NBS Bank, Opportunity International partner to boost access to finance
Malawi Stock Exchange-listed NBS Bank plc has signed a partnership agreement with Opportunity International to de-risk and capacitate smallholder farmers to access finance.
The partnership, unveiled on Friday in Blantyre, seeks to address long-standing barriers that have excluded rural farmers from financial services.
Speaking during the ceremony, NBS Bank chief wholesale banking officer Alfred Nhlema said the partnership is designed to bridge the financing gap for smallholder farmers.
He said: “Most smallholder farmers do not have access to formal finance. What Opportunity International does is to go to rural areas, capacitate the farmers, train them in good agricultural practices and prepare them to access loans.”
Nhlema said through the initiative, smallholder farmers will be able to scale up their operations from using rudimentary tools such as hoes to acquiring tractors and processing equipment, thereby gradually transitioning into commercial or mega farming.
In his remarks, Opportunity International head of agriculture finance Timothy Strong emphasised the importance of collaboration in solving the agricultural financing gap, which he said stands at $26 billion globally.
The partnership is expected to increase production capacity among farmers, strengthen Malawi’s efforts to commercialise agriculture, which contributes about 25 percent to the country’s gross domestic product, create jobs and improve rural livelihoods.
