Africa-Press – Malawi. National Bank of Malawi has said it has opened a funding window for small and medium entrepreneurs (SMEs) in the agricultural sector having observed that many people in this sector face working capital.
According to the bank, the funding window will enable farmers to access loans from the bank to enhance their businesses, such as adding value, transportation, buying agricultural equipment, and irrigation system equipment among others.
Speaking during SMEs Agribusiness Customer Interaction Product launch Program in Mzuzu on Friday, National Bank’s Head of Retail Banking Division, Oswin Kasunda, said the aim of the facility is to boost the SMEs businesses.
Kasunda said Malawi has an agro-based economy which means the agriculture sector needs to be heavily financed hence opening the window.
“This initiative will enable farmers to invest in equipment, value addition, irrigation systems, and to buy raw materials and crops, ultimately enhancing their businesses,” Kasunda said.
Annastasia Kapeta, Sales and Marketing Officer of Kwanza Cocoa Company, acknowledged the financing challenges saying her company often faces problems with additional labor during peak production periods.
Kapeta said that the bank’s financing program would assist the company, especially during large-scale production needs.
“We also use raw materials in chocolate production, and this program will help us engage with local farmers and purchase more materials, and we also want to buy heavy machinery for our chocolates which will need a large scale of financial support,” Kapeta said.
The event was held under the theme, “Unlocking SME Agribusiness Growth through Access to Working Capital Finance.
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