Project drills people on financial prudence
Karonga District Council chairperson Misheck Mwaijengo has commended Financial Inclusion and Entrepreneurship Scaling (FinES) project for training micro, small and medium enterprises (MSMEs) in servicing loans to reduce default rates.
Speaking in an interview on Monday, he said it was important for MSMEs, who are expected to get loans to boost their businesses, to know the importance of repaying the loans.
“The project seeks to reduce poverty levels through loans with low interest rates. Beneficiaries will also acquire knowledge and skills in business management, access to finance and markets. It is, therefore, important that beneficiaries pay back the loans,” said Mwaijengo.
Karonga business community representative Golden Gowa Nyasulu commended the FinES project.
Reserve Bank of Malawi (RBM) FinES project business development specialist Richard Zidana said he was pleased with the overwhelming registration of applicants for the loan.
He said: “I am pleased that so far, we have surpassed the $47 million (about K48 billion) target.
“We have reached out to at least 40 887 beneficiaries, representing over 100 percent and currently, 307 MSMEs are undergoing training.”
RBM is implementing a five-year FinES project with $86 million (about K87 billion) support from the World Bank to increase access to financial services, promote entrepreneurship and capabilities of MSMEs in Malawi, including addressing Covid-19 implications.
