The Malawi Agricultural and Industrial Investment Corporation (MAIIC) plc has launched a US$24 million (about K42 billion) Blended Rural Finance Facility (BRFF) aimed at expanding access to affordable financing for rural businesses and economically active communities across the country.
MAIIC managing director Taz Chaponda said the facility is designed to channel low-cost 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,” said Chaponda.
He said that as of September 30, approximately K27.34 billion, representing 65 percent of the facility’s total allocation, had been approved or committed to 26 participating financial institutions.
“Actual disbursements to these institutions currently stand at K5 billion, while 13 institutions have already received funding,” he said.
According to Chaponda, participating institutions have so far reached about 2,714 beneficiaries, with roughly K2 billion disbursed at beneficiary level.
“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,” he said.
Agricultural economist Gresham Kamnyamata welcomed the initiative, saying it has the potential to boost agricultural productivity by supporting crop and livestock farming, increasing household output and improving farmers’ incomes.
“Farmers should have access to loans at affordable interest rates so that they can increase production, improve their incomes and help Malawi become self-reliant in food production,” said Kamnyamata.
He further urged MAIIC to strengthen access to affordable credit and ensure the facility delivers tangible benefits to rural communities.
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