Govt auditing loans program, Medf to be rebranded– Mlusu

Minister of Finance Felix Mlusu has said government has put in policy measures to support implementation of the 2020/21 national budget, including the rebranding of the Malawi Enterprise Development Fund (MEDF), the mega loan program aimed at developing and reviving small scale businesses for the youth and women in the country.

Minister of Finance Felix Mlusu: Medf to change name.-Photo by Govati Nyirenda, Mana

Government wants the loan scheme to become one of the Malawi’s strategies to achieve government’s vision 2063 goals.

The Finance minister said when he presented a K2.2 trillion maiden substantive budget for the Tonse Alliance administration, in Parliament on Friday that government has instituted a financial audit and is in the process of reviewing operational models and procedures of MEDF.

“This process will lead to a total rebranding, including change of name of this very important institution,” Mlusu said.

According to Medf chief executive officer Mervis Mangulenje, they will not be able to recover about K8.9 billion worth of loans issued by its predecessor Malawi Rural Enterprise Development Fund (Mardef) in 2015.

Medf is a branded version of two former State-owned enterprises namely Mardef and Youth Enterprise Development Fund (Yedef).

The government is trying its best to ensure that the youth and women have a viable financial access in the country.

Medf was formed by an Act of Parliament in February 2014 as the only microfinance limited company owned by the government. The objective of the fund is to assist Malawians who wish to set up small businesses in the country by providing them with financial means of setting up new businesses or expanding one.

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Bentby from Chigunda Dwangwa

the govt should make sure that all who were awarded this loan have successfully repaid back the loan. in malawi there is a filth culture where people takes loan and when govt changes they do not pay back

3 years ago

They should be trace and pin them down to repay the loans taken through Dpp admnistration

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