The Export Development Fund (EDF) more than doubled its support for small and medium enterprises (SMEs) in 2024, disbursing K14.1 billion up from K6 billion in 2023 with a focus on agro-processing, tourism and mining.
Agro-processing alone accounted for 56 percent of total disbursements, followed by tourism at 30 percent and mining at eight percent.
EDF’s 2024 Integrated Annual Report shows the fund’s net profit rose to K18.9 billion from K9.7 billion the previous year while its total assets grew to K115.7 billion from K95.1 billion in 2023.
The gains came despite high inflation, foreign exchange shortages and gross domestic product growth slowing to 1.8 percent in 2024.
EDF said its investment strategy aligns with national priorities under Malawi 2063, focusing on sectors with clear economic and social value.
In 2024, EDF-financed projects created or preserved 791 jobs, 420 of them benefiting women and youth, bringing the total employment impact to over 40 000 jobs since its inception.
Yet despite these advances, concerns persist over transparency and equitable access. Economist Velli Nyirongo said in an interview that EDF plays a catalytic role in easing financing constraints, but its impact on SME-led industrialisation and export diversification remains limited in scope.
“Many beneficiaries are concentrated in urban centres, while rural-based and informal SMEs, particularly women- and youth-led enterprises—remain underserved,” he said.
Mach Milk Company factory manager Hastings Thondolo said in an interview on Friday that limited access to capital hinders his firm’s ability to fulfil large-scale contracts.
“At the moment, we are supplying some local shops in Blantyre, but we do not have the finances required to finance a long-term contract demanded by major retail chains such as Chipiku and Shoprite,” he said.
Thondolo said the absence of publicly available impact data, makes it difficult to assess how EDF financing translates into exports or industrial transformation.
EDF continues to pursue strategic initiatives as in 2024, its Precious Metals and Minerals Unit purchased 131 kilogrammes (kg) of gold, exceeding its 100kg target, bringing the cumulative total to 302kg valued at $25.7 million (about K45 billion).
The unit seeks to stabilise gold prices, support small-scale miners and promote responsible trade.
EDF also expanded gemstone exports to markets in Germany, Sri Lanka and the United States.
On the agribusiness front, EDF enabled Nascomex, the commercial arm of National Association of Smallholders in Malawi (Nasfam) to supply maize grits to Castel Malawi, reducing import reliance.
EDF also financed the construction of Rudevit’s organic fertiliser plant in Blantyre, expected to create at least 100 jobs and reduce fertiliser import dependency.
In the cannabis sector, EDF supported MMC Limited to establish a medicinal cannabis processing facility in Lilongwe, projected to generate up to $100 million (about K175 billion) annually in export revenue and employ over 50 people.
The investment, made through a mix of debt and equity, signals a shift away from reliance on tobacco towards high-value, legal exports.
