By Lovemore Khomo, Contributor
Reserve Bank of Malawi (RBM) has expressed the need for commercial banks to ensure inclusion and accessibility of FInES loans in order to support Macro-Small and Medium Enterprises-MSMEs in the country.
RBM Deputy Governor William Matambo was speaking during media orientation meeting on Financial Inclusion and Entrepreneurship Scaling (FinES) Project which mains at improving financial inclusion through increasing access to financial services, promote entrepreneurships and capabilities of MSMEs in Malawi.
Although the agreement was signed in 2020 between government and World Bank, the project started operations in mid-2021, it worth US$86 million which is equivalent to K86 billion.
Matambo explained that FInES project has been introduced to curb challenges that exist in order for MSMEs access bank loans; and that RBM is mandated to oversee FInES activities that also distribute those loans through commercial banks for MSMEs have access.
“Micro, Small and Medium Enterprises in Malawi face a lot of challenges, such as the lack of access to finance, lack of capacity to grow their businesses and lack of appropriate technological infrastructure to support these businesses among others,” added Matambo.
RBM Deputy Governor explained: “These challenges have been well documented in a number of studies including the recent Finscope survey. The FInES project was set up to address some of these challenges.”
Reserve Bank has also expressed some challenges the project faces since its inception, one of it being lack of awareness of the project to the general public particularly those doing business.
Matambo has therefore advised journalists to be agents of sharing information by providing platform in order to raise awareness on FInES project.
In his remarks, Ephraim Mazizwa from Centenary Bank formerly My Buck’s Banking Cooperation, which got K2. 5 out of K14 billion approved from RBM help distribute the FInES loans project, said they already began giving out these loans as 54, 84 and 22 MSMEs have accessed loans in South, Central and North part of Malawi respectively.
“We would reach to over 500 MSMEs. This project is very helpful and might improve lives and businesses in the country.” Mazizwa said
Also, Acting Chief Executive Officer for Malawi Agricultural and Industrial Investment Corporation-MAIIC Lloyd Banda lamented significance of MSMEs follow applications procedures to access loans for agricultural activities.
