National Economic Empowerment Fund (Neef) chief executive officer Humphrey Mdyetseni has asked residents in Karonga District not to default paying back their loans.
He said this on Friday during a meeting with the district’s community leaders, including chiefs, area development committees and councillors on Neef loan products and procedures.
Mdyetsenisaid if traditional leaders engage their subjects on the importance of paying back loans, Neefwill be able to collect the money and reach out to many people.
“Karonga District is not doing well in loan repayment. That is why we have engaged community leaders to help raise awareness on the importance of repaying the revolving loans to enable others to benefit from the initiative,” he said.
Mdyetseni said Likomais the only district in the Northern Region which is doing well with 93 percent loan repayment rate with Karonga being the least.
“Our wish is to disburse K28 billion in the 2022/23 financial year in Malawi and so far we have already disbursed K8 billion,” he said.
During the meeting, a beneficiary Agnes Nyamwerasaid the loan boosted her tailoring business.
“I have borrowed money from Neef for three times. I used the money to buy two sewing machines for my business. I have also employed two people,” she said.
In an interview, Paramount Chief Kyungu of Chitipa and Karongasaid chiefs willensure that Neef officers are not threatened when engaging people to repay the loans.
“We will support the initiative because it has the potential to transform people’s lives in in Chitipa and Karonga districts,” he said.
According to Neef, the institution has so far disbursed about K1.5 billion in Karonga District but has collected about K700 million, repressing 62 percent repayment rate.