Small and Medium Enterprises Development Corporation (Smedco) has announced plans to establish a microfinance institution to expand its mandate and strengthen support for small-scale businesses in line with the newly enacted Micro, Small and Medium Enterprises (MSMEs) Act.
Smedco chief executive officer Kondwani Kachamba said in an interview on Monday that the initiative is among priorities in the Act, which came into force in April 2026.
The Act gives Smedco authority to oversee business associations and ensure that MSMEs receive financial and technical assistance.
Said Kachamba: “The microfinance service will enhance collaboration with service providers and the Malawi Bureau of Standards, focusing on capacity building and conformity to standards.”
Smedco currently operates two production hubs in Phalombe and Mponela in Dowa, but intends to expand the network to drive local industrialisation.
Business Development Services Association interim committee vice-chairperson Carol Kumakanga welcomed the move, saying it will unlock opportunities for MSMEs, which are the country’s largest source of employment.
“Our community is ready to train, mentor and coach MSMEs on financing and investor readiness,” she said.
Small Scale Business Importers and Exporters Association secretary general Frank Mhango said that access to tailored finance could enable MSMEs to add value, create jobs and penetrate the export markets.
Smedco, formerly the Small and Medium Enterprises Development Institute, was established under the MSME Act.
