Malawi to benefit from MK27.1bn earmarked for Least Development Countries
Malawi is among four Least Development Countries (LDCs) earmarked for the disbursement of a US$35 Million (approximately MK27.I billion) funding under the Sustainable Development Fund (Joint SDG Fund).
Speaking in an interview with Nyasa Times on Thursday, the Minister of Industry, Roy Kachale Banda, said the Fund will be provided through the United Nations (UN) Malawi and other partners under Build Malawi Fund.
“The project is earmarking raising US$35 Million to finance SMEs in Malawi and so far, they have raised US$8.1 million which is going to SMEs in Agro-processing and manufacturing, just to mention a few. We hope to service 75 000 entities by end of three years and not less than 30 per cent of the businesses will be those run by women and youth,” he added.
Kachale emphasized that the Fund seeks to end poverty and hunger by increasing investment in agriculture and other manufacturing and service supply chains as well as increasing productivity within these supply chains through technology and innovation.
The minister said through the facility, small-scale producers will be accessing long-term debt, which will boost their businesses and create jobs.
On Tuesday this week, Kachale led a Malawi delegation that participated in a United Nations General Assembly (UNGA) side event on Sustainable Development Finance in LDCs with a focus on Malawi held virtually.
UN Malawi Resident Coordinator Maria Jose Torres Macho said the side event’s objective was to showcase how the UN Development System is innovating through collaboration to create joint programs and initiatives, including partnerships with private sector to achieve greater leverage for financing the SDGs specifically the Least Development Countries.
The side event was also attended by UNDP Under Secretary- General Ms. Usha Rao Monari, UNCDF Executive Secretary Preeti Sinha and Malawi Minister of Trade Sosten Gwengwe.
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The plan is to loan money to poor women and teens on a long term basis to create employment in the agriculture growing business. Majority of poor people are already in the agriculture growing business for themselves. Sounds like this program will end up with losses as the current NEEF loans. People expect gifts not loans causing those loans to go into default.