Reserve Bank of Malawi officials
The Reserve Bank of Malawi (RBM) has said it has reached out to 33,000 micro, small and medium enterprises (MSMEs) with its Financial Inclusion and Entrepreneurship Scaling (FInES) Project.
RBM Deputy Governor William Matambo was speaking at Mponela in Dowa on Tuesday during a media orientation workshop.
According to Matambo, 46 percent of the beneficiaries are women and 12 percent are youths.
He was, however, quick to note that the bank is of the view that a majority of MSMEs are not aware of the project and what to do in order to access the products offered by the project.
“For example, apart from providing finance to MSMES, most business owners may not be aware that the project has supported the office of the Registrar General to develop an online business registration platform and also assist to integrate the system with institutions such as the National Registration Bureau, Malawi Revenue Authority, Accountant General Department, Mobile Network Operators and banks.
“In addition, business may not be aware that the project has partnered Smedi to train entrepreneurs in the country in order to enhance their skills and business development Government is committed to supporting MSMEs and creating a conducive environment for business growth by increasing access to finance, capacity building and financial infrastructural development,” Matambo said.
He challenged the media to enlighten the public on the benefits of the project.
“As RBM, we realise the important role the media can play in increasing awareness and advocating positive change from project beneficiaries.
“This orientation was therefore organised to partner you, as media, realising the major role you play in this space,” he said.
FInES Project Manager Mark Lungu said, in terms of value, the project has disbursed over K32 billion.
According to Lungu, despite the successes registered so far, the project is facing some challenges, including partner financial institutions requiring collateral when lending out resources.
“So most of the people do not have collateral . But we are sorting it out by providing a partial credit guarantee that is being administered by the Malawi Agricultural and Industrial Investment Corporation at the moment,” he said.
He also bemoaned the subdued participation of the youth in the facility, saying, at 12 percent, the youth are below the targeted 20 percent mark.
FInES is a project of the International Development Association of the World Bank that aims to increase access to financial services and promote the entrepreneurship and capabilities of MSMEs in Malawi, including addressing the negative economic effects of Covid.
The Government of Malawi obtained a loan amounting to $86 million from the bank through a Financing Agreement signed on November 5 2020.
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