Malawian small firms to EARN BIG

About 143 Malawian start-ups have been shortlisted for the 2025 edition of Tony Elumelu Foundation (TEF) entrepreneurship programme, placing Malawi among top seven countries with the highest number of shortlisted candidates.

Nigeria, the programme’s host country, led the selection with 1 463 nominees, followed by Benin with 206, Rwanda 170, Ghana 166, Malawi 143 and Kenya with 23.

Malawi’s placement shows the increasing participation of local entrepreneurs in regional funding opportunities, according to TEF founder Tony Elumelu.

Each selected venture will receive a $5 000 (about K8.75 million) grant, marking a significant milestone for the country’s start-up ecosystem.

The businesses will begin a comprehensive business management.

Speaking during the event, Elumelu observed that providing financing for African start-ups is one of the most viable and effective ways to spur economic transformation across the continent.

He said: “We know the challenges that these young entrepreneurs face in their residences and businesses.

“We also know that if empowered and supported, they would fix the problems and challenges that countries face across the continent.”

Elumelu thanked development partners, the United Nations Development Programme and the African Development Bank for providing the financial support to catalyse economic transformation across the continent.

In his remarks, TEF chief executive officer Somachi Chris-Asoluka said the foundation has since its inception in 2010 provided financing to more than 10 000 African entrepreneurs and helped to create one million jobs.’

“The entreprenuers we have supported have also created $4.2 billion in revenues. These entrepreneurs demonstrate again and again that [business] ideas are the lifeblood of the African continent,” he said.

The TEF Entrepreneurship Programme, a flagship initiative supporting African start-ups, provides not only financial support but also business training and mentorship.

For Malawian start-ups, this funding offers a vital boost at a time access to capital remains a major challenge for small and medium enterprises (SMEs).

Chamber for Small and Medium Enterprises Association executive secretary James Chiutsi noted that the support offered by the TEF will help face major problems faced by local entrepreneurs lack of sustainable financing and lack of skills.

He said: “In Malawi, the cost of borrowing is high. Aside from that, when entrepreneurs access financing, there is a lack of continuity.

“Our entrepreneurs also lack capacity in business management and developing business plans.”

Chiutsi urged organisations such as TEF to develop reliable development banks that can provide sustainable and low-cost financing to local entrepreneurs to translate their vision to economic opportunities.

“We need more development banks to fund these start-ups. Commercial banks do not offer competitive terms, including asking for repayments within a month. That is not sustainable. We can achieve more with development banks,” he said.

Malawi Agriculture and Industrial Investment Corporation, incorporated in 2018, is the main financier that works with a development focus.

Malawi Stock Exchange-listed National Bank of Malawi plc has a specialised NBM Development Bank.

Commercial banks in Malawi also offer low-cost financing under the Financial Inclusion and Entrepreneurship Scaling project, a World Bank supported initiative implemented by the Reserve Bank of Malawi.