About 19 local firms have received support from the Growth Accelerator Malawi through the GA Entrepreneurship challenge to invest in business processes and equipment to catalyse growth and development in their ventures.
The firms were unveiled at the GA Malawi Offices in Lilongwe on Friday.
In her opening remarks at the unveiling ceremony, Norwegian Ambassador Ingrid Mikkelsen expressed optimism that the low-cost financing options provided by the Growth Accelerator will empower local entrepreneurs to accelerate growth in their business ventures.
She said: “SMEs face a series of challenges such as fuel shortages, forex shortages and high borrowing costs.
“We hope that the accelerator provides a low-cost financing option to propel business growth.”
Speaking separately, United Nations Development Programme resident representative Fenella Frost said investing in the private sector will be key to reducing poverty and creating wealth in the country’s economy.
Local SMEs such as Cale Farms, Blantyre Dairy, Ekhei Farms and Smart Deliveries, among other enterprises, received up to $40 000 (about K70 million) in co-financing to support their business ventures.
The financial support caters for the procurement of new
equipment as well as the installation of modern software and features.
In his pitch at the business meeting, Blantyre Dairy 2015 managing director Simeon Danger said the company, which manufactures dairy products, plans to invest the money to buy new equipment to increase its daily milk collection capacity from 1 200 to 5 000 litres.
He said: “This expansion is expected to have a significant impact on the local economy, providing farmers with a reliable market for their milk and creating new jobs.
“By increasing milk production, Blantyre Dairy is helping to
strengthen the dairy industry in Malawi and improve food security in the region.”
By the end of the project, the company aims to increase its revenue to K700 million and create at least seven new jobs.
In a separate presentation, Candy Kulisewa, chief executive officer of Cale Farms, another beneficiary of the accelerator programme, said she will use the money to construct a modern factory equipped with a plantain production line.
This new facility will enable the company to process and package plantains into value-added products, reducing the country’s reliance on imported goods.
The company’s projected impact is significant, with plans to increase the incomes of 100 farmers, generate total annual revenues of K100 million at the end of the project and create at least eight jobs.
The GA Entrepreneurship Challenge was launched in 2018 in a partnership with the United Nations Development Programme and the Royal Norwegian Embassy and Growth Accelerator Malawi.
The GA is currently receiving concept notes for the ninth cohort of entrepreneurs.
