Economic Association Of Malawi president Lauryn Nyasulu has said there is need for restructuring Malawi Development Enterprise Fund (MEDEF) to alleviate adverse effects of political interference on the loans to the youth who owns micro businesses with cash flow problems.
According to ECAMA significant numbers of youths have inverted or trying to come up with innovations but have no financial destination to take their dreams to.
This comes after critics have called on government to support the Kabaza operators to have ridding licenses and registering their motor cycles.
“It is always important to prioritise and preserve lives, the issue at hand is about safety our roads are not in good shape it could have been better if these operators were given enough time to have all requirements but it is absolutely important to ensure sanity in the transport sector, ” Nyasulu said.
ECAMA president added that financial literacy is of paramount important in the country stressing that 50% of Malawians does not have access to formal financial services.
“Government has done recommendable job by increasing MEDEF loan from 15 billion to the tune of MK 40 billion. MEDEF has to categorise the loan distribution to the youth and prioritise already thriving busineses now and post pandemic,” Nyasulu said.
She however uplauded government on financial inclusion to the youths who have limited access to the banks, saying the mobile wallet has greatly improved the landscape as government is trying to enhance use of these services by slashing transaction cost as Covid 19 response.
However maintaining low transaction cost beyond volume would go long way in financial inclusion in the long term.
Yonna Gomani, who applies his trade of video show in Area 25 Lilongwe, said the program needs overhaul, saying in the past the loans were being disbursed to the people that are not ready and have no business ideas.
“I would suggests that they should disburse the loan upon assessment of their ideas and businesses, I am proposing this because with the rate of illiteracy in the country it is almost impossible to average Malawian to use the loan sustainably and pay back, we end up having more defaulter’s” .
Social commentator Wonderful Mkuche said government has to make sure economy is working for all, youth inclusive.
” When things are good at macro level it also impact the micro level, but we need direct social developmental loans at MEDEF that can spur innovative growth that are in line with modern world, ” he said.
He added that they is more to be done in practice to uplift lives of young people
On July 17 2018 MEDEF is on records admitting that it was struggling to tract loan defaulter’s who by then according to MEDEF Chief Operations Officer Dingiswayo Jere said they owed the fund up to K5 billion.Follow and Subscribe Nyasa TV :