Malawi Govt signs $7.5m financing agreement with United States Africa Development Foundation
Malawi Government through Minister of Finance , Simplex Chithyola Banda has today signed $7.5 Million financing agreement with United States Africa Development Foundation (USADF) at a ceremony which took place at Bingu International Convention Centre (BICC).
Chithyola was accompanied by Minister of Foreign affairs Nancy Tembo and Minister of Gender Hon Jean Sendeza.
In his speech Minister of Finance hailed the project saying will do a long way in expanding and giving life to agri-businesses and small scale and medium enterprise.
The Minister said the MoU signed is a renewal of commitment towards promoting the development of smallholder agricultural producers, cooperatives, farmer groups, Small-Scale Agribusiness (SSAs), Small and Medium-sized Enterprises (SMEs) and other community based Non-Governmental Organisations in Malawi.
“Our main aim is to improve the living standards for poor and marginalized populations in the country by providing them with grants that help create tangible benefits such as increasing number of jobs in a community, improving income levels, and addressing social development needs, ” he said.
He said under this MoU, the Government of Malawi and USADF will each reserve up to $750,000 within respective budgets annually to finance program activities under promotion of Agriculture Development and Agribusiness and Small and Medium-Sized Enterprises in Malawi.
He said the total contributions expected over the life of this agreement is $7,500, 000 (equivalent to K12.750 billion).
The Minister has since hailed Mr. Travis Adkins, the President of United States African Development Foundation who travelled all the way from Washington DC to participate in this colorful event and more importantly to sign this MoU in his capacity.
“We do not take this for granted, Mr. President and your team, please feel at home. As a country, we are very grateful for your generous contributions and commitment towards implementation of initiatives that directly contribute to the realization of MW2063 under the pillars of agricultural productivity and commercialization,”
The U.S. African Development Foundation, USADF President , Mr. Travis Adkins says the US believe the agreement will go along way in changing the lives of Malawian people. The president said USADF is an independent U.S. Government agency established by Congress to invest in African grassroots organizations, entrepreneurs, and small and medium-sized enterprises, also called SMEs.
He said USADF’s investments will help in promoting local economic development by increasing incomes, revenues, and jobs and creating pathways to prosperity for marginalized populations and underserved communities.
He said African SMEs provide an estimated 80 percent of jobs across the continent, representing an important driver of economic growth.
He added that Sub-Saharan Africa alone has 44 million micro, small, and medium enterprises, almost all of which are micro.
“For these businesses to grow, create more jobs, and generate economic growth, they need access to capital, ” he said.
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