Finca, KfW sign K2.5bn loan facility to boost SMEs
Foundation for International Community Assistance (Finca) Malawi and German State-owned Development Bank (KfW) have signed a $3.4 million (about K2.5 billion) deal to broaden the country’s financial services by boosting financing of micro, small and medium-sized enterprises (MSMEs).
In a statement posted on the company’s website, Finca Malawi chief executive officer Christopher Kizza is quoted as having said that the deal will benefit Finca’s customers with improved access to an array of products and services that will translate to increased productivity, competitiveness and employment generation.
and other officials look on
He said: “The strategic cooperation and synergies between Finca Malawi and KfW will support our efforts to digitalise the firm’s business, support our capital structure and grow our portfolio.”
On his part, KfW senior project manager Patrick Schreiber said the two institutions are committed to achieving positive social impacts while employing commercial principles that require sustainable financial results.
“We share Finca’s values and strongly believe in the virtue of microfinance to alleviate poverty, create jobs and improve living conditions for Malawians,” he said.
According to africabusinesscommunities.com, this facility marks a new milestone in the partnership between the two institutions, with KfW being a key minority shareholder of the Finca impact finance network.
KfW and Finca Malawi’s impact finance network are both dedicated to achieving positive social impacts while employing commercial principles that require sustainable financial results, according to Finca Malawi.
The local financial firm recently introduced a mobile banking platform to improve access across the country, particularly in rural areas to create convenience and speed for our customers.
The arrangement has recently also issued bond offerings in Finca subsidiaries in Pakistan, Nicaragua and Armenia, allowing greater flexibility to manage foreign exchange and geographic risks.
Finca Malawi is a licensed deposit-taking institution established in 1994, and currently serves more than 50 000 customers across its 23 branches and expanding agent network countrywide, according to information posted on its website.
KfW finances and supports programmes and projects that mainly involve public sector players in developing countries.
