access to financial services, promoting entrepreneurship and capabilities of Micro Small and Medium Enterprises (MSMEs) in Malawi including addressing COVID-19 implications. The project cost is USD86 million with the entire amount financed by the International Development Association loan
The FInES Project has four main components namely: liquidity enhancement to MSMEs, scaling entrepreneurship and building firm capabilities, enhancing the enabling environment for supporting the financial inclusion and growth of entrepreneurs and project implementation support
Approach
Liquidity Enhancement, Financial Inclusion, Capacity Building of Micro Small Medium Enterprises, Environmental and Social Management Systems, Digital Financial Services, Consumer Protection and Financial literacy
Implementation Period
November 2020 - September 2025
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