Vice-President Michael Usi has urged National Economic Empowerment Fund (Neef) loans beneficiaries in Karonga District to repay the money to enable others to benefit from the revolving fund.
The Veep, who is on a nationwide tour engaging community leaders and Neef officials on loan management, said this on Thursday in the district.
“The money that government is lending out to people through Neef is a revolving fund aimed at economically empowering people to stop a donor dependence syndrome,” said Usi.
Paramount Chief Kyungu of Chitipa and Karonga districts asked fellow traditional leaders to raise awareness and intensify civic education for their subjects on the importance of servicing loans on time.
He said: “There is need for civic education for mindset change so that beneficiaries know that this is a revolving fund.
“I also warn politicians against politicising Neef and urging people not to repay loans.”
A beneficiary, Maggie Kamchacha, emphasised the need for beneficiaries to repay the loans to increase chances of obtaining another.
Neef head of operations Kisa Kalolokesya said his office was not there to punish debtors but to serve the community.
He said: “Neef has five operating regions and over 90 outlets in Malawi. Neef has also created over 1000 jobs.
“We have disbursed K133 billion to over 182 000 people with K27 billion distributed in the Northern Region, representing 22 percent.”
Kalolokesya said the Northern Region has over 42 000 beneficiaries with Karonga getting K4 billion, representing 14 percent.
“However, out of the K27 billion, we have collected K21 billion while in Karonga, we disbursed K4 billion and we collected K2.9 billion which represents 80 percent collection rate,” he said.
