BLANTYRE-(MaraviPost)-The Malawi Agricultural and Industrial Investment Corporation (MAIIC) plc is implementing a US$24 million (approximately MK42 billion) Blended Rural Finance Facility (BRFF) to expand access to affordable financing for rural businesses and economically active beneficiaries across Malawi.
MAIIC Managing Director Taz Chaponda said the facility is designed to channel affordable financing to rural enterprises through participating financial institutions, including commercial banks, development finance institutions, microfinance institutions and savings and credit cooperatives.
“MAIIC is not lending directly to the final beneficiaries under the BRFF. Instead, it is providing wholesale financing to eligible participating financial institutions, which then assess and lend to qualifying rural businesses.”
“As of September 30, this year, approximately K27.34 billion, representing 65 % of the facility’s total envelope, has been approved or committed to 26 participating financial institutions. Actual disbursements to these institutions stand at K5 billion, while 13 institutions have received funding,” said Chaponda.
According to Chaponda, the facility’s latest position, at the beneficiary level, participating institutions have reached approximately 2,714 beneficiaries and deployed about K2 billion.
“The facility is prioritising rural economic activities, including agriculture and its value chains, rural micro, small and medium enterprises, women- and youth-led businesses, and other eligible income-generating activities,” said Chaponda.
Agriculture expert Gresham Kamnyamata said the facility will help improve agricultural productivity by supporting crop and livestock farming, increasing household production and raising farmers’ incomes.
“Farmers should have access to loans at low interest rates so that they can increase production, improve their incomes and help Malawi become self-reliant in food production,” said Kamnyamata.
Kamnyamata also urged MAIIC to strengthen access to affordable credit and ensure the facility delivers tangible benefits to rural communities.
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